Pacira Q4 Earnings Top, Revenues Miss Despite Exparel Sales Growth

Core Insights - Pacira BioSciences reported fourth-quarter 2024 adjusted earnings of 91 cents per share, exceeding the Zacks Consensus Estimate of 86 cents and up from 89 cents in the same quarter last year [1][2] - Total revenues for the fourth quarter reached $187.3 million, a 3% increase year over year, but slightly missed the Zacks Consensus Estimate by 0.03% [2][10] Revenue Breakdown - The company's revenue primarily comes from product sales, specifically from its three marketed drugs: Exparel, Zilretta, and iovera. No royalty revenues were recognized in the fourth quarter [3] - Exparel's net product sales were $147.7 million, a 3% increase from the previous year, surpassing the Zacks Consensus Estimate of $145.3 million [4] - Zilretta's net product sales reached $33.1 million, up 15% year over year, exceeding the Zacks Consensus Estimate of $30.7 million [6] - iovera's net product sales were $6.5 million, a 7% increase from the year-ago quarter, slightly beating the Zacks Consensus Estimate of $6.4 million [7] Expense Analysis - Research and development (R&D) expenses (excluding stock-based compensation) were $22 million, a 33% increase from the previous year due to higher product development and clinical study costs [8] - Selling, general and administrative (SG&A) expenses (excluding stock-based compensation) totaled $70.6 million, a 23% increase year over year, driven by investments in commercial and market access organizations [9] Financial Performance - For the full year 2024, Pacira recorded total revenues of $701 million, a 4% increase from 2023, but slightly below the Zacks Consensus Estimate of $701.9 million [10] - Adjusted earnings for 2024 were $3.20 per share, matching the Zacks Consensus Estimate and up from $2.81 in 2023 [10] Future Guidance - For 2025, Pacira expects total revenues to be in the range of $725-$765 million, with an adjusted gross margin projected between 76% and 78% [11] - Adjusted R&D expenses are anticipated to be between $90 million and $105 million, while adjusted SG&A expenses are expected to range from $290 million to $320 million [11] Recent Developments - The FDA approved a new Smart Tip for the iovera system to manage chronic low back pain, and Pacira secured a patent protecting Exparel's chemical composition until 2044 [12] - New phase I data for PCRX-201 showed improvement in knee pain and function for at least two years, with a favorable safety profile [13]