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Pacira Pharmaceuticals (PCRX)
NASDAQ:PCRX
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Pacira Pharmaceuticals (PCRX) AI Stock Analysis

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PCRX

Pacira Pharmaceuticals

(NASDAQ:PCRX)

Rating:60Neutral
Price Target:
$24.50
▲(10.11%Upside)
The overall score is primarily impacted by strong earnings call sentiment and strategic initiatives, offset by poor technical analysis and valuation metrics. Financial performance is stable, but high leverage and profitability challenges remain.
Positive Factors
NOPAIN Reimbursement
The NOPAIN reimbursement change, which removes Exparel from the surgical bundle and offers additional reimbursement incentives, could impact pricing strategy positively.
Patent Settlement
Pacira announced a settlement on Exparel patent litigation, which is viewed as a positive for the stock.
Share Repurchase
A new $300MM share repurchase program has been announced.
Negative Factors
Regulatory Challenges
Regulatory challenges could pose risks to Pacira's upcoming product launches.
Revenue Performance
PCRX's start to 2025 is disappointing in terms of the top-line which came in at $168.9MM, short of the Street's $176MM.
Sales Growth
Investors looking for an inflection in Exparel sales growth, but this could take longer than hoped as the NOPAIN Act is likely not a 'light switch' nor the 'silver bullet'.

Pacira Pharmaceuticals (PCRX) vs. SPDR S&P 500 ETF (SPY)

Pacira Pharmaceuticals Business Overview & Revenue Model

Company DescriptionPacira BioSciences, Inc. provides non-opioid pain management and regenerative health solutions for healthcare practitioners and their patients in the United States. The company offers EXPAREL, a bupivacaine liposome injectable suspension; ZILRETTA, a triamcinolone acetonide extended-release injectable suspension; and iovera system, a non-opioid handheld cryoanalgesia device used to produce controlled doses of cold temperature only to targeted nerves. It also develops proprietary multivesicular liposome, a drug delivery technology that encapsulates drugs without altering their molecular structure. The company was formerly known as Pacira Pharmaceuticals, Inc. and changed its name to Pacira BioSciences, Inc. in April 2019. Pacira BioSciences, Inc. was incorporated in 2006 and is headquartered in Tampa, Florida.
How the Company Makes MoneyPacira Pharmaceuticals generates revenue primarily through the sale of its core product, EXPAREL, which is widely used in hospitals and surgical centers to manage post-surgical pain. The company's revenue model is centered on the distribution and commercialization of EXPAREL, which is marketed directly to healthcare providers. Additionally, Pacira may generate income through partnerships and collaborations with other pharmaceutical companies, aimed at expanding the application of their products and enhancing market penetration. The company's earnings are significantly influenced by factors such as regulatory approvals, market adoption of non-opioid pain management solutions, and ongoing clinical research to support the efficacy and safety of its products.

Pacira Pharmaceuticals Earnings Call Summary

Earnings Call Date:May 08, 2025
(Q1-2025)
|
% Change Since: -10.68%|
Next Earnings Date:Aug 05, 2025
Earnings Call Sentiment Positive
The earnings call reflects a positive sentiment with significant strategic wins, including the EXPAREL patent settlement and strong sales growth. However, some challenges remain, particularly in the transition of sales teams and adoption of new reimbursement pathways.
Q1-2025 Updates
Positive Updates
EXPAREL Patent Settlement
Successfully settled patent infringement litigation for EXPAREL, extending exclusivity to 2039 and eliminating RDF royalty obligation, benefiting EXPAREL gross margins by a low single-digit percentage.
Growth in EXPAREL Sales
First quarter average daily EXPAREL sales and volumes were up approximately 7% over 2024, after adjusting for two fewer selling days in 2025.
PCRX-201 Progress
Patient dosing underway in Phase 2 ASCEND study of PCRX-201 in osteoarthritis of the knee, with promising early data suggesting potential for long-term pain relief.
Stock Repurchase Program
Announced a $300 million stock repurchase program, doubling the previous authorization, indicating confidence in growth outlook.
Strong Financial Performance
Consolidated first quarter non-GAAP gross margin improved to 81% from 72% last year, driven by improved costs and efficiencies.
Negative Updates
ZILRETTA Sales Decline
First quarter ZILRETTA sales declined to $23.3 million from $25.8 million in 2024 due to the transition to new sales forces.
Challenges in Healthcare Reimbursement
Logistical challenges in hospital systems adopting no pain reimbursement pathways, with broad adoption expected in the second half of the year.
Company Guidance
During the First Quarter 2025 Pacira BioSciences Earnings Conference Call, the company provided substantial guidance reflecting strong growth and strategic initiatives. Pacira introduced its "5x30" path to value creation, aimed at accelerating growth in its commercial business and advancing its innovative pipeline. Key achievements included settling patent litigation for EXPAREL, extending exclusivity to 2039, and reporting a 7% increase in average daily EXPAREL sales and volumes from 2024. The company's non-GAAP gross margin improved to 81%, benefiting from enhanced manufacturing efficiencies. Additionally, Pacira announced a $300 million stock repurchase program, signaling confidence in its growth outlook. The call also highlighted ongoing clinical progress, such as the Phase 2 ASCEND study of PCRX-201 for osteoarthritis, and the strategic acquisition of GQ Bio, enhancing its innovative gene therapy platform. The company's full-year 2025 revenue guidance was reaffirmed at $725 million to $765 million.

Pacira Pharmaceuticals Financial Statement Overview

Summary
Pacira Pharmaceuticals shows modest revenue growth and strong gross margins, but faces challenges with profitability and high leverage. Strong cash flow supports liquidity, but high debt levels and negative net income are concerns.
Income Statement
52
Neutral
Pacira Pharmaceuticals shows a modest revenue growth in the TTM with a 0.26% increase from the previous year. However, profitability metrics are concerning, with negative EBIT and net profit margins, indicating operational challenges. The gross profit margin remains healthy at approximately 73.6%, suggesting strong core business profitability despite overall losses.
Balance Sheet
65
Positive
The company's balance sheet reflects a somewhat stable position with an equity ratio of 50.3%, indicating moderate reliance on debt. However, the debt-to-equity ratio is high at 0.8, suggesting potential risk from leverage. Despite these challenges, the return on equity is negative, impacted by the net loss, which is a concern for future profitability.
Cash Flow
70
Positive
Operating cash flow remains robust, with an operating cash flow to net income ratio of -1.69, indicating strong cash generation relative to accounting losses. The free cash flow growth rate is negative year-over-year, but the company still maintains a positive free cash flow, which is a positive sign for liquidity management.
BreakdownDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue700.97M674.98M666.82M541.53M420.83M
Gross Profit530.54M490.31M467.53M401.28M303.50M
EBITDA32.25M157.58M144.78M118.47M71.42M
Net Income-99.56M41.95M15.91M41.98M145.52M
Balance Sheet
Total Assets1.55B1.57B1.68B2.08B1.27B
Cash, Cash Equivalents and Short-Term Investments484.62M278.58M288.65M656.41M521.66M
Total Debt638.85M586.04M763.39M1.13B541.13M
Total Liabilities775.17M704.26M906.19M1.34B654.83M
Stockholders Equity778.35M870.13M775.01M730.41M619.69M
Cash Flow
Free Cash Flow178.75M139.49M115.20M79.85M39.23M
Operating Cash Flow189.39M154.65M145.27M125.72M77.03M
Investing Cash Flow-83.28M77.54M-225.19M-20.79M-277.61M
Financing Cash Flow17.36M-183.03M-401.53M380.69M222.30M

Pacira Pharmaceuticals Technical Analysis

Technical Analysis Sentiment
Negative
Last Price22.25
Price Trends
50DMA
24.41
Negative
100DMA
24.51
Negative
200DMA
22.29
Negative
Market Momentum
MACD
-0.64
Positive
RSI
38.27
Neutral
STOCH
34.21
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For PCRX, the sentiment is Negative. The current price of 22.25 is below the 20-day moving average (MA) of 23.01, below the 50-day MA of 24.41, and below the 200-day MA of 22.29, indicating a bearish trend. The MACD of -0.64 indicates Positive momentum. The RSI at 38.27 is Neutral, neither overbought nor oversold. The STOCH value of 34.21 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for PCRX.

Pacira Pharmaceuticals Risk Analysis

Pacira Pharmaceuticals disclosed 69 risk factors in its most recent earnings report. Pacira Pharmaceuticals reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks

Pacira Pharmaceuticals Peers Comparison

Overall Rating
UnderperformOutperform
Sector (52)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
75
Outperform
$1.02B26.0819.23%17.17%-51.97%
75
Outperform
$1.44B-5.19%30.26%-173.36%
71
Outperform
$1.83B29.586.32%11.82%
68
Neutral
$1.07B8.2119.90%8.05%-8.46%
67
Neutral
$1.09B-34.65%252.64%85.10%
60
Neutral
$1.04B-12.27%3.08%-247.82%
52
Neutral
$7.61B0.04-62.94%2.44%16.14%0.33%
* Healthcare Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
PCRX
Pacira Pharmaceuticals
22.25
1.99
9.82%
AVDL
Avadel Pharmaceuticals
11.07
-5.23
-32.09%
SUPN
Supernus Pharmaceuticals
32.97
2.53
8.31%
ANIP
ANI Pharmaceuticals
66.90
3.64
5.75%
AMPH
Amphastar Pharmaceuticals
22.63
-18.56
-45.06%
COLL
Collegium Pharmaceutical
32.41
-1.95
-5.68%

Pacira Pharmaceuticals Corporate Events

Business Operations and Strategy
Pacira Pharmaceuticals Implements Workforce Reduction for Efficiency
Neutral
Jul 10, 2025

On July 9, 2025, Pacira BioSciences, Inc. implemented a workforce reduction at its San Diego Science Center Campus due to improved manufacturing efficiencies for EXPAREL, resulting from investments in large-scale manufacturing suites. This decision led to the decommissioning of a 45-liter manufacturing suite and affected 71 employees, approximately 8% of the workforce. The company anticipates recognizing pre-tax charges of $2.4 million to $2.8 million related to employee termination benefits and expects an annual reduction in operating expenses of approximately $13 million. The move reflects Pacira’s strategic focus on optimizing production capacity and cost structure to support growing demand for its products.

The most recent analyst rating on (PCRX) stock is a Hold with a $26.00 price target. To see the full list of analyst forecasts on Pacira Pharmaceuticals stock, see the PCRX Stock Forecast page.

Private Placements and Financing
Pacira Pharmaceuticals Secures New $300M Credit Facility
Positive
Jul 7, 2025

On July 3, 2025, Pacira BioSciences, Inc. entered into a new credit agreement with Wells Fargo Bank and other lenders to refinance its existing credit agreement and provide ongoing working capital. The agreement includes a $300 million senior secured revolving credit facility, with a maturity date of July 3, 2030, and is secured by the company’s and its subsidiaries’ assets. The company used part of this facility to repay its previous credit agreement without incurring prepayment penalties, potentially enhancing its financial flexibility and operational capacity.

The most recent analyst rating on (PCRX) stock is a Hold with a $26.00 price target. To see the full list of analyst forecasts on Pacira Pharmaceuticals stock, see the PCRX Stock Forecast page.

Executive/Board ChangesShareholder Meetings
Pacira Pharmaceuticals Stockholders Approve Amended Incentive Plan
Neutral
Jun 13, 2025

On June 10, 2025, Pacira BioSciences, Inc. held its Annual Meeting of Stockholders in Parsippany, New Jersey, where stockholders approved the Amended and Restated 2011 Stock Incentive Plan, increasing the number of shares authorized for grant by 2,500,000. Additionally, the meeting included the election of directors, ratification of KPMG LLP as the accounting firm, and decisions on executive compensation, with the board opting for annual advisory votes on executive pay, reflecting a commitment to good corporate governance.

The most recent analyst rating on (PCRX) stock is a Buy with a $48.00 price target. To see the full list of analyst forecasts on Pacira Pharmaceuticals stock, see the PCRX Stock Forecast page.

Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: Jul 08, 2025