Market Overview

Wedbush Thinks Pacira Pharma Is Worth $106 On Exparel Sales

Wedbush Thinks Pacira Pharma Is Worth $106 On Exparel Sales
Related PCRX
Mid-Afternoon Market Update: Dow Surges 125 Points; FedEx Shares Jump Following Upbeat Earnings
12 Biggest Mid-Day Losers For Wednesday

  • In a report issued Wednesday, Wedbush analysts Liana Moussatos and Kelechi Chikere looked into Pacira Pharmaceuticals Inc (NASDAQ: PCRX) after Symphony Health’s EXPAREL volume estimate for August decreased about 2.6 percent month-over-month.
  • The experts noted that, despite the slowdown, the third quarter “remains on-track.” Thus, they reiterated an Outperform rating and $106.00 price target on the stock.
  • Shares of Pacira are down almost 6 percent on Wednesday trading, possibly driven by the slightly discouraging sales and volume data.
  • Market research firm Symphony Health recently released its August estimates for EXPAREL volume and sales. According to the data, both figures decreased from July, along with other hospital pain treatments. Nonetheless, Wedbush assured, the third quarter remains “on-tack.”

    The decline in volumes “may reflect a transient decrease in elective procedures due to vacations,” the report explained. However, third quarter sales seem to be tracking in-line with consensus of roughly $58.2 million.

    Related Link: Leerink: Time To Buy Aquinox Pharam

    A Word Of Caution

    Having said this, Wedbush remains cautious on using Symphony Health’s data “as an accurate representation for true sales as it has historically captured a wide range (68.5 percent - 108 percent) of EXPAREL sales -- due to the manner in which SH data is collected and audited -- particularly on a month-to-month basis.”

    In addition, Moussatos and Chikere highlighted, management assures that the slowdown in EXPAREL’s growth has hit a bottom. The team anticipates a flat third quarter (over the second quarter) and some net growth in sales as of the seasonally strong fourth quarter.

    Symphony Health will release it data for September EXPAREL sales and volume on October 2.

    Disclosure: Javier Hasse holds no positions in any of the securities mentioned above.

    Image Credit: Public Domain

    Latest Ratings for PCRX

    Oct 2016Brean CapitalAssumesHold
    Sep 2016JefferiesMaintainsBuy
    Sep 2016Cowen & Co.Initiates Coverage onMarket Perform

    View More Analyst Ratings for PCRX
    View the Latest Analyst Ratings

    Posted-In: Analyst Color Biotech Long Ideas Health Care Price Target Reiteration Top Stories Analyst Ratings Best of Benzinga


    Related Articles (PCRX)

    View Comments and Join the Discussion!