considering another company stock has gone through the roof with their Mary Jane perspective which is probably less effective regarding Dravet syndrome medication.
And even after that, the company considered its 200-rep tally “relatively small … compared with the number of sales representatives of most other pharmaceutical companies,” Pernix wrote in its 10-K filing.
Now, it’ll be up to its reps to do more with less--but there will be incentives on the table. The Morristown-based drugmaker is switching up its compensation plan to reward field staff who make more calls on targeted docs, it said.
by Carly Helfand | Jul 8, 2016 9:47am
It wasn’t all that long ago that Pernix Therapeutics ($PTX) was doubling its sales force with the addition of 100 reps from deal partner Zogenix ($ZGNX). Now, though, its ranks are shrinking.
The New Jersey-based company Thursday announced it would be paring down its rep army by 23%, chopping 54 positions--primarily from its neurology team--as part of a sales-wide revamp. It’ll also be reorganizing its sales territories to cut down on unnecessary travel and consolidating its neurology and pain sales forces under one management structure, it said.
Six admin staffers will also lose their jobs as part of the reorganization, Pernix said.
“It became clear that there were significant opportunities to optimize Pernix’s field force to more efficiently cover the most productive physicians. The actions announced today are designed to improve productivity, instill a more results-based culture and enable Pernix to more effectively serve our customers,” Chairman and interim CEO John Sedor said in a statement.
Overall, Pernix expects the changes to yield cost savings of about $10 million per year, starting in this year’s third quarter. The specialty company will take a one-time hit of $2 million, also in Q3, as it puts its plan into action.
It was only just over a year ago that Pernix was beefing up its sales force. Late last April, it closed deal worth up to $383 million for Zogenix’s controversial all-hydrocodone pain med Zohydro, folding in 100 reps as part of the transaction. As a spokeswoman told FiercePharmaMarketing when the companies inked their pact, those 100 reps were to be trained on Pernix’s prescription sleep aid Silenor, which they could talk up in tandem. There would also be opportunities to discuss Treximet, a migraine med acquired from GlaxoSmithKline ($GSK), with pain specialists, she said.
Jason Cohen, Editor — July 8, 2016, 9:49 AM EDT
In a research report published Friday, Brean Capital analyst Difei Yang reiterated a Buy rating on shares of Pernix Therapeutics Holdings Inc (NASDAQ:PTX), with a $3.00 price target, after the company announced a reduction of 60 employees and expects $10 million in annualized cost savings.
Yang noted, “We view this as a small step towards the right direction to unlock the value. We think potential successful execution of Treximet life cycle management is the most important catalyst we will watch for and we expect it to materialize before Q1, 2017.”
The analyst continued, “Treximet is expected to face generic entry in 2018. To pull off such a strategy, we expect the sNDA submission to occur not later than Q1 of 2017 and updates from management on the timing of such sNDA filing would be helpful in properly valuating Treximet. We believe the market currently assumes zero valuation in Treximet starting in 2018.”
Subsequently a recovery to higher levels beyond $1.00 a share, quieting the delisting and reverse split noise.
The stock has been trading at oversold and erroneous bankruptcy levels. Recent developments and company news point to other realities and suggest possible alternatives such as merger and acquisition, debt refinancing and a concerted effort of a turnaround.