Pacira BioSciences Q1 Earnings Beat, Revenues Miss Estimates

Core Viewpoint - Pacira BioSciences reported first-quarter 2025 adjusted earnings of 62 cents per share, exceeding the Zacks Consensus Estimate of 57 cents, while total revenues of $168.9 million fell short of the expected $175 million [1][2] Financial Performance - Adjusted earnings for Q1 2025 were 62 cents per share, consistent with the same quarter last year [1] - Total revenues reached $168.9 million, a 1% increase year over year, but missed the Zacks Consensus Estimate [1] - Exparel's net product sales were $136.5 million, up 3% from the previous year, but below the consensus estimate of $140.2 million [2][4] - Zilretta's net product sales were $23.3 million, down 10% year over year, missing both the consensus and model estimates [4] - Iovera's net product sales were $5.1 million, a 2% increase year over year, but below the consensus estimate of $5.5 million [5] Expenses - Research and development (R&D) expenses (excluding stock-based compensation) increased by 41% to $23.1 million due to higher product development and clinical study costs [6] - Selling, general and administrative (SG&A) expenses (excluding stock-based compensation) rose 19% to $76.2 million, driven by increased investments in commercial and marketing activities [7] Guidance and Projections - For 2025, Pacira BioSciences expects total revenues between $725 million and $765 million, with an adjusted gross margin projected between 76% and 78% [8] - 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 [10] Recent Developments - The company announced the dosing of the first patient in a mid-stage study for pipeline candidate PCRX-201, aimed at treating osteoarthritis of the knee [11] - A settlement agreement with Fresenius and others regarding Exparel patents protects sales from generic competition until at least 2030 [12] - A U.S. District Court ruling eliminated the obligation to pay a low single-digit royalty on Exparel sales, expected to enhance profitability and revenue growth [13]