Needham & Company Maintains a 'Buy' on Pernix Therapeutics (PTX); Acquisition Adds Strategic Muscle On Manufacturing & Development Side
Tweet Send to a FriendGet Alerts PTX Hot Sheet
Price: $3.68 +2.22%
Rating Summary:
6 Buy, 1 Hold, 0 Sell
Rating Trend:
Up
Today's Overall Ratings:
Up: 11 | Down: 18 | New: 13
Rating Summary:
6 Buy, 1 Hold, 0 Sell
Rating Trend:
Up
Today's Overall Ratings:
Up: 11 | Down: 18 | New: 13
Trade PTX Now!
Needham & Company maintains a 'Buy' on Pernix Therapeutics (NYSE: PTX) price target of $14.00.
Analyst, Elliot Wilbur, said, "Taking a step forward in terms of greater command and control over its own supply chain, PTX has announced the acquisition of Great Southern Laboratories, a privately held contract manufacturer located in Houston, TX with a broad range of current dosage form capabilities (liquids, solids, topicals). PTX will pay $4.9MM for the platform, which generated some $12.0MM in TTM revenues at, we assume, undisclosed but relatively low contract manufacturing margins. Despite low operating margin (we estimate ~10%), deal should be almost immediately accretive to the bottom line. Deal appears straightforward on the surface, enabling PTX to bring in house currently outsourced products resulting in potentially higher margins. Additionally, Great Southern has extensive development experience particularly on the generic side, which could facilitate more rapid pipeline expansion or more opportunistic product selection."
FY12 EPS estimate lowered from $0.32 to $0.28 and FY13 from $0.78 to $0.74.
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 $7.50 yesterday, with a 52 week range of $5.90-$11.50.
Join StreetInsider.com FREE and get immediately alerted when news breaks on your stocks and other market items - JOIN NOW
*NEW - Download StreetInsider's FREE iPhone and iPad App - Click Here
Analyst, Elliot Wilbur, said, "Taking a step forward in terms of greater command and control over its own supply chain, PTX has announced the acquisition of Great Southern Laboratories, a privately held contract manufacturer located in Houston, TX with a broad range of current dosage form capabilities (liquids, solids, topicals). PTX will pay $4.9MM for the platform, which generated some $12.0MM in TTM revenues at, we assume, undisclosed but relatively low contract manufacturing margins. Despite low operating margin (we estimate ~10%), deal should be almost immediately accretive to the bottom line. Deal appears straightforward on the surface, enabling PTX to bring in house currently outsourced products resulting in potentially higher margins. Additionally, Great Southern has extensive development experience particularly on the generic side, which could facilitate more rapid pipeline expansion or more opportunistic product selection."
FY12 EPS estimate lowered from $0.32 to $0.28 and FY13 from $0.78 to $0.74.
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 $7.50 yesterday, with a 52 week range of $5.90-$11.50.
Join StreetInsider.com FREE and get immediately alerted when news breaks on your stocks and other market items - JOIN NOW
*NEW - Download StreetInsider's FREE iPhone and iPad App - Click Here
You May Also Be Interested In
- Janney Capital Trims Numbers on Buckle (BKE), Margins Peaking
- Bulls and Bears Do Battle in Aeropostale (ARO); Turnaround Intact?
- Needham & Company Lifts Numbers on Marvell (MRVL) on Solid Results
Create E-mail Alert Related Categories
Analyst Comments, Analyst EPS ChangeRelated Entities
Needham & Company
Login with Facebook
Sign up for StreetInsider Free!
Receive full access to all new and archived articles, unlimited portfolio tracking, e-mail alerts, custom newswires and RSS feeds - and more!
