Core Viewpoint - Pacira BioSciences, Inc. is responding to DOMA Perpetual Capital Management LLC's nomination of three director candidates for the 2026 Annual Meeting, emphasizing its commitment to shareholder interests and the progress made under its 5x30 strategy aimed at long-term value creation [1][4]. Group 1: Company Strategy and Performance - The company launched a 5x30 strategy in January 2025, focusing on five key pillars with measurable objectives to enhance performance by 2030 [1]. - In 2025, Pacira repurchased $150 million in common stock, reducing outstanding shares from 47 million to 41 million, indicating a disciplined capital allocation strategy [2]. - Pacira treated 2.5 million patients in 2025, aiming to reach 3 million annually by 2030 [5]. - The year-over-year volume growth for EXPAREL® was 6.2% in 2025, up from 3.6% in 2024, reflecting progress towards double-digit compounded annual growth [5]. - The company achieved record-high GAAP and non-GAAP gross margins of 79% and 81% respectively in 2025, with a goal of improving gross margins by five percentage points over a 2024 baseline of 76% [5][19]. Group 2: Product Development and Pipeline - Pacira advanced two Phase 2 clinical programs: PCRX-201, a gene therapy for osteoarthritis, and PCRX-2002, a long-acting local analgesic for postsurgical pain [5]. - Key milestones for 2026 include an interim analysis from a Phase 3 study of ZILRETTA® in shoulder osteoarthritis and topline results from the iovera registration study for spasticity treatment [5]. - The company expanded its commercial reach through collaborations with J&J MedTech and LG Chem [5]. Group 3: Governance and Shareholder Engagement - The Board's Nominating, Governance and Sustainability Committee will review the director nominees proposed by DOMA, with recommendations to be included in the definitive proxy statement [6]. - The date for the 2026 Annual Meeting has not been announced, and shareholders are not required to take any action at this time [7].

Core Insights - The company has implemented a 5x30 strategy aimed at creating value, which includes reaching 3 million patients by 2030, achieving double-digit top-line growth, expanding margins by 5 points, developing 5 pipeline products, and establishing 5 partnerships [2] Group 1: Product Portfolio and Financial Performance - The company has made significant progress in the past year, particularly with the implementation of the NOPAIN reimbursement in January, which is expected to impact financial performance positively [1][3] - The first year of the NOPAIN reimbursement has provided valuable insights and learnings for the company [1]

Summary of Pacira BioSciences FY Conference Call Company Overview - **Company**: Pacira BioSciences (NasdaqGS:PCRX) - **Key Products**: EXPAREL, ZILRETTA, iovera - **Strategic Plan**: Five by Thirty strategy aiming for 3 million patients by 2030, double-digit top-line growth, 5-point margin expansion, 5 pipeline products, and 5 partnerships [2][3] Core Insights and Arguments - **NOPAIN Act Implementation**: - Launched in January 2025, providing reimbursement for EXPAREL outside of bundled payments at ASP + 6% for Medicare patients [4][19] - Expanded coverage to commercial payers, achieving up to ASP + 29% [4][20] - 102 million lives covered outside the bundle by year-end [4] - Positive impact on opioid utilization expected due to the NOPAIN Act [20][22] - **Volume Growth**: - EXPAREL experienced over 6% volume growth in 2025, up from 3% the previous year [15] - Anticipated steady increase in volume and revenue convergence in the second half of 2026 as GPO contracts are fully realized [17][27] - **Financial Guidance for 2026**: - Total company revenue expected to grow 3%-6%, with EXPAREL projected to grow 4%-8% [23] - Emphasis on execution and expanding payer coverage to achieve higher revenue targets [27] - **Partnerships**: - Significant agreements with Johnson & Johnson MedTech to enhance ZILRETTA's market reach and with LG Chem for EXPAREL and ZILRETTA in Asia Pacific [5][50] - Focus on building partnerships in Europe and Latin America to expand market presence [50] Pipeline Developments - **PCRX-201**: - Potential game-changing gene therapy for osteoarthritis, with promising phase 1 results and phase 2 part A results expected by year-end [60][66] - RMAT designation received to accelerate development [65] - **ZILRETTA and iovera**: - Anticipated growth driven by the J&J partnership and dedicated sales forces for each product [39][25] - Upcoming data events for ZILRETTA and iovera expected to provide further insights into their market potential [40] Additional Important Points - **Operational Efficiency**: - Improved margin from 76% due to better inventory management and reduced waste [43] - Continuous improvement in processes expected to support margin expansion [45] - **Market Awareness**: - High awareness of NOPAIN among healthcare professionals, with about half taking action to manage patients differently [21] - Ongoing claims analysis to support the positive impact of NOPAIN on patient outcomes and healthcare costs [22] - **Financial Position**: - Strong financial health with low leverage and capacity for accretive deals [77] - Focus on disciplined capital allocation to enhance growth [76] This summary encapsulates the key points discussed during the Pacira BioSciences FY Conference Call, highlighting the company's strategic initiatives, financial outlook, and product pipeline developments.

Core Viewpoint - Pacira BioSciences, Inc. has granted inducement awards to three new employees as part of its Amended and Restated 2014 Inducement Plan, which is a strategy to attract talent without requiring stockholder approval [1]. Group 1: Inducement Awards Details - One employee received stock options to purchase a total of 2,400 shares of Pacira common stock, while three employees received restricted stock units for a total of 5,500 shares [2]. - The stock options have a 10-year term and a four-year vesting schedule, with 25% vesting on the first anniversary of employment and the remainder vesting in equal quarterly installments over the following 36 months [2]. - The exercise price for the stock options is set at $22.10 per share, which is the closing trading price on the grant date [2]. Group 2: Vesting Conditions - The vesting of the equity awards is contingent upon the employees' continued employment with Pacira [3]. - Each equity award is governed by the terms and conditions outlined in an award agreement [3].

Company Overview - Pacira BioSciences, Inc. is a leader in delivering innovative, non-opioid pain therapies aimed at transforming patient lives [2] - The company has three commercial-stage non-opioid treatments: EXPAREL®, ZILRETTA®, and iovera® [2] - EXPAREL® is a long-acting local analgesic approved for various postsurgical pain management techniques [2] - ZILRETTA® is an extended-release injectable for managing osteoarthritis knee pain [2] - iovera® is a handheld device providing immediate, long-acting, drug-free pain control through controlled cold temperature application [2] - Pacira is advancing a pipeline of clinical-stage assets, including PCRX-201, a gene therapy for osteoarthritis of the knee currently in Phase 2 clinical development [2] Upcoming Events - Pacira will participate in an analyst-led fireside chat at the Barclays 28th Annual Global Healthcare Conference on March 11, 2026 [1] - The event will take place at 2:30 PM ET in Miami, with live audio accessible on the company's website [1] - A replay of the webcast will be available for two weeks following the event [1]

Core Insights - Pacira BioSciences, Inc. focuses on non-opioid pain management and regenerative health solutions, with its flagship product EXPAREL for postsurgical pain management [1] - The company faces competition from peers such as Supernus Pharmaceuticals, PTC Therapeutics, Ironwood Pharmaceuticals, Ultragenyx Pharmaceutical, and Enanta Pharmaceuticals [1] Financial Performance - Pacira's Return on Invested Capital (ROIC) is 1.74%, which is significantly lower than its Weighted Average Cost of Capital (WACC) of 6.19%, indicating inefficiencies in capital utilization [2][6] - Comparatively, Supernus Pharmaceuticals has a negative ROIC of -0.31% against a WACC of 3.02%, also struggling to generate returns above its cost of capital [3] - PTC Therapeutics has a high ROIC of 37.39% and a WACC of 7.70%, resulting in a ROIC to WACC ratio of 4.86, indicating strong capital efficiency [3][5][6] - Ironwood Pharmaceuticals shows effective capital use with a ROIC of 21.34% and a WACC of 5.68%, leading to a ROIC to WACC ratio of 3.76 [4] - Ultragenyx Pharmaceutical and Enanta Pharmaceuticals report negative ROICs of -43.59% and -22.45%, respectively, indicating challenges in generating sufficient returns on their capital [4][6] Competitive Positioning - PTC Therapeutics stands out among its peers with the highest ROIC to WACC ratio, suggesting effective capital utilization and positioning it as a leader in capital efficiency [5]

Core Insights - Pacira BioSciences presented real-world evidence demonstrating the clinical effectiveness of EXPAREL for total knee arthroplasty and long-term pain management with ioveraº for osteoarthritis patients at the AAOS 2026 Annual Meeting [1][2] Group 1: EXPAREL Findings - The first study indicated that patients receiving EXPAREL showed significant improvements in pain, opioid use, function, and length of stay after total knee arthroplasty compared to those receiving conventional bupivacaine and ropivacaine [1][3] - Patients treated with EXPAREL reported lower average pain scores (3.9 vs 4.9) and worst pain scores (5.9 vs 7.1) in the first five days post-surgery, with statistical significance (P<0.001) [3] - Patients receiving EXPAREL were discharged earlier (15.0 hours) compared to those receiving conventional local anesthetics (20.6 hours) [3] Group 2: ioveraº Findings - The second study showed that cryoneurolysis treatment with ioveraº resulted in long-term pain and functional improvements for up to 12 months, significantly exceeding the typical 4-6 months of relief from alternative intra-articular agents [1][3] - Data from 129 patients indicated that cryoneurolysis was associated with long-term reductions in pain and improved function (P<0.01) [3] Group 3: Innovations in Genicular Outcomes Registry (IGOR) - IGOR is a first-of-its-kind multicenter, prospective, longitudinal observational registry aimed at providing real-world evidence and insights into the patient journey for osteoarthritis treatment [2][11] - The registry collects comprehensive data on patient characteristics, clinical outcomes, and economic impacts, contributing to evidence-based preoperative pain management strategies [2][11] Group 4: Company Overview - Pacira BioSciences focuses on innovative, non-opioid pain therapies, with three commercial-stage products: EXPAREL, ZILRETTA, and ioveraº [4] - The company is advancing a pipeline of clinical-stage assets, including PCRX-201, a novel gene therapy for knee osteoarthritis currently in Phase 2 clinical development [4]

Core Insights - Pacira BioSciences reported a transformative year in 2025, achieving significant revenue growth and expanding reimbursement coverage for its flagship product, EXPAREL [4][6]. Group 1: Financial Performance - The company finished 2025 with $726 million in revenue, marking the highest gross margins in its history, while treating over 2.5 million patients [3][6]. - Fourth-quarter EXPAREL sales reached $155.8 million, reflecting approximately 7% volume growth compared to the previous year [9][12]. - For 2026, the company guided total revenue between $745 million and $770 million, with EXPAREL sales projected at $600 million to $620 million [22][24]. Group 2: Market Access and Reimbursement - Pacira exceeded its internal goal by ending 2025 with 102 million covered lives under CMS or commercial coverage outside the surgical bundle, which increased to about 110 million in early 2026 [1][6]. - The NOPAIN Act has been credited as a catalyst for reducing financial barriers to non-opioid postsurgical pain management, with 82% of surveyed physicians viewing it as important for non-opioid stewardship [2][6]. Group 3: Product Development and Pipeline - The company is entering a "data-rich" period with its pipeline, including upcoming clinical milestones for ZILRETTA, iovera°, and PCRX-201 [4][18]. - Pacira plans to initiate a Phase 2 study of PCRX-2002 in bunionectomy patients later this year, which is expected to complement EXPAREL [21]. Group 4: Intellectual Property and Partnerships - The company expanded its intellectual property estate to 21 patents and secured a volume-limited settlement with Fresenius, providing visibility through 2039 [5][16]. - A new partnership with LG Chem aims to commercialize EXPAREL in select Asia-Pacific countries, with revenue contributions expected to begin in 2027 [17]. Group 5: Operational Efficiency and Cost Management - Non-GAAP gross margin improved to 80% in the fourth quarter, attributed to better yields from enhanced production facilities [12][13]. - R&D expenses increased to $34.4 million in the fourth quarter, driven by ongoing development costs for various products [14].

Financial Data and Key Metrics Changes - In 2025, the company achieved $726 million in revenue, marking a significant increase compared to previous years, with the highest gross margins in its history at 80% for Q4 2025, up from 79% in Q4 2024 [5][19] - The fourth quarter sales for EXPAREL increased to $155.8 million from $147.7 million in 2024, reflecting a volume growth of approximately 7% [18] - Non-GAAP R&D expenses rose to $34.4 million in Q4 2025 from $22.0 million in the previous year, while SG&A expenses increased to $91.9 million from $70.6 million [20] Business Line Data and Key Metrics Changes - EXPAREL's sales growth was driven by expanding patient and provider access, with a notable increase in coverage outside the surgical bundle, reaching 102 million lives by the end of 2025 [15][8] - ZILRETTA sales remained flat at $33 million in Q4 2025 compared to 2024, while ioveraê°™ sales grew to $7 million from $6.5 million [18] Market Data and Key Metrics Changes - The company reported a significant shift in payer coverage, with 102 million lives covered outside the surgical bundle, indicating a positive trend in reimbursement policies [15][8] - The strategic focus on key markets with high procedural volumes contributed to a collective volume growth of over 7% in these markets compared to 2024 [15] Company Strategy and Development Direction - The company is advancing its 5x30 strategy, aiming to help 3 million patients annually by 2030, with a clear focus on innovative, non-opioid pain management therapies [5][12] - Partnerships with J&J MedTech and LG Chem are expected to enhance market access and revenue growth, particularly in Asia Pacific [9][49] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in achieving steady top-line growth in 2026, despite potential headwinds from a soft market for elective procedures [48][49] - The company anticipates a revenue guidance for 2026 of $745 million to $770 million, with EXPAREL sales projected between $600 million and $620 million [22] Other Important Information - The company has secured a volume-limited settlement with Fresenius, extending EXPAREL's exclusivity through 2039, and strengthened its IP estate to 21 patents [8] - The company executed $150 million in stock repurchases, reducing outstanding shares to approximately 41 million [21] Q&A Session Summary Question: What constitutes a clinically meaningful signal for the OA readout? - Management clarified that the primary focus of the PCRX-201 trial is safety, with secondary endpoints related to pain, stiffness, and function being evaluated [28][30] Question: What factors could lead to higher or lower guidance for EXPAREL? - Management highlighted the steady growth achieved in 2025 and the potential for upside or downside developments based on market conditions, particularly in elective procedures [37][39] Question: What are the headwinds affecting ZILRETTA's performance? - Management noted that prioritizing EXPAREL led to some disruption in ZILRETTA sales, but they expect clearer growth objectives for the partnership with J&J MedTech in 2026 [58][60]

Financial Data and Key Metrics Changes - In 2025, the company achieved $726 million in revenue, marking a significant increase compared to previous years, with the highest gross margins in its history at 80% for Q4 2025, up from 79% in Q4 2024 [5][19] - The fourth quarter sales for EXPAREL increased to $155.8 million from $147.7 million in 2024, reflecting a volume growth of approximately 7% [18] - Non-GAAP R&D expenses rose to $34.4 million in Q4 2025 from $22.0 million in the previous year, while SG&A expenses increased to $91.9 million from $70.6 million [20] Business Line Data and Key Metrics Changes - EXPAREL showed solid performance with volume-based growth driven by increased education and awareness, payer adoption, and demand across care sites [7][8] - ZILRETTA sales remained flat at $33 million in Q4 2025 compared to 2024, while iovera sales grew to $7 million from $6.5 million [18] Market Data and Key Metrics Changes - The company ended 2025 with 102 million lives covered outside the surgical bundle, indicating a significant shift in payer policies [15] - The strategic focus on expanding payer coverage in key markets resulted in over 7% volume growth in these areas compared to 2024 [15][16] Company Strategy and Development Direction - The company is committed to its 5x30 strategy, aiming to help 3 million patients annually by 2030, with a focus on expanding its pipeline and strategic partnerships [5][7] - A significant partnership with LG Chem was announced to commercialize EXPAREL in select Asia Pacific countries, with revenues expected to begin in 2027 [9] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's growth trajectory, highlighting a clear strategic direction and improved operational efficiencies [4][12] - The company anticipates steady top-line growth in 2026, with revenue guidance set between $745 million and $770 million [22] Other Important Information - The company executed $150 million in stock repurchases, reducing outstanding shares to approximately 41 million [21] - The company is focused on maintaining a disciplined approach to capital deployment while investing in growth and innovation [21] Q&A Session Summary Question: What constitutes a clinically meaningful signal for the OA readout? - Management clarified that the primary focus of the study is safety, with secondary endpoints related to pain, stiffness, and function being evaluated [28][30] Question: What factors could lead to higher or lower EXPAREL sales guidance? - Management indicated that the steady growth observed in 2025 positions the company well for 2026, with potential market dynamics influencing sales [37][39] Question: What headwinds affected ZILRETTA's performance in 2025? - Management noted that prioritization of EXPAREL and restructuring of sales forces impacted ZILRETTA sales, but they expect growth in 2026 with a fully trained J&J sales team [58][60] Question: Will unexpected business development costs continue? - Management acknowledged that such costs may occur but emphasized a disciplined approach to investments and potential accretive deals [64][66]