Pernix Therapeutics Holdings (PTX) Reports Fourth Quarter and Full Year 2015 Results.

A  USA based HealthCare company, Pernix Therapeutics is a specialty pharmaceutical business with a focus on acquiring, developing and commercializing prescription drugs primarily for the U.S. market. Share of Pernix Therapeutics Holdings Inc (NASDAQ:PTX) declined -14.04% and is at $1.96 in the Real-Time trading session. The company opened at $2.00 on Thursday, and is moving between $1.92 – $2.10. The company offered net profit margin of -40.60% while its gross profit margin was 71.80%. ROE was recorded as -78.10% while ATR was 0.16.

Today the company declared financial results for the fourth quarter and year ended December 31, 2015.

“In 2015, we focused on laying the groundwork for future growth.  We spent the year building our capabilities and aligning resources behind our objectives,” stated Doug Drysdale, Chairman and Chief Executive Officer.

“Over the past year we more than doubled in size, and re-invigorated our product line and selling platform.  Based on our accomplishments in 2015, I am confident that we have positioned Pernix for meaningful growth in 2016 and beyond.”

Financial Results – Full Year 2015

For full year 2015, net revenues were $175.9 million as contrast to net revenues of $121.7 million in 2014.

Treximet net sales raised by $47.0 million, or 86%, contrast to the year ended December 31, 2014, as Treximet was attained in August 2014, with the first sale occurring on September 2, 2014.  Silenor net sales raised by $5.6 million, or 37%, contrast to the year ended December 31, 2014.  The improvement in sales of Silenor was driven by a 58% improvement in volume as a result of implementing the Company’s selling and marketing strategy to enhance market awareness and grow sales, partially offset by an improvement in managed care rebates contrast to the prior year.  The improvement in Zohydro ER sales are due to the launch of this product in early May 2015.  The decrease in other product revenue was due to the discontinuation of certain less profitable products and the termination of certain contracts following which Pernix marketed and distributed products for other companies.  These declines were partially offset by sales of Zohydro ER.

Selling, general and administrative (SG&A) expenses raised by $37.3 million, or 62%, to $97.4 million, contrast to $60.2 million for the same period in 2014, driven primarily by a full year of Treximet selling and promotion expenses and costs related to the Zohydro ER acquisition.

Research and Development expenses grew by $4.3 million, or 109%, to $8.2 million contrast to $3.9 million in 2014.  The improvement was primarily due to ongoing work related to the lifecycle administration of Treximet and Zohydro ER.

Adjusted EBITDA  grew to $31.2 million, contrast to $23.8 million in 2014.  See the table at the end of this press release for a reconciliation of net loss to Adjusted EBITDA.

Depreciation and amortization expense was $94.7 million as contrast to $33.0 million in 2014.  The improvement was primarily a result of a full year of amortization related to the Treximet acquisition and the Zohydro ER acquisition.

Interest expense, net for the year ended December 31, 2015 was $38.1 million contrast to $18.8 million last year.  The improvement is due primarily to a full year of interest expense on the 12% Senior Secured Notes in 2015 as contrast to four months in 2014.

Losses from impairments of intangibles and disposal of assets were $24.4 million for the year ended December 31, 2015 contrast to $0.2 million for the year ended December 31, 2014.  These losses were primarily attributable to our legacy, non-core products from the 2012 acquisition of Cypress and Hawthorn.

Financial Results – Fourth Quarter 2015

For the fourth quarter of 2015, net revenue was $46.4 million contrast to $53.8 million for the fourth quarter of 2014.

Treximet net sales reduced by $11.7 million, or 30%, to $26.8 million contrast to $38.5 million in the fourth quarter of 2014.  The decrease was driven by an 18% decrease in volume and higher managed rebate rates in the fourth quarter of 2015 due to completion of managed care contracting post-acquisition.  The decrease in volume was the result of the impact of a multi-year declining volume trend underway when Pernix attained the product.  Pernix reversed this trend during the second quarter of 2015.  Silenor net sales declined by $1.0 million, or 18%, contrast to the fourth quarter of 2014.  While volume raised by 32% in the fourth quarter of 2015 as contrast to the fourth quarter of 2014, this was more than offset by higher managed care rebate rates in 2015 than in 2014.  The decrease in other product revenue was due to the discontinuation of certain less profitable products and the termination of certain contracts following which Pernix marketed and distributed products for other companies.  These declines were partially offset by sales of Zohydro ER, which was attained in April 2015.

Selling, general and administrative (SG&A) expenses in the fourth quarter of 2015 raised by $4.5 million, or 23%, to $24.2 million, contrast to $19.6 million for the same period in 2014, driven primarily by the addition of the Zohydro ER sales force.

Research and Development expenses grew by $0.3 million, or 11%, to $2.6 million in the fourth quarter of 2015, contrast to $2.3 million in the fourth quarter of 2014.  The improvement was primarily due to ongoing work related to the lifecycle administration of Treximet and Zohydro ER.

Adjusted EBITDA was $10.0 million for the fourth quarter of 2015 contrast to $22.9 million in the fourth quarter of 2014.  See the table at the end of this press release for a reconciliation of net loss to Adjusted EBITDA.

Depreciation and amortization expense was $28.2 million as contrast to $18.7 million in the same period last year.  The improvement was primarily a result of the Zohydro ER acquisition.

Interest expense, net for the three months ended December 31, 2015 was $9.5 million contrast to $10.0 million last year.

Losses from impairments of intangibles and disposal of assets were $24.4 million for the quarter ended December 31, 2015 contrast to $0.2 million for the quarter ended December 31, 2014.  These losses were primarily attributable to the Company’s legacy, non-core products from the 2012 acquisition of Cypress and Hawthorn.

As the owner ship concerns stocks institutional ownership remained 87.60% while insider ownership included 39.04%. The share capital of PTX has 61.06 Million outstanding shares amid them 121.35 Million shares have been floated in market.

For investors focus on the performance of the stocks so the PTX showed weekly ahead performance of 3.64% which was maintained for the month at  8.57%. Correspondingly the negative  performance for the quarter was remained 17.09% and if took notice on yearly performance that was 80.36% whereas the year to date performance halted at 22.71%.

The stock is going forward its 52 week low with 18.75% and lagging behind from its 52 week high price with 84.51%. PTX last month stock price volatility remained 7.23%.

Company’s beta coefficient included 1.95. Beta factors measures the amount of market risk associated with market trade.

Pernix Therapeutics Holdings Inc (NASDAQ:PTX) has received rating from Wall-Street Analysts. Currently the stock has been rated as “Buy” from “1” Analysts. “0” analyst has suggested “Sell” for the company. “0” analysts have rated the company as a “Hold”. Strong Buy rating was given by “3” analysts and Underperform rating was given by “0” analyst.

2016 Full-Year Guidance

For the full twelve months ended December 31, 2016, Pernix is providing net sales and adjusted EBITDA guidance as follows:

Net Sales Guidance: $190 million to $205 million

Adjusted EBITDA Guidance: $35 million to $45 million

Conference Call : As formerly declared, Pernix will hold a conference call to discuss results for the fourth quarter and full year 2015 as follows:

Date: Thursday, March 10, 2016

Time: 8:30 A.M. EST

Live webcast: https://public.viavid.com/index.php?id=118501

Toll free: 888-572-7025

International: 719-325-2432

About Travis Garlick 1531 Articles
Been writing about and trading stocks since 2013. Manage a group of micro-cap investors on Facebook with over 15,000 members. Turned $8,500 into 185k the first year I started trading stocks and haven't looked back.