Bank Of America Sees Significant Manufacturing Capacity Expansions Underway For Pacira Pharmaceuticals

In a report published Wednesday, Bank of America analyst Steve Byrne reiterated a Buy rating and $105.00 price target on Pacira Pharmaceuticals (NASDAQ: PCRX).In the report, Bank of America noted, “PCRX CFO Jim Scibetta led a tour yesterday of the company's San Diego-based manufacturing facility, which will soon have $400mn in production sales capacity, post the near-term approval of the second train in Suite C. Debottlenecking and cycle time reductions for both Suite A and C may have effectively added significant upside to this nameplate capacity.. The next tranche of capacity will come from a Suite C-like expansion at Patheon's facility in the UK, which is expected to be on stream in 2H16. A second suite at Patheon is being developed with 2x the capacity of Suite C. PCRX also has a fully functional pilot unit for the new continuous spray process, which is expected to have 3x the throughput of the existing process (e.g. $1bn in revenue capacity for a Suite C size process). Consistent with our prior view, Exparel's long-term revenue potential will not be manufacturing limited.”Pacira Pharmaceuticals closed on Tuesday at $97.55.