January 27, 2012 7:00 AM EST
Jefferies initiates coverage on Pacira Pharmaceuticals (NASDAQ: PCRX) with a Buy rating and $18 price target.
The firm comments, "Although investors are sour on new launches, we find tremendous value in Exparel: 1) no competition, 2) unlikely generics, 3) low fixed cost infrastructure and 100% economics, 4) not changing the practice of medicine, and 5) experienced commercial management team. Last, expectations are low, valuation is cheap, and $15M in 2012 sales seems beatable."