PCRX
Pacira Pharmaceuticals Inc
Healthcare
11/03/2017
Presented
| Date | 10/30/2017 |
| Price | $33.15 |
| Market Cap | $1.33B |
| Ent Value | $1.80B |
| P/E Ratio | N/A |
| Book Value | $6.48 |
| Div Yield | 0% |
| Shares O/S | 40.16M |
| Ave Daily Vol | 664,866 |
| Short Int | 7.79% |
Current
| Price | $16.69 |
| Market Cap | $0.77B |
| Pacira Pharmaceuticals, Inc. is a specialty pharmaceutical company. It develops, commercializes, and manufactures pharmaceutical products for use in hospitals and ambulatory surgery centers. It develops pharmaceutical products based on its proprietary DepoFoam drug delivery technology. The company markets EXPAREL, a liposome injection of bupivacaine, an amide-type local anesthetic, indicated for administration into the surgical site to produce postsurgical analgesia; and DepoCyt(e), a liposomal formulation of the chemotherapeutic agent cytarabine indicated for the intrathecal treatment of lymphomatous meningitis, a cancer of the immune system. Its product pipeline comprise EXPAREL that has completed Phase II clinical trials for postsurgical analgesia-nerve block administration; DepoNSAID, which is in preclinical trials for the relief of that is in preclinical trials acute pain; and DepoTXA is currently in pre-clinical development, which is used to treat or prevent excessive blood loss during surgery by promoting hemostasis. Pacira Pharmaceuticals was founded in December 2006 and is headquartered in Parsippany, NJ. |
Publicly traded companies mentioned herein: Heron Therapeutics Inc (HRTX), Johnson & Johnson (JNJ), Pacira Pharmaceuticals Inc (PCRX)
Highlights
The presenter is long shares of Pacira Pharmaceuticals (PCRX) in the low $30s, and believes the Street and investors are overly bearish on the company’s prospects. In his opinion, management had a clear misstep on the nerve block trial, as the primary endpoint for Exparel (liposomal bupivacaine) should have been safety-related, not efficacy. Regardless, he thinks PCRX is likely to be able to secure approval for the nerve block indication in 2018, and with both JNJ supporting Exparel and increased shipments for dental there is the potential for positive 4Q 2017 results. With lowered expectations, high short interest, and a broad focus on reducing opioid use in the US the risk/reward now seems favorable for bulls. If the stock can trade up from 3.8x 2018 sales forecasts to a more normal med device multiple (i.e., 5-7x), the stock could appreciate by 40-50%, or possibly more, over the next 12 months.
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