Pernix Therapeutics Holdings Inc filed for bankruptcy on February 18, 2019, with an FHR of 22, High Risk. Pernix Therapeutics ($275M total assets) is a specialty pharmaceutical business with a focus on acquiring, developing and commercializing prescription drugs. Over the past few years they’ve been struggling to perform with the loss of a few key products, while their debt has increased.
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FHR at default: 22, High Risk |
What the ratings tell you.
Pernix’s FHR is at the bottom of High Risk signalling the need for risk mitigation. To put this into perspective, the global drugs and pharma sector has an FHR of 55, on the healthier end of our Medium Risk. Pernix has shown sizable underperformance in many metrics, which clients can see in the company's Peer Benchmark Report on our portal.
Where our analysis tells the story.
Our performance scores clearly identify that Pernix has had troubles with profitability and were not operating efficiently.
We see that come back into play as our Financial Dialogue has highlighted Profit Margins as a priority item of concern. Understandably so, as the Operating Profit Margin is negative, leaving them with no operating profit to cover their interest. In addition, their leverage has remained weak as their debt has grown from $283M to $322M within one year. Quite hard to recover from!
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Turn to the Financial Dialogue for extended questions and education as to why these Priority Items are so vital to understanding your suppliers financial health! |
