Core Viewpoint - Pacira BioSciences, Inc. is responding to DOMA Perpetual Capital Management LLC's nomination of three director candidates for the 2026 Annual Meeting, emphasizing its commitment to shareholder interests and the progress made under its 5x30 strategy aimed at long-term value creation [1][4]. Group 1: Company Strategy and Performance - The company launched a 5x30 strategy in January 2025, focusing on five key pillars with measurable objectives to enhance performance by 2030 [1]. - In 2025, Pacira repurchased $150 million in common stock, reducing outstanding shares from 47 million to 41 million, indicating a disciplined capital allocation strategy [2]. - Pacira treated 2.5 million patients in 2025, aiming to reach 3 million annually by 2030 [5]. - The year-over-year volume growth for EXPAREL® was 6.2% in 2025, up from 3.6% in 2024, reflecting progress towards double-digit compounded annual growth [5]. - The company achieved record-high GAAP and non-GAAP gross margins of 79% and 81% respectively in 2025, with a goal of improving gross margins by five percentage points over a 2024 baseline of 76% [5][19]. Group 2: Product Development and Pipeline - Pacira advanced two Phase 2 clinical programs: PCRX-201, a gene therapy for osteoarthritis, and PCRX-2002, a long-acting local analgesic for postsurgical pain [5]. - Key milestones for 2026 include an interim analysis from a Phase 3 study of ZILRETTA® in shoulder osteoarthritis and topline results from the iovera registration study for spasticity treatment [5]. - The company expanded its commercial reach through collaborations with J&J MedTech and LG Chem [5]. Group 3: Governance and Shareholder Engagement - The Board's Nominating, Governance and Sustainability Committee will review the director nominees proposed by DOMA, with recommendations to be included in the definitive proxy statement [6]. - The date for the 2026 Annual Meeting has not been announced, and shareholders are not required to take any action at this time [7].

Core Insights - The company has implemented a 5x30 strategy aimed at creating value, which includes reaching 3 million patients by 2030, achieving double-digit top-line growth, expanding margins by 5 points, developing 5 pipeline products, and establishing 5 partnerships [2] Group 1: Product Portfolio and Financial Performance - The company has made significant progress in the past year, particularly with the implementation of the NOPAIN reimbursement in January, which is expected to impact financial performance positively [1][3] - The first year of the NOPAIN reimbursement has provided valuable insights and learnings for the company [1]

Financial Data and Key Metrics Changes - In 2025, the company achieved $726 million in revenue, marking a significant increase compared to previous years, with the highest gross margins in its history at 80% for Q4 2025, up from 79% in Q4 2024 [5][20] - The fourth quarter sales for EXPAREL increased to $155.8 million from $147.7 million in 2024, reflecting a volume growth of approximately 7% [19] - Non-GAAP R&D expenses rose to $34.4 million in Q4 2025 from $22.0 million in the previous year, while SG&A expenses increased to $91.9 million from $70.6 million [21] Business Line Data and Key Metrics Changes - EXPAREL showed solid performance with volume-based growth driven by expanding education and awareness, increasing commercial payer adoption, and growing demand across care sites [6][19] - ZILRETTA sales remained flat at $33 million in Q4 2025 compared to 2024, while iovera sales grew to $7 million from $6.5 million [19] Market Data and Key Metrics Changes - The company ended 2025 with 102 million lives covered outside of the surgical bundle, indicating a significant shift in payer policies and access to EXPAREL [7][16] - The strategic focus on key markets with high procedural volumes resulted in over 7% volume growth in these markets compared to 2024 [16] Company Strategy and Development Direction - The company is advancing its 5x30 strategy, aiming to help 3 million patients annually by 2030, with a clear focus on innovative, non-opioid pain management therapies [5][12] - Partnerships with J&J MedTech and LG Chem are expected to enhance market access and revenue growth, with LG Chem set to commercialize EXPAREL in select Asia Pacific countries [9][63] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's growth trajectory, highlighting the successful execution of the NOPAIN Act and its positive impact on non-opioid stewardship [13][15] - The company anticipates steady top-line growth in 2026, with total revenue guidance set between $745 million and $770 million, and EXPAREL sales expected to be between $600 million and $620 million [23][24] Other Important Information - The company has strengthened its intellectual property estate to 21 patents, providing a solid foundation for EXPAREL's sustained growth [8] - The company executed $150 million in stock repurchases, reducing outstanding shares to approximately 41 million [22] Q&A Session Summary Question: What constitutes a clinically meaningful signal for the OA readout? - Management clarified that the primary focus of the PCRX-201 trial is safety, but they will also look for efficacy trends measured by key secondary endpoints [28][30] Question: What factors could lead to higher or lower EXPAREL sales guidance? - Management indicated that the guidance reflects a cautious approach due to potential headwinds in the elective procedure market, while also highlighting the positive indicators from their investments [37][39] Question: What are the barriers to adoption for EXPAREL? - Management noted that while reimbursement is improving, the focus is now on clinical adoption and ensuring that economic stakeholders recognize the value of EXPAREL [51][56] Question: What headwinds affected ZILRETTA's performance in 2025? - Management explained that prioritizing EXPAREL led to some disruption in ZILRETTA sales, but they expect growth in 2026 with a fully trained J&J sales team [59][61] Question: Will unexpected business development costs continue? - Management acknowledged that while there may be occasional unexpected costs, they are focused on disciplined investments that maximize shareholder value [65][68]

Financial Data and Key Metrics Changes - Year-over-year revenues increased by 6%, driven by strong performance from Exparel and iovera [4] - Third-quarter Exparel sales rose to $139.9 million from $132.0 million in 2024, with a volume growth of 9% [21] - Non-GAAP gross margin improved to 82% from 78% year-over-year, benefiting from manufacturing efficiencies [22] - Adjusted EBITDA for the third quarter was $49.4 million [22] Business Line Data and Key Metrics Changes - Exparel demand saw a year-over-year volume increase of approximately 9%, marking the highest quarterly growth in over three years [4] - ZILRETTA sales increased to $29.0 million from $28.4 million in 2024 [21] - Iovera sales grew to $6.5 million from $5.7 million in 2024 [21] Market Data and Key Metrics Changes - Approximately 60 million commercial lives now have access to Exparel through separate reimbursement mechanisms, with a total covered population nearing 90 million across commercial and government payers [15] - Strong adoption of Exparel in ambulatory surgery centers, with volumes up more than 25% year-over-year [19] Company Strategy and Development Direction - The company is focused on its 5x30 growth strategy, which aims for a five-year double-digit compound annual growth rate (CAGR) for revenue [14] - The in-licensing of AMT 143 aligns with the company's strategy to expand its clinical pipeline and enhance its product offerings [5] - The company is prioritizing complementary mid to late-stage opportunities in its pipeline, particularly in musculoskeletal pain [7] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the growth trajectory of Exparel, anticipating that volume growth will converge with revenue growth over time [21] - The company expects to see significant earnings driven by improving sales and enhanced gross margins [25] - Management remains optimistic about the potential of PCRX 201 to revolutionize osteoarthritis treatment [8] Other Important Information - The company executed an additional $50 million in share repurchases during the third quarter [23] - The company has a strong balance sheet with cash and investments of approximately $246 million [23] Q&A Session Summary Question: Impact of GPO on volume growth and selling days - Management noted strong uptake from the GPO signed in June, which contributed to volume growth [30] - There was no significant impact from the number of selling days in the quarter [33] Question: Rationale behind AMT 143 program and trial design - The company sees a market need for a product with longer durability and ease of use, complementary to Exparel [35] - IP protection for AMT 143 extends to 2042, with plans to expand upon that [38] Question: Awareness of Exparel in larger hospitals and market growth for elective procedures - Growth has been faster in smaller hospitals and ASCs, with larger institutions taking more time due to more decision-makers [43] - Modest improvements in elective procedures were noted in the third quarter, with expectations for more in the fourth quarter [49] Question: Early indicators for ZORVOLTA and gross margin expectations - The dedicated ZORVOLTA sales force is expected to drive momentum in the fourth quarter and significant progress in 2026 [52] - Gross margins are expected to improve next year, with a long-term goal of a 5% improvement over 2024 levels [56]

Financial Performance & Strategy - Pacira reported Q2 2025 total revenue of $181 million[42] - The company is transitioning into an innovative biopharmaceutical organization, aiming to lead in musculoskeletal pain and adjacencies[5] - Pacira updated its 2025 total revenue guidance to $730-750 million[42] - Non-GAAP gross margins were 82% in Q2 2025[42], with a new range projected at 78-80%[10] - Adjusted EBITDA for Q2 2025 was $54 million[42] - The company has approximately $270 million in cash and investments[41,42] Product & Pipeline Development - Over 3 million patients are treated per year with Pacira's products[4] - EXPAREL's intellectual property is strengthened with two new patents listed in the FDA's Orange Book, providing exclusivity into 2040+[16] - Two registrational studies for ZILRETTA in shoulder OA and iovera° in spasticity are progressing as planned[20] - The Phase 2 ASCEND Part A study for PCRX-201 has surpassed 50% enrollment[22] Market Access & Commercial Growth - Over 40 million commercial lives have access to EXPAREL via separate reimbursement as of Q2 2025[29], with ~100 million total covered lives expected by year end[29] - The company signed a 3rd GPO in Q2 2025, increasing procedural volumes of EXPAREL business under contract[31]

Summary of Pacira BioSciences Inc (PCRX) 2025 Conference Company Overview - **Company**: Pacira BioSciences Inc (PCRX) - **Focus**: Non-opioid innovative pain management therapies, primarily through products like EXPAREL, ZILRETTA, and ioverao [4][16] Core Points and Arguments - **Sales Performance**: The company generated over $700 million in sales in 2025, indicating a strong cash flow [4] - **Pipeline Development**: The lead product in the pipeline is PCRX201, aimed at transforming treatment for osteoarthritis of the knee and potentially other joints [5] - **5x30 Strategy**: The company aims to achieve five key objectives by 2030: 1. Help over 3 million patients (currently around 2.4 million) [10] 2. Achieve double-digit growth, moving from historical low single digits [11] 3. Expand margins by at least five percentage points [11] 4. Develop five novel projects by 2030, with PCRX201 as the lead [12] 5. Establish five partnerships for commercialization and development [13] Recent Developments - **Litigation Settlement**: A significant settlement regarding Paragraph IV litigation around EXPAREL provides visibility until 2039, alleviating previous stock overhang concerns [7][18] - **Market Dynamics**: EXPAREL's average daily sales grew by 7% in the first quarter, contrasting with previous low single-digit growth [24] - **Sales Force Reorganization**: Transitioned to three separate sales forces for each product to enhance focus and execution [25] Commercial Strategy - **No Pain Initiative**: The company is seeing early adoption in smaller community settings and ambulatory surgical centers, with expectations for broader uptake in larger health systems [29] - **Reimbursement Dynamics**: Encouraging signs of commercial payer adoption are emerging, with a focus on aligning with CMS reimbursement strategies [32] Pipeline Insights - **PCRX201**: The product shows promising data with 72 patients in Phase 1, demonstrating significant pain relief and durability [36][39] - **Gene Therapy Approach**: The company is exploring gene therapy with a focus on local administration, which may broaden the applicability of gene therapies beyond rare diseases [45] Additional Considerations - **Intellectual Property**: The company holds 19 Orange Book listed patents, enhancing its competitive position [19] - **Future Projects**: There are ongoing discussions about additional projects stemming from the newly acquired GQ Bio platform, emphasizing locally administered therapies [47] Conclusion - Pacira BioSciences is positioned for growth with a robust pipeline and strategic initiatives aimed at expanding its market presence and improving patient outcomes through innovative pain management solutions [48]

Core Viewpoint - Pacira BioSciences, Inc. reported strong financial results for Q1 2025, highlighting its commitment to non-opioid pain therapies and the successful execution of its 5x30 strategy, which aims to enhance its market position and drive growth through innovation and strategic acquisitions [4][6][11]. Financial Highlights - Total revenues for Q1 2025 were $168.9 million, a slight increase from $167.1 million in Q1 2024 [6][11]. - Net product sales included $136.5 million for EXPAREL, $23.3 million for ZILRETTA, and $5.1 million for iovera°, with EXPAREL showing a growth from $132.4 million in the same quarter last year [6][11]. - Net income was reported at $4.8 million, or $0.10 per share, compared to $9.0 million, or $0.19 per share in Q1 2024 [6][11]. - Adjusted EBITDA for the quarter was $44.1 million, slightly down from $44.6 million in Q1 2024 [6][11]. Recent Business Developments - The company successfully settled U.S. patent litigation for EXPAREL, securing exclusivity until 2039, which is expected to enhance market share and cash flow [7][11]. - The first patient was dosed in a Phase 2 study for PCRX-201, targeting osteoarthritis of the knee, with topline results expected by the end of 2026 [7][11]. - A favorable court ruling eliminated the royalty obligation on EXPAREL sales to RDF, allowing the company to cease future payments and seek repayment for previously paid royalties [7][11]. - The corporate headquarters was relocated to Brisbane, California, aligning with the company's growth strategy [7][11]. Strategic Initiatives - The company reiterated its full-year 2025 financial guidance, projecting total revenues between $725 million and $765 million, with a non-GAAP gross margin of 76% to 78% [21][11]. - Pacira acquired GQ Bio Therapeutics GmbH to enhance its 5x30 growth strategy, bringing in a novel local delivery platform for genetic medicines [11][37]. - The company is focused on expanding the market for EXPAREL and other products through strategic initiatives and clinical trials [11][40].