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]

BRISBANE, Calif., July 24, 2025 (GLOBE NEWSWIRE) -- Pacira BioSciences, Inc. (Nasdaq: PCRX), the industry leader in its commitment to deliver innovative, non-opioid pain therapies to transform the lives of patients, today announced that it will report its second quarter financial results after the close of the U.S. markets on Tuesday August 5, 2025. Following the release, the company will host a live conference call and webcast at 4:30 p.m. ET. For listeners who wish to participate in the question and answe ...

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]

Business Growth and Strategy - Pacira is transitioning into an innovative biopharmaceutical organization, aiming to lead in musculoskeletal pain and related areas[6] - The company is focused on accelerating growth in its base business and advancing its pipeline value through strategic partnerships and clinical development[5, 8] - Pacira plans to opportunistically return capital to shareholders, supported by a newly authorized share repurchase program of $300 million[39] EXPAREL - A patent litigation settlement secures EXPAREL's exclusivity until 2039, setting the stage for long-term growth[9, 10, 11] - In 1Q25, EXPAREL average daily sales (ADS) increased by approximately 7% year-over-year[15] - A favorable court ruling eliminates RDF royalty obligation, benefiting EXPAREL gross margins by a low-single-digit percentage[9] Pipeline Development - The acquisition of GQ Bio added a novel platform, preclinical portfolio, and R&D talent[9] - Patient dosing is underway in the Phase 2 ASCEND study of PCRX-201 for knee osteoarthritis (OA)[9] - Phase 3 shoulder OA study progressing for ZILRETTA with topline results expected in 2026[16] Financial Performance and Guidance - Total revenue for 1Q25 was $169 million[40] - Non-GAAP gross margins for 1Q25 reached 81%[40] - Adjusted EBITDA for 1Q25 was $44 million[40] - The company reiterated its 2025 financial guidance, projecting total revenue between $725 million and $765 million and non-GAAP gross margins between 76% and 78%[40]

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]