Pacira Pharmaceuticals stock is near the bottom of the Nasdaq
U.S. stocks are climbing today, and at last check, all three benchmarks are headed for some impressive win streaks. Among stocks making notable moves today, drugmaker Pacira Pharmaceuticals Inc (NASDAQ:PCRX) is struggling, while fellow pharmaceutical stocks Calithera Biosciences Inc (NASDAQ:CALA) and Acer Therapeutics (NASDAQ:ACER) are surging higher. Here's a closer look at what shares of PCRX, CALA, and ACER are reacting to today.
FDA Committee Vote Sinks Pacira Pharmaceuticals Stock
Pacira Pharmaceuticals stock is down 16% to trade at $30.33, and earlier fell to a five-year low of $29.35, taking its place among the worst on the Nasdaq today. PCRX shares are now short-sale restricted, after a Food and Drug Administration (FDA) panel voted against the usage of Exparel as a nerve block treatment for anesthesia. The FDA committee members believe more research is needed to support the usage as a regional anesthetic.
In response, four brokerages chimed in with price-target cuts for PCRX stock, including to $32 from $41 at BMO Capital. Mizuho, on the other hand, said that while the FDA panel recommendation has lowered the prospects of a Pacira takeover, the company's base business could make it an attractive acquisition target for Johnson & Johnson (JNJ).
Citigroup: Calithera Stock Could Double
Calithera Biosciences stock is up 19% to trade at $8.27 -- the best stock on the Nasdaq today -- after Citigroup upgraded the biotech to "buy" from "neutral." The analyst called CALA stock an "underappreciated small-cap," and issued a $14 price target -- more than twice yesterday's close of $6.95.
In response, CALA shares are trading above their 50-day moving average for the first time since a mid-November plunge. CALA stock is on track for its best day since March 2017, but is still down roughly 50% in the past nine months.
A short squeeze could give CALA's rally some legs. Short interest represents a hefty 14% of CALA's total available float, and nearly eight times the stock's average daily trading volume. A capitulation by these remaining bears could send CALA sharply higher over the short term.
William Blair Upgrades Acer Therapeutics
Shares of Acer Therapeutics are up 6.5% to trade at $18.00, after William Blair initiated coverage on the biotech stock with an "outperform" rating. The analyst waxed optimistic on the company's treatment for a rare connective tissue disease, and believes Acer will move "from an overlooked small-cap development stage company to an attractive fully commercialized organization over the next year." ACER stock has more than tripled since its June lows, with pullbacks contained by its 80-day and 160-day moving averages.