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Pacira's (PCRX) Q3 Earnings Top Estimates, Revenues Rise Y/Y

Zacks Equity Research
·5 min read

Pacira BioSciences, Inc. PCRX reported third-quarter 2020 earnings of 68 cents per share, beating the Zacks Consensus Estimate of 66 cents and also increasing from the year-ago bottom line of 48 cents.

Total revenues increased 12% to $117.5 million from the year-earlier figure of $104.7 million in the third quarter of 2020. The top line also beat the Zacks Consensus Estimate of $115 million.

Shares of Pacira have rallied 17.3% so far this year against the industry’s decline of 9.7%.

Quarter in Detail

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

Exparel net product sales were $113.7 million, up 12% from $101.5 million in the year-ago quarter.

Exparel/bupivacaine liposome injectable suspension sales came in at $0.4 million compared with $0.3 million in the year-ago quarter. Exparel is a liposome injection of bupivacaine, indicated for a single-dose administration into the surgical site to produce postsurgical analgesia.

The newly-added product iovera system generated sales worth $2.7 million in the third quarter of 2020, reflecting a sequential increase of 92.8%.

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

Meanwhile, royalty revenues came in at $0.6 million in the reported quarter, up 100% year over year.

Research and development (R&D) expenses (excluding stock-based compensation) fell approximately 30% to $13.3 million.

Selling, general and administrative (SG&A) expenses (excluding stock-based compensation) increased around 2.6% year over year to $44.6 million in the reported quarter.

2020 Outlook

On the third-quarter conference call, management confirmed that due to the prevalent COVID-19 pandemic and the continued uncertainties related to it, the company is not providing the guidance for 2020.

Recent Developments

In September 2020, the European Medicines Agency’s (EMA) Committee for Medicinal Products for Human Use (CHMP) rendered a positive opinion, recommending the approval for Exparel as a medicine for postsurgical analgesia. This opinion will now be reviewed by the European Commission with a final decision expected in November 2020.

The CHMP recommended Exparel’s approval as a brachial for treating post-operative pain in adults as well as addressing somatic post-operative pain due to small- to medium-sized surgical wounds in adults.

Notably, in August 2020, the FDA accepted Pacira’s supplemental new drug application (sNDA), seeking an expansion of Exparel’s label to include single-dose infiltration for providing postsurgical analgesia in children, aged six years and above. The regulatory body set an action date of Mar 22, 2021. There are currently no approved alternatives to opioids for managing severe post-surgical pain in pediatric patients. A potential approval and label expansion will boost Exparel’s sales in the future quarters.

The phase III STRIDE study is currently enrolling patients to evaluate Exparel versus bupivacaine as a nerve block in adults undergoing foot and ankle surgeries. Top-line data from the same is expected by the end of the first quarter of 2021 with regulatory nod anticipated in early 2022.

Pacira BioSciences, Inc. Price, Consensus and EPS Surprise

Pacira BioSciences, Inc. Price, Consensus and EPS Surprise
Pacira BioSciences, Inc. Price, Consensus and EPS Surprise

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

Zacks Rank & Stocks to Consider

Pacira currently has a Zacks Rank #3 (Hold). Better-ranked stocks in the same sector include Zoetis Inc. ZTS, Xeris Pharmaceuticals, Inc. XERS and Endo International plc ENDP, all carrying a Zacks Rank #2 (Buy) at present. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Zoetis’ earnings estimates have been revised 0.3% upward for 2020 and 0.2% for 2021 over the past 60 days. The stock has surged 21.3% year to date.

Xeris Pharmaceuticals’ loss per share estimates have narrowed 6.5% for 2020 and 7.6% for 2021 over the past 60 days.

Endo’s earnings estimates have moved 0.9% north for 2020 and 2.4% for 2021 over the past 60 days. The stock has inched up 0.8% year to date.

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