Financial Data and Key Metrics Changes - First quarter EXPAREL sales increased to $136.5 million compared to $132.4 million in 2024, driven by volume growth [34] - First quarter non-GAAP gross margin improved to 81% from 72% year-over-year [35] - Adjusted EBITDA for the first quarter was $44.1 million [35] - The company has $494 million in cash and investments, indicating a strong balance sheet [37] Business Line Data and Key Metrics Changes - ZILRETTA sales declined to $23.3 million from $25.8 million in 2024, attributed to the transition to new sales forces [34] - Ioverao sales slightly increased to $5.1 million from $5 million in the first quarter of 2024 [34] - The transition to new sales teams for ZILRETTA and Ioverao is expected to stabilize and improve sales in the upcoming quarters [35] Market Data and Key Metrics Changes - First quarter average daily EXPAREL sales and volumes were up approximately 7% over 2024 after adjusting for two fewer selling days in 2025 [12] - There was a more than 30% increase in both new and reactivated EXPAREL accounts [12] - The company is seeing encouraging early indicators in the adoption of the "no pain" reimbursement pathway for outpatient surgical procedures [11] Company Strategy and Development Direction - The company introduced a "five by 30" strategy aimed at accelerating growth in its commercial business and advancing its innovative pipeline [6] - The settlement of patent litigation for EXPAREL extends exclusivity to 2039, providing a strong foundation for future growth [10] - The company is focusing on becoming a leader in musculoskeletal pain and exploring partnerships for its HCAD platform [32] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the early signs of growth and the potential for significant cash flow from EXPAREL [10][22] - The company anticipates a more meaningful uptick in sales in the second half of the year as awareness of the "no pain" initiative grows [40] - Management is closely monitoring potential tariff impacts but does not expect material effects on operations [40] Other Important Information - The company announced a $300 million stock repurchase program, reflecting confidence in its growth outlook [21] - The HCAD platform is expected to unlock new gene therapies for common diseases, aligning with the company's strategic objectives [32] Q&A Session Summary Question: What proportion of patients are covered by Medicare and how does "no pain" apply? - The company indicated that over 50% of inpatient procedures are commercially covered, while outpatient settings skew more towards Medicare [49] Question: What needs to be shown for wide adoption of PCRX201? - Management noted that providing a year or more of benefit compared to the current standard of care would be transformative [50] Question: What are the logistical challenges with "no pain" and how is education progressing? - The company is seeing significant growth in adoption in community hospitals and ambulatory surgery centers, with ongoing education efforts for larger institutions [57] Question: How will capital be allocated post-settlement with Fresenius? - The company plans to invest in its base business to capitalize on "no pain," advance its pipeline, and return capital to shareholders through the buyback program [64] Question: Are there any enhancements for EXPAREL to extend its lifecycle? - The company continues to innovate EXPAREL and has recently listed additional patents, but there are no new plans for additional indications [73] Question: What is the outlook on gross margins and pricing? - The elimination of RDF royalties is expected to improve gross margins, and pricing is anticipated to remain stable with GPO contracts coming online [86] Question: What is the current competitive landscape? - Management stated that there is no significant new competition, and there remains ample room for growth in market penetration [91]

Pacira BioSciences Inc (PCRX) Q1 2025 Earnings Call May 08, 2025 04:30 PM ET Speaker0 Good day, and thank you for standing by. Welcome to the First Quarter twenty twenty five Pacira Biosciences Earnings Conference Call. At this time, all participants are in listen only mode. After the speakers' presentation, there will be the question and answer session. Speakers' there the Please be advised that today's conference is being recorded. I would now like to hand the conference over to our first speaker today, S ...