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BRISBANE, Calif. - Pacira BioSciences, Inc. (NASDAQ:PCRX) announced Tuesday it has entered an exclusive worldwide license and collaboration agreement with AmacaThera for AMT-143, a long-acting formulation of the non-opioid analgesic ropivacaine for postsurgical pain control. The $997 million market cap company, which InvestingPro analysis indicates is currently undervalued, continues to expand its non-opioid pain management portfolio.
Under the agreement, Pacira will pay AmacaThera an upfront payment of $5 million, with potential future development and sales-based milestone payments and tiered royalties on future net sales. Pacira will fund clinical development through commercial launch, with both companies collaborating on Phase 2 clinical development expected to begin in 2026. Investors should note that Pacira maintains a strong financial position with a current ratio of 2.38, providing adequate liquidity to fund such development initiatives.
AMT-143 is administered via instillation during surgery and has demonstrated sustained release of ropivacaine through 14 days in a Phase 1 study. The formulation utilizes AmacaThera's hydrogel-based drug delivery platform, which forms a depot as it warms to body temperature after delivery via conventional syringe.
"Expanding our pipeline with this novel formulation of ropivacaine builds on our leadership in innovative opioid-sparing pain management," said Frank D. Lee, chief executive officer of Pacira BioSciences, according to the press release.
The company stated the acquisition aligns with its "5x30" growth strategy to prioritize clinical stage opportunities complementary to its focus on pain management. Pacira currently markets three commercial non-opioid pain treatments: EXPAREL, ZILRETTA, and iovera°. InvestingPro data shows analysts expect net income growth this year, with earnings forecasts of $3.09 per share for FY2025 despite recent challenges. The company is set to report its next quarterly earnings on November 6.
Pacira BioSciences is also advancing PCRX-201, a locally administered gene therapy for conditions such as osteoarthritis.
The announcement comes as healthcare providers continue seeking alternatives to opioids for postsurgical pain management. With a strong free cash flow yield of 12% and analyst price targets suggesting upside potential, Pacira appears well-positioned in this growing market segment. Discover more insights with InvestingPro, which offers 10 additional ProTips and a comprehensive research report on PCRX.
In other recent news, Pacira BioSciences has received a Paragraph IV Certification Notice Letter from two Chinese firms, Qilu Pharmaceutical and The WhiteOak Group, challenging the patents for its non-opioid pain management drug, EXPAREL. Both companies have filed Abbreviated New Drug Applications with the FDA, aiming to produce a generic version of EXPAREL. The challenges allege that multiple patents listed in the FDA's Orange Book are either invalid or unenforceable. The contested patents have expiration dates stretching to 2044. Additionally, Pacira BioSciences is set to present new data from its Phase 1 clinical trial of PCRX-201, a gene therapy candidate for knee osteoarthritis, at the American College of Rheumatology Convergence 2025 meeting. Dr. Stanley Cohen will deliver the presentation on the ongoing evaluations of PCRX-201. Meanwhile, PharmaCorp Rx has completed the acquisition of three community pharmacies under the PharmaChoice Canada banner, with two located in Western Canada and one in Eastern Canada. The total acquisition cost amounted to $8.7 million, subject to customary adjustments.
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