4. Pacira Pharmaceuticals Inc (NASDAQ:PCRX)
– Investors with Long Positions (as of June 30): 25
– Aggregate Value of Investors’ Holdings (as of June 30): $367.67 Million
– Goldman Sachs Rating and Price Target: ‘Buy’ $90 (131% upside to the current trading level)
While the total number of hedge funds with investments in the specialty pharmaceutical company reduced by two since the end of March, the total value of hedge funds’ holdings, among those that we track, increased by about $113.38 million despite a drop in Pacira Pharmaceuticals Inc (NASDAQ:PCRX)’s stock price of about 18% during this period. The concentration of these holdings at June end stood at 14.30% in terms of the company’s market cap. Hoplite Capital Management, which is led by John Lykouretzos initiated a stake of 1.26 million shares in Pacira during the second quarter.
Pacira Pharmaceuticals Inc (NASDAQ:PCRX)’s star drug, the post surgical pain medicine Exparel, accounts for 99% of the company’s revenues and in the second quarter posted a 27% increase in sales on a year-over-year basis. Analysts estimate that the drug could boost the company’s EPS from $0.02 in 2015 to $5.84 in 2019. However, there are a number of companies that have similar drugs under development that could shrink Pacira Pharmaceuticals Inc (NASDAQ:PCRX)’s future revenues, but until then the company enjoys an almost monopoly in the market.