Pacira(PCRX) - 2025 Q3 - Quarterly Results

Financial Performance - Total revenues for Q3 2025 were $179.5 million, up 6% from $168.6 million in Q3 2024[5] - Net product sales for EXPAREL were $139.9 million, reflecting a 9% volume growth compared to $132.0 million in Q3 2024[5] - Non-GAAP net income was $31.8 million, or $0.72 per share (basic), compared to $38.2 million, or $0.83 per share (basic) in Q3 2024[12] - Adjusted EBITDA for Q3 2025 was $49.4 million, down from $54.7 million in Q3 2024[12] - The company reported a net income of $5.43 million in Q3 2025, a significant recovery from a net loss of $143.47 million in Q3 2024[46] - Non-GAAP net income for Q3 2025 was $31.84 million, compared to $38.16 million in Q3 2024, indicating a decrease of 16.5%[46] - Total revenues for the nine months ended September 30, 2025, were $529.54 million, up from $513.71 million in the same period of 2024, marking a 3.1% increase[44] - For the three months ended September 30, 2025, total revenues were $179.5 million, compared to $168.6 million for the same period in 2024, representing a year-over-year increase of approximately 5.5%[68] Expenses and Costs - Research and development expenses increased to $26.0 million in Q3 2025 from $19.1 million in Q3 2024[12] - Selling, general and administrative expenses rose to $91.8 million in Q3 2025, compared to $74.3 million in Q3 2024[12] - Research and development expenses increased to $25.97 million in Q3 2025, compared to $19.10 million in Q3 2024, reflecting a 36.4% rise[44] - Research and development expenses for the nine months ended September 30, 2025, were $79.9 million, compared to $57.7 million for the same period in 2024, reflecting an increase of approximately 38.5%[68] - The company recognized $7.00 million in legal settlement costs related to patent infringement suits during the nine months ended September 30, 2025[52] - The company incurred $3.7 million in employee termination benefit charges in Q3 2025 as part of a workforce reduction due to improved manufacturing efficiencies[48] - Acquisition-related expenses in Q3 2025 primarily involved costs associated with the acquisition of GQ Bio[51] - The GAAP cost of goods sold for the three months ended September 30, 2025, was $34.3 million, down from $38.9 million in the same period of 2024[68] Guidance and Projections - The company updated its full-year 2025 revenue guidance to a range of $725 million to $735 million, down from the previous range of $730 million to $750 million[13] - Non-GAAP gross margin guidance was increased to 80% to 82%, up from the previous range of 78% to 80%[13] - The company expects total revenues for the full year 2025 to be in the range of $725 million to $735 million, with a gross margin projected between 80% to 82%[74] Assets and Liabilities - Total current assets decreased from $745,130,000 in December 2024 to $562,751,000 in September 2025, a decline of approximately 24.5%[42] - Cash and cash equivalents dropped significantly from $276,774,000 in December 2024 to $147,589,000 in September 2025, representing a decrease of about 46.3%[42] - Inventories increased from $125,282,000 in December 2024 to $157,680,000 in September 2025, an increase of approximately 25.8%[42] - Total liabilities decreased from $774,168,000 in December 2024 to $522,938,000 in September 2025, a reduction of about 32.4%[42] - Long-term debt remained relatively stable, decreasing slightly from $383,545,000 in December 2024 to $376,721,000 in September 2025[42] - The total stockholders' equity decreased from $778,348,000 in December 2024 to $727,214,000 in September 2025, a decline of approximately 6.6%[42] Product Development and Research - The company reported promising Phase 1 study results for PCRX-201, showing sustained improvements in knee pain, stiffness, and function over two years[34] - The HCAd vector platform acquired in February 2025 is expected to enable the production of thousands of doses in a single batch, enhancing cost efficiency[37] - The company is currently conducting a Phase 2 study (ASCEND study) for PCRX-201, indicating ongoing commitment to product development[35] - EXPAREL sales amounted to $139.90 million in Q3 2025, up from $132.00 million in Q3 2024, representing a 5.4% growth[44] Shareholder Actions - The company repurchased 2.0 million shares at an average price of $25.30 per share, totaling $50.0 million[10]