Pacira BioSciences, Inc. (PCRX)
NASDAQHealth CareDrug Manufacturers - Specialty & GenericSnapshot 2026-09-04
$26.35-0.94%
Close 2026-09-04 · 1-day change
NASDAQHealth CareDrug Manufacturers - Specialty & GenericSnapshot 2026-09-04
Broken: Primary pillar broken — Total revenue grows to $745M-$770M in 2026: FY26 revenue guidance mid $747.5M vs $745M target; low $735M below target.
Pacira grows sales about 8% a year to $770 million in 2026. Profit margins stay strong near 79%. Net income hits $24.5 million in 2026. The company gains $140 million from selling its iovera business.
Sales growth slows below 5%. Profit margins fall below 77%. Net income misses $24.5 million target. The divestiture deal faces delays or fails.
Price is about 38% below our fair value near $42. Analysts expect 9% revenue growth. Our view aligns with these expectations.
Breaks if: Divestiture deal fails or proceeds fall below $70 million upfront
Complete the divestiture of the iovera business to Zimmer Biomet to focus on core biopharmaceutical innovation.
This is not a price target or investment advice.
A long-form read on the 1–3 year hold thesis. It updates when the weekly evidence changes.
This investment represents a durable compounder with a focus on growth and innovation. The current thesis is intact, supported by strong recent financial performance and a stable management team.
The market currently prices PCRX as expensive compared to its peers, with a premium of 0.8. There is a slight expectations gap, indicating that some investors may anticipate challenges ahead.
Fundamentals are likely to remain strong in the near term, with management executing its 5x30 strategy effectively. However, the downward adjustment in revenue guidance due to the divestiture introduces some uncertainty.
The long-term thesis hinges on management's ability to meet its revenue and margin targets, as well as external factors like sector performance and economic conditions. Key triggers include guidance updates and earnings reports from major healthcare players.
The most important moves since the prior daily snapshot.
Yes, our read has strengthened. The latest earnings beat supports a more favorable outlook. There are no new threats impacting the thesis at this time.
as of 2026-09-04
Review the evidence to watch, what would become a concern, and what would make it less concerning.
Not investment advice. Scores describe historical and current data; they are not forecasts of future returns. Consult a licensed advisor before making investment decisions.
Stated as a priority in 2 disclosures including 2026-Q2 press release and 2026-06-30 announcement. The divestiture closed July 31, 2026, with $73.6 million cash received upfront and potential future milestones up to $70 million. Management frames this as advancing strategic focus; transaction completed as planned.
“Divestiture of iovera business to Zimmer Biomet closed July 31, 2026, with cash received of $73.6 million”
Breaks if: Gross margin falls below 77% in FY26
Target non-GAAP gross margin in the range of 77% to 79% for full-year 2026 to sustain profitability.
Stated as a priority in 3 of last 3 quarters. Management consistently guides to a non-GAAP gross margin range of 77%-79% for 2026, down slightly from 78%-80% in 2025. The guidance reflects stable margin expectations; no direct quarterly margin data available to assess delivery but management reiterates this target.
“Non-GAAP gross margin of 77 percent to 79 percent reiterated for 2026”
“Non-GAAP gross margin of 77 percent to 79 percent reiterated for 2026”
“Non-GAAP gross margin guidance of 78 to 80 percent for 2025”
Breaks if: Net income falls below $24.5 million in FY26
Target non-GAAP net income of approximately $24.5 million for full-year 2026 to improve profitability.
Stated as a priority in 2 of last 3 quarters. Management reiterates non-GAAP net income guidance of $24.5 million for 2026. Actual non-GAAP net income was $24.5 million in 2026-Q1 and $29.5 million in 2026-Q2 annualized, indicating trajectory is delivering or slightly ahead of target.
“Non-GAAP net income guidance of $24.5 million reiterated for 2026”
“Non-GAAP net income guidance of $24.5 million for 2026 provided”
Breaks if: Total revenue falls below $745 million in FY26
Continue executing the 5x30 strategic growth initiative to drive long-term revenue growth, clinical innovation, and value creation.
Stated as a priority in 3 of last 3 quarters. Revenue grew from $168.9 million in 2026-Q1 to $192.4 million in 2026-Q2, a 6% year-over-year increase, continuing the 4% full-year 2025 growth over 2024. Management consistently emphasizes the 5x30 strategy as central to driving growth and innovation, and the financials show delivering progress.
“Continued execution of 5x30 strategy marked by solid revenue growth, durable cashflows, advancing pipeline, and high-caliber commercial partnerships”
“Pacira entered 2026 with strong momentum as our 5x30 strategy continues to generate clear and measurable results”
“With the launch of our 5x30 strategy, we reignited momentum across the business and delivered strong, measurable progress”
Overall, PCRX's position is supported by robust earnings quality and stable management, but it must navigate potential risks in the broader market. Not investment advice.