12:46 PM EDT, 08/12/2024 (MT Newswires) -- Pacira Biosciences ( PCRX ) faces an uncertain future after a federal judge late Friday ruled a key US patent supporting its Exparel pain medication invalid, exposing the drugmaker to increased competition, RBC Capital Markets said Monday in a note.

Exparel, by far, has been Pacira's most lucrative franchise, generating $538.1 million if the total $675 million in sales during 2023. Pacira filed lawsuit against eVenus Pharmaceutical in November 2021, contending a generic version of bupivacaine-based injection Exparel infringing on its patent.

Following the ruling, Pacira Chief Executive Frank Lee said the company is reviewing its legal options, including an appeal. An appellate review would keep eVenus or other competitiors at bay for up to 18 months.

"We believe the murkier road on competition now outweighs the potential tailwinds on NOPAIN 2025 until more definitive clarity is established on the long-term," RBC said, referring to legislation adopted by the US Congress earlier this year allowing Medicare to pay a 6% premium over its regular reimbursement rates for non-opioid pain treatments starting on Jan. 1, 2025.

Citing a "think layer of uncertainty" from litigation, RBC cut stock rating for Pacira BioSciences ( PCRX ) to sector perform from outperform and slashed price target to $14 from $37.

Pacira shares were climbing over 9% in recent trading.

Price: 12.78, Change: +1.08, Percent Change: +9.23