Financial Data and Key Metrics Changes - The company reported record revenues of $701 million for 2024, at the high end of the guided range [7] - Fourth quarter EXPAREL sales increased to $147.7 million from $143.9 million in 2023, while ZILRETTA sales rose to $33.1 million from $28.7 million [45] - Non-GAAP gross margin for the fourth quarter was 79%, driven by improved margins for EXPAREL and ZILRETTA [46] - Adjusted EBITDA for the quarter was $62.5 million, with cash and investments totaling $485 million at the end of the fourth quarter [47] Business Line Data and Key Metrics Changes - EXPAREL's reimbursement pathway now covers 18 million outpatient surgical procedures, with 6 million under CMS coverage and 12 million under commercial coverage [13] - ZILRETTA is advancing in a Phase III study for shoulder osteoarthritis, with top-line results expected next year [24] - Iovera has a new CMS reimbursement code, allowing physicians to receive up to $256 for its use, which is expected to drive growth [25] Market Data and Key Metrics Changes - The company has expanded its commercial coverage to approximately 40 million covered lives, doubling its previous coverage [18] - The NOPAIN Act is now in effect, which is expected to enhance the adoption of EXPAREL among healthcare providers [13][20] Company Strategy and Development Direction - The company is focused on executing its 5/30 strategy, aiming for double-digit CAGR in product revenues over the next five years and expanding its innovative pipeline [9][11] - The acquisition of GQ Bio aligns with the 5/30 strategy, adding a high-capacity local delivery platform for genetic medicines [30] - The company plans to establish at least five clinical or commercial partnerships by 2030 to enhance its market presence [41] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the positive early signs of the NOPAIN initiative, although they acknowledged that it will take time for customers to fully integrate the new reimbursement model [51][62] - The company anticipates a more meaningful uptick in EXPAREL utilization beginning in the second half of the year [51] - Management emphasized a disciplined approach to capital allocation, focusing on growth, innovation, and shareholder value [48][74] Other Important Information - The company has $125 million remaining in its share buyback authorization, which is set to run through the end of 2026 [49] - The board has undergone significant refreshment, reducing the average tenure of directors to less than five years [43] Q&A Session Summary Question: Can you discuss the assumptions for the NOPAIN initiative and its uptake? - Management indicated that it will take time for customers to gain traction with the NOPAIN initiative, with early signs of progress being encouraging [62][63] Question: Are you seeing successful reimbursement for the NOPAIN initiative? - Management noted that while it is early days, they are seeing good traction and some commercial payer wins [66][68] Question: What is the company's approach to capital allocation given the growth potential? - Management emphasized a disciplined approach to capital allocation, balancing current operations and future growth opportunities [74] Question: How do you view the potential contribution of ZILRETTA's Phase III data for shoulder OA? - Management expressed optimism about ZILRETTA, highlighting its potential as the first long-acting corticosteroid for shoulder pain [111] Question: What is the expected trajectory for iovera with the new reimbursement? - Management sees iovera as a key growth driver, particularly with the new reimbursement code and the launch of the Smart Tip [107][108]