Pacira's (PCRX) Q4 Earnings Top Estimates, Revenues In Line

Zacks Equity Research

Pacira BioSciences, Inc. PCRX reported fourth-quarter 2019 earnings of 56 cents per share, surpassing the Zacks Consensus Estimate of 44 cents and increasing from the year-ago figure of 47 cents.

Total revenues also increased 29% from the year-earlier figure of $95.1 million to $122.4 million. Revenues were almost in line with the Zacks Consensus Estimate.

The stock increased 26.2% in the past year against the industry’s decline of 2.0%.

Quarter in Detail

Pacira’s top line mainly comprises product revenues, other product sales and royalty revenues.

Exparel net product sales were $116.9 million, up 24% from $94.4 million in the year-ago quarter.

Expare/bupivacaine liposome injectable suspension sales came in at $1.7 million compared with $0.3 million in the year-ago quarter. Exparel is a liposome injection of bupivacaine, which is indicated for single-dose administration into the surgical site to produce postsurgical analgesia.

The newly-added product iovera system generated sales of $3.2 million in the reported quarter.

We remind investors that in April 2019, Pacira acquired privately-held MyoScience, Inc. Following the buyout, Pacira added the latter’s iovera system to its portfolio, which is highly complementary to Exparel as a non-opioid therapy. Moreover, upon closing of the acquisition, Pacira changed its corporate name to Pacira BioSciences, Inc.

Royalty revenues came in at $0.6 million in the reported quarter, up 50% year over year.

Research and development (R&D) expenses (excluding stock-based compensation) surged 40.8% to $18.3 million.

Selling, general and administrative (SG&A) expenses (excluding stock-based compensation) increased 23% year over year to $47.6 million in the reported quarter.

2019 Results

The company posted earnings of $1.67 per share compared with $1.04 in 2018.

The company’s revenues were $421 million, up 25% year over year.

2020 View

The company expects total revenues to be between $485-$500 million.

Pacira provided its guidance for Exparel sales in 2020 and expects the same in the $465 -$475 million range.

iovera net product sales are expected in the range of $15- $20 million.

Recent Developments

In January 2020, Pacira announced that its phase IV study of Exparel in patients undergoing cesarean section achieved its primary endpoint with a statistically significant reduction in total postsurgical opioid consumption while maintaining pain scores through 72 hours.

In December 2019, Pacira announced positive results from its phase III PLAY study of Exparel administered as a single-dose infiltration in pediatric patients undergoing spinal or cardiac surgeries

Pacira Pharmaceuticals, Inc. Price, Consensus and EPS Surprise

Pacira Pharmaceuticals, Inc. Price, Consensus and EPS Surprise

Pacira Pharmaceuticals, Inc. price-consensus-eps-surprise-chart | Pacira Pharmaceuticals, Inc. Quote

Zacks Rank & Other Stocks to Consider

Pacira currently carries a Zacks Rank #1 (Strong Buy).

Other top-ranked stocks from the healthcare space include KalVista Pharmaceuticals Inc. KALV, United Therapeutics Corp. UTHR and Novan Inc. NOVN, each sporting a Zacks Rank #1. You can see the complete list of today’s Zacks #1 Rank stocks here

KalVista’s loss per share estimates have narrowed from $1.98 to $1.63 for 2020 and from $2.85 to $2.74 for 2021 in the past 90 days. The company delivered a positive earnings surprise in three of the trailing four quarters by 30.02%, on average.

United Therapeutics’ loss per share estimates have narrowed from 96 cents to 92 cents for 2020 in the past 60 days. The company delivered a positive earnings surprise in the trailing four quarters by 36.75%, on average.

Novan’s loss per share estimates have narrowed from $1.64 to $1.69 for 2019 and from 81 cents to 79 cents for 2020 in the past 60 days. The company delivered a positive earnings surprise in two of the trailing four quarters by 4.16%, on average.

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