Needham & Company Maintains a 'Buy' on Pernix Therapeutics (PTX); Acquisition Adds Strategic Muscle On Manufacturing & Development Side
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Price: $0.21 --0%
Rating Summary:
4 Buy, 6 Hold, 0 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 13 | Down: 14 | New: 11
Rating Summary:
4 Buy, 6 Hold, 0 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 13 | Down: 14 | New: 11
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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.
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.
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