Signing bad managed care contracts just to gain access at all costs is a fools errand. Gross Margins are getting crushed, and prescription growth cannot make up the difference. Our company will NEVER make a profit big enough to pay off the $300M debt. See below:
Needham & Company
downgraded Pernix Therapeutics (NASDAQ:
PTX) from Buy to Hold.
Analyst Serge Belanger commented, "Late-2015 softness led to a 4Q15 miss and initial 2016 guidance points to continued challenges to growth prospects and the ongoing turnaround strategy. While Zohydro shows signs of promise, both Silenor and Treximet are likely to run in place as increasing Rx volume growth will be required to offset negative gross-to-net adjustments. The limited growth will restrict PTX's ability to delever (current net debt: ~$299) and implement initiatives to re-acclerate growth. We expect PTX to take up residency in the "penalty box" until there are signs of higher sustainable growth and/or an outcome from ongoing strategic alternative explorations."