My last point: looking into the future of PCRX.
Besides all the information that is publicly available and that I’ve posted in my previous two comments. Here’s something to keep in mind for PCRX future if you want to make your decision to buy, hold, or sell:
1. Diversification of product pipeline greatly reduces the risk of further top-line (revenue) erosion even if we assume the worst case scenario for Experal (which itself is extremely unlikely) Remember they have Zilretta, an important “corticosteroid of choice given its safety and efficacy profile”, quoted from its 10k sec filings. Zilretta is growing and taking market share, generated 111.1, 105.5, and 12.7 million respectively for PCRX in 2023, 2022, and 2021. They ALSO have IOVERA, device, the sales of which is also growing. They valuable is somewhat reasonable even if we completely ignore Experal.
2. The upcoming interest rate cuts helps these smaller biotech companies to finance, refinance, and grow. They interest expense to borrow would be less and lowered, and they will have more room to grow and less risk to be bankrupt.
3. They have more drug innovations which will be added into their pipeline. People worry way to much about the Experal and the harm of its sales. Their increasing RD is a huge driver for more drugs and patents. Remember, the success of any new drug will significantly increase their profitability and stock price given its current cheap valuation.
What’s makes sure their potential success outlined above is a good management team which they have shown that not only they have taken the rights steps in the events of defending Experal, but also showed a great sense of responsibility by massive insider buying activities. They are undervalued in the short term by the overwhelming negative market sentiment, and they represents a great value opportunity going into the future.
1. Diversification of product pipeline greatly reduces the risk of further top-line (revenue) erosion even if we assume the worst case scenario for Experal (which itself is extremely unlikely) Remember they have Zilretta, an important “corticosteroid of choice given its safety and efficacy profile”, quoted from its 10k sec filings. Zilretta is growing and taking market share, generated 111.1, 105.5, and 12.7 million respectively for PCRX in 2023, 2022, and 2021. They ALSO have IOVERA, device, the sales of which is also growing. They valuable is somewhat reasonable even if we completely ignore Experal.
2. The upcoming interest rate cuts helps these smaller biotech companies to finance, refinance, and grow. They interest expense to borrow would be less and lowered, and they will have more room to grow and less risk to be bankrupt.
3. They have more drug innovations which will be added into their pipeline. People worry way to much about the Experal and the harm of its sales. Their increasing RD is a huge driver for more drugs and patents. Remember, the success of any new drug will significantly increase their profitability and stock price given its current cheap valuation.
What’s makes sure their potential success outlined above is a good management team which they have shown that not only they have taken the rights steps in the events of defending Experal, but also showed a great sense of responsibility by massive insider buying activities. They are undervalued in the short term by the overwhelming negative market sentiment, and they represents a great value opportunity going into the future.
Disclaimer: Community is offered by Moomoo Technologies Inc. and is for educational purposes only.
Read more
Comment
Sign in to post a comment
Graduate with Economic and Math degree. Been tracking and learning in the market for over 7 years. Student of Buffett.
3Followers
5Following
12Visitors
Follow