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PARSIPPANY, N.J. - Pacira BioSciences, Inc. (NASDAQ: PCRX), a leader in non-opioid pain therapies with annual revenues of $695 million, announced today its acquisition of the remaining 81% equity stake in GQ Bio Therapeutics GmbH for approximately $32 million. The company, which InvestingPro analysis suggests is currently undervalued, has seen its stock surge nearly 76% over the past six months. This move is part of Pacira’s strategic plan to transition into an innovative biopharmaceutical organization, focusing on genetic medicines for musculoskeletal diseases.
The acquisition includes an $18 million cash payment at closing, with the remainder to be paid over the next three years, including a key employee holdback agreement and a post-closing indemnity holdback. With a healthy current ratio of 2.25, Pacira maintains strong liquidity to support this strategic investment. This transaction builds on Pacira’s previous partnership with GQ Bio for the development of PCRX-201 (enekinragene inzadenovec) and leverages GQ Bio’s high-capacity adenovirus gene therapy vector platform.
GQ Bio’s platform is recognized for its high efficiency in gene delivery and its ability to use large and multiple gene constructs, positioning it as a novel local-delivery platform for genetic medicines. The acquisition brings a preclinical portfolio and research talent to Pacira, with expectations of near-term and long-term financial benefits, including the elimination of future milestone payments that could have totaled up to $64 million.
Pacira’s CEO, Frank D. Lee, expressed confidence that the integration of GQ Bio will enhance the company’s ability to address unmet patient needs. He highlighted the potential of the HCAd platform, particularly in addressing the underlying causes of chronic pain through a targeted molecular approach.
Pacira plans to maintain GQ Bio’s operations and invest in its gene therapy vector platform, leveraging its clinical, regulatory, and commercial capabilities. The HCAd platform is anticipated to have a commercially viable cost profile due to its efficiency and scalability in gene delivery.
The company’s lead product candidate, PCRX-201, is in clinical development for osteoarthritis of the knee. Promising Phase 1 data has shown sustained improvements in knee pain, stiffness, and function, with a well-tolerated safety profile. Enrollment for a Phase 2 study of PCRX-201 has recently begun. According to InvestingPro data, three analysts have recently revised their earnings estimates upward, reflecting growing confidence in the company’s pipeline. Discover more insights about Pacira’s potential with InvestingPro’s comprehensive research report, featuring detailed analysis of the company’s financial health, which currently scores "GREAT" at 3.14 out of 5.
The acquisition aligns with Pacira’s mission to deliver innovative pain management solutions and marks a significant step in its expansion into genetic medicine for prevalent diseases with significant unmet needs. This information is based on a press release statement from Pacira.
In other recent news, Pacira BioSciences, Inc. reported preliminary unaudited revenue of $701.0 million for the year ending December 31, 2024, marking an increase from $675.0 million the previous year. The company also revealed its "5x30" strategic plan, aiming for double-digit compound annual growth in product revenue and a 5% gross margin improvement by 2030. Fourth-quarter product sales for EXPAREL reached $147.7 million, up from $143.9 million in the same period of 2023. ZILRETTA and iovera° also saw increased sales, contributing to the company’s overall revenue growth. Additionally, Truist Securities upgraded Pacira’s stock rating from Hold to Buy, raising the price target to $25.00, reflecting confidence in the defensibility of Exparel’s new patent family. Needham analysts also raised Pacira’s price target to $30.00, reiterating a Buy rating, following the company’s strategic update and better-than-expected preliminary revenue for the fourth quarter of 2024. Meanwhile, JPMorgan adjusted its price target for Pacira to $21.00, maintaining an Underweight rating due to potential competitive risks from generic entries. Raymond (NSE:RYMD) James maintained a Market Perform rating, acknowledging Pacira’s strong fourth-quarter performance but noting uncertainties regarding generic competition for Exparel.
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