Pacira Pharmaceuticals Inc (NASDAQ:PCRX) provided updates on EXPAREL® (bupivacaine liposome injectable suspension) for postsurgical pain in the United States and announced consolidated financial results for the first quarter ended March 31, 2016. “With immense leverage across our organization from manufacturing to financials, we began our aggressive investment in the future growth of Pacira in the first quarter of 2016,” said Dave Stack, Chief Executive Officer and Chairman.
“In this short amount of time, we were able to enhance our executive team with two important hires, initiate two Phase 3 studies for the EXPAREL nerve block indication and initiate a randomized controlled trial in total knee arthroplasty to establish best practice for best outcomes with EXPAREL. As we prepare for our oral surgery launch later this year, we look forward to further investments in the expanded use of EXPAREL and development of pipeline opportunities.”
- Key Executive Appointments to Support Company’s Future Growth: Pacira recently announced the appointment of two key executives to the Pacira management team. As Chief Financial Officer, Charles A. Reinhart III will be responsible for all financial and capital market activities, including accounting, financial reporting, financial planning and analysis and investor relations. He will succeed former Chief Financial Officer Jim Scibetta, who will continue to serve as President, and will report to Dave Stack. As Chief Commercial Officer, Robert Weiland will oversee commercial activities for EXPAREL, which include marketing, sales, national accounts, training and commercial operations and analytics. He will report to Jim Scibetta.
- Initiation of Important Clinical Studies for EXPAREL: Pacira initiated two Phase 3 clinical trials that will serve as the basis of the supplemental New Drug Application (sNDA) to be filed for EXPAREL use in nerve block to provide postsurgical analgesia. One study will assess brachial plexus block with EXPAREL in patients undergoing total shoulder arthroplasty or rotator cuff repair. The second study will evaluate femoral nerve block with EXPAREL for patients undergoing total knee arthroplasty. Pacira also initiated a randomized controlled trial comparing local infiltration analgesia with EXPAREL to local infiltration analgesia without EXPAREL in total knee arthroplasty. This study is intended to provide a procedure-specific protocol on appropriate technique and administration for producing optimal outcomes with EXPAREL.
First Quarter 2016 Financial Results
- EXPAREL net product revenues were $63.8 million in the first quarter of 2016, compared to $56.0 million in the first quarter of 2015.
- Total revenues were $65.5 million in the first quarter of 2016, compared to $58.3 million in the first quarter of 2015.
- Total operating expenses were $67.7 million in the first quarter of 2016, compared to$55.0 million in the first quarter of 2015.
- GAAP net loss was $3.9 million, or $(0.10) per share (basic and diluted), in the first quarter of 2016, compared to GAAP net income of $1.3 million, or $0.03 per share (basic and diluted), in the first quarter of 2015.
- Non-GAAP net income was $5.7 million, or $0.15 per share (basic) and $0.14 per share (diluted), in the first quarter of 2016, compared to non-GAAP net income of$9.8 million, or $0.27 per share (basic) and $0.23 per share (diluted), in the first quarter of 2015.
- Pacira ended the first quarter of 2016 with cash and cash equivalents, short-term investments and long-term investments (“cash”) of $163.5 million.
- Pacira had 37.0 million basic and 41.1 million diluted weighted average shares of common stock outstanding in the first quarter of 2016.
Pacira affirms that it expects the following operating expenses for 2016:
- Non-GAAP research and development (R&D) expense of $60 million to $70 million.
- Non-GAAP selling, general and administrative (SG&A) expense of $125 million to $135 million.
- Stock-based compensation expense of $35 million to $40 million. (Original Source)
Shares of Pacira closed last Friday at $54.11, down $1.44 or -2.59%. PCRX has a 1-year high of $81.28 and a 1-year low of $35.78. The stock’s 50-day moving average is $55.87 and its 200-day moving average is $59.23.
On the ratings front, Pacira has been the subject of a number of recent research reports. In a report issued on April 26, Mizuho analyst Irina Rivkind Koffler reiterated a Buy rating on PCRX, with a price target of $79, which represents a potential upside of 46.0% from where the stock is currently trading. Separately, on April 20, Canaccord Genuity’s Corey Davis reiterated a Buy rating on the stock and has a price target of $75.
According to TipRanks.com, which ranks over 7,500 financial analysts and bloggers to gauge the performance of their past recommendations, Irina Rivkind Koffler and Corey Davis have a total average return of 25.9% and -4.1% respectively. Koffler has a success rate of 51.9% and is ranked #16 out of 3832 analysts, while Davis has a success rate of 36.4% and is ranked #3520.
The street is mostly Bullish on PCRX stock. Out of 5 analysts who cover the stock, 5 suggest a Buy rating . The 12-month average price target assigned to the stock is $96.00, which implies an upside of 77.4% from current levels.