Broadfin Capital Initiates Stake in Pernix Therapeutics (PTX)

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.

Kevin Kotler

The two other hedge fund managers tracked by us that are bullish on PTX are Samuel Isaly of Orbimed Advisors and Edward Gilhuly and Scott Stuart of Sageview Capital, who own 2.3 million shares (or a 6.3% stake) and 2.2 million (or a 6.0% stake), respectively. Interestingly, both Broadfin and Orbimed, who are now the two largest shareholders of Pernix Therapeutics (NASDAQ:PTX), focus on healthcare stocks, with the former investing primarily in smaller pharmaceutical and biotechnology micro-cap stocks and the latter investing across sub-industries and market caps within the healthcare space. This reflects the specialist knowledge and skillset required to invest in this industry, especially for smaller stocks.

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.

Disclosure: none

Recommended Reading:

Samuel Isaly Says He Is Fond of Regeneron Pharmaceuticals Inc (REGN) & InterMune Inc (ITMN)

Luxor Capital Group Raises Stake and Goes Activist on BJ’s Restaurants, Inc. (BJRI)

George Soros and Jeff Altman Are Both Betting On These Six Stocks

Comments
Insider Monkey Small Cap Strategy
Insider Monkey Small Cap Strategy

Insider Monkey beat the market by 52 percentage points in 24 months. Our beta is only 1.2 (don't click this link if beating the market isn't important to you).

Lists

The 10 Most Expensive iPhone Apps

The 9 Most Expensive Designer Shoes in the World

The 10 Most Expensive Cigarette Brands

The 10 Most Expensive Law Schools in the US

The 10 Best Wall Street Movies

The 10 Most Expensive Golf Clubs Ever Sold

The 10 Most Expensive Golf Memberships

The 10 Best Disney Characters Ever Created

The 8 Best Foods for Gaining Weight

The 10 Most Expensive Colleges in the World

The 7 Most Memorable Ad Campaigns of All Time

The 7 Most Expensive High Schools in the World

The 10 Electric Vehicles with the Longest Range

The 10 Cities with the Worst Drivers in the World

The 10 Most Expensive Dresses Ever Created

10 Islands to Visit Before You Die

10 Famous Celebrities Who Needed Rehab

The 15 Countries with the Largest Oil Reserves

The 10 Most Overused Excuses in the World

The 5 Best iOS Apps You Can’t Get on Android

5 Companies Damaged By Social Media Blunders

The 10 Most Legendary Blues Songs

The 10 Most Lawless Places in the World

4 Reasons China is a Threat to the US

The 17 Most Sugary Drinks in the World

The 10 Most Ruthless Rulers in History

The 10 Greatest Generals in History

Top 8 Travel Destinations for 2015

The 10 Safest Dog Breeds for Children

The 10 Most Stolen Vehicles in the US

The 7 Most Expensive Celebrity Weddings

The 10 Best LoL Teams in the World

Top 10 Worst Marketing Campaigns Ever Produced

Top 5 Diets that Help You Lose Weight

The 10 Best Ways to Stay Awake

7 Artists That Switched Musical Genres

The 10 Most Expensive Cities to Live in New Jersey

The 10 Best High Schools in New York

The 10 Countries With the Least Gender Inequality

The 6 Biggest Musician-Manager Feuds

The 10 Countries with the Cheapest Gas Prices

The 7 Most Theatrical Bands of All Time

The 8 Worst Band Breakups of All Time

The 10 Most Important South American Leaders

The 7 Most Successful Casting Show Winners

The 10 Most Peaceful Countries in the World

5 Big Reasons Communism Failed

The 15 Most Famous Carl Icahn Quotes

10 Scary Animals that are Actually Harmless

The 8 Most Famous Singer-Actors in Entertainment

Subscribe

Enter your email:

Delivered by FeedBurner

X

Thanks! An email with instructions is sent to !

Your email already exists in our database. Click here to go to your subscriptions

Insider Monkey returned 47.6% in its first year! Wondering How?

Download a complete edition of our newsletter for free!