Analyst Hardik Parikh of J.P. Morgan maintained a Sell rating on Pacira Pharmaceuticals, with a price target of $23.00.
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Hardik Parikh has given his Sell rating due to a combination of factors impacting Pacira Pharmaceuticals. The primary concern is the anticipated entry of generic competitors into the market, which is expected to significantly reduce the company’s revenue and profit margins. Exparel, which accounts for approximately 80% of Pacira’s revenue, faces the risk of substantial erosion if the company cannot defend its patents effectively. This situation is compounded by the fact that Pacira’s other products and research pipeline do not hold significant value in the eyes of investors.
Furthermore, the legal battles over Exparel’s patents are likely to be prolonged, with recent rulings casting doubt on the strength of the company’s patent portfolio. The analyst has set a price target of $23 for December 2026, based on a discounted cash flow analysis that factors in the potential for generic competition and a negative terminal growth rate. The inability to capitalize on legislative opportunities, such as the NOPAIN Act, further weakens the company’s outlook, leading to the Sell recommendation.