There are certain notable prospects for Pacira to become a mega biosciences firm in the next few years.
The COVID-19 pandemic has increased the significance of Medical and Health firms—with the increase in demand of medical equipment. Investors are keenly monitoring the health stocks and are attracted by their board marketplace. Pacira BioSciences (PCRX) is one of those stocks that have outpaced its counterparts in the market.
The interesting thing about PCRX is that in the past few years it has turned things around—from loss to profitability. In the last three years, Pacira’s share price has jumped more than 40%, with most of the bullish movement in 2020. Analysts are bullish on PCRX as we head forward. Here is what the investor needs to know.
What’s Next?
Pacira BioSciences (PCRX) has been in the spotlight with improving earnings per share. The growth in EPS is considered to be a good sign from an investment point-of-view. In one year, period, the company’s EPS soared from $0.049 to $2.99, which is a record jump. Such growth rate is unlikely to occur again, but it has set the pathway for Pacira—potentially the breakout point.
Looking at the other side of the picture—to double-check Pacira’s growth—the company’s EBIT margins were flat, while the revenue grew by 6.9% to $421 million. Now, that’s some development.
Recently, the company reported that it has initiated to lead an equity investment in GeneQuine Biotherapeutics GmbH. Based on the agreement terms, Pacira will initially invest around $2.4 million following an additional investment of $4.81 million. The additional investment would be predicated upon GeneQuine’s completion of near-term milestones such as its lead gene therapy product candidate, GQ-303.
At the moment, GeneQuineis working on GQ-303 and its analogs, and under pre clinical development as a treatment for OA.
Pacira’s equity investment in the German biopharmaceutical firm is part of its plan to participate in the development of disease-modifying gene therapy for osteoarthritis. The company believes that this investment is pretty sound. This investment would increase with time if the initial developments turn of to be favorable for both the medical firms.
Pacira’s investment worth $3 million would be made in form of a convertible note. Moreover, the company would appoint one member to the board of directors of GeneQuine, as part of the agreement.
Conclusion
Pacira BioSciences (PCRX) has reported its preliminary unaudited full-year 2020 results, which are quite astonishing. The net revenue is projected to grow 2% to $429.6 million, up from last year’s $421 million. While its lead product sales of EXPAREL and iovera° have grown massively over the past few months. The revenue from both the products accounted for a revenue of $127.7 million.
Overall, the stats are reflecting that PCRX is making its way into the bigger marketplace. With the current market cap of just over $3 billion, Pacira is one to watch for in the long-term run.
