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Pacira (PCRX) Q4 Earnings and Revenues Surpass Estimates

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Pacira Pharmaceuticals, Inc. (PCRX - Free Report) delivered fourth-quarter 2018 earnings of 47 cents per share, surpassing the Zacks Consensus Estimate of 25 cents and also the year-ago bottom line of 38 cents.

Revenues increased 20% year over year to $95.1 million, beating the Zacks Consensus Estimate of $94.4 million as well as the year-earlier number of $79.1 million. Exparel sales came in at $94.4 million for the fourth quarter of 2018, rising 20% year over year. Exparel sales rose 14.8% sequentially.

Shares of Pacira were up almost 3.8% following its earnings release on Feb 28, 2018. However, the stock has dipped 2% so far this year against the industry’s increase of 15%.

Quarter in Detail

Pacira’s top line comprises product revenues, other product sales plus royalty revenues. Royalty revenues came in at $0.4 million in the reported quarter, up 77.8% year over year.

Research and development (R&D) expenses (excluding stock-based compensation) surged 47.7% to $13 million.

Selling, general and administrative (SG&A) expenses (excluding stock-based compensation) increased 16.2% to $38.7 million in the reported quarter.

Full-Year Results

For the full year, Pacira generated revenues of $337.3 million, reflecting an increase of 18% on a year-over-year basis. Exparel sales were $331.1 million in 2018, up 17% year over year.

Recent Developments

Last January, Pacira announced that its phase IV study on Exparel, which evaluated patients undergoing Cesarean section (C-section), met the primary endpoint with a statistically significant decrease in total postsurgical opioid consumption all through 72 hours. The drug also achieved a statistical importance for pain reduction.

Notably, last December, Pacira announced new data regarding the use of Exparel as an incorporating transversus abdominis plane (TAP) block to manage postsurgical pain following cesarean section (C-section) procedures. This new finding showed that patients, who received Exparel experienced a substantial reduction in opioid consumption and pain intensity plus significantly improved discharge- and postanesthesia care unit (PACU)-ready times, functional recovery as well as lowered the length of stay (LOS).

Additionally, Pacira released new results last November on the use of Exparel following total knee arthroplasty (TKA). The latest findings proved that patients, administered with Exparel saw a considerable reduction in opioid use, their hospital length of stay (LOS) and the total hospitalization costs compared with TKA patients, who did not resort to Exparel regime.

We would like to remind investors that Pacira has partnership with Johnson & Johnson (JNJ - Free Report) . On fourth-quarter conference call, the company stated that J&J continues to support the uptake of Exparel via the latter’s world class educational programs and orthopedic procedural solutions for Pacira.

Pacira is also developing Exparel for its use in pain management pertaining to various other surgeries and is also expanding its label to address complications in pediatric patient population.

2019 Outlook

Pacira raised its guidance for Exparel sales in 2019 and expects the same in the $400-$410 million range. The previous view was in the band of $325-$330 million.

The company’s R&D expenses (excluding stock-based compensation) might be within $60-$70 million while SG&A expenses (excluding stock-based compensation) are anticipated in the $165-$175 million range. Both are increased from the last reported quarter’s projection levels.

Pacira Pharmaceuticals, Inc. Price, Consensus and EPS Surprise

Zacks Rank & Stocks to Consider

Pacira currently carries a Zacks Rank #3 (Hold). Better-ranked stocks in the same sector include Taro Pharmaceutical Industries Ltd. and Corbus Pharmaceuticals Holdings, Inc. (CRBP - Free Report) , both sporting a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

Taro Pharmaceutical’s earnings estimates have been revised 7.7% upward for 2019 over the past 60 days. The stock has rallied 23.4% so far this year.

Corbus Pharmaceuticals’ loss per share estimates have been narrowed 8.2% for 2019 over the past 60 days. The stock has gained 7.9% so far this year.

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