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Pernix Therapeutics reports decrease in net sales for 2010 second quarter

Published on August 17, 2010 at 1:04 AM · No Comments

Pernix Therapeutics Holdings, Inc. (NYSE Amex: PTX), a specialty pharmaceutical company primarily focused on the pediatric market, today announced results for the quarter and six months ended June 30, 2010.

Second Quarter 2010 Highlights

  • Commenced sales of Cedax®, an antibiotic for middle ear infections;
  • Profitability sustained - reported income before taxes and non-controlling interest of $365,000 for the second quarter of 2010;
  • Broadened opportunity to grow collaboration revenue via a co-promotion agreement with Macoven to exclusively market ZEMA PAK®, a corticosteroid for skin rashes;
  • Hired 25 new sales representatives in June 2010 increasing our sales team by 78% ;
  • Maintained a debt-free balance sheet with $11,926,000 of cash, cash equivalents and restricted cash; and
  • Added to the Russell Microcap® Index on June 28, 2010.

For the second quarter of 2010, net sales were approximately $4,358,000, compared to $6,514,000 for the prior-year quarter. This decrease was primarily due to increased sales of lower-priced products through a planned change in product mix, Medicaid rebates and a one-time promotional price offered to customers in the prior-year quarter. Income before taxes and non-controlling interest during the quarter was $365,000, compared to $2,954,000 in the prior-year period. The decrease was primarily due to lower margins from the increased Medicaid rebate expense on certain product sales. The Company's after-tax income was approximately $167,000, or $0.01 per share, as compared to $2,961,000, or $0.14 per share, in the prior-year quarter.

For the six months ended June 30, 2010, net sales were approximately $13,231,000, compared to $13,748,000 for the prior-year period. Pernix's income before taxes and non-controlling interest was approximately $4,619,000 for the six months ended June 30, 2010, compared to $5,542,000 for the six months ended June 30, 2009. Pernix's after-tax income was approximately $5,435,000, or $0.23 per share, compared to $5,643,000, or $0.27 per share, in the prior-year period. The after-tax income for the six months ended June 30, 2010 includes one-time benefits associated with the termination of Pernix's "S" Corporation election and the recognition of net operating loss carry forwards associated with Pernix's March 10, 2010 reverse merger with Golf Trust of America, Inc.

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