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BRISBANE, Calif. - Pacira BioSciences, Inc. (NASDAQ: PCRX), a leader in non-opioid pain therapies with a market capitalization of $1.15 billion, today announced a new share repurchase program authorizing the buyback of up to $300 million in common stock. According to InvestingPro data, management has been actively repurchasing shares, demonstrating confidence in the company’s future. This move is part of the company’s broader 5x30 strategy aimed at transitioning into a leading biopharmaceutical company focused on musculoskeletal pain management.
The repurchase program, which replaces the previous authorization announced on May 7, 2024, is set to expire at the end of December 2026. This strategic action underscores the Board’s confidence in the company’s growth trajectory and commitment to delivering shareholder value. The company’s strong financial health score of 3.11 out of 5 on InvestingPro supports this confidence, with liquid assets exceeding short-term obligations.
Pacira’s 5x30 plan includes ambitious goals to be achieved by 2030, such as treating over 3 million patients annually, realizing a double-digit compounded annual growth rate for revenue, improving gross margins by 5 percentage points over 2024, expanding the clinical pipeline with 5 novel programs, and establishing 5 new partnerships. Analysts project 7% revenue growth for the coming year, with two analysts recently revising their earnings estimates upward, according to InvestingPro research reports, which provide comprehensive analysis of 1,400+ top stocks.
The company’s CEO, Frank D. Lee, expressed confidence in the 5x30 strategy, highlighting the extended exclusivity of EXPAREL until 2039 as a strong foundation for future growth. He emphasized the significant progress made in the company’s value creation plan and the focus on disciplined execution to accelerate long-term growth and innovation in pain management. The company’s strong free cash flow yield of 16% and current trading price of $24.65 suggest potential upside according to InvestingPro’s Fair Value analysis.
Pacira’s current portfolio includes EXPAREL, a long-acting local analgesic; ZILRETTA, an extended-release injection for osteoarthritis knee pain; and iovera°, a handheld device for drug-free pain control. Additionally, the company is advancing the development of PCRX-201, a locally administered gene therapy for diseases like osteoarthritis.
The announcement of the repurchase authorization and the reaffirmation of the 5x30 plan reflect Pacira’s ongoing efforts to enhance operational efficiency and drive margin expansion, with the aim of creating sustainable value for its shareholders. This information is based on a press release statement issued by Pacira BioSciences.
In other recent news, Pacira BioSciences has settled its patent litigation concerning its flagship product, EXPAREL, with Fresenius Kabi and other parties. This settlement effectively protects Pacira’s market exclusivity for EXPAREL, a non-opioid pain therapy, until 2030, with further provisions extending to 2039. As part of the agreement, Fresenius will be allowed to sell limited quantities of a generic version of EXPAREL starting in 2030, with full volume rights beginning in 2039. RBC Capital Markets has responded to this development by raising Pacira’s price target to $26, maintaining a Sector Perform rating, while H.C. Wainwright increased its target to $65 and reiterated a Buy rating. Analysts at Stifel and Raymond James view the settlement as a positive outcome, with Stifel expressing confidence in Pacira’s market position and Raymond James noting the company’s ambitious revenue growth targets. This agreement is expected to mitigate the risk of generic competition and provide a clearer long-term outlook for Pacira’s revenue stream. The market’s response has been positive, reflecting investor confidence in Pacira’s ability to maintain its competitive edge in the pain management sector.
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