Is Pacira BioSciences, Inc. (PCRX) the Best Small Cap Pharma Stocks to Buy Now?

Pacira BioSciences, Inc. (PCRX) has emerged as a strong contender in the small cap pharma stock landscape, with its strategic focus on musculoskeletal pain and adjacencies. The company's innovative pipeline, robust financial performance, and commitment to operational excellence position it as a compelling investment opportunity. Here's a closer look at Pacira's potential as a top small cap pharma stock:

1. Robust Financial Performance: Pacira has demonstrated consistent revenue growth, with a total operating revenue of RMB187,253,000 in 2024, up 3.54% from RMB181,244,000 in 2023. The company's main products, EXPAREL and ZILRETTA, both grew in sales, while the new product iovera° saw a 16% increase in sales. This financial performance reflects Pacira's competitiveness and the stability of its sales capabilities and product demand.
2. Preliminary Unaudited Revenue: Pacira reported preliminary unaudited total revenue of $701.0 million for the year ended December 31, 2024, compared with $675.0 million for the year ended December 31, 2023. This 4% increase in revenue, driven by growth in EXPAREL and ZILRETTA sales, highlights the company's strong financial performance and growth potential.
3. Gross Margin Improvement: Pacira aims to achieve a five percentage point gross margin improvement over 2024 as part of its 5x30 plan. This focus on operational excellence and cost management can lead to improved profitability and enhanced value creation for investors.
4. Innovative Pipeline: Pacira's pipeline consists of a diverse range of products, including gene therapies, injectable suspensions, and cryo nerve blocks. This pipeline diversity reduces the company's reliance on a single product or therapeutic area and provides multiple avenues for growth. For example, Pacira's lead gene therapy candidate, PCRX-201, is in development for osteoarthritis of the knee and has shown promising results in early-stage clinical trials.
5. Strategic Partnerships: Pacira's focus on musculoskeletal pain and adjacencies opens up opportunities for strategic partnerships with other companies in the space. These partnerships can help Pacira expand its product portfolio, gain access to new technologies, and share the risks and costs of R&D. For instance, Pacira's acquisition of the remaining equity stake in GQ Bio Therapeutics GmbH in February 2025 demonstrates the company's commitment to building strategic partnerships.
6. Addressing Unmet Patient Needs: Pacira's focus on developing better solutions for musculoskeletal pain and pain adjacencies is driven by the significant need for innovation in this space. By addressing unmet patient needs, Pacira can provide more durable pain relief and improve the lives of millions of people suffering from chronic pain.

In conclusion, Pacira BioSciences, Inc. (PCRX) presents a compelling case as one of the best small cap pharma stocks to buy now. With its robust financial performance, innovative pipeline, strategic partnerships, and commitment to addressing unmet patient needs, Pacira is well-positioned for long-term growth and value creation. Investors seeking exposure to the biopharmaceutical industry should consider Pacira as a strong contender in the small cap pharma stock landscape.