Pacira downgraded to Underweight from Overweight at JPMorgan

JPMorgan double downgraded Pacira BioSciences to Underweight from Overweight with a price target of $10, down from $45, after a judge ruled that the company’s ‘495 patent on Exparel is not valid and that eVenus is now free to launch generic Exparel at risk. Exparel composes 80% of Pacira’s revenue, the vast majority of which will likely get eroded if the company can’t successfully defend other patents, the analyst tells investors in a research note. The firm sees a “substantial overhang” on shares for the foreseeable future, and thinks investors will instead shift their focus “to cleaner stories elsewhere in the space.”