Up 31%: Why Pernix Therapeutics Surprised Investors
Shares of Pernix Therapeutics soared 31% yesterday after the company revealed that it had bought the U.S. rights to GlaxoSmithKline's Treximet (which helps treat migraines in adults) for $250 million upfront (and some potential additional payments later). The importance of this purchase cannot easily be overstate for Pernix -- the company had $85 million in revenue last year, while Treximet on its own brought in $79 million -- and Pernix clearly sees some additional upside potential for the drug, whether it's through a potential indication expansion (to pediatric patients) or through synergies with Pernix's current salesforce.
Where could Pernix unlock additional value for the drug? In the video below, Motley Fool health care analysts Michael Douglass and David Williamson discuss Pernix's plans for the drug and how this deal jives with the company's current offerings.
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The article Up 31%: Why Pernix Therapeutics Surprised Investors originally appeared on Fool.com.David Williamson has no position in any stocks mentioned, and neither does Michael Douglass. The Motley Fool has no position in any of the stocks mentioned. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.
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