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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:61Neutral
Price Target:
$26.00
▼(-2.51% Downside)
Pacira Pharmaceuticals' overall stock score is driven by strong earnings call sentiment and positive technical indicators. However, financial performance and valuation concerns, including negative profitability and a high P/E ratio, weigh down the score.
Positive Factors
Partnerships
A new co-promote partnership with J&J MedTech for Zilretta is anticipated to boost sales.
Revenue Growth
Revenue growth is expected to accelerate with NOPAIN driving higher volumes, and the settlement is seen as key to unlocking a re-rate in the stock's valuation multiple.
Stock Performance
PCRX shares have had a strong performance YTD after the Company settled patent litigation for Exparel.
Negative Factors
Market Share
There are concerns about competitive pressures impacting Pacira's market share.
Product Launch Risks
Regulatory challenges could pose risks to Pacira's upcoming product launches.
Sales Performance
Exparel sales missed expectations for the second straight quarter.

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

Pacira Pharmaceuticals Business Overview & Revenue Model

Company DescriptionPacira Pharmaceuticals, Inc. is a biopharmaceutical company focused on developing and commercializing innovative non-opioid pain management and regenerative medicine solutions. The company primarily operates in the pharmaceutical sector, with a core emphasis on its lead product, EXPAREL, a liposomal bupivacaine injection used for postsurgical pain management. Pacira is dedicated to improving patient outcomes and reducing reliance on opioids through its advanced delivery systems and formulations.
How the Company Makes MoneyPacira Pharmaceuticals generates revenue primarily through the sales of EXPAREL, which is marketed for managing postsurgical pain. The company employs a direct sales force and collaborates with healthcare providers to promote the use of its products in various surgical settings. Revenue is bolstered by a growing acceptance of non-opioid pain management solutions among healthcare professionals and institutions. Additionally, Pacira engages in strategic partnerships and collaborations with other healthcare organizations to expand its market reach and enhance its product offerings. The company may also generate revenues through licensing agreements and potential royalties from future product developments.

Pacira Pharmaceuticals Earnings Call Summary

Earnings Call Date:Aug 05, 2025
(Q2-2025)
|
% Change Since: |
Next Earnings Date:Oct 30, 2025
Earnings Call Sentiment Positive
The earnings call reflects a positive sentiment overall, with significant achievements in EXPAREL volume growth, enhanced gross margins, strategic partnerships, and a strong financial position. However, there are concerns regarding stagnant sales for ZILRETTA and iovera°, increased operating expenses, and delays in the adoption of NOPAIN guidelines.
Q2-2025 Updates
Positive Updates
EXPAREL Volume Growth
EXPAREL performance improved with 6% year-over-year volume growth, marking the highest in 8 quarters.
Enhanced Gross Margins
Non-GAAP gross margin improved to 82% versus 76% last year, benefiting from manufacturing efficiencies.
Strategic Partnership with J&J MedTech
Pacira executed a potentially transformative collaboration with Johnson & Johnson MedTech for ZILRETTA, expected to double sales calls for the product.
Strong Financial Position
Enhanced capital structure and liquidity with a new $300 million revolver and significant debt reduction.
Successful Share Repurchase
Disciplined capital allocation with the repurchase of $50 million of common stock.
Negative Updates
ZILRETTA and iovera° Sales Performance
Second quarter ZILRETTA sales were $31.3 million compared to $30.7 million in 2024, and iovera° sales were $5.6 million compared to $5.7 million in the second quarter of 2024, indicating stagnant growth.
Increased Operating Expenses
Non-GAAP SG&A expenses increased to $77.2 million from $59 million last year due to investments in commercial, medical, and market access organizations.
NOPAIN Adoption Timeline
Facilities adopting the NOPAIN reimbursement guidelines could take 6 to 12 months, delaying expected growth.
Company Guidance
During the Pacira Biosciences Q2 2025 earnings call, the company provided guidance emphasizing several key metrics. Notably, there was a 6% year-over-year volume growth for their flagship product, EXPAREL, marking the highest growth in eight quarters. The company narrowed its full-year revenue guidance to $730 million to $750 million, reflecting confidence in their commercial and clinical strategies. They also increased their guidance for non-GAAP gross margins to a range of 78-80% due to enhanced manufacturing efficiencies. Additional financial highlights included a new $300 million revolving credit facility and a $50 million repurchase of common stock, signaling a strategic focus on capital allocation. The company's 5x30 strategy, aiming for five strategic partnerships by 2030, was bolstered by a new collaboration with Johnson & Johnson MedTech for ZILRETTA, expected to significantly expand patient access. Overall, Pacira remains focused on its strategic imperatives of growing its commercial base and advancing its innovative pipeline.

Pacira Pharmaceuticals Financial Statement Overview

Summary
Pacira Pharmaceuticals shows stable revenue growth and strong gross margins, but faces challenges with profitability and high leverage. While cash flow generation is strong, supporting operational liquidity, the high debt levels and negative net income weigh down the financial outlook.
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.
BreakdownTTMDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue705.85M700.97M674.98M666.82M541.53M420.83M
Gross Profit551.93M530.54M490.31M467.53M401.28M303.50M
EBITDA-455.00K29.12M157.58M144.78M118.47M71.42M
Net Income-127.46M-99.56M41.95M15.91M41.98M145.52M
Balance Sheet
Total Assets1.54B1.55B1.57B1.68B2.08B1.27B
Cash, Cash Equivalents and Short-Term Investments445.86M484.62M278.58M288.65M656.41M521.66M
Total Debt631.40M638.85M586.04M763.39M1.13B541.13M
Total Liabilities779.50M775.17M704.26M906.19M1.34B654.83M
Stockholders Equity757.77M778.35M870.13M775.01M730.41M619.69M
Cash Flow
Free Cash Flow117.07M178.75M139.49M115.20M79.85M39.23M
Operating Cash Flow134.52M189.39M154.65M145.27M125.72M77.03M
Investing Cash Flow-16.00M-83.28M77.54M-225.19M-20.79M-277.61M
Financing Cash Flow-65.30M17.36M-183.03M-401.53M380.69M222.30M

Pacira Pharmaceuticals Technical Analysis

Technical Analysis Sentiment
Positive
Last Price26.67
Price Trends
50DMA
23.71
Positive
100DMA
24.61
Positive
200DMA
23.28
Positive
Market Momentum
MACD
0.85
Negative
RSI
67.86
Neutral
STOCH
86.31
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For PCRX, the sentiment is Positive. The current price of 26.67 is above the 20-day moving average (MA) of 24.95, above the 50-day MA of 23.71, and above the 200-day MA of 23.28, indicating a bullish trend. The MACD of 0.85 indicates Negative momentum. The RSI at 67.86 is Neutral, neither overbought nor oversold. The STOCH value of 86.31 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive 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 (51)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
76
Outperform
$2.53B39.436.38%5.55%1145.24%
73
Outperform
$1.22B37.4616.16%22.61%-63.00%
68
Neutral
$1.42B11.4618.32%1.37%-18.10%
66
Neutral
$1.43B-3.63%132.35%97.34%
66
Neutral
$2.03B-2.82%38.68%-160.14%
61
Neutral
$1.20B-15.57%2.25%-301.59%
51
Neutral
$7.84B-0.18-41.53%2.28%22.72%-1.87%
* Healthcare Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
PCRX
Pacira Pharmaceuticals
26.67
11.49
75.69%
AVDL
Avadel Pharmaceuticals
14.76
-0.22
-1.47%
SUPN
Supernus Pharmaceuticals
45.12
10.41
29.99%
ANIP
ANI Pharmaceuticals
93.50
30.47
48.34%
AMPH
Amphastar Pharmaceuticals
30.62
-16.36
-34.82%
COLL
Collegium Pharmaceutical
38.80
1.38
3.69%

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.

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.

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.

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: Aug 19, 2025