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It has been about a month since the last earnings report for Pacira (PCRX). Shares have added about 5.5% in that time frame, outperforming the S&P 500.
Will the recent positive trend continue leading up to its next earnings release, or is Pacira due for a pullback? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at its most recent earnings report in order to get a better handle on the important catalysts.
Pacira Q3 Earnings Top, Revenues Miss Despite Exparel Sales Growth
Pacira reported third-quarter 2024 adjusted earnings of 79 cents per share, which beat the Zacks Consensus Estimate of 72 cents. The company had reported adjusted earnings of 72 cents per share in the year-ago quarter.
Total revenues amounted to $168.6 million, which increased 3% year over year but missed the Zacks Consensus Estimate of $169 million.
PCRX’s Q3 Results in Detail
Pacira’s top line comprises product sales and royalty revenues. The company recognizes product revenues from the sales of its three marketed drugs — Exparel, Zilretta and iovera.
Exparel’s net product sales were $132 million, which increased 3% from the year-ago quarter figure. The reported figure beat the Zacks Consensus Estimate of $131.2 million and our model estimate of $130 million. Revenue growth from Exparel sales was partially offset by a shift in vial mix and contracted discounts.
Zilretta’s net product sales came in at $28.4 million, down slightly year over year. The reported figure missed the Zacks Consensus Estimate of $30.6 million as well as our model estimate of $30.1 million.
Net product sales of iovera were $5.7 million, up 8% from the year-ago quarter. The figure missed the Zacks Consensus Estimate of $5.99 million as well as our model estimate of $5.9 million.
Revenues generated from the sales of bupivacaine liposome injectable suspension to third-party licenses were pegged at $1.6 million, up significantly from the year-ago quarter’s figure. Royalty revenues amounted to $0.9 million in the reported quarter, up significantly year over year.
Research and development (R&D) expenses (excluding stock-based compensation) came in at $17.3 million, down 7% from the year-ago quarter due to lower product development and manufacturing capacity expansion costs as well as regulatory expenses in the reported quarter.
Selling, general and administrative (SG&A) expenses (excluding stock-based compensation) of $65 million increased 10% year over year, largely due to litigation costs as well as a rise in investments made in commercial, medical and market access organizations.