Pacira (PCRX) Financing Deal Removes Overhang

Pacira Pharmaceuticals, Inc. (Nasdaq: PCRX) completed a strong round of financing with a private offering of $110 million in aggregate principal amount of its 3.25 percent Convertible Senior Notes due 2019. Analysts at Jefferies think the deal removes a financing overhang.

Analyst Corey Davis said he had modeled cash needs in 2013 and the financing "provides a clear runway to profitability in ’14". However, Davis isn't expecting a spending spree.

"PCRX may bump up manufacturing capacity investment. We increase the Exparel 'fixed cost' COGS to ~$30M in ’13 (from $27.5M), lowering near-term reported GM. They may also hire a handful more reps, so there may be minor upside to our $48M '13 SG&A, but we'll wait for guidance," said Davis.

Jefferies has a Buy rating on Pacira Pharmaceuticals (NASDAQ: PCRX) with a modified price target of $24.00 (from $22.00).

For an analyst ratings summary and ratings history on Pacira Pharmaceuticals click here. For more ratings news on Pacira Pharmaceuticals click here.

Shares of Pacira Pharmaceuticals closed at $19.43 yesterday.

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