TAMPA, Fla. - Pacira BioSciences, Inc. (NASDAQ: PCRX), known for its non-opioid pain therapies, announced today the appointment of Shawn Cross as Chief Financial Officer. Cross, who carries over 25 years of experience in the biopharmaceutical sector, will oversee the company's financial strategy and operations.
Cross's appointment comes after a successful tenure at Applied Molecular Transport Inc., where he served in multiple leadership roles including CEO. He has also held senior positions in healthcare investment banking at JMP Securities, Deutsche Bank (ETR:DBKGn) Securities, and Wells Fargo (NYSE:WFC) Securities.
This strategic hire is part of Pacira's commitment to long-term growth and value creation. CEO Frank D. Lee expressed confidence in Cross's ability to guide the company's financial planning and praised his alignment with Pacira's mission.
On November 4, 2024, Cross will receive inducement awards as part of his compensation package, in accordance with Nasdaq Listing Rules. These include stock options and restricted stock units, vesting over a period contingent on his continued service with the company.
Pacira's portfolio includes three commercial-stage treatments, EXPAREL®, ZILRETTA®, and iovera°, with ongoing development of a gene therapy, PCRX-201. The company's financial health is robust, with significant cash flow reported from its leading products.
The information in this article is based on a press release statement. The forward-looking statements included in the press release are subject to various factors that could cause actual results to differ materially from those projected.
In other recent news, Pacira BioSciences has seen significant developments. The company reported Q1 2024 revenue of $149 million, with Exparel contributing $118 million. Furthermore, Pacira launched a private placement of $250 million in convertible senior notes due in 2029, anticipated to yield net proceeds of approximately $242 million.
Pacira also announced that the Centers for Medicare and Medicaid Services has assigned a new J-code for its product EXPAREL, which is expected to standardize billing and reimbursement processes. Additionally, the company's gene therapy candidate, PCRX-201, has gained recognition from both the U.S. FDA and the European Medicines Agency.
On the executive front, the company's CFO, Charles A. Reinhart III, is set to depart, with Lauren Riker appointed as the interim CFO. However, the company decided to retain Ms. Laura Brege as a Class I director despite a majority of "withhold" votes in the 2024 Annual Meeting of Stockholders.
Analysts' views on Pacira have varied, with Jefferies raising the company's price target while firms like H.C. Wainwright, RBC Capital, Raymond James, and Piper Sandler have downgraded the company. Lastly, DOMA Perpetual Capital Management LLC has encouraged Pacira to adopt a more aggressive approach towards its stock repurchases, leveraging its $400 million cash balance to enhance shareholder value.
InvestingPro Insights
The appointment of Shawn Cross as CFO comes at a pivotal time for Pacira BioSciences, as reflected in recent financial data and market trends. According to InvestingPro, Pacira's market capitalization stands at $806.76 million, with a price-to-earnings ratio of 12.72, suggesting a relatively modest valuation compared to industry peers.
Pacira's financial health appears solid, aligning with the company's statement about robust cash flow. An InvestingPro Tip highlights that the company's liquid assets exceed short-term obligations, indicating a strong balance sheet position. This financial stability could provide Cross with a solid foundation to build upon as he takes the helm of Pacira's financial operations.
The company's revenue growth of 3.15% over the last twelve months, coupled with a gross profit margin of 62.99%, demonstrates Pacira's ability to maintain profitability in a competitive market. An InvestingPro Tip notes that net income is expected to grow this year, which could be a positive sign for investors and a key focus area for the new CFO.
It's worth noting that Pacira has seen a strong return over the last month, with a 20.37% price total return. However, the year-to-date return stands at -48.16%, suggesting volatility that the new CFO may need to address in his financial strategy.
For readers interested in a deeper dive into Pacira's financial metrics and future outlook, InvestingPro offers 9 additional tips that could provide valuable insights for investment decisions.
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