Pacira Pharmaceuticals (PCRX) Stock: Will Gains Continue?

Pacira Pharmaceuticals Inc (NASDAQ: PCRX)

Pacira Pharmaceuticals is having an incredible day in the market today after announcing that it has reached a resolution with regard to a lawsuit between the company and the United States. Today, we’ll talk about the result of the lawsuit, how the market is reacting to the news, and what we can expect to see from PCRX moving forward.

PCRX Comes To An Amicable Resultion With The United States

On September 8th, 2015, there was a lawsuit filed between Pacira Pharmaceuticals and the United States Food & Drug Administration. The resolution to the lawsuit was confirmation that EXPAREL is, and has been since 2011, broadly indicated for the administration into the surgical site to provide postsurgical analgesia. In a statement, David Stack, CEO and Chairman of PCRX, had the following to say:

We are pleased to announce a successful collaboration with the FDA to resolve this matter in an expeditious and meaningful way that allows us to get back to the important task at hand – reducing postsurgical opioid exposure by providing a non-opioid option like EXPAREL to as many patients as appropriate… This is espcially important given the burgeoning U.S. opioid epidemic, underscored by the reality that one in 15 patients will go on to long-term use after receiving an opioid in the hospital setting.”

How The Market Reacted To The News

Historically, when we see positive news with regard to a publicly traded company, we tend to see a positive market reaction. Based on the amicable resolution to the lawsuit between PCRX and the US Food and Drug Administration, we’re seeing exactly that. Currently (11:38), PCRX is trading at $71.45 after a gain of 14.45% so far today.

What We Can Expect To See From PCRX Moving Forward

Moving forward, I have a relatively bullish opinion of what we can expect to see from PCRX. Based on the lawsuit resolution, we are likely to see higher sales volume with regard to EXPAREL. However, my bullish opinion on the stock goes far beyond EXPAREL. The reality is that when we talk about PCRX, we’re talking about a company that has a long product line. The company also has a strong pipeline of products that are likely to come relatively soon.

There is another reason I’m so bullish on PCRX however. The reality is that there is truth in the statement that there is an opioid endemic in the United States. Unfortunately, many people go to the hospital looking to find a solution to an ailment and are given opioid based medications to treat their pain. These medications are known to be highly addictive, leading to a new disease among those that went to the hospital for help – addiction. Any treatment that combats this cycle is likely to produce positive gains in the long run. With that said, between the positive news from the lawsuit, the incredible lineup of products (both approved and in the pipeline), and the company’s goal of giving an alternative to opioid-based treatments, I expect to see overwhelmingly positive news from the stock moving forward.

What Do You Think?

Where do you think PCRX is headed moving forward? Let us know your opinion in the comments below.

[Image Courtesy of Palm Desert Plastic Surgery]

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