NEW YORK (TheStreet) -- Shares of Pernix Therapeutics Holdings (PTX) are soaring, up 7.59% to $6.95 in mid-morning trading Friday, after the company announced that the U.S. Food and Drug Administration approved its migraine drug for use in pediatric patients.
The specialty pharmaceutical company said that the FDA approved TREXIMET, for patients 12 years of age and older, for the acute treatment of migraine with or without aura.
TREXIMET is the first approved combination prescription medicine, and the first to contain sumatriptan.
It combines both sumatriptan and naproxen sodium making a more effective, sustained control of the pain and associated symptoms of migraine.
Pernix chairman and CEO Doug Drysdale said in a statement, "We are pleased with FDA's decision and look forward to bringing migraine relief to pediatric patients by making the new TREXIMET dose available in the third quarter of this year."
Morristown, N.J.-based Pernix Therapeutics is a specialty pharmaceutical business with a focus on acquiring, developing and commercializing prescription drugs.
The company targets therapeutic areas including neurology and pain management.
Separately, TheStreet Ratings team rates PERNIX THERAPEUTICS HOLDINGS as a Sell with a ratings score of D+. TheStreet Ratings Team has this to say about their recommendation:
"We rate PERNIX THERAPEUTICS HOLDINGS (PTX) a SELL. This is driven by several weaknesses, which we believe should have a greater impact than any strengths, and could make it more difficult for investors to achieve positive results compared to most of the stocks we cover. The company's weaknesses can be seen in multiple areas, such as its deteriorating net income, generally high debt management risk, disappointing return on equity, weak operating cash flow and feeble growth in its earnings per share."
Highlights from the analysis by TheStreet Ratings Team goes as follows:
- The company, on the basis of change in net income from the same quarter one year ago, has significantly underperformed when compared to that of the S&P 500 and the Pharmaceuticals industry. The net income has significantly decreased by 148.1% when compared to the same quarter one year ago, falling from -$9.54 million to -$23.67 million.
- The debt-to-equity ratio is very high at 4.78 and currently higher than the industry average, implying increased risk associated with the management of debt levels within the company. Along with the unfavorable debt-to-equity ratio, PTX maintains a poor quick ratio of 0.71, which illustrates the inability to avoid short-term cash problems.
- Return on equity has greatly decreased when compared to its ROE from the same quarter one year prior. This is a signal of major weakness within the corporation. Compared to other companies in the Pharmaceuticals industry and the overall market, PERNIX THERAPEUTICS HOLDINGS's return on equity significantly trails that of both the industry average and the S&P 500.
- Net operating cash flow has significantly decreased to -$19.04 million or 211.27% when compared to the same quarter last year. In addition, when comparing to the industry average, the firm's growth rate is much lower.
- PERNIX THERAPEUTICS HOLDINGS has experienced a steep decline in earnings per share in the most recent quarter in comparison to its performance from the same quarter a year ago. The company has reported a trend of declining earnings per share over the past two years. However, the consensus estimate suggests that this trend should reverse in the coming year. During the past fiscal year, PERNIX THERAPEUTICS HOLDINGS reported poor results of -$0.93 versus -$0.70 in the prior year. This year, the market expects an improvement in earnings ($0.35 versus -$0.93).
- You can view the full analysis from the report here: PTX Ratings Report