Pacira Prices Offering, Shares Soar - Analyst Blog
11 April 2014 - 2:00AM
Zacks
Shares of Pacira
Pharmaceuticals, Inc. (PCRX) soared 11.3% on the news of
the pricing of the common stock at an offer price of $64.00 per
share.
We note that Pacira initiated a
public offering of its common stock worth $100 million earlier in
the week.
Pacira expects net proceeds of
approximately $96.0 million from the offering after deducting
underwriting discounts and commissions and estimated offering
expenses.
Moreover, underwriters have been
granted an option to purchase an additional 240,000 shares, with a
30-day window to do so. The offering is expected to close by
Apr 14, 2014.
We are encouraged by the recent
bout of positive news at Pacira. Pacira’s lead drug Exparel, is
approved by the U.S. Food and Drug Administration (FDA) for
administration into the surgical site to produce post-surgical
analgesia.
Exparel was launched in Apr 2012
and demand has been robust ever since. Net Exparel revenues were
$76.2 million in 2013. Since its launch, 2,106 customers have
ordered Exparel (data as of Dec 31, 2013).
Pacira recently signed a strategic
co-production partnership deal with Patheon. As per the partnership
agreement, Exparel will be manufactured and packaged at Patheon’s
facility in the U.K. Further, Patheon will construct the dedicated
manufacturing suites, install and validate the manufacturing
equipments and manufacture Exparel.
Pacira is working to expand the
manufacturing capacity of Exparel to meet the growing demand for
the drug. Last month, the FDA approved an additional manufacturing
suite (Suite C) for Exparel.
The site at Patheon will be
designed to mirror the recently approved Suite C manufacturing
facility. We expect the company to use the funds for further
commercilization of Exparel.
Pacira carries a Zacks Rank #3
(Hold). Investors looking for better-ranked stocks in the pharma
sector may consider companies like Salix
Pharmaceuticals (SLXP), Sucampo
Pharmaceuticals (SCMP) and Immunogen Inc.
(IMGN).
IMMUNOGEN INC (IMGN): Free Stock Analysis Report
PACIRA PHARMACT (PCRX): Free Stock Analysis Report
SUCAMPO PHARMAC (SCMP): Free Stock Analysis Report
SALIX PHARM-LTD (SLXP): Free Stock Analysis Report
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