Oppenheimer Issues a Hold Rating on Pacira Pharmaceuticals

By Austin Angelo

Oppenheimer analyst Christopher Liu assigned a Hold rating to Pacira Pharmaceuticals (NASDAQ: PCRX) today. The company’s shares opened today at $34.60.

Liu observed:

“We adjust our model based on our nerve block analysis and assumptions detailed in the report and on PCRX’s 1Q18 financial update. The FDA recently approved Exparel for a label expansion into interscalene brachial plexus nerve blocks to produce postsurgical regional analgesia for upper extremity surgeries. Management mentioned that the significant market opportunity for their nerve block indication would be in US shoulder procedures, which account for ~1M surgeries annually. Based on previous discussions with physicians, some had already used Exparel for nerve block prior to approval, and so we think the incremental market could be smaller. In summary, we think the nerve block indication is not likely to have a significant impact on our thesis and we think the indication is worth ~$1/share.”

According to TipRanks.com, Liu is a 2-star analyst with an average return of 4.5% and a 60.0% success rate. Liu covers the Healthcare sector, focusing on stocks such as Synergy Pharmaceuticals Inc, Zynerba Pharmaceuticals, and Perrigo Company plc.

Currently, the analyst consensus on Pacira Pharmaceuticals is Moderate Buy and the average price target is $46.45, representing a 34.2% upside.

In a report issued on May 11, Canaccord Genuity also maintained a Hold rating on the stock with a $34 price target.

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Based on Pacira Pharmaceuticals’ latest earnings release for the quarter ending March 31, the company reported a quarterly GAAP net loss of $10.68 million. In comparison, last year the company had a GAAP net loss of $19.87 million.

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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.