The Bull Case For Pacira BioSciences (PCRX) Could Change Following Johnson & Johnson Co-Promotion Deal for ZILRETTA - Learn Why

• Earlier this week, Pacira BioSciences and Johnson & Johnson MedTech announced a new partnership to co-promote ZILRETTA, an extended-release treatment for osteoarthritis knee pain, using Johnson & Johnson's early intervention sales force to expand ZILRETTA’s reach across the U.S. healthcare market.
• This collaboration unlocks opportunities for Pacira to extend ZILRETTA’s presence into new physician specialties such as sports medicine, pain management, and rheumatology, potentially reaching more of the estimated seven million annual knee injection patients.
• We'll examine how leveraging Johnson & Johnson’s specialized sales force could influence Pacira’s broader access goals within the investment narrative.

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Pacira BioSciences Investment Narrative Recap

To invest in Pacira BioSciences, you need to believe in the company’s ability to drive growth through effective commercialization of its pain management products, particularly ZILRETTA and EXPAREL, and successful access expansion. The new partnership with Johnson & Johnson MedTech is designed to speed up ZILRETTA’s reach to a broader market, addressing uncertainties about uptake, but it does not remove the significant risk tied to customer adoption delays and reimbursement complexities, especially for newer products.

Among recent announcements, the introduction of a permanent J-code for EXPAREL earlier this year stands out as highly relevant, as it directly impacts reimbursement and access, crucial levers for revenue growth in the company’s core surgical and pain treatment portfolio. Both this development and the ZILRETTA partnership highlight Pacira’s focus on making its therapies more accessible, although their effects may take time to fully materialize, given lingering adoption and billing hurdles.

However, despite expanding reach, investors should also be aware that reimbursement and market adoption for products like ZILRETTA remain uncertain in the near term...

Read the full narrative on Pacira BioSciences (it's free!)

Pacira BioSciences' narrative projects $919.8 million in revenue and $155.4 million in earnings by 2028. This requires 9.4% yearly revenue growth and a $259.1 million increase in earnings from -$103.7 million today.

Uncover how Pacira BioSciences' forecasts yield a $30.40 fair value, a 35% upside to its current price.

Exploring Other Perspectives

Four fair value estimates from the Simply Wall St Community span US$18 to US$127.24, indicating highly variable views. While access-focused collaborations may support future growth, adoption hurdles could temper near-term expectations, so compare these differing opinions carefully.

Explore 4 other fair value estimates on Pacira BioSciences - why the stock might be worth 20% less than the current price!

Build Your Own Pacira BioSciences Narrative

Disagree with existing narratives? Create your own in under 3 minutes - extraordinary investment returns rarely come from following the herd.

• A great starting point for your Pacira BioSciences research is our analysis highlighting 3 key rewards and 1 important warning sign that could impact your investment decision.
• Our free Pacira BioSciences research report provides a comprehensive fundamental analysis summarized in a single visual - the Snowflake - making it easy to evaluate Pacira BioSciences' overall financial health at a glance.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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