Pacira(US:PCRX)2024-07-30 20:01Financial Performance - EXPAREL net product sales reached $136.9 million in Q2 2024, a 1.3% increase from $135.1 million in Q2 2023, with a volume growth of 3% offset by contracted discounts[2]. - Non-GAAP net income was $44.2 million, or $0.96 per share (basic), compared to $36.0 million, or $0.78 per share (basic) in Q2 2023, reflecting a 22.2% increase in net income[3]. - Adjusted EBITDA for Q2 2024 was $62.1 million, up from $54.3 million in Q2 2023, indicating a 14.3% growth[3]. - Total revenues for Q2 2024 were $178.0 million, compared to $169.5 million in Q2 2023, marking a 5.3% increase[13]. - Iovera° net product sales were $5.7 million in Q2 2024, up from $4.4 million in Q2 2023, representing a 29.5% increase[14]. - Cash provided by operations was $53.2 million in Q2 2024, compared to $43.5 million in Q2 2023, showing a 22.4% increase[4]. - Total revenues for the second quarter of 2024 were $178.0 million, with net product sales of $136.9 million for EXPAREL, $30.7 million for ZILRETTA, and $5.7 million for iovera°[41]. - GAAP net income for the second quarter of 2024 was $18.9 million, or $0.41 per share (basic) and $0.39 per share (diluted), compared to $25.8 million, or $0.56 per share (basic) and $0.51 per share (diluted) in the second quarter of 2023[51]. - The company expects total revenue for 2024 to be between $680 million and $705 million, with non-GAAP R&D expenses projected at $70 million to $80 million[52][61]. - ZILRETTA net product sales increased to $30.7 million in Q2 2024 from $29.3 million in Q2 2023, reflecting a year-over-year growth[48]. - Total net product sales for the three months ended June 30, 2024, were $176.387 million, up 4.9% from $169.467 million in the same period of 2023[74]. - EXPAREL sales for the three months ended June 30, 2024, were $136.852 million, slightly up from $135.127 million in the same period of 2023[74]. - Total revenues for the three months ended June 30, 2024, were $178.023 million, an increase of 5.1% from $169.467 million in the same period of 2023[74]. Operating Expenses - Total operating expenses for Q2 2024 were $149.8 million, compared to $129.6 million in Q2 2023, indicating an increase in operational costs[49]. - Research and development expenses were $20.3 million in Q2 2024, up from $18.8 million in Q2 2023, reflecting ongoing investment in product development[50]. - Total operating expenses for the three months ended June 30, 2024, increased to $149.783 million from $129.590 million in the same period of 2023, representing a 15.6% increase[74]. - Income from operations for the three months ended June 30, 2024, was $28.240 million, down 29.2% from $39.877 million in the same period of 2023[74]. - Research and development expenses for the three months ended June 30, 2024, were $20.338 million, an increase from $18.824 million in the same period of 2023[74]. Strategic Initiatives - Pacira maintains its full-year 2024 financial guidance, projecting stock-based compensation between $50 million and $55 million[5]. - The Centers for Medicare and Medicaid Services (CMS) proposed new reimbursement for EXPAREL in all outpatient surgical environments starting January 1, 2025, which is expected to enhance utilization and revenue growth[43][44]. - The company announced a $150 million share repurchase program, allowing for the repurchase of outstanding common stock until December 31, 2026[44]. - Pacira issued $287.5 million in aggregate principal amount of 2.125% convertible senior notes due 2029, with proceeds used for share repurchase and general corporate purposes[45]. - The Company initiated a restructuring plan in February 2024 to focus on long-term growth, reallocating resources to its U.S. commercial portfolio and preparing for separate Medicare reimbursement for EXPAREL starting January 2025[75]. - The company is focused on expanding the use of its products, including plans for additional indications and opportunities for EXPAREL, ZILRETTA, and iovera°[23]. - The company is focused on maximizing the benefits of separate EXPAREL reimbursement with the implementation of NOPAIN in January 2025, aiming for accelerated topline growth[42]. Income Tax and Other Expenses - The effective income tax rate for non-GAAP adjustments was approximately 24% for both the three and six months ended June 30, 2024, compared to 25% for the same periods in 2023[75]. - The Company reported a tax expense of $17.698 million for the three months ended June 30, 2024, compared to $12.091 million in the same period of 2023[77]. - Interest expense for the three months ended June 30, 2024, was $3.884 million, slightly up from $3.865 million in the same period of 2023[77]. - Acquisition-related expenses from the Flexion Therapeutics acquisition included $0.230 million for the three months ended June 30, 2024[77]. - Restructuring charges for the three months ended June 30, 2024, amounted to $0.504 million, down from $0.936 million in the same period of 2023[77]. - The Company excluded approximately $0.5 million and $2.7 million of restructuring charges from stock-based compensation for the three and six months ended June 30, 2024, respectively[75]. Leadership Changes - The Company appointed a new CEO effective January 2, 2024, incurring transition costs of $0.294 million during the three months ended June 30, 2024[75].