Pacira Q3 Earnings Top, Revenues Miss Despite Exparel Sales Growth

Core Viewpoint - Pacira BioSciences, Inc. reported third-quarter 2024 adjusted earnings of 79 cents per share, exceeding the Zacks Consensus Estimate of 72 cents, while total revenues reached $168.6 million, a 3% year-over-year increase but slightly below the consensus estimate of $169 million [1]. Financial Performance - Adjusted earnings for Q3 2024 were 79 cents per share, up from 72 cents in the same quarter last year [1]. - Total revenues for the quarter were $168.6 million, a 3% increase year over year, but missed the Zacks Consensus Estimate of $169 million [1]. - Exparel's net product sales were $132 million, reflecting a 3% increase from the previous year and surpassing the Zacks Consensus Estimate of $131.2 million [3]. - Zilretta's net product sales were $28.4 million, slightly down year over year and below the Zacks Consensus Estimate of $30.6 million [5]. - Iovera's net product sales were $5.7 million, an 8% increase from the previous year, but also missed the Zacks Consensus Estimate of $5.99 million [5]. - Royalty revenues amounted to $0.9 million, showing significant year-over-year growth [6]. Expenses - Research and development (R&D) expenses (excluding stock-based compensation) were $17.3 million, down 7% from the previous year due to lower product development and regulatory costs [7]. - Selling, general and administrative (SG&A) expenses (excluding stock-based compensation) increased by 10% year over year to $65 million, primarily due to litigation costs and increased investments in commercial and market access organizations [8]. Financial Guidance - The company maintained its 2024 financial guidance, expecting total revenues between $680 million and $705 million [9]. - Adjusted R&D expenses are projected to be between $70 million and $80 million, while adjusted SG&A expenses are expected to range from $245 million to $265 million [9]. - The adjusted gross margin is anticipated to be between 74% and 76% for 2024 [9]. Recent Developments - The Centers for Medicare and Medicaid Services (CMS) proposed a rule for 2025 that includes Exparel among non-opioid treatments eligible for separate Medicare reimbursement, effective January 1, 2025 [10][11]. - A permanent product-specific J-code for Exparel was issued by CMS, set to take effect on January 1, 2025, to improve insurance coverage for the drug [12]. - The company faced a setback when a U.S. District Court ruled that its '495 patent for Exparel is not valid, and it is currently evaluating legal options [13].