This stock has been on a roller-coaster for years and is now trading where it was in 2013. Pacira Pharmaceuticals Inc. (NASDAQ: PCRX) is a specialty pharmaceutical company that develops, commercializes and manufactures proprietary pharmaceutical products primarily for use in hospitals and ambulatory surgery centers in the United States. The company develops pharmaceutical products based on its proprietary DepoFoam drug delivery technology. Its lead product includes, Exparel, a liposome injection of bupivacaine, an amide-type anesthetic indicated for infiltration into the surgical site to produce postsurgical analgesia.
The company also markets DepoCyt(e), a liposomal formulation of the chemotherapeutic agent cytarabine indicated for the intrathecal treatment of lymphomatous meningitis, a life-threatening complication of lymphoma, a cancer of the immune system. Its development pipeline comprises DepoMeloxicam, a long-acting non-steroidal anti-inflammatory drug, which is in preclinical development for the treatment of acute postsurgical pain, and DepoTranexamic Acid, a pre-clinical development product for the treatment or prevention of excessive blood loss during surgery by promoting hemostasis.
The Wedbush team notes that the company still has a since-rescinded FDA warning letter pall hanging over the stock, but they think that the new promotional strategy for Exparel will yield solid results. They noted in a recent report:
The Symphony Health (SH) EXPAREL estimated sales per day in May increased 0.8% over April and Q2 is tracking about -1.24% below consensus. Symphony Health sales and volume estimates for May were more than $21 million (WAC$) and over 68 thousand pack units. On a selling day basis May sales and volume were 0.8% over April. We count 21 selling days each in April and May and 22 in June and 64 for Q2. Recent quarterly capture rates for SH EXPAREL estimates have been close to 100% (Q4 100.1%; Q1 99.8%) but remain cautious on accuracy as historical capture rates have been variable (68.5%-108%).
Wedbush has a stunning $105 price target. The consensus is also huge at $79.67. The stock closed most recently at $38.08.
Wedbush is also very positive on this large cap company. United Therapeutics Corp. (NASDAQ: UTHR) develops and commercializes products to address the unmet medical needs of patients with chronic and life-threatening diseases worldwide. The company’s principal therapeutic products and product candidates include Remodulin, an injection used for the treatment of pulmonary arterial hypertension (PAH); Tyvaso, an inhaled prostacyclin therapy for PAH; Adcirca, a once-daily oral therapy for PAH; Orenitram, a prostacyclin analog for PAH; Unituxin, an antibody that binds to cancerous tumors and destroys the cancer cells; and engineered lungs and lung tissue that can be transplanted into patients suffering from PAH and other lung diseases.
Wedbush highlights the FREEDOM-EV and BEAT enrollment this year, with data to follow in 2017, and the potential new drug application (NDA) approval for a Remodulin implantable pump next year as top catalysts for this outstanding company.
The Wedbush price target is a huge $229. The consensus is much lower at $129.50, and shares closed near that level at $125.85.
Four big opportunities for aggressive investors. There are also substantial risks should the outcomes not play out favorably. With that in mind, some smaller speculative positions could be the right play for aggressive, risk-tolerant accounts.