Pacira(US:PCRX)2025-02-27 21:15Sales Performance - Total net product sales increased by 4% to $697.2 million in 2024, compared to $672.2 million in 2023[484] - EXPAREL sales rose by 2% to $549.0 million in 2024, driven by a 4% increase in gross vial volume[484] - ZILRETTA revenue increased by 6% to $118.1 million, attributed to a 4% rise in net selling price per unit[485] - iovera° sales grew by 16% to $22.8 million, primarily due to a 20% increase in Smart Tip volume[485] Cost and Expenses - Cost of goods sold decreased by 8% to $170.4 million in 2024, resulting in a gross margin increase from 73% to 76%[488] - Total research and development expense increased by 7% in 2024 to $81,577,000 compared to $76,257,000 in 2023, representing 12% of total revenue[490] - Clinical and preclinical development expenses rose by 38% in 2024 to $33,696,000, driven by ongoing trials and start-up expenses for new projects[491] - Product development and manufacturing capacity expansion expenses decreased by 8% in 2024 to $30,803,000, primarily due to the completion of pre-commercial scale-up activities[492] - Selling, general and administrative expenses increased by 9% in 2024 to $294,099,000 compared to $269,441,000 in 2023, accounting for 42% of total revenue[497] - Sales and marketing expenses grew by 12% in 2024 to $172,015,000, fueled by investments in awareness and education programs[498] - General and administrative expenses increased by 5% in 2024 to $87,227,000, mainly due to consulting costs and compensatory expenses related to executive transitions[499] - Stock-based compensation decreased by 15% in 2024 to $7,381,000, attributed to fewer equity awards granted and headcount vacancies[495] Research and Development - Research and development expenses include costs for clinical trials and product development, contributing to the advancement of PCRX-201[489] - The company received U.S. Patent No. 12,156,940 for EXPAREL, expected to provide protection until July 2044[480] - A new Smart Tip for managing chronic low back pain was FDA-cleared in January 2025, enhancing treatment options[480] Acquisitions and Growth Strategy - The acquisition of GQ Bio for approximately $32 million aims to advance the company's growth strategy in innovative biopharmaceuticals[480] - The company plans to expand the use of its products and enhance manufacturing capacity to support growth initiatives[478] - The company completed the GQ Bio Acquisition in February 2025, with a net purchase price including approximately $8 million to be paid over three years[541] - Potential milestone payments related to the Flexion Acquisition could total up to $372.3 million if certain conditions are met[534] Financial Position - The company reported an accumulated deficit of $206.4 million and cash and cash equivalents of $484.6 million as of December 31, 2024[514] - In 2024, net cash provided by operating activities was $189.4 million, an increase of $34.7 million from $154.6 million in 2023, primarily due to increased revenue and lower interest paid[517] - Net cash used in investing activities in 2024 was $83.3 million, reflecting $72.6 million in available-for-sale investment purchases and $10.6 million in capital expenditures[518] - Net cash provided by financing activities in 2024 was $17.4 million, primarily from $287.5 million in proceeds from the issuance of 2029 Notes[521] - The company announced a share repurchase program in May 2024, authorizing up to $150.0 million of common stock repurchases, effective until December 31, 2026[524] Debt and Financing - As of December 31, 2024, the outstanding principal on the TLA Term Loan was $105.3 million, with borrowings at a rate of 7.43%[528] - The company has raised $344.5 million in net proceeds from the sale of common stock and other equity securities since inception[523] - Future capital requirements may necessitate additional debt or equity financing, with no committed external sources currently available[536] - The maximum remaining potential payments related to contingent consideration from the Flexion Acquisition is $372.3 million as of December 31, 2024[549] - A hypothetical 10 percent increase in forecasted annual growth rates would increase the value of contingent consideration liability associated with the Flexion Acquisition by $6.3 million[549] - The outstanding principal on the TLA Term Loan was $105.3 million as of December 31, 2024, with a fixed interest rate of 7.43%[558] - A hypothetical 100 basis point increase in interest rates would increase interest expense over the next 12 months by approximately $1.1 million based on TLA Term Loan balances[558] - The estimated fair value of the 2025 Notes was $971 per $1,000 principal amount as of December 31, 2024, with $202.5 million of principal remaining outstanding[556] - The estimated fair value of the 2029 Notes was $861 per $1,000 principal amount as of December 31, 2024, with all $287.5 million of principal remaining outstanding[557] Risks and Legal Matters - The company incurred costs related to legal and regulatory matters, including those for developing and defending intellectual property[543] - The company’s accounts receivable are primarily concentrated with three large wholesalers, which poses a risk of material adverse impact on financial condition if non-performance occurs[560] - The company’s investment activities aim to preserve principal while maximizing income, with a hypothetical 100 basis point increase in interest rates potentially reducing the fair value of available-for-sale securities by approximately $0.8 million[555] - Goodwill impairment recorded in 2024 was $163,243,000 due to the approval of a generic competitor and a court ruling affecting patent validity[503] - The goodwill balance of $163.2 million was fully impaired during the three months ended September 30, 2024, due to a decrease in common stock price and FDA approval of a generic competitor[553]