Pacira (PCRX) Plummets as US Court Deems Exparel Patent Invalid

Core Viewpoint - Pacira BioSciences' shares dropped 47.7% following a court ruling that invalidated its '495 patent for Exparel, which could lead to generic competition and significantly impact the company's revenue potential [1]. Company Overview - Pacira's flagship product, Exparel, is a long-acting local analgesic launched in 2012, approved for various postsurgical pain management applications [2]. - In the second quarter of 2024, Exparel generated $137 million in net sales, accounting for 77% of Pacira's total revenues for that quarter [6]. Legal Context - The court ruling is part of ongoing litigation against eVenus Pharmaceutical Laboratories, which aims to launch a generic version of Exparel [3]. - eVenus has countered Pacira's lawsuit by claiming the '495 patent is invalid and/or not infringed [4]. Financial Impact - The invalidation of the patent poses a significant risk to Pacira's revenue, as Exparel's sales are crucial for the company's financial health, and other products like Zilretta and iovera have not yet gained significant market traction [6][7]. - Year-to-date, Pacira's shares have declined 65.3%, contrasting with a 3.4% decline in the industry [6]. Future Considerations - Pacira is exploring legal options, including an appellate review at the U.S. Court of Appeals for the Federal Court [7]. - The company asserts that its Exparel franchise is protected by multiple existing patents, with additional infringement suits and patents in progress [8].