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TAMPA, Fla. - Pacira BioSciences, Inc. (NASDAQ: PCRX), a company focused on non-opioid pain management therapies, announced that the Centers for Medicare and Medicaid Services (CMS) has assigned a new J-code, J0666, for its product EXPAREL. This code, effective from January 1, 2025, is set to replace the current C-code, C9290, and is expected to standardize billing and reimbursement processes for EXPAREL when used in outpatient settings, office settings, and for office-based surgeries.
EXPAREL (bupivacaine liposome injectable suspension) is designed to provide long-lasting, non-opioid pain control for patients aged 6 years and above through local analgesia via infiltration and for adults through regional analgesia. The drug has been administered to over 15 million patients in the United States.
The new J-code is anticipated to help streamline the reimbursement process across various sites of care and payer types, potentially increasing clinician access to EXPAREL. Frank D. Lee, CEO of Pacira, expressed satisfaction with the CMS decision, noting the importance of the J-code for commercial payer recognition and coverage, especially in light of the forthcoming implementation of the NOPAIN Act reimbursements in January 2025.
EXPAREL combines bupivacaine with multivesicular liposomes, a delivery technology that allows the medication to be released over an extended period. The efficacy of EXPAREL for postsurgical pain management has been demonstrated in various nerve blocks, but its safety and effectiveness for other nerve blocks have not been established.
Pacira BioSciences is also known for its other commercial-stage non-opioid treatments, including ZILRETTA (for osteoarthritis knee pain) and iovera° (a drug-free pain control device), and is developing PCRX-201, a gene therapy for diseases like osteoarthritis.
The information provided in this article is based on a press release statement from Pacira BioSciences.
In other recent news, Pacira BioSciences has experienced a series of significant developments. The company's Chief Financial Officer, Charles A. Reinhart III, is set to depart, with Lauren Riker appointed as the interim CFO. Pacira also reported Q1 2024 revenue of $149 million, with Exparel contributing $118 million. Furthermore, the company launched a private placement of $250 million in convertible senior notes due in 2029, anticipated to yield net proceeds of approximately $242 million.
In the meantime, Pacira has been making strides with its gene therapy candidate, PCRX-201, which has received recognition from both the U.S. FDA and the European Medicines Agency. The therapy aims to reduce pain and potentially slow the progression of osteoarthritis in the knee.
DOMA Perpetual Capital Management LLC has encouraged Pacira to adopt a more aggressive approach towards its stock repurchases, leveraging its $400 million cash balance to enhance shareholder value. However, analysts' views on Pacira have varied, with Jefferies raising the company's price target while firms like H.C. Wainwright, RBC Capital, Raymond James, and Piper Sandler have downgraded the company following a legal setback over its drug Exparel.
Finally, despite a majority of "withhold" votes in the 2024 Annual Meeting of Stockholders, Pacira decided to retain Ms. Laura Brege as a Class I director. These are the recent developments that have shaped the trajectory of Pacira BioSciences.
InvestingPro Insights
As Pacira BioSciences (NASDAQ: PCRX) prepares for the implementation of its new J-code for EXPAREL, investors may find additional context from recent financial data and analyst insights valuable. According to InvestingPro, Pacira's market capitalization stands at $716.35 million, reflecting the company's current market valuation as it navigates this regulatory development.
The company's financial health appears stable, with InvestingPro data showing a price-to-earnings (P/E) ratio of 11.3, suggesting a relatively modest valuation compared to earnings. This could be particularly relevant as Pacira anticipates potential increased access to EXPAREL following the J-code implementation.
InvestingPro Tips highlight that Pacira's net income is expected to grow this year, which aligns with the potential positive impact of the new J-code on EXPAREL's reimbursement process. Additionally, the company's valuation implies a strong free cash flow yield, indicating efficient cash generation relative to its market value—a positive sign as Pacira prepares for the NOPAIN Act reimbursements in 2025.
It's worth noting that while Pacira has seen a significant return over the last week, with a 1-week price total return of 8.37%, the stock has taken a substantial hit over the last six months, with a 6-month price total return of -46.47%. This volatility underscores the importance of the upcoming J-code implementation and its potential to stabilize and potentially boost the company's market performance.
For investors seeking a more comprehensive analysis, InvestingPro offers 8 additional tips for Pacira BioSciences, providing a deeper dive into the company's financial health and market position.
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