Weakness In PCRX Following The FDA Warning Letter Is A Buying Opportunity, Says Wedbush
In a report issued today, analyst Liana Moussatos of Wedbush reiterated an Outperform rating on Pacira Pharmaceuticals (NASDAQ:PCRX) with a $117 price target, as the company recently announced receipt of FDA Warning Letter concerning certain marketing materials which have been used since the time of launch about two years ago.
Moussatos wrote, “We believe weakness in PCRX following the FDA Warning Letter is a buying opportunity as it signals accelerating use of EXPAREL.We recently reported an apparent acceleration in EXPAREL sales growth during a normally slow season for procedures. As enthusiastic physicians continue to find new ways to control pain without opioids using EXPAREL, sales are apparently escalating, as well. Consequently, we view the FDA Warning Letter as a signal that supports our observations of EXPAREL sales estimates by Symphony Health have been accelerating, especially in July and August.”
According to TipRanks.com, which measures analysts’ and bloggers’ success rate based on how their calls perform, analyst Liana Moussatos has a total average return of 50.8% and a 62.0% success rate. Moussatos has a -9.3% average return when recommending PCRX, and is ranked #12 out of 3321 analysts.