Cantor Fitzgerald Downgrades Pernix Therapeutics (PTX) to Sell

July 26, 2013 7:49 AM EDT Send to a Friend
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Price: $10.73 -1.56%

Rating Summary:
    7 Buy, 2 Hold, 1 Sell

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    Up: 15 | Down: 38 | New: 13
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Cantor Fitzgerald downgraded Pernix Therapeutics (NASDAQ: PTX) from Hold to Sell with a price target of $2.50, saying they are growing increasingly uneasy with the business ahead of the 2Q:13 earnings call.

Analyst Irina Rivkind cited: "(1) Prescription trends have been extremely weak for Pernix, most notably with >50% Y/Y declines in the recently acquired Hawthorn Business, and double digit declines in Cedax. We took down our numbers and are expecting another earnings miss and potentially yet another lowering of guidance because of declining prescriptions along with seasonal weakness associated with the company's cough & cold franchise. (2) Former CEO Cooper Collins sold 1.25M shares of PTX in a private placement which was disclosed after the market close, and we are taking this insider sale as a negative signal as we head into the quarterly update. (3) Pernix approved a severance agreement for Tracy Clifford, the company's Principal Financial and Accounting Officer which is another red flag, in our view, since the company has not yet replaced CFO David Becker who departed in January."

For an analyst ratings summary and ratings history on Pernix Therapeutics click here. For more ratings news on Pernix Therapeutics click here.

Shares of Pernix Therapeutics closed at $4.21 yesterday.

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