Last night, Broadfin Capital, a healthcare focused hedge fund managed by Kevin Kotler, disclosed in a Securities and Exchange Commission filing that it has initiated a 3.5 million share position in Pernix Therapeutics (NASDAQ:PTX), which amounts to a 9.4% stake in the specialty pharmaceutical company.
Pernix Therapeutics (NASDAQ:PTX) is a $136.4 million market cap specialty pharmaceutical company that focuses on branded and generic products for the pediatric market. It develops products for allergy and upper respiratory, including nasal, chest congestion and cough, antibiotics, and dermatology. The company was founded in November 1996 and is headquartered in The Woodlands, TX. The stock, which is down 41% over the past 12 months, trades at a forward price / sales multiple of 1.3X and has been unprofitable, generating losses per share that missed consensus expectations for the past four quarters. Current estimates imply Pernix Therapeutics (NASDAQ:PTX) could break even for the full year 2014.
Kevin Kotler’s Broadfin Capital is located in New York City. Its portfolio consists of smaller stocks with market caps below $1 billion operating in the drug manufacturing / delivery, biotechnology, medical instruments / supplies / appliances / equipment, drug stores, healthcare plans and medical research. Before working with Broadfin, Kevin Kotler worked for The Galleon Group, ABN AMRO, and ING Barings. The fund has between $400 and $500 million in assets under management.