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MIAMI - DOMA Perpetual Capital Management LLC, holding approximately 4.2% of Pacira BioSciences, Inc.’s (NASDAQ:PCRX) shares, has expressed support for Pacira’s newly announced capital allocation strategy, which includes a $300 million share repurchase program. The asset management firm views this move as a testament to the pharmaceutical company’s solid financial standing and a step towards bolstering shareholder returns. According to InvestingPro data, Pacira maintains a healthy current ratio of 2.4x and operates with moderate debt levels, earning an overall Financial Health score of "GREAT."
According to DOMA Perpetual, the buyback initiative, coupled with a focus on improving pre-tax net income margins, is expected to enhance Pacira’s shareholder value. The firm’s CEO, Pedro Escudero, commended the company’s management for its proactive efforts in capital allocation and expressed confidence in the stock’s growth potential, suggesting that it is currently undervalued. This assessment aligns with InvestingPro analysis, which indicates the stock is trading below its Fair Value, with analysts projecting earnings growth for the upcoming year.
Pacira’s commitment to this substantial buyback reflects its confidence in ongoing growth and its ability to generate increasing earnings and free cash flow. The company’s strong free cash flow yield and revenue growth of 3.85% in the last twelve months support this strategic direction. As a result, the company aims to return significant capital to its shareholders while continuing to invest in growth opportunities.
This press release statement by DOMA Perpetual underscores the firm’s belief in Pacira’s strategic direction and the anticipated positive impact on shareholder value. However, it should be noted that the press release does not imply endorsement from Pacira, and the views expressed are solely those of DOMA Perpetual based on publicly available information. The forward-looking statements in the press release involve risks and uncertainties, with the actual outcomes potentially differing from those projected.
Investors will be watching closely as Pacira moves forward with its repurchase program and other strategic initiatives aimed at capital growth and shareholder value enhancement.
In other recent news, Pacira BioSciences has initiated a $300 million share repurchase program, reflecting the company’s strategic focus on enhancing shareholder value. This buyback plan is part of Pacira’s broader "5x30" strategy, which aims to achieve significant growth by 2030, including a double-digit annual growth rate in revenue. The company also reached a settlement regarding its flagship product, EXPAREL, with Fresenius Kabi and other generic manufacturers, securing market exclusivity until 2039. This agreement, which limits generic entry until 2030, is seen as a positive development, allowing Pacira to focus on its long-term growth objectives without immediate generic competition.
Analysts have responded to these developments with adjustments to their financial outlooks. RBC Capital Markets raised its price target for Pacira to $26, maintaining a Sector Perform rating, while H.C. Wainwright increased its target to $65, reiterating a Buy rating. The settlement is viewed as beneficial for Pacira, providing a clearer path for revenue growth and reducing the risk of generic competition. Raymond James maintained a Market Perform rating, noting that the settlement allows Pacira to continue pursuing its ambitious growth plans. These recent developments highlight Pacira’s efforts to secure its market position and drive future growth in the competitive pharmaceutical landscape.
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