Pacira Pharmaceuticals (NASDAQ:PCRX) develops, commercializes, and manufactures pharmaceutical products primarily for use in hospitals and ambulatory surgery centers worldwide.
Insider selling during the last 30 days
Here is a table of Pacira's insider activity during the last 30 days.
|Name||Title||Trade Date||Shares Sold||Rule 10b5-1||Current Ownership||Decrease In Ownership|
|David Stack||CEO||May 9||25,000||Yes||19,804 shares + 170,695 options||11.6%|
|Laura Brege||Director||May 9||10,000||Yes||0 shares + 12,000 options||45.5%|
|James Scibetta||CFO||May 8||15,000||Yes||5,000 shares + 17,989 options||39.5%|
|Andreas Wicki||Director||May 6-7||44,780||Yes||1,622,527 shares||2.7%|
There have been 94,780 shares sold by insiders during the last 30 days. All these shares were sold pursuant to a Rule 10b5-1 plan. More details about the Rule 10b5-1 trading plan can be found from this link.
Insider selling by calendar month
Here is a table of Pacira's insider activity by calendar month.
|Month||Insider selling / shares||Insider buying / shares|
There have been 5,157,376 shares sold, and there have been 1,853 shares purchased by insiders since January 2013.
Pacira reported the first-quarter financial results on May 1 with the following highlights:
|Net loss||$11.5 million|
The four insiders sold their shares after these results.
In April, Pacira raised net proceeds of $110.4 million in a public offering.
Pacira expects to be profitable on a non-GAAP reported basis no later than the second half of this year.
Pipeline and upcoming milestones
Pacira's product portfolio consists of the following products or drug candidates.
Pacira expects to submit a supplemental New Drug Application for a nerve block indication (Exparel) in the second quarter of 2014.
|Qtrly Rev Growth (yoy):||2.16||-0.01|
|PEG (5 yr expected):||N/A||2.63|
Pacira has a lower gross margin than Kimberly-Clark. In Kimberly-Clark, there have been 123,291 shares sold, and there have been zero shares purchased by insiders this year. Kimberly-Clark has also seen intensive insider selling during the last 30 days.
There have been four different insiders selling Pacira, and there have not been any insiders buying Pacira during the last 30 days. Three of these four insiders decreased their holdings by more than 10%. Pacira has an insider ownership of 13.37%.
Before going short Pacira, I would like to get a bearish confirmation from the Point & Figure chart. The four main reasons for the proposed short entry are a relatively low gross margin, high P/S ratio, negative earnings, and the intensive insider-selling activity.
Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.