Pacira (PCRX) Posts Earnings in Q4, Revenues in Line

Pacira Pharmaceuticals, Inc. PCRX reported fourth-quarter 2017 earnings of 38 cents per share surpassing the Zacks Consensus Estimate of 12 cents and the loss of 11 cents recorded a year ago.

Revenues increased 8.5% year over year to $79.1 million and at par with the Zacks Consensus Estimate. Exparel sales were $78.7 million in the quarter, up 10% year over year. Sales of the drug continue to grow and the drug is now been used in over 3.5 million patients across the United States.

Pacira’s share price has decreased 33.8% in the past year compared with the industry’s decline of 2.7%.

 

Quarter in Detail

Pacira’s top line comprises product revenues, collaborative licensing and milestone revenues, and royalty revenues. DepoCyt(e) and other product revenues came in at $0.2 million, down 47.8%.

Collaborative licensing and milestone revenues were down 92.3% to $0.03 million. Also, royalty revenues were $0.2 million, down 71.1%.

Research and development (R&D) expenses (including the impact of stock-based compensation) were down 41.3% to $10 million while selling, general and administrative (SG&A) expenses increased 13% to $39.2 million.

Recent Developments

In February 2018,  the FDA’s Anesthetic and Analgesic Drug Products Advisory Committee’s (AADPAC) reviewed the company’s supplemental New Drug Application (sNDA), to expand the label of Exparel to include administration via nerve block for prolonged regional analgesia.

The AADPAC voted six to four against approval of the expanded indication. The committee’s feedback will be considered for the FDA in its review of the sNDA. The FDA has set an action date of Apr 6, 2018.

2017 Results

The company reported earnings per share of 21 cents in 2017 compared with 62 cents in 2016.

The company’s revenues in 2017 were $286.6 million, up 3.7% year over year.

2018 Outlook

Pacira provided its guidance for 2018. It projects Exparel sales to be in the range of $300 million to $310 million. The company expects R&D expenses (excluding stock-based compensation) to be in the band of $50 million to $60 million. SG&A expenses (excluding stock-based compensation) are anticipated to be in the $150-$160 million range. Also, stock-based compensation is expected to be between $30 million and $35 million.

Pacira Pharmaceuticals, Inc. Price, Consensus and EPS Surprise

Pacira Pharmaceuticals, Inc. Price, Consensus and EPS Surprise | Pacira Pharmaceuticals, Inc. Quote

 

Zacks Rank & Stocks to Consider

Pacira carries a Zacks Rank #4 (Sell). A few better-ranked stocks from the same space are Regeneron REGN, Ligand Pharmaceuticals Inc. LGND and Enanta Pharma ENTA. While Regeneron sports a Zacks Rank #1 (Strong Buy), Ligand and Enanta Pharma carry a Zacks Rank #2 (Buy), each. You can see the complete list of today’s Zacks #1 Rank stocks here.

Regeneron’s earnings per share estimates have moved up from $17.13 to $18.65 and from $20.38 to $21.56 for 2018 and 2019 respectively in the last 30 days. The company pulled off a positive earnings surprise in three of the last four quarters, with an average beat of 9.15%.

Ligand’s earnings per share estimates have moved up $3.54 to $4.15 for 2018 over the last 30 days. The company pulled off positive earnings surprises in three of the trailing four quarters, with an average beat of 24.88%. The share price of the company has increased 51.6% over an year.

Enanta Pharma delivered a positive earnings surprise in three of the last four quarters, with an average beat of 373.1%. Share price of the company surged 169.9% over a year.

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