Pernix Therapeutics Holdings, Inc
) posted a loss of 2 cents per share in the fourth quarter of
2012 compared to earnings of 15 cents per share in the year-ago
quarter. The Zacks Consensus Estimate stood at earnings of
6 cents per share.
Revenues in the fourth quarter of 2012 came in at $18.2
million, down 14.9% from the year-ago quarter and missed the
Zacks Consensus Estimate of $24 million. The decline in revenues
was primarily due to weak sales in Pernix's cough & cold
Selling, general and administrative (SG&A) expenses in the
fourth quarter of 2012 increased 59.7% from the year-ago quarter
to $11.1 million primarily due to the company's new
gastroenterology sales force along with expenses related to the
development of the over the counter (OTC) cough and cold
candidate Dr. Cocoa.
In addition, acquisitions related expenses (acquisitions of
Cypress Pharmaceuticals, Hawthorn Pharmaceuticals, and Somaxon
Pharmaceuticals) and an increase in corporate infrastructure
costs to support growth objectives were also responsible for the
increase in SG&A.
We note that Pernix completed the acquisitions of Cypress
Pharmaceuticals (a privately-owned generic pharmaceutical
company) and Hawthorn Pharmaceuticals (a privately-owned branded
pharmaceutical company) at the end of Dec 2012. In early Mar
2013, Pernix completed the acquisition of Somaxon
For 2012, revenues increased 1% to $61.3 million, missing the
Zacks Consensus Estimate of $67 million. Branded products
contributed 55% of product revenues while generics accounted for
the remaining 36%.
Loss per share came in at 2 cents per share in 2012 while the
Zacks Consensus Estimate was a profit of 6 cents per share. In
2011, the company earned 34 cents per share.
Pernix projects revenues between $125 million and $135 million
in 2013 .The Zacks Consensus Estimate of $131 million is well
within the company's guidance range. The projected revenue range
includes contribution of recent acquisitions of Cypress
Pharmaceuticals, Hawthorn Pharmaceuticals, and Somaxon
Pernix expects to launch Dr. Cocoa, an OTC chocolate flavored
cough and cold offering in 2013. This product line includes
daytime, nighttime, cough, cold and fever formulations.
Pernix Therapeutics currently carries a Zacks Rank #3 (Hold).
Pharma stocks which appear to be attractive include
). All three carry a Zacks Rank #2 (Buy).
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