Pacira Pharmaceuticals (PCRX) has received a new Buy rating, initiated by H.C. Wainwright analyst, Douglas Tsao.
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Douglas Tsao has given his Buy rating due to a combination of factors that highlight Pacira Pharmaceuticals’ potential for growth and innovation. A key driver is the enactment of the NOPAIN Act, which eliminates barriers to accessing Exparel in surgical procedures, enhancing its market potential. Additionally, the approval for nerve blocks has improved Exparel’s clinical efficacy, aligning it more closely with anesthesiologists and reducing technique sensitivity.
Furthermore, the approval of Vertex’s suzetrigine complements Exparel, making opioid-free surgeries more attainable and likely to drive adoption. Tsao also notes the promising clinical data from Pacira’s IL-1Ra gene therapy, PCRX-201, in osteoarthritis, which could become a blockbuster product. This potential, along with the expected data from the Phase 2 ASCEND study, positions Pacira as an innovative biotech company, warranting a re-rating of its shares. The $38 price target is supported by a DCF model that accounts for the probability of success across Pacira’s portfolio.
In another report released on November 7, Needham also maintained a Buy rating on the stock with a $30.00 price target.