After the supportive Q2 figures from GSK on Wednesday, the Pacira Q2 2015 EXPAREL® sales figure yesterday was slightly weaker than expected, leading us to prudently reduce our EXPAREL® forecasts whilst remaining bullish on its long term growth potential. For example, Pacira is working on additional Phase III trials for the nerve block indication and is moving forward with a Phase III trial for oral surgery. It is also encouraging to note that Pacira has commenced discussions with partners for EXPAREL® outside of the US. EXPAREL® represents less than 10% of our DCF valuation on Skyepharma and our revised EXPAREL® forecasts only impact our DCF intrinsic value by around 3p to c. 417p against a current share price of 279p. We continue to believe Skyepharma has a highly attractive offering with a diverse product offering and expanding development pipeline - the other components of our forecast model remain intact.
