Pacira should be bought on today’s selloff, says H.C. Wainwright

H.C. Wainwright analyst Oren Livnat recommeds buying Pacira BioSciences on weakness after the FDA confirmed it approved the first-ever generic Exparel. The selloff is not surprising given the Pacira story is almost entirely levered to Exparel, and this generic approval “undermines a core belief of some PCRX investors” that a generic was impossible to get approved, the analyst tells investors in a research note. The firm’s bullish view on the stock is based on seeing a good probability that Pacira ultimately settles with the challenger and/or wins litigation this year, resulting in “meaningful multiple expansion in either case.” It reiterates a Buy rating on the shares with a $57 price target. The stock in midday trading is down 25% to $21.31.