Replies to post #5635 on Pernix Therapeutics Holdings Inc. (fka PTXTQ)

[nsomniyak]

Bud - I think you are on the right track but would like to make two points.

I think PTX sells off one or two of the holding companies (drugs) and dividends cash to shareholders, and then only spins out to shareholders shares in the one holding company left, as opposed to spinning off all three to shareholders immediately. I think they have concrete offers on one or two drugs and that such offer(s) are the reason they are splitting the company in the first place.

Secondly - you simply can't say that if GSK, which is trading for $39, were to buy one of the holding companies that shares in that HC would be worth $39 each. GSK would value the HC at what they think it is worth, then pay that for the HC (could be in cash or in shares or a combination). The HC shares would then be worth (total purchase price)/(# of shares).

[nsomniyak]

I have been saying on ST for a while much the same theory as this author puts forward.

As the drugs are not complimentary to each other, to maximize value PTX needs to sell them separately. A buyer for Zohydro, for example, might see the other two drugs as just baggage to be sold off on the cheap, and certainly not worth paying a premium for, while buyers of the other drugs could see Zohydro as baggage. Even if the asset has good revenue, it may not fit with a buyer's sales force and customer base.

[Popeye]

Logical thinking. I like it.