Analyst Glen Santangelo from Jefferies reiterated a Buy rating on Pacira Pharmaceuticals (PCRX – Research Report) and decreased the price target to $44.00 from $50.00.
Glen Santangelo has given his Buy rating due to a combination of factors related to Pacira Pharmaceuticals’ recent settlement regarding Exparel. The resolution of the patent litigation with eVenus/Jiangsu Hengrui and Fresenius is seen as a positive development, as it provides clarity on the generic entry timeline. Although the generic entry is set for early 2030, which is sooner than initially anticipated, the volume limitations imposed until 2038 are expected to mitigate any potential negative impacts.
Furthermore, the introduction of NOPAIN reimbursement in 2025, which separates Exparel from the surgical bundle and provides additional reimbursement incentives, is anticipated to support pricing strategies and drive growth. The company’s manufacturing strategy, with a significant portion of Exparel production occurring in San Diego, reduces tariff exposure risks. These factors, combined with the expectation of revenue growth acceleration and a potential re-rating of the stock’s valuation multiple, underpin Santangelo’s optimistic outlook on Pacira Pharmaceuticals.
In another report released today, Needham also maintained a Buy rating on the stock with a $32.00 price target.