Pacira: Maintaining Buy on Durable Non-Opioid Growth and Share Buybacks Despite Near-Term Revenue Softness

Analyst Serge Belanger from Needham maintained a Buy rating on Pacira Pharmaceuticals and keeping the price target at $30.00.

Serge Belanger has given his Buy rating due to a combination of factors that, in his view, outweigh the modest short-term headwinds. While Pacira’s preliminary fourth-quarter 2025 revenue came in slightly below consensus, both Exparel and Zilretta still delivered year-over-year growth, with Exparel’s sales supported by healthy volume expansion that more than offset the impact of new discounting tied to a group purchasing organization agreement. The company’s continued ability to grow Exparel volumes, even as pricing adjusts, indicates durable demand for its non-opioid pain management franchise. In addition, Pacira’s active share repurchase program, including the buyback of 2.0 million shares in the quarter and a sizable remaining authorization, signals management’s confidence in the intrinsic value of the business and provides incremental support to the stock.

Serge Belanger also appears to factor in the near-term overhang from the revenue miss and the deceleration in Exparel volume growth, expecting these issues may pressure the shares but viewing them as manageable within a broader growth trajectory. With formal 2026 guidance yet to be issued, he likely sees potential for updated outlooks and future catalysts to reframe investor expectations. Overall, the combination of steady product-level growth, strategic capital allocation via buybacks, and the long-term prospects of Pacira’s non-opioid pain portfolio underpin his decision to maintain a positive stance on the shares despite temporary softness in quarterly metrics.

According to TipRanks, Belanger is a 5-star analyst with an average return of 13.5% and a 51.10% success rate. Belanger covers the Healthcare sector, focusing on stocks such as Viridian Therapeutics, Cormedix, and Cytokinetics.