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Pacira's (PCRX) Q3 Earnings Beat Estimates, Revenues Miss Mark

Pacira's (PCRX) earnings beat estimates in the third quarter of 2021 while revenues miss the same. Its flagship product Exparel's sales rise year over year.

This story originally appeared on Zacks

Pacira BioSciences, Inc. PCRX reported third-quarter 2021 earnings of 72 cents per share, beating the Zacks Consensus Estimate of 66 cents. The company reported earnings of 68 cents per share in the year-ago quarter.

- Zacks

Total revenues increased 8.7% to $127.7 million in the third quarter of 2021 from the year-earlier figure of $117.5 million owing to a continuous strong uptake of Exparel. The top line, however, missed the Zacks Consensus Estimate of $130 million.

Shares of Pacira have declined 10.3% so far this year compared with the industry’s decrease of 14.1%.

Zacks Investment ResearchImage Source: Zacks Investment Research

Quarter in Detail

Pacira’s top line mainly comprises product revenues, other product sales and royalty revenues.

Exparel net product sales were $121.9 million, up 7.2% from $113.7 million generated in the year-ago quarter. However, sale of the drug decreased 6.3% on a sequential basis.

Exparel/bupivacaine liposome injectable suspension sales came in at $0.7 million in the reported quarter compared with $0.4 million in the year-ago quarter. Exparel is a liposome injection of bupivacaine, indicated for a single-dose administration into the surgical site to produce postsurgical analgesia.

Iovera system generated sales worth $4.2 million in the third quarter of 2021, reflecting a sequential increase of 10.5% and a year-over-year rise of 55.5%.

Royalty revenues came in at $0.9 million in the reported quarter compared with $0.6 million in the year-ago period.

Research and development (R&D) expenses (excluding stock-based compensation) declined 21.3% to $10.4 million.

Selling, general and administrative (SG&A) expenses (excluding stock-based compensation) decreased 10.9% year over year to $39.7 million in the reported quarter.

2021 Outlook

Pacira is not providing guidance for 2021 due to the COVID-19 pandemic still negatively impacting sales. As a result, it is reporting monthly intra-quarter unaudited net product sales until the company gains enough visibility around the impacts of COVID-19.

Recent Updates

Last month, Pacira entered into a definitive agreement to acquire Flexion Therapeutics, Inc. FLXN for $8.50 per share in cash plus one non-tradeable contingent value right worth up to $8 per share in cash. With this acquisition, Pacria is looking to strengthen its position in the non-opioid pain management market. The transaction is expected to close later in the fourth quarter of 2021.

Flexion’s only marketed drug Zilretta (triamcinolone acetonide extended-release injectable suspension) was approved in 2017 as the first and the only extended-release intra-articular therapy providing relief to osteoarthritis (OA) patients with knee pain.

In October 2021, Pacira received a Paragraph IV Certification notice letter, which stated that New Jersey-based eVenus Pharmaceutical Laboratories, Inc. submitted an abbreviated new drug application (ANDA) to the FDA, seeking authorization for the manufacturing and marketing of a generic version of Pacira’s flagship product Exparel in the United States.

Pacira BioSciences, Inc. Price, Consensus and EPS Surprise

Pacira BioSciences, Inc. Price, Consensus and EPS Surprise

Pacira BioSciences, Inc. price-consensus-eps-surprise-chart | Pacira BioSciences, Inc. Quote

Zacks Rank & Stocks to Consider

Pacira currently carries a Zacks Rank #3 (Hold). Better-ranked stocks in the same sector include Enanta Pharmaceuticals, Inc. ENTA and Endo International plc ENDP, both carrying a Zacks Rank #2 (Buy) at present.You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Enanta Pharmaceuticals’ loss per share estimates have narrowed 10.2% for 2021 and 16.3% for 2022 over the past 60 days. The stock has skyrocketed 104.7% year to date.

Endo International’s earnings estimates have been revised 1.3% upward for 2021 and 0.4% upward for 2022 over the past 60 days.

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