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Pacira Tops Q3 Earnings & Revenues, Exparel in Focus

Pacira Pharmaceuticals, Inc.PCRX reported third-quarter 2015 earnings of 10 cents per share, beating the Zacks Consensus Estimate of 3 cents per share. The company had reported a loss of 5 cents per share in the year-ago quarter.

Pacira Pharmaceuticals Inc. (PCRX) - Earnings Surprise | FindTheCompany

Revenues soared 19.6% year over year to $62.2 million, surpassing the Zacks Consensus Estimate of $60 million.

The Quarter in Detail

Pacira's net revenue comprises product revenues, collaborative licensing and development revenues and royalty revenues. The company's lead product, Exparel, generated revenues of $59.7 million, up 19% year over year. DepoCyt(e) revenues came in at $1.4 million, up 102.7% year over year.

Collaborative licensing and development revenue remained flat at $0.36 million, while royalty revenue declined 8.4% from the year-ago period to $0.71 million.

Research and development (R&D) expenses increased 33.2% year over year to $5.9 million while selling, general and administrative (SG&A) expenses increased 25.1% year over year to $35.3 million.

Pacira continues to expect R&D spend of $20 million to $25 million and SG&A spend of $115 million to $125 million in 2015.

Pacira continues to work on expanding Exparel's label to boost sales - enrolment in the oral surgery program is ongoing with top-line data expected by the end of the first quarter of 2016. Furthermore, phase III studies for nerve blocks (upper and lower extremity procedures) are slated to commence in early 2016.

The company is also planning a phase III pediatric wound infiltration study scheduled to commence in late 2016.

Our Take

Pacira's third-quarter results were encouraging, with the company beating on both the top and bottom line. We are pleased with the company's efforts of expanding Exparel's label. Label expansion of the drug should help boost revenues. The resolution of the lawsuit against the FDA regarding the promotion of Exparel would be a major positive.

Pacira currently carries a Zacks Rank #2 (Buy). Some better-ranked stocks in the health care sector are Onconova Therapeutics, Inc. ONTX , Spectrum Pharmaceuticals, Inc. SPPI and Ignyta, Inc. RXDX . Each of the stocks carries a Zacks Rank #1 (Strong Buy).

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SPECTRUM PHARMA (SPPI): Free Stock Analysis Report

PACIRA PHARMACT (PCRX): Free Stock Analysis Report

ONCONOVA THERAP (ONTX): Free Stock Analysis Report

IGNYTA INC (RXDX): Free Stock Analysis Report

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.


The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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