On Thursday, Piper Sandler adjusted its stock price target for Pacira Pharmaceuticals (NASDAQ:PCRX), increasing it to $12.00 from the previous $11.00, while keeping a Neutral stance on the stock.
Pacira Pharmaceuticals recently disclosed its third-quarter financial results for 2024, reporting a non-GAAP diluted EPS of $0.79 and revenue of $168.6 million. These figures were in contrast to the analysts' expectations, which anticipated an EPS of $0.70 and revenue of $169.5 million.
The company has confirmed its total revenue guidance for 2024, projecting a range of $680 million to $705 million. This forecast suggests an approximate 2.5% growth from the previous year. Moreover, Pacira anticipates maintaining non-GAAP gross margins between 74% and 76%, consistent with the 74% achieved in 2023.
The analyst's outlook remains tempered due to the ongoing uncertainty around the potential market entry of eVenus's generic product. The timing and impact of this launch pose challenges in adopting a more positive view on PCRX shares. The concern also extends to the possibility of other generic competitors entering the market.
Despite the cautious stance, Piper Sandler acknowledges that Pacira's management has certain cost structure adjustments at its disposal that could be beneficial. The updated price target reflects a minor delay in the expected timeline for generic competition for Exparel, Pacira's flagship product, as compared to previous estimates.
In other recent news, Pacira BioSciences has reported significant developments. The company's Q1 2024 revenue was $149 million, with its product Exparel contributing $118 million. In addition, Pacira launched a private placement of $250 million in convertible senior notes due in 2029, expected to yield net proceeds of approximately $242 million.
Pacira has also appointed Shawn Cross as the new Chief Financial Officer, succeeding Charles A. Reinhart III, with Lauren Riker serving as the interim CFO.
In regulatory advancements, the Centers for Medicare and Medicaid Services have assigned a new J-code for EXPAREL, expected to standardize billing and reimbursement processes. Also, Pacira's gene therapy candidate, PCRX-201, has gained recognition from both the U.S. FDA and the European Medicines Agency.
Investor perspectives on Pacira have varied. While Jefferies raised the company's price target, firms like H.C. Wainwright, RBC Capital, and Raymond (NS:RYMD) James have downgraded the company. In contrast, DOMA Perpetual Capital Management LLC has encouraged Pacira to adopt a more aggressive approach towards its stock repurchases, leveraging its $400 million cash balance. These are the recent developments shaping Pacira BioSciences' trajectory.
InvestingPro Insights
Recent InvestingPro data provides additional context to Pacira Pharmaceuticals' (NASDAQ:PCRX) financial situation and market performance. The company's market capitalization stands at $815.06 million, with a price-to-earnings (P/E) ratio of 12.88. This relatively low P/E ratio could indicate that the stock is potentially undervalued, especially considering the company's revenue of $694.96 million over the last twelve months.
InvestingPro Tips highlight that management has been aggressively buying back shares, which often signals confidence in the company's future prospects. Moreover, net income is expected to grow this year, aligning with the company's positive revenue guidance for 2024. These factors could potentially offset some of the concerns raised by Piper Sandler regarding generic competition.
It's worth noting that while Pacira isn't currently profitable over the last twelve months, analysts predict the company will be profitable this year. This projection, combined with the company's strong gross profit margin of 66.9%, suggests potential for financial improvement.
For investors seeking more comprehensive analysis, InvestingPro offers additional tips and insights. Currently, there are 5 more InvestingPro Tips available for Pacira Pharmaceuticals, providing a deeper understanding of the company's financial health and market position.
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