3Q25 Earnings Presentation PCRX | November 2025 Forward-looking statements and where to find additional information Any statements in this presentation about Pacira's future expectations, plans, trends, outlook, projections and prospects, and other statements containing the words "anticipate," "believe," "can," "could," "estimate," "expect," "intend," "may," "plan," "project," "should," "will," "would," and similar expressions, constitute forward-looking statements within the meaning of Section 21E of the S ...

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 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]

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]

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].

PCRX-201 Overview - PCRX-201 is an innovative, locally-administered gene therapy targeting the underlying cause of osteoarthritis (OA)[1, 10] - It offers unprecedented pain relief and durability for at least 2 years from a single injection across all levels of disease severity[11] - Phase 1 trial data showed a 48-65% reduction from baseline pain through 104 weeks[13] - In the Phase 1 trial, over 70% of patients experienced a greater than 50% improvement in pain and stiffness vs baseline at week 16 and 78[15] Clinical Development Plan - The company plans a clinical development pathway including Phase 2 Part A, Phase 2 Part B, Phase 2 Bilateral Dosing, Phase 3 Single Injection, and Phase 3 Extension with repeat dosing, targeting a BLA submission by 2032[17, 19] Phase 2 Study Design - The Phase 2 study is a two-part, randomized, double-blind, active-controlled study to assess the safety and tolerability of PCRX-201 in subjects with painful knee OA[20, 22] - Part A will use existing inventory from the Phase 1 trial, while Part B will use a new manufacturing process intended for commercial scale-up[28] - Both parts will pretreat all subjects with a 40 mg intra-articular (IA) dose of methylprednisolone acetate[28, 40, 43] - Part A plans for a maximum of 45 subjects (15 per group), and Part B plans for 90 subjects (30 per group)[32, 39, 42]