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Pacira (PCRX) Misses Q3 Earnings Estimates, Beats on Sales
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Pacira Pharmaceuticals, Inc. (PCRX - Free Report) reported third-quarter 2016 earnings of 2 cents (including the impact of stock-based compensation), missing the Zacks Consensus Estimate of 3 cents and declining from the year-ago quarter figure of 10 cents.
Revenues, on the other hand, surged 10% year over year to $68.4 million and surpassed the Zacks Consensus Estimate of $66.1 million.
Quarter in Detail
Pacira’s top line comprises product revenues, collaborative licensing and milestone revenues, and royalty revenues. Its lead product, Exparel, generated revenues of $64.9 million, up 9% year over year driven by growth in both existing accounts and new accounts. DepoCyt(e) and other product revenues came in at $1.25 million, up 12%.
Collaborative licensing and milestone revenues skyrocketed over 200% to $1.4 million, year over year. Royalty revenues were $0.8 million, up 24.5%.
Research and development (R&D) expenses were up 87.9% to $9.1 million, while selling, general and administrative (SG&A) expenses increased 7.3% to $31.4 million. Costs increases primarily due to clinical investment in the TKA infiltration study and two nerve-block studies on Exparel.
We note that Pacira has officially launched Exparel in Oral surgery at the American Association of Oral and Maxillofacial Surgeons (AAOMS) annual meeting in September, which facilitates a move from inpatient to outpatient surgery. It has also enrolled two phase III nerve-block studies on Exparel, one in lower extremity femoral nerve block and the other in upper extremity brachial plexus block. Both are expected to complete by the first quarter of 2017, with a supplemental new drug application submission for the nerve block indication expected by the end of second-quarter 2017.
2016 Outlook
The company now projects Exparel sales of $263 million to $268 million (old guidance: $270–$280 million), reflecting revised expectation regarding when commercial strategies and collaborations will contribute to sales growth. The revenue growth expected to be fueled by these strategies and collaborations is taking longer to benefit sales. R&D expenses are expected in the range of $40 million to $50 million (old guidance: $60–$70 million), reflecting significant cost savings in three randomized clinical trials, along with costs related to two nerve block trials that are expected to be complete in the first quarter of 2017. SG&A expenses are, however, still expected to be $125–$135 million.
Zacks Rank & Other Stocks to Consider
Pacira currently has a Zacks Rank #4 (Sell). Some better-ranked stocks in the healthcare sector include Infinity Pharmaceuticals, Inc. , Anika Therapeutics (ANIK - Free Report) and Exelixis, Inc. (EXEL - Free Report) . While Infinity and Anika sport a Zacks Rank #1 (Strong-Buy), Exelixis has a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Infinity’s loss estimates narrowed from $3.84 to $3.79 for 2016 and remained stable for 2017 over the last 60 days. The company has posted a positive surprise in all the four trailing quarters with an average beat of 67.62%.
Anika Therapeutics earnings estimate increased from $1.96 to $2.06 for 2016 and from $2.03 to $2.09 over the last 60 days. The company has posted a positive surprise in all the four trailing quarters with an average beat of 33.14%. Its share price has increased 10.9% yearto date.
Exelixis’ loss estimates narrowed from 71 cents to 61 cents for 2016 and from 16 cents to earnings of 4 cents for 2017 over the last 60 days. The company has posted a positive surprise twice in the four trailing quarters with an average beat of 9.1%. Its share price has skyrocketed over 100% year to date.
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Pacira (PCRX) Misses Q3 Earnings Estimates, Beats on Sales
Pacira Pharmaceuticals, Inc. (PCRX - Free Report) reported third-quarter 2016 earnings of 2 cents (including the impact of stock-based compensation), missing the Zacks Consensus Estimate of 3 cents and declining from the year-ago quarter figure of 10 cents.
Revenues, on the other hand, surged 10% year over year to $68.4 million and surpassed the Zacks Consensus Estimate of $66.1 million.
Quarter in Detail
Pacira’s top line comprises product revenues, collaborative licensing and milestone revenues, and royalty revenues. Its lead product, Exparel, generated revenues of $64.9 million, up 9% year over year driven by growth in both existing accounts and new accounts. DepoCyt(e) and other product revenues came in at $1.25 million, up 12%.
Collaborative licensing and milestone revenues skyrocketed over 200% to $1.4 million, year over year. Royalty revenues were $0.8 million, up 24.5%.
Research and development (R&D) expenses were up 87.9% to $9.1 million, while selling, general and administrative (SG&A) expenses increased 7.3% to $31.4 million. Costs increases primarily due to clinical investment in the TKA infiltration study and two nerve-block studies on Exparel.
We note that Pacira has officially launched Exparel in Oral surgery at the American Association of Oral and Maxillofacial Surgeons (AAOMS) annual meeting in September, which facilitates a move from inpatient to outpatient surgery. It has also enrolled two phase III nerve-block studies on Exparel, one in lower extremity femoral nerve block and the other in upper extremity brachial plexus block. Both are expected to complete by the first quarter of 2017, with a supplemental new drug application submission for the nerve block indication expected by the end of second-quarter 2017.
2016 Outlook
The company now projects Exparel sales of $263 million to $268 million (old guidance: $270–$280 million), reflecting revised expectation regarding when commercial strategies and collaborations will contribute to sales growth. The revenue growth expected to be fueled by these strategies and collaborations is taking longer to benefit sales. R&D expenses are expected in the range of $40 million to $50 million (old guidance: $60–$70 million), reflecting significant cost savings in three randomized clinical trials, along with costs related to two nerve block trials that are expected to be complete in the first quarter of 2017. SG&A expenses are, however, still expected to be $125–$135 million.
Zacks Rank & Other Stocks to Consider
Pacira currently has a Zacks Rank #4 (Sell). Some better-ranked stocks in the healthcare sector include Infinity Pharmaceuticals, Inc. , Anika Therapeutics (ANIK - Free Report) and Exelixis, Inc. (EXEL - Free Report) . While Infinity and Anika sport a Zacks Rank #1 (Strong-Buy), Exelixis has a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Infinity’s loss estimates narrowed from $3.84 to $3.79 for 2016 and remained stable for 2017 over the last 60 days. The company has posted a positive surprise in all the four trailing quarters with an average beat of 67.62%.
Anika Therapeutics earnings estimate increased from $1.96 to $2.06 for 2016 and from $2.03 to $2.09 over the last 60 days. The company has posted a positive surprise in all the four trailing quarters with an average beat of 33.14%. Its share price has increased 10.9% yearto date.
Exelixis’ loss estimates narrowed from 71 cents to 61 cents for 2016 and from 16 cents to earnings of 4 cents for 2017 over the last 60 days. The company has posted a positive surprise twice in the four trailing quarters with an average beat of 9.1%. Its share price has skyrocketed over 100% year to date.
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Beyond this Analyst Blog, would you like to see Zacks' best recommendations that are not available to the public? Our Executive VP, Steve Reitmeister, knows when key trades are about to be triggered and which of our experts has the hottest hand. Click to see them now>>