Core Insights - Pacira reported $181.1 million in revenue for Q2 2025, a year-over-year increase of 1.7%, with an EPS of $0.74 compared to $0.89 a year ago [1] - The revenue fell short of the Zacks Consensus Estimate of $184.23 million, resulting in a surprise of -1.7%, while the EPS exceeded the consensus estimate of $0.72 by +2.78% [1] Revenue Breakdown - Net product sales for iovera were $5.59 million, below the average estimate of $6.12 million, reflecting a year-over-year decline of -1.5% [4] - Net product sales for ZILRETTA reached $31.33 million, slightly above the estimated $31.17 million, marking a +2% increase year-over-year [4] - Net product sales for EXPAREL totaled $142.92 million, compared to the average estimate of $145.83 million, showing a year-over-year growth of +4.4% [4] - Total net product sales amounted to $180.35 million, below the average estimate of $184.5 million, with a year-over-year increase of +2.3% [4] - Net product sales for Bupivacaine liposome injectable suspension were $0.51 million, significantly lower than the estimated $1.64 million, indicating a year-over-year decline of -83.9% [4] - Royalty revenue was reported at $0.75 million, below the estimated $1.42 million, representing a -54% change compared to the previous year [4] Stock Performance - Pacira's shares have returned -1.2% over the past month, while the Zacks S&P 500 composite has increased by +1% [3] - The stock currently holds a Zacks Rank 3 (Hold), suggesting it may perform in line with the broader market in the near term [3]

Financial Data and Key Metrics Changes - The company reported second quarter EXPAREL sales increased to $142.9 million, up from $136.9 million in 2024, reflecting a 4% sales growth driven by a 6% volume increase [28] - Non-GAAP gross margin improved to 82% from 76% year-over-year, benefiting from improved costs and efficiencies [29] - Adjusted EBITDA for the second quarter was $54.3 million, indicating strong operational performance [31] - Full year revenue guidance was narrowed to $730 million to $750 million, with an increase in non-GAAP gross margin guidance to 78% to 80% from the previous range of 76% to 78% [34] Business Line Data and Key Metrics Changes - EXPAREL achieved 6% year-over-year volume growth, the highest in eight quarters, while ZILRETTA sales increased to $31.3 million from $30.7 million in 2024 [7][28] - Ioverao sales were $5.6 million, slightly down from $5.7 million in 2024 [28] - The company executed $50 million in share repurchases, retiring approximately 2 million shares of common stock [33] Market Data and Key Metrics Changes - The company estimates over 40 million commercial lives now have access to EXPAREL, with a target of reaching 60 million by year-end [20] - The company aims to cover nearly 100 million lives across both commercial and government payers by the end of the year [21] Company Strategy and Development Direction - The company is focused on its "five by thirty" strategy, which includes growing its commercial business and advancing an innovative pipeline [6] - A new partnership with Johnson & Johnson MedTech for ZILRETTA is expected to significantly expand reach and patient access [11] - The company is advancing its pipeline with a focus on musculoskeletal pain and adjacent markets, with ongoing registrational studies for ZILRETTA [13][16] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in achieving sustainable earnings growth driven by improving sales and enhanced gross margins [35] - The company is optimistic about the impact of new CMS reimbursement policies on EXPAREL's market opportunity [8] - Management highlighted the importance of expanding commercial coverage and the positive momentum in outpatient settings [24] Other Important Information - The company has secured a favorable reexamination of its patent, which is expected to strengthen its intellectual property position [9] - The company is focused on disciplined capital allocation, prioritizing growth in its best-in-class business and returning capital to shareholders [33] Q&A Session Summary Question: Commentary on the new partnership with J&J MedTech for ZILRETTA - Management noted that the new partnership is under different circumstances compared to the previous co-promotion with EXPAREL, and it is expected to enhance market access significantly [42] Question: Expectations for impact to gross to net from the third GPO - Management indicated a low single-digit impact on gross to net, with a reasonable modeling of plus or minus 1% [43] Question: Progress on sales force expansion - Management expressed excitement about the sales team's performance and their ability to improve overall performance across all products [45] Question: Gating factors for the six to twelve month adoption timeframe for EXPAREL - Management highlighted that confirmation of reimbursement and the need for commercial payers to follow CMS guidelines are key factors influencing the adoption timeline [81] Question: Update on PCRX201 and recent three-year data - Management reported strong excitement around PCRX201, with positive feedback from investigators and ongoing enrollment in the ASCEND study [64]

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]

Core Insights - Pacira BioSciences reported solid execution in its corporate, clinical, and commercial initiatives, advancing its 5x30 growth strategy aimed at accelerating topline growth and transitioning into an innovative biopharmaceutical organization [4][5] Financial Highlights - Total revenues for Q2 2025 were $181.1 million, an increase from $178.0 million in Q2 2024 [11] - Net product sales included $142.9 million for EXPAREL, $31.3 million for ZILRETTA, and $5.6 million for iovera° [6] - The company reported a net loss of $4.8 million, or $0.11 per share, compared to a net income of $18.9 million, or $0.41 per share in Q2 2024 [11] - Adjusted EBITDA for Q2 2025 was $54.3 million, down from $62.1 million in Q2 2024 [11] Business Developments - The company surpassed 50% enrollment in its Phase 2 ASCEND study of PCRX-201 for knee osteoarthritis, with completion expected by the end of 2025 [7] - A new $300 million revolving credit facility was established to enhance liquidity and financial flexibility [7] - A co-promotion agreement with Johnson & Johnson MedTech aims to expand ZILRETTA's market reach [7] - Manufacturing efficiencies from large-scale EXPAREL production are expected to improve gross margins and inventory management [7] Legal and Patent Developments - A favorable court ruling resulted in a $28.3 million payment from the Research and Development Foundation [8] - The company secured additional patents for EXPAREL, extending exclusivity through 2041 and 2044 [8] Financial Guidance - The company updated its full-year 2025 revenue guidance to a range of $730 million to $750 million, while increasing non-GAAP gross margin guidance to 78-80% [19]

Core Viewpoint - Pacira BioSciences, Inc. is set to report its second quarter financial results on August 5, 2025, and will host a live conference call and webcast following the release [1]. Company Overview - Pacira specializes in innovative, non-opioid pain therapies aimed at transforming patient lives [3]. - The company has three commercial-stage non-opioid treatments: - EXPAREL, a long-acting local analgesic for various postsurgical pain management applications [3]. - ZILRETTA, an extended-release injection for osteoarthritis knee pain management [3]. - ioveraº, a handheld device providing immediate, long-acting, drug-free pain control through cold temperature [3]. - Pacira is also developing PCRX-201, a novel gene therapy targeting prevalent diseases like osteoarthritis [3].

Core Insights - Pacira BioSciences, Inc. is focusing on non-opioid pain therapies to improve patient outcomes and reduce opioid dependency [1][4] - The film "The Next Frontier: Mark & Leah's Story" showcases the personal journey of Mark Allen, who overcame opioid dependency through non-opioid treatments [2][3] - The opioid crisis remains a significant public health issue, with chronic pain affecting approximately 82 million Americans and costing the U.S. up to $635 billion annually [4] Company Overview - Pacira offers three commercial-stage non-opioid treatments: EXPAREL, ZILRETTA, and iovera°, aimed at managing pain without opioids [5] - EXPAREL is a long-acting local analgesic approved for various pain management applications, while ZILRETTA is for osteoarthritis knee pain, and iovera° provides drug-free pain control [5] - The company is also developing PCRX-201, a gene therapy targeting prevalent diseases like osteoarthritis [5] Industry Context - The U.S. experienced approximately 80,391 drug overdose deaths in 2024, with opioid-related deaths decreasing to 54,743, indicating a need for alternative pain management solutions [4] - Despite the decline in opioid-related deaths, the overall opioid crisis continues to have a severe impact on public health [4] - Investment in novel pain treatments has decreased, highlighting the urgent need for innovative non-opioid therapies [4]

Core Insights - Pacira BioSciences, Inc. announced long-term follow-up data from its Phase 1 clinical trial of PCRX-201, a gene therapy for knee osteoarthritis, showing sustained clinical efficacy for up to three years [1][3][12] - The therapy demonstrated significant improvements in pain, stiffness, and function, with a single injection being well tolerated [1][7] Study Details - The Phase 1 trial involved 72 patients aged 30 to 80, with assessments conducted over 156 weeks using WOMAC and KOOS scores [4][6] - Participants were divided into two cohorts: one receiving varying doses of PCRX-201 and the other receiving a corticosteroid pretreatment [4] Key Findings - No serious treatment-related adverse events were reported, with treatment-related joint effusions occurring in 36% of the corticosteroid-pretreated group and 61% in the non-pretreated group [6][7] - Significant reductions in pain and stiffness were observed, with 51-53% reduction in WOMAC-A pain scores and 38-76% reduction in WOMAC-B stiffness scores [7] - Improvements in KOOS daily living function scores ranged from 26 to 28 points [7] Regulatory Designations - PCRX-201 received Regenerative Medicine Advanced Therapy (RMAT) designation from the FDA and Advanced Therapy Medicinal Products (ATMP) designation from the European Medicines Agency [8][9][12] - These designations facilitate efficient drug development and potential accelerated approval processes [9] Future Developments - Following promising Phase 1 results, a Phase 2 study (ASCEND study) is currently underway for PCRX-201 [10] - The therapy targets chronic inflammation at the cellular level, aiming to modify the disease rather than just alleviate symptoms [3][11]

Summary of Pacira BioSciences Inc (PCRX) Conference Call Company Overview - Pacira BioSciences is a leader in non-opioid pain management therapies, with market-leading products including EXPAREL for post-operative pain, ZILRETTA (the only long-acting FDA-approved steroid lasting up to three months), and ioverao (a cryoneurolysis device) [3][4] Core Points and Arguments - **EXPAREL Settlement**: A recent positive settlement regarding EXPAREL provides total exclusivity until February 2030, followed by a volume-limited market share for generics until February 2039. This settlement removes stock overhang and ensures substantial cash flows for reinvestment [10][11] - **Market Growth Potential**: The company believes there is significant room for growth in the market for EXPAREL, as it remains underpenetrated with a total addressable market (TAM) still in the high single digits [15] - **No Pain Act**: The No Pain Act, effective January 1, 2025, allows for additional reimbursement for innovative products like EXPAREL, which could positively impact the company’s revenue. Approximately 6 million out of 18 million procedures annually are covered under CMS [21][22][26] - **Commercial Payer Adoption**: There is an encouraging trend of commercial payers beginning to adopt policies similar to CMS, which is expected to enhance market penetration over time [26][30] - **Gross Margin Expansion**: The company aims to expand gross margins by five percentage points by 2030, aided by the cessation of low single-digit royalties on EXPAREL and increased manufacturing efficiency [36][37][41] Other Important Content - **Five by 30 Strategy**: The company has outlined a strategic plan to treat over 3 million patients, achieve double-digit growth, expand gross margins, develop five novel programs, and establish partnerships by 2030 [41][45] - **PCRX-201 Development**: The company is optimistic about PCRX-201, a gene therapy for osteoarthritis, citing compelling data and a favorable local delivery method. A Phase 2 study is underway, with results expected by the end of next year [60][62][64] - **Partnership Opportunities**: The company is exploring partnerships to expand its market reach, particularly outside the U.S., and to enhance its product offerings through synergistic sales strategies [46][50][54] This summary encapsulates the key points discussed during the conference call, highlighting the company's strategic direction, market opportunities, and product developments.

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 Insights - Pacira BioSciences, Inc. is committed to delivering innovative, non-opioid pain therapies to transform patients' lives [2] - The company will participate in two upcoming healthcare conferences, providing opportunities for analysts to engage with its leadership [1][3] Company Overview - Pacira has three commercial-stage non-opioid treatments: - EXPAREL, a long-acting local analgesic approved for various postsurgical pain management applications [2] - ZILRETTA, an extended-release injection for osteoarthritis knee pain management [2] - ioveraº, a handheld device for drug-free pain control using cold temperature [2] - The company is also developing PCRX-201, a novel gene therapy aimed at treating prevalent diseases like osteoarthritis [2]