Pacira (PCRX) shares soared 14.7% in the last trading session to close at $26.27. The move was backed by solid volume with far more shares changing hands than in a normal session. This compares to the stock's 0.8% loss over the past four weeks.
The sudden rise in the stock price was observed after PCRX announced entering into a settlement agreement with Fresenius, Jiangsu Hengrui Pharmaceuticals and eVenus Pharmaceuticals Laboratories, related to patents for Exparel (bupivacaine liposome injectable suspension). The settlement resolves the patent litigation brought by Pacira against these generic players, protecting the drug’s exclusivity in the United States at least until 2030.
This specialty drugmaker is expected to post quarterly earnings of $0.61 per share in its upcoming report, which represents a year-over-year change of -1.6%. Revenues are expected to be $175.33 million, up 4.9% from the year-ago quarter.
Earnings and revenue growth expectations certainly give a good sense of the potential strength in a stock, but empirical research shows that trends in earnings estimate revisions are strongly correlated with near-term stock price movements.
For Pacira, the consensus EPS estimate for the quarter has been revised 5% lower over the last 30 days to the current level. And a negative trend in earnings estimate revisions doesn't usually translate into price appreciation. So, make sure to keep an eye on PCRX going forward to see if this recent jump can turn into more strength down the road.
The stock currently carries a Zacks Rank #3 (Hold). You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>>
Pacira belongs to the Zacks Medical - Biomedical and Genetics industry. Another stock from the same industry, Legend Biotech Corporation Sponsored ADR (LEGN), closed the last trading session 1.7% higher at $30.77. Over the past month, LEGN has returned -11.1%.
Legend Biotech's consensus EPS estimate for the upcoming report has changed -10.2% over the past month to -$0.33. Compared to the company's year-ago EPS, this represents a change of -106.3%. Legend Biotech currently boasts a Zacks Rank of #3 (Hold).
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Pacira BioSciences, Inc. (PCRX) : Free Stock Analysis Report
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This article originally published on Zacks Investment Research (zacks.com).
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