PTX Reduces Sales Force, CFO Quits

Zacks

Pernix Therapeutics Holdings, Inc. (PTX) recently announced the integration of Hawthorn Pharmaceutical’s sales forces with its own. Moreover, the company restructured the combined sales force.
 
Following the restructuring, the strength of the sales force has been reduced by 62 heads to 125. The sales team will continue to focus on the areas of pediatrics, primary care and gastroenterology. 
 
We remind investors that on Jan 2, 2013 Pernix Therapeutics announced the completion of the acquisition of Hawthorn Pharma. The erstwhile Hawthorn Pharma offered branded pharmaceutical products for allergy, respiratory, iron deficiency, nephrology and pain management. 
 
Concurrent with the restructuring, Pernix Therapeutics also announced a change in top brass.  The incumbent Chief Financial Officer (:CFO) David Becker will quit his position effective Mar 31, 2013 due to personal reasons.
 
The search for a new CFO is underway. However, Becker will continue to serve Pernix Therapeutics as a consultant in multiple areas, including manufacturing, over-the-counter products, and business development.  
 
We remind investors that Pernix also acquired Cypress Pharmaceuticals, Inc along with Hawthorn Pharma. The erstwhile Cypress Pharma offered generic drugs targeting the fields of cough and cold, nutritional supplements, analgesics, urinary tract, women’s health, pre-natal vitamins and dental health.
 
The acquisitions were announced on Nov 14, 2012 but the terms of the payment were modified on Dec 28, 2012. The acquisitions have broadened Pernix Therapeutics’ product portfolio. 
 
We note that Pernix has been active on the acquisition front with the acquisition of Great Southern Laboratories in Jul 2012 and the merger agreement to acquire Somaxon Pharmaceuticals, Inc (SOMX) for $25 million in Dec 2012. 
 
Pernix Therapeutics currently carries Zacks Rank #2 (Buy).  Pharma stocks which currently appear to be more attractive include Medivation, Inc. (MDVN) and Targacept Inc (TRGT). Both companies carry a Zacks Rank #1 (Strong Buy).
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