{
  "@context": "https://frontierpicks.com/schemas/dossier.v1.json",
  "ticker": "PCRX",
  "name": "Pacira BioSciences, Inc.",
  "url": "https://frontierpicks.com/dossiers/PCRX/",
  "json_url": "https://frontierpicks.com/dossiers/PCRX.json",
  "status": "WATCHLIST",
  "current_conviction": "LOW",
  "archetype": {
    "code": "a5",
    "n": 5
  },
  "current_thesis": "Pacira BioSciences trades as a pending takeover pinned near Viatris's $36.50 cash offer, so the shares are more likely to lag the S&P 500 than lead it. The tender offer expiring on 16 November 2026, with antitrust clearance already granted, decides whether the cash is paid.",
  "invalidation_trigger": "A daily close above $40.11, well over the $36.50 offer price, which would show the market pricing a higher bid and the shares leading the S&P 500; Viatris raising its offer or a rival bidder making a superior proposal would also prove this call wrong.",
  "catalyst_date": "2026-11-16",
  "portfolio": null,
  "pick": null,
  "themes": [
    "m-and-a-special-situations"
  ],
  "tags": [],
  "sources": [],
  "caveats": [],
  "source_links": [
    {
      "title": "Viatris, Pacira cleared HSR waiting period on Oct. 29",
      "url": "https://www.mlex.com/mlex/articles/2544456/viatris-pacira-cleared-hsr-waiting-period-on-oct-29",
      "date": "2026-10-30"
    },
    {
      "title": "Pacira (PCRX): $36.50 cash, with only a 0.30% dated gap",
      "url": "https://newmoonspecialsituations.substack.com/p/pacira-pcrx-3650-cash-with-only-a",
      "date": "2026-11-02"
    },
    {
      "title": "Viatris launches tender offer for Pacira at $36.50 per share",
      "url": "https://www.investing.com/news/company-news/viatris-launches-tender-offer-for-pacira-at-3650-per-share-93CH-4987551",
      "date": null
    },
    {
      "title": "Viatris Inc - Form 8-K - FY2026",
      "url": "https://www.sec.gov/Archives/edgar/data/0001792044/000114036126039024/ef20083514_ex99-1.htm",
      "date": null
    }
  ],
  "evidence": [
    {
      "claim": "Viatris agreed to acquire Pacira for $36.50 per share in cash, an aggregate equity value of $1.65 billion.",
      "source": "Viatris 8-K and press release, Exhibit 99.1",
      "as_of": "2026-10-08"
    },
    {
      "claim": "Viatris subsidiary Peach Purchaser Sub commenced the $36.50 cash tender offer; it expires at 11:59 p.m. ET on 2026-11-16 unless extended or terminated.",
      "source": "Investing.com report on the tender launch",
      "as_of": "2026-10-30"
    },
    {
      "claim": "The Hart-Scott-Rodino waiting period for the Viatris-Pacira deal expired just before midnight on 2026-10-29.",
      "source": "MLex, 2026-10-30",
      "as_of": "2026-10-30"
    },
    {
      "claim": "Third-quarter 2026 revenue was $176.65 million against $179.52 million in the same quarter of 2025; diluted EPS was $0.70.",
      "source": "Pacira 10-Q for the period ended 2026-09-30; Q3 2026 results release",
      "as_of": "2026-11-05"
    },
    {
      "claim": "Pacira withdrew its 2026 financial guidance pending the proposed merger with Viatris.",
      "source": "Benzinga report, 2026-11-05",
      "as_of": "2026-11-05"
    },
    {
      "claim": "RBC Capital raised its Pacira price target to $36.50, equal to the offer price.",
      "source": "RBC Capital note reported 2026-11-10",
      "as_of": "2026-11-10"
    },
    {
      "claim": "Ingram Micro will replace Pacira BioSciences in the S&P SmallCap 600 effective prior to the open on 2026-11-17.",
      "source": "S&P Dow Jones Indices announcement, 2026-11-11",
      "as_of": "2026-11-11"
    },
    {
      "claim": "SVP Finance Lauren Riker exercised 6,000 options at $32.35 and sold 6,000 shares at $36.32 on 2026-10-08 under a Rule 10b5-1 plan.",
      "source": "SEC Form 4 filed 2026-10-09",
      "as_of": "2026-10-08"
    }
  ],
  "view_changes": [],
  "frame": null,
  "filed_numbers": {
    "as_of": "2026-11-13",
    "sector": "Healthcare",
    "financials": {
      "status": "ok",
      "reason": null,
      "close_date": "2026-11-13",
      "latest_quarter": "2026-09-30",
      "figures": {
        "revenue": {
          "status": "ok",
          "quarters": [
            {
              "end": "2026-09-30",
              "filed": "2026-11-05",
              "restated": null,
              "value_musd": 176.7,
              "yoy_pct": -1.6
            },
            {
              "end": "2026-06-30",
              "filed": "2026-08-04",
              "restated": null,
              "value_musd": 192.4,
              "yoy_pct": 6.2
            },
            {
              "end": "2026-03-31",
              "filed": "2026-04-30",
              "restated": null,
              "value_musd": 177.4,
              "yoy_pct": 5
            },
            {
              "end": "2025-12-31",
              "filed": "2026-02-26",
              "restated": null,
              "value_musd": 196.9,
              "yoy_pct": 5.1
            },
            {
              "end": "2025-09-30",
              "filed": "2025-11-06",
              "restated": null,
              "value_musd": 179.5,
              "yoy_pct": 6.5
            },
            {
              "end": "2025-06-30",
              "filed": "2025-08-05",
              "restated": null,
              "value_musd": 181.1,
              "yoy_pct": 1.7
            }
          ]
        },
        "gross_margin": {
          "status": "ok",
          "quarters": [
            {
              "end": "2026-09-30",
              "filed": "2026-11-05",
              "restated": null,
              "pct": 78.9
            },
            {
              "end": "2026-06-30",
              "filed": "2026-08-04",
              "restated": null,
              "pct": 77
            },
            {
              "end": "2026-03-31",
              "filed": "2026-04-30",
              "restated": null,
              "pct": 79.5
            },
            {
              "end": "2025-12-31",
              "filed": "2026-02-26",
              "restated": null,
              "pct": 79.5
            },
            {
              "end": "2025-09-30",
              "filed": "2025-11-06",
              "restated": null,
              "pct": 80.9
            },
            {
              "end": "2025-06-30",
              "filed": "2025-08-05",
              "restated": null,
              "pct": 77.4
            }
          ]
        },
        "operating_margin": {
          "status": "ok",
          "quarters": [
            {
              "end": "2026-09-30",
              "filed": "2026-11-05",
              "restated": null,
              "pct": 12.6
            },
            {
              "end": "2026-06-30",
              "filed": "2026-08-04",
              "restated": null,
              "pct": 2.2
            },
            {
              "end": "2026-03-31",
              "filed": "2026-04-30",
              "restated": null,
              "pct": 3.9
            },
            {
              "end": "2025-12-31",
              "filed": "2026-02-26",
              "restated": null,
              "pct": 1.2
            },
            {
              "end": "2025-09-30",
              "filed": "2025-11-06",
              "restated": null,
              "pct": 3.5
            },
            {
              "end": "2025-06-30",
              "filed": "2025-08-05",
              "restated": null,
              "pct": 4.7
            }
          ]
        },
        "pretax_income": {
          "status": "ok",
          "end": "2026-09-30",
          "filed": "2026-11-05",
          "value_musd": 28.8
        },
        "net_income": {
          "status": "ok",
          "end": "2026-09-30",
          "filed": "2026-11-05",
          "four_quarters_end": "2026-09-30",
          "value_musd": 28.5,
          "four_quarters_musd": 37.7
        },
        "operating_cash_flow": {
          "status": "ok",
          "end": "2026-09-30",
          "filed": "2026-11-05",
          "first_end": "2025-12-31",
          "value_musd": 176.9
        },
        "capital_spending": {
          "status": "ok",
          "end": "2026-09-30",
          "filed": "2026-11-05",
          "first_end": "2025-12-31",
          "value_musd": 7.9
        },
        "free_cash_flow": {
          "status": "ok",
          "end": "2026-09-30",
          "filed": "2026-11-05",
          "first_end": "2025-12-31",
          "value_musd": 169
        },
        "diluted_share_change": {
          "status": "ok",
          "end": "2026-09-30",
          "filed": "2026-11-05",
          "base_end": "2025-09-30",
          "pct": -8.2
        },
        "cash": {
          "status": "ok",
          "end": "2026-09-30",
          "filed": "2026-11-05",
          "value_musd": 295.6
        },
        "debt": {
          "status": "ok",
          "end": "2026-09-30",
          "filed": "2026-11-05",
          "value_musd": 293.6,
          "composition": "long-term debt"
        },
        "net_cash": {
          "status": "ok",
          "end": "2026-09-30",
          "filed": "2026-11-05",
          "value_musd": 2
        },
        "deferred_revenue": {
          "status": "ok",
          "end": "2026-09-30",
          "filed": "2026-11-05",
          "value_musd": 2,
          "yoy_pct": null
        },
        "backlog": {
          "status": "not reported"
        },
        "receivables": {
          "status": "ok",
          "end": "2026-09-30",
          "filed": "2026-11-05",
          "value_musd": 122.9
        },
        "inventory": {
          "status": "ok",
          "end": "2026-09-30",
          "filed": "2026-11-05",
          "value_musd": 129.5
        },
        "equity": {
          "status": "ok",
          "end": "2026-09-30",
          "filed": "2026-11-05",
          "value_musd": 712.3
        },
        "market_value": {
          "status": "ok",
          "close_date": "2026-11-13",
          "basis_end": "2026-11-04",
          "basis_filed": "2026-11-05",
          "value_musd": 1461.9
        },
        "enterprise_value": {
          "status": "ok",
          "close_date": "2026-11-13",
          "basis_end": "2026-11-04",
          "basis_filed": "2026-11-05",
          "value_musd": 1459.9
        },
        "ev_sales": {
          "status": "ok",
          "close_date": "2026-11-13",
          "basis_end": "2026-11-04",
          "basis_filed": "2026-11-05",
          "multiple": 2
        },
        "ev_ebit": {
          "status": "ok",
          "close_date": "2026-11-13",
          "basis_end": "2026-11-04",
          "basis_filed": "2026-11-05",
          "multiple": 40.8
        },
        "pe": {
          "status": "ok",
          "close_date": "2026-11-13",
          "basis_end": "2026-11-04",
          "basis_filed": "2026-11-05",
          "multiple": 38.7
        },
        "pb": {
          "status": "ok",
          "close_date": "2026-11-13",
          "basis_end": "2026-11-04",
          "basis_filed": "2026-11-05",
          "multiple": 2.1
        },
        "fcf_yield": {
          "status": "ok",
          "close_date": "2026-11-13",
          "basis_end": "2026-11-04",
          "basis_filed": "2026-11-05",
          "pct": 11.6
        }
      }
    },
    "short_interest": {
      "status": "ok",
      "settlement": "2026-10-15",
      "published": "2026-10-26",
      "short_pct_of_outstanding": 10.63,
      "days_to_cover": 1.1,
      "change_pct": -47.2
    },
    "insiders": {
      "status": "ok",
      "as_of": "2026-11-15",
      "windows": [
        {
          "days": 90,
          "status": "ok",
          "from": "2026-08-18",
          "bought_usd": 0,
          "sold_usd": 217920,
          "bought_unpriced": 0,
          "sold_unpriced": 0
        },
        {
          "days": 365,
          "status": "ok",
          "from": "2025-11-16",
          "bought_usd": 0,
          "sold_usd": 2483638.91,
          "bought_unpriced": 0,
          "sold_unpriced": 0
        }
      ]
    }
  },
  "body_markdown": "## Current Thesis\n\nPacira BioSciences trades as a takeover with a fixed price. Viatris is paying $36.50 per share in cash, and the shares closed at $36.46 on 2026-11-11, so they are more likely to lag the S&P 500 than to lead it. The tender offer expiring at 11:59 p.m. Eastern on 2026-11-16 decides whether the cash is paid.\n\nViatris announced the deal on 2026-10-08, valuing Pacira's equity at $1.65 billion, according to its 8-K. It started the tender offer on 2026-10-30. One of the two main conditions is already met: the Hart-Scott-Rodino (HSR) antitrust waiting period expired just before midnight on 2026-10-29, MLex reported on 2026-10-30. The main condition left is that more than 50% of outstanding shares are tendered.\n\nThe index provider is already planning for the deal to close. S&P Dow Jones Indices said on 2026-11-11 that Ingram Micro will replace Pacira in the S&P SmallCap 600 before the open on 2026-11-17. With HSR cleared and the shares a few cents under the offer, the rating is Low. The remaining upside is the small gap to $36.50, and a higher price would need a rival bidder or a raised offer.\n\n## Bull Case\n\n- **The antitrust condition is already met.** The HSR waiting period expired on 2026-10-29, MLex reported on 2026-10-30. That removes the condition most likely to delay a healthcare deal.\n- **The deal has no financing condition.** Viatris said on 2026-10-08 it will pay mainly from excess cash, with the rest from short-term borrowings.\n- **The second step needs no shareholder vote.** The merger follows the tender under Delaware Section 251(h). Holders who do not tender receive the same $36.50 in cash, per Investing.com's 2026-10-30 report on the offer terms.\n- **Pacira's board recommends tendering.** The board approved the deal unanimously, according to coverage of the 2026-10-30 tender launch.\n\n## Bear Case\n\n- **The offer price caps the upside.** The shares closed between $36.40 and $36.49 in every session from 2026-11-04 to 2026-11-11, all below the $36.50 offer. RBC raised its target to exactly $36.50 on 2026-11-10.\n- **The standalone business is shrinking slightly.** Third-quarter 2026 revenue was $176.65 million against $179.52 million a year earlier, according to the 10-Q filed on 2026-11-05. Diluted earnings per share were $0.70.\n- **There is no standalone outlook to fall back on.** Pacira withdrew its 2026 guidance on 2026-11-05 because of the pending merger, Benzinga reported.\n- **A failed deal would remove the takeover premium.** The shares jumped 44.0% to $36.3 in the 2026-10-08 session when the deal was announced, Benzinga reported. The 52-week closing low was $19.16 on 2026-01-16.\n- **Some conditions are still open.** Besides the minimum tender, the offer requires no legal restraint and no material adverse effect at Pacira, according to a 2026-11-02 New Moon Special Situations summary of the offer terms.\n\n## Setup & Price Structure\n\nThe shares closed at $36.46 on 2026-11-11, close to the 52-week intraday high of $36.66 set on 2026-10-15. They are up 57.3% over three months from $23.18 on 2026-08-13, and nearly all of that came in the 2026-10-08 session. On adjusted daily closes, the 50-day moving average is $30.79 and the 200-day is $25.49 as of 2026-11-11. Both still include months of trading from before the deal.\n\nSince the launch, the shares have traded like a merger-arbitrage position, holding within cents of the offer. On 2026-10-30 the gap to $36.50 was $0.11, about 0.30%, New Moon Special Situations calculated. A close well below the post-announcement range would be the first sign that the market doubts the tender will close.\n\nInsiders have not bought. SEC Form 4 filings show Senior Vice President of Finance Lauren Riker sold 6,000 shares at $36.32 on 2026-10-08 under a Rule 10b5-1 plan after exercising options at $32.35. Chief Financial Officer Shawn Cross had 9,540 shares withheld for tax at $36.39 on 2026-10-30.\n\n## Catalyst Calendar\n\n- **2026-11-16:** Viatris tender offer for Pacira expires at 11:59 p.m. ET. If more than 50% of outstanding shares are tendered and the offer is not extended, the $36.50 cash price is paid and the shares stop trading on their own. An extension would signal an unmet condition.\n- **2026-11-17:** Ingram Micro replaces Pacira in the S&P SmallCap 600 before the open. The index change assumes the deal closes on schedule. If the tender is extended, the timing of the index change would show the delay.\n- **~2026-11-17 (est.):** Expected acceptance of tendered shares and payment. Acceptance completes the acquisition in practice, and the Section 251(h) merger then converts untendered shares to $36.50 cash.\n- **2027-04-08:** Merger agreement outside date. This matters only if the tender is still open. A deal running this long would mean a condition has failed, and the takeover premium would be at risk.\n\n## What Would Change Our Mind\n\nA daily close above $40.11, well over the $36.50 offer price, which would show the market pricing a higher bid and the shares leading the S&P 500; Viatris raising its offer or a rival bidder making a superior proposal would also prove this call wrong.\n\n## Correlation Notes\n\nUntil the deal closes, the shares track the $36.50 offer. They have little sensitivity to the S&P 500, to biotech indices or to Pacira's own quarterly sales. Over three months, they could beat the index mainly if the index falls, or if a higher bid appears.\n\nIf the tender completes on schedule, the shares stop trading on their own and are replaced in the S&P SmallCap 600 before the open on 2026-11-17, per S&P Dow Jones Indices. Viatris (VTRS) carries the same deal from the buyer's side. Its shares carry the integration and borrowing risk, while the cash price for Pacira holders is fixed.",
  "first_seen": "2026-11-10",
  "last_analyzed": "2026-11-12T03:49:40+00:00",
  "last_synthesized": "2026-11-12",
  "date_modified": "2026-11-12",
  "license": "Content © FrontierPicks. Cite the canonical URL."
}