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Pacira’s Strong 3Q15 Results Helped the Pharma Subgroup

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Oct. 29 2015, Updated 8:08 a.m. ET

IBB’s pharmaceutical subgroup outperformed

The iShares Nasdaq Biotechnology ETF’s (IBB) pharmaceutical subgroup rose 1.9% as of October 27, 2015. IBB’s pharmaceutical subgroup consists of 61 stocks. It accounts for 22.5% of IBB’s portfolio. Out of the 61 stocks, 39 stocks gave positive returns and 22 stocks ended up in red. The pharmaceutical subgroup includes stocks like Dyax (DYAX), Clovis Oncology (CLVS), and Anacor Pharmaceuticals (ANAC). They gave returns of -1.4%, 2.2%, and 1.1%, respectively.

The above graph shows the performance of IBB’s pharmaceutical subgroup compared with the SPDR S&P 500 (ETF) on a day-to-day basis since October 19, 2015. For this period, IBB’s pharmaceutical subgroup gave a return of -3.7% while SPY returned 1.7%.

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Pacira Pharmaceuticals rose due to good 3Q15 results

Pacira Pharmaceuticals (PCRX) rose 19.5% and closed at $49.12. The stock rose due to good 3Q15 results. According to the press release, the highlights from the 3Q15 results include:

  • The total revenue stood at $62.2 million—compared to $52 million in 3Q14. EXPAREL contributed $59.7 million in revenue compared to $50.2 million in 3Q14—19% growth.
  • The total operating expenses were $57.1 million—compared to $53 million in 3Q14.
  • The GAAP (generally accepted accounting principles) net income stood at $3.1 million—compared to a GAAP net loss of $3.0 million in 3Q14.

Pacira also provided an outlook on the operating expenses for 2015. It stated that the R&D (research and development) expenses will be $20–$25 million. The SG&A (selling, general, and administrative) expenses will be $115–$125 million.

Pacira had a weight of 0.25% in IBB’s portfolio. It was one of the top performers on October 27.

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