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Pacira (PCRX) Down 27.9% Since Last Earnings Report: Can It Rebound?
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A month has gone by since the last earnings report for Pacira (PCRX - Free Report) . Shares have lost about 27.9% in that time frame, underperforming the S&P 500.
Will the recent negative trend continue leading up to its next earnings release, or is Pacira due for a breakout? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at its most recent earnings report in order to get a better handle on the important catalysts.
Pacirareported second-quarter 2024 adjusted earnings of 89 cents per share, which beat the Zacks Consensus Estimate of 73 cents. The company had reported adjusted earnings of 71 cents per share in the year-ago quarter.
Total revenues amounted to $178 million, which increased 5% year over year and surpassed the Zacks Consensus Estimate of $173 million.
Quarter in Detail
Pacira’s top line comprises product sales and royalty revenues. The company recognizes product revenues from the sales of its three marketed drugs — Exparel, Zilretta and iovera.
Exparel’s net product sales were $137 million, which increased slightly from the year-ago quarter. The reported figure beat the Zacks Consensus Estimate of $136 million and matched our model estimate. Revenues generated from Exparel sales were negatively impacted by contracted discounts and vial mix, which led to the low sales growth rate in the reported quarter.
Exparel (bupivacaine liposome injectable suspension) is indicated in patients aged six years and older for single-dose infiltration to produce postsurgical local analgesia. It is also indicated for regional analgesia in adults via an interscalene brachial plexus nerve block, sciatic nerve block in the popliteal fossa and femoral nerve block in the adductor canal.
Zilretta’s net product sales came in at $30.71 million, up 5% year over year. Pacira completed the acquisition of Flexion Therapeutics in November 2021, following which the former began recognizing Zilretta sales. The reported figure beat the Zacks Consensus Estimate of $30.10 million as well as our model estimate of $29.6 million.
Net product sales of iovera were $5.67 million, up 29% from the year-ago quarter. The figure surpassed the Zacks Consensus Estimate of $5.37 million and marginally beat our model estimate of $5.6 million, as well.
Revenues generated from the sales of bupivacaine liposome injectable suspension to third-party licenses were pegged at $3.15 million, up significantly from the year-ago quarter’s figure.
Royalty revenues amounted to $1.64 million in the reported quarter. The company did not recognize any royalty revenues in the year-ago quarter.
Research and development (R&D) expenses (excluding stock-based compensation) came in at $18.41 million, up 8% from the year-ago quarter. The uptick can be attributed to start-up activities for the planned phase III studies of Zilretta for shoulder osteoarthritis and iovera for spasticity.
Selling, general and administrative (SG&A) expenses (excluding stock-based compensation) of $58.98 million also increased 3% year over year, largely due to a rise in investments made in commercial, medical and market access organizations, along with consultation fees.
As of Jun 30, 2024, Pacira had cash, cash equivalents and available-for-sale investments of $404.2 million compared with $325.9 million as of Mar 31, 2024.
2024 Guidance Reaffirmed
Pacira reiterated its previously announced financial guidance for 2024. It expects total revenues in the band of $680-$705 million for the full year.
The company anticipates adjusted R&D expenses between $70 million and $80 million, while adjusted SG&A expenses are expected in the range of $245-$265 million.
The adjusted gross margin of the company is projected between 74% and 76% in 2024.
How Have Estimates Been Moving Since Then?
It turns out, estimates revision have trended upward during the past month.
VGM Scores
At this time, Pacira has a nice Growth Score of B, though it is lagging a lot on the Momentum Score front with a D. However, the stock was allocated a grade of A on the value side, putting it in the top 20% for this investment strategy.
Overall, the stock has an aggregate VGM Score of A. If you aren't focused on one strategy, this score is the one you should be interested in.
Outlook
Estimates have been broadly trending upward for the stock, and the magnitude of these revisions looks promising. Notably, Pacira has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.
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Pacira (PCRX) Down 27.9% Since Last Earnings Report: Can It Rebound?
A month has gone by since the last earnings report for Pacira (PCRX - Free Report) . Shares have lost about 27.9% in that time frame, underperforming the S&P 500.
Will the recent negative trend continue leading up to its next earnings release, or is Pacira due for a breakout? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at its most recent earnings report in order to get a better handle on the important catalysts.
Pacira Q2 Earnings Beat, Exparel Sales Drive Revenues
Pacirareported second-quarter 2024 adjusted earnings of 89 cents per share, which beat the Zacks Consensus Estimate of 73 cents. The company had reported adjusted earnings of 71 cents per share in the year-ago quarter.
Total revenues amounted to $178 million, which increased 5% year over year and surpassed the Zacks Consensus Estimate of $173 million.
Quarter in Detail
Pacira’s top line comprises product sales and royalty revenues. The company recognizes product revenues from the sales of its three marketed drugs — Exparel, Zilretta and iovera.
Exparel’s net product sales were $137 million, which increased slightly from the year-ago quarter. The reported figure beat the Zacks Consensus Estimate of $136 million and matched our model estimate. Revenues generated from Exparel sales were negatively impacted by contracted discounts and vial mix, which led to the low sales growth rate in the reported quarter.
Exparel (bupivacaine liposome injectable suspension) is indicated in patients aged six years and older for single-dose infiltration to produce postsurgical local analgesia. It is also indicated for regional analgesia in adults via an interscalene brachial plexus nerve block, sciatic nerve block in the popliteal fossa and femoral nerve block in the adductor canal.
Zilretta’s net product sales came in at $30.71 million, up 5% year over year. Pacira completed the acquisition of Flexion Therapeutics in November 2021, following which the former began recognizing Zilretta sales. The reported figure beat the Zacks Consensus Estimate of $30.10 million as well as our model estimate of $29.6 million.
Net product sales of iovera were $5.67 million, up 29% from the year-ago quarter. The figure surpassed the Zacks Consensus Estimate of $5.37 million and marginally beat our model estimate of $5.6 million, as well.
Revenues generated from the sales of bupivacaine liposome injectable suspension to third-party licenses were pegged at $3.15 million, up significantly from the year-ago quarter’s figure.
Royalty revenues amounted to $1.64 million in the reported quarter. The company did not recognize any royalty revenues in the year-ago quarter.
Research and development (R&D) expenses (excluding stock-based compensation) came in at $18.41 million, up 8% from the year-ago quarter. The uptick can be attributed to start-up activities for the planned phase III studies of Zilretta for shoulder osteoarthritis and iovera for spasticity.
Selling, general and administrative (SG&A) expenses (excluding stock-based compensation) of $58.98 million also increased 3% year over year, largely due to a rise in investments made in commercial, medical and market access organizations, along with consultation fees.
As of Jun 30, 2024, Pacira had cash, cash equivalents and available-for-sale investments of $404.2 million compared with $325.9 million as of Mar 31, 2024.
2024 Guidance Reaffirmed
Pacira reiterated its previously announced financial guidance for 2024. It expects total revenues in the band of $680-$705 million for the full year.
The company anticipates adjusted R&D expenses between $70 million and $80 million, while adjusted SG&A expenses are expected in the range of $245-$265 million.
The adjusted gross margin of the company is projected between 74% and 76% in 2024.
How Have Estimates Been Moving Since Then?
It turns out, estimates revision have trended upward during the past month.
VGM Scores
At this time, Pacira has a nice Growth Score of B, though it is lagging a lot on the Momentum Score front with a D. However, the stock was allocated a grade of A on the value side, putting it in the top 20% for this investment strategy.
Overall, the stock has an aggregate VGM Score of A. If you aren't focused on one strategy, this score is the one you should be interested in.
Outlook
Estimates have been broadly trending upward for the stock, and the magnitude of these revisions looks promising. Notably, Pacira has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.