Pacira Biosciences (PCRX) continues to deliver solid growth, notes John McCamant, a leading specialist in biotechnology stocks and editor of the Medical Technology Stock Letter.
We also believe that it may be time for the company to be acquired by a larger company with the financial resources to maximize EXPAREL. Here's a look at third quarter 2022 financial results:
- Total revenues were $167.5 million in the third quarter of 2022, versus the $127.7 million reported for the third quarter of 2021.
- EXPAREL net product sales were $132.6 million in the third quarter of 2022, versus the $121.9 million reported for the third quarter of 2021.
- ZILRETTA net product sales were $26.5 million in the third quarter of 2022. The company began recognizing ZILRETTA sales upon completing its acquisition of Flexion Therapeutics, Inc. in November 2021.
- Third quarter 2022 iovera° net product sales were $4.5 million, versus the $4.2 million reported for the third quarter of 2021.
- Sales of bupivacaine liposome injectable suspension to a third-party licensee for use in veterinary practice were $3.0 million in the third quarter of 2022, versus the $0.7 million reported for the third quarter of 2021.
PCRX has executed well by positioning the company/EXPAREL for continued sales growth by conducting additional trials to gain broader FDA approvals. That being said, sales growth has been hampered by COVID-19 fluctuations which have created choppy demand patterns.
Additionally, it may take a larger sales force to fully unlock the potential of EXPAREL. The company/EXPAREL is completely de-risked and represents a strong revenue stream with significant growth potential which a major player could easily unlock both in the U.S. and internationally.
In our view, at this point it is a matter of when not if regarding the company being acquired by a larger company with the financial resources to maximize EXPAREL. We note that Johnson & Johnson (JNJ) is a former partner and EXPAREL would be a perfect fit for them. PCRX is a buy under $80 with a target price of $100.
