Financial Data and Key Metrics Changes - The company reported record revenues of $701 million for 2024, at the high end of the guided range [7] - Non-GAAP gross margin for Q4 was 79%, driven by improved margins for EXPAREL and ZILRETTA [46] - Adjusted EBITDA for the quarter was $62.5 million, indicating strong operational performance [46] Business Line Data and Key Metrics Changes - EXPAREL sales increased to $147.7 million in Q4 2024 from $143.9 million in Q4 2023 [45] - ZILRETTA sales rose to $33.1 million in Q4 2024 compared to $28.7 million in Q4 2023 [45] - Iovera sales were $6.5 million in Q4 2024, up from $6.0 million in Q4 2023 [45] Market Data and Key Metrics Changes - The NOPAIN Act now provides a reimbursement pathway for 18 million outpatient surgical procedures, with 6 million under CMS coverage and 12 million under commercial coverage [13] - The company has seen commercial payers adopting NOPAIN-like policies, doubling the previous commercial coverage map to approximately 40 million covered lives [17][18] Company Strategy and Development Direction - The company is focused on executing its 5/30 strategy, aiming for double-digit CAGR in product revenues over the next five years and expanding its innovative pipeline [9][11] - The acquisition of GQ Bio aligns with the 5/30 strategy, adding a high-capacity local delivery platform for genetic medicines [30][31] - The company plans to establish at least five clinical or commercial partnerships by 2030 to enhance its market presence [41] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the early signs of progress with the NOPAIN initiative, although they acknowledged that customer adoption will take time [62][63] - The company anticipates a more meaningful uptick in utilization and reimbursement in the second half of 2025 [51][80] - Management emphasized a disciplined approach to capital allocation, balancing growth investments with shareholder returns [49][74] Other Important Information - The company exited Q4 2024 with $485 million in cash and investments, positioning it well for future growth [47] - The board has undergone significant refreshment, reducing the average tenure of directors to less than five years [43] Q&A Session Summary Question: Can you discuss the assumptions for NOPAIN and the potential impediments to rapid uptake? - Management indicated that it will take time for customers to gain traction with NOPAIN, with early signs of progress being encouraging [62][63] Question: Are you seeing successful reimbursement and penetration into new accounts? - Management noted that while it is early days, they are seeing good traction and some commercial payer wins [66][68] Question: What is the company's approach to capital allocation given the growth potential? - Management emphasized a disciplined approach to capital allocation, focusing on funding current operations and innovation while managing the balance sheet [74] Question: Can you provide insight into the relative contributions of the product portfolio for 2025? - Management expects EXPAREL to remain the flagship product, with plans to support ZILRETTA and iovera as well [78] Question: What are the implications of the competitive landscape for the 5/30 growth strategy? - Management expressed confidence that there will not be a risk of generic launches in the near future, supporting their growth projections [82]

Core Insights - Pacira BioSciences reported fourth-quarter 2024 adjusted earnings of 91 cents per share, exceeding the Zacks Consensus Estimate of 86 cents and up from 89 cents in the same quarter last year [1][2] - Total revenues for the fourth quarter reached $187.3 million, a 3% increase year over year, but slightly missed the Zacks Consensus Estimate by 0.03% [2][10] Revenue Breakdown - The company's revenue primarily comes from product sales, specifically from its three marketed drugs: Exparel, Zilretta, and iovera. No royalty revenues were recognized in the fourth quarter [3] - Exparel's net product sales were $147.7 million, a 3% increase from the previous year, surpassing the Zacks Consensus Estimate of $145.3 million [4] - Zilretta's net product sales reached $33.1 million, up 15% year over year, exceeding the Zacks Consensus Estimate of $30.7 million [6] - iovera's net product sales were $6.5 million, a 7% increase from the year-ago quarter, slightly beating the Zacks Consensus Estimate of $6.4 million [7] Expense Analysis - Research and development (R&D) expenses (excluding stock-based compensation) were $22 million, a 33% increase from the previous year due to higher product development and clinical study costs [8] - Selling, general and administrative (SG&A) expenses (excluding stock-based compensation) totaled $70.6 million, a 23% increase year over year, driven by investments in commercial and market access organizations [9] Financial Performance - For the full year 2024, Pacira recorded total revenues of $701 million, a 4% increase from 2023, but slightly below the Zacks Consensus Estimate of $701.9 million [10] - Adjusted earnings for 2024 were $3.20 per share, matching the Zacks Consensus Estimate and up from $2.81 in 2023 [10] Future Guidance - For 2025, Pacira expects total revenues to be in the range of $725-$765 million, with an adjusted gross margin projected between 76% and 78% [11] - Adjusted R&D expenses are anticipated to be between $90 million and $105 million, while adjusted SG&A expenses are expected to range from $290 million to $320 million [11] Recent Developments - The FDA approved a new Smart Tip for the iovera system to manage chronic low back pain, and Pacira secured a patent protecting Exparel's chemical composition until 2044 [12] - New phase I data for PCRX-201 showed improvement in knee pain and function for at least two years, with a favorable safety profile [13]

Core Insights - Pacira (PCRX) reported revenue of $187.25 million for the quarter ended December 2024, reflecting a 3.3% increase year-over-year, with EPS at $0.91 compared to $0.89 in the same quarter last year [1] - The reported revenue was slightly below the Zacks Consensus Estimate of $187.31 million, resulting in a surprise of -0.03%, while the EPS exceeded the consensus estimate of $0.86 by 5.81% [1] Revenue Breakdown - Net product sales for iovera were $6.45 million, surpassing the estimated $6.36 million, marking a 6.9% increase year-over-year [4] - Net product sales for EXPAREL reached $147.68 million, exceeding the average estimate of $145.33 million, representing a 2.6% year-over-year growth [4] - Total net product sales amounted to $187.25 million, compared to the average estimate of $183.38 million, indicating a 4.2% year-over-year increase [4] - Net product sales for ZILRETTA were $33.12 million, exceeding the estimated $30.72 million, with a year-over-year change of 15.4% [4] Stock Performance - Over the past month, Pacira's shares have returned -2.1%, slightly better than the Zacks S&P 500 composite's -2.2% change [3] - The stock currently holds a Zacks Rank 1 (Strong Buy), suggesting potential outperformance against the broader market in the near term [3]

Company Performance - Pacira reported quarterly earnings of $0.91 per share, exceeding the Zacks Consensus Estimate of $0.86 per share, and showing a slight increase from $0.89 per share a year ago, representing an earnings surprise of 5.81% [1] - The company posted revenues of $187.25 million for the quarter ended December 2024, which was slightly below the Zacks Consensus Estimate by 0.03%, but an increase from $181.24 million year-over-year [2] - Over the last four quarters, Pacira has surpassed consensus EPS estimates three times and topped consensus revenue estimates two times [2] Stock Outlook - Pacira shares have increased approximately 35.2% since the beginning of the year, significantly outperforming the S&P 500's gain of 1.3% [3] - The current consensus EPS estimate for the upcoming quarter is $0.82 on revenues of $175.59 million, and for the current fiscal year, it is $3.59 on revenues of $735.96 million [7] - The estimate revisions trend for Pacira is currently favorable, leading to a Zacks Rank 1 (Strong Buy) for the stock, indicating expected outperformance in the near future [6] Industry Context - The Medical - Biomedical and Genetics industry, to which Pacira belongs, is currently ranked in the top 28% of over 250 Zacks industries, suggesting a positive outlook for stocks within this sector [8] - Empirical research indicates a strong correlation between near-term stock movements and trends in earnings estimate revisions, which can be tracked by investors [5]

Sales Performance - Total net product sales increased by 4% to $697.2 million in 2024, compared to $672.2 million in 2023[484] - EXPAREL sales rose by 2% to $549.0 million in 2024, driven by a 4% increase in gross vial volume[484] - ZILRETTA revenue increased by 6% to $118.1 million, attributed to a 4% rise in net selling price per unit[485] - iovera° sales grew by 16% to $22.8 million, primarily due to a 20% increase in Smart Tip volume[485] Cost and Expenses - Cost of goods sold decreased by 8% to $170.4 million in 2024, resulting in a gross margin increase from 73% to 76%[488] - Total research and development expense increased by 7% in 2024 to $81,577,000 compared to $76,257,000 in 2023, representing 12% of total revenue[490] - Clinical and preclinical development expenses rose by 38% in 2024 to $33,696,000, driven by ongoing trials and start-up expenses for new projects[491] - Product development and manufacturing capacity expansion expenses decreased by 8% in 2024 to $30,803,000, primarily due to the completion of pre-commercial scale-up activities[492] - Selling, general and administrative expenses increased by 9% in 2024 to $294,099,000 compared to $269,441,000 in 2023, accounting for 42% of total revenue[497] - Sales and marketing expenses grew by 12% in 2024 to $172,015,000, fueled by investments in awareness and education programs[498] - General and administrative expenses increased by 5% in 2024 to $87,227,000, mainly due to consulting costs and compensatory expenses related to executive transitions[499] - Stock-based compensation decreased by 15% in 2024 to $7,381,000, attributed to fewer equity awards granted and headcount vacancies[495] Research and Development - Research and development expenses include costs for clinical trials and product development, contributing to the advancement of PCRX-201[489] - The company received U.S. Patent No. 12,156,940 for EXPAREL, expected to provide protection until July 2044[480] - A new Smart Tip for managing chronic low back pain was FDA-cleared in January 2025, enhancing treatment options[480] Acquisitions and Growth Strategy - The acquisition of GQ Bio for approximately $32 million aims to advance the company's growth strategy in innovative biopharmaceuticals[480] - The company plans to expand the use of its products and enhance manufacturing capacity to support growth initiatives[478] - The company completed the GQ Bio Acquisition in February 2025, with a net purchase price including approximately $8 million to be paid over three years[541] - Potential milestone payments related to the Flexion Acquisition could total up to $372.3 million if certain conditions are met[534] Financial Position - The company reported an accumulated deficit of $206.4 million and cash and cash equivalents of $484.6 million as of December 31, 2024[514] - In 2024, net cash provided by operating activities was $189.4 million, an increase of $34.7 million from $154.6 million in 2023, primarily due to increased revenue and lower interest paid[517] - Net cash used in investing activities in 2024 was $83.3 million, reflecting $72.6 million in available-for-sale investment purchases and $10.6 million in capital expenditures[518] - Net cash provided by financing activities in 2024 was $17.4 million, primarily from $287.5 million in proceeds from the issuance of 2029 Notes[521] - The company announced a share repurchase program in May 2024, authorizing up to $150.0 million of common stock repurchases, effective until December 31, 2026[524] Debt and Financing - As of December 31, 2024, the outstanding principal on the TLA Term Loan was $105.3 million, with borrowings at a rate of 7.43%[528] - The company has raised $344.5 million in net proceeds from the sale of common stock and other equity securities since inception[523] - Future capital requirements may necessitate additional debt or equity financing, with no committed external sources currently available[536] - The maximum remaining potential payments related to contingent consideration from the Flexion Acquisition is $372.3 million as of December 31, 2024[549] - A hypothetical 10 percent increase in forecasted annual growth rates would increase the value of contingent consideration liability associated with the Flexion Acquisition by $6.3 million[549] - The outstanding principal on the TLA Term Loan was $105.3 million as of December 31, 2024, with a fixed interest rate of 7.43%[558] - A hypothetical 100 basis point increase in interest rates would increase interest expense over the next 12 months by approximately $1.1 million based on TLA Term Loan balances[558] - The estimated fair value of the 2025 Notes was $971 per $1,000 principal amount as of December 31, 2024, with $202.5 million of principal remaining outstanding[556] - The estimated fair value of the 2029 Notes was $861 per $1,000 principal amount as of December 31, 2024, with all $287.5 million of principal remaining outstanding[557] Risks and Legal Matters - The company incurred costs related to legal and regulatory matters, including those for developing and defending intellectual property[543] - The company’s accounts receivable are primarily concentrated with three large wholesalers, which poses a risk of material adverse impact on financial condition if non-performance occurs[560] - The company’s investment activities aim to preserve principal while maximizing income, with a hypothetical 100 basis point increase in interest rates potentially reducing the fair value of available-for-sale securities by approximately $0.8 million[555] - Goodwill impairment recorded in 2024 was $163,243,000 due to the approval of a generic competitor and a court ruling affecting patent validity[503] - The goodwill balance of $163.2 million was fully impaired during the three months ended September 30, 2024, due to a decrease in common stock price and FDA approval of a generic competitor[553]

Financial Performance - Preliminary unaudited total revenue for 2024 is $701.0 million, up from $675.0 million in 2023, representing a growth of approximately 3.7%[1] - Fourth quarter EXPAREL net product sales reached $147.7 million in 2024, compared to $143.9 million in 2023, indicating a growth of about 2.6%[3] - Full-year EXPAREL net product sales totaled $549.0 million in 2024, a slight increase from $538.1 million in 2023, with average daily volume growth of 4%[10] - Full-year ZILRETTA net product sales were $118.1 million in 2024, compared to $111.1 million in 2023, reflecting a growth of approximately 6.3%[10] - The company reported a five percentage point gross margin improvement over 2024, indicating enhanced profitability[4] Strategic Objectives - The company aims to achieve five growth-oriented objectives by 2030 under its "5x30" plan, focusing on operational excellence and innovative non-opioid pain therapies[2] - The clinical pipeline is expanding with five novel programs currently in development, enhancing the company's growth potential[4] - The company is establishing five partnerships, including pipeline and commercial agreements, to bolster its market position[4] Product Development and Market Expansion - The company is focusing on the market acceptance and growth potential of EXPAREL, ZILRETTA, and iovera°, with plans to expand their use to additional indications[26] - The company is evaluating and developing additional product candidates utilizing its proprietary multivesicular liposome (pMVL) drug delivery technology[26] - The company is pursuing supplemental New Drug Applications and premarket notification 510(k)s with the U.S. Food and Drug Administration, as well as Marketing Authorization Applications with the European Medicines Agency[26] - The company is assessing its commercialization and marketing capabilities to enhance the success of its products[26] Future Reporting and Financial Guidance - Pacira plans to report complete financial results for the fourth quarter and full-year 2024 in the first quarter of 2025, along with financial guidance[6] Risk Management and Compliance - The company acknowledges known and unknown risks that could cause actual results to differ from forward-looking statements[27] - The company does not intend to update or revise forward-looking statements unless required by law[27] Operational Plans - The company is planning to complete capital projects and integrate any future acquisitions into its existing business[26] - The company is monitoring the recoverability of its deferred tax assets and assumptions related to contingent consideration payments[26] - The company anticipates funding or benefits from its share repurchase program[26]

Core Insights - Pacira BioSciences reported record revenues of $701 million for the full year 2024, marking a 4% increase from $675 million in 2023 [6][14] - The company experienced a full-year GAAP net loss of $99.6 million, which translates to a loss of $2.15 per share, compared to a net income of $42 million in 2023 [10][14] - Adjusted EBITDA for the full year was $223.9 million, a 4% increase from $214.5 million in 2023 [10][14] Financial Performance - Fourth quarter revenues reached $187.3 million, a 3% increase from $181.2 million in Q4 2023 [6][8] - EXPAREL net product sales for 2024 were $549 million, a 2% increase from $538.1 million in 2023 [10][14] - ZILRETTA net product sales increased by 6% to $118.1 million in 2024, up from $111.1 million in 2023 [10][14] - Total operating expenses for 2024 were $774.3 million, compared to $587.3 million in 2023, which included a goodwill impairment of $163.2 million [10][14] Strategic Initiatives - The company launched a new Five-Year Plan (5x30) aimed at transitioning into an innovative biopharmaceutical organization, with goals to reach over 3 million patients annually and achieve double-digit revenue growth by 2030 [6][8] - In February 2025, Pacira acquired the remaining 81% equity stake in GQ Bio Therapeutics for approximately $32 million to enhance its growth strategy [6][8] - The company appointed Laura Brege as Chair of the Board in January 2025, as part of its commitment to board refreshment [6][8] Product Development and Regulatory Updates - The FDA approved a new iovera° Smart Tip in December 2024 for managing chronic low back pain, expanding the product's application [8] - A new patent for EXPAREL was issued, expected to provide protection until July 2044, supporting long-term exclusivity [8] - Data for PCRX-201 indicated sustained efficacy in treating moderate to severe osteoarthritis of the knee, with a well-tolerated safety profile [8]

Core Viewpoint - Pacira BioSciences has acquired an 81% equity stake in GQ Bio Therapeutics for approximately $32 million, enhancing its capabilities in innovative biopharmaceuticals and eliminating future milestone payment obligations, which could amount to $64 million [1][5]. Group 1: Acquisition Details - The acquisition includes an upfront payment of $18 million, with an additional $8 million to be paid over three years and a post-closing indemnity holdback of $6 million [1]. - GQ Bio's high-capacity adenovirus (HCAd) gene therapy vector platform will be integrated into Pacira's operations, focusing on the development of PCRX-201 and other products [4][12]. Group 2: Strategic Importance - The acquisition aligns with Pacira's "5x30" plan to transition into a leading innovative biopharmaceutical organization, addressing unmet patient needs in chronic pain management [3]. - The HCAd platform is expected to significantly enhance the efficiency of gene delivery, allowing for the treatment of prevalent musculoskeletal diseases like osteoarthritis [6][7]. Group 3: Financial Implications - By eliminating future milestone payments, the transaction is projected to provide substantial financial benefits to Pacira, including a specific milestone payment of $4.5 million related to the initiation of a Phase 2 clinical trial for PCRX-201 [5]. - The HCAd platform's efficiency in gene delivery is anticipated to result in a commercially attractive cost of goods profile, enabling the production of thousands of doses in a single batch [7][8]. Group 4: Clinical Development - PCRX-201 is currently in clinical development for knee osteoarthritis, showing promising results in a Phase 1 study with sustained improvements in pain and function over two years [9]. - The product candidate utilizes an inflammation-responsive promoter to enhance the body's natural response to inflammation, potentially offering a novel treatment approach [8].

Core Viewpoint - Rosen Law Firm is reminding investors who purchased securities of Pacira BioSciences, Inc. during the specified Class Period of the upcoming lead plaintiff deadline for a class action lawsuit [1][2]. Group 1: Class Action Details - The Class Period for the Pacira securities is from August 2, 2023, to August 8, 2024, and the lead plaintiff deadline is March 14, 2025 [1]. - Investors can join the class action without any out-of-pocket fees through a contingency fee arrangement [1]. - A class action lawsuit has already been filed, and interested parties must act by the specified deadline to serve as lead plaintiff [2]. Group 2: Legal Representation - Rosen Law Firm emphasizes the importance of selecting qualified legal counsel with a proven track record in securities class actions [3]. - The firm has achieved significant settlements in the past, including the largest securities class action settlement against a Chinese company at the time [3]. - In 2019, the firm secured over $438 million for investors, showcasing its capability in recovering funds for clients [3]. Group 3: Case Background - The lawsuit alleges that statements made by Pacira during the Class Period were misleading, particularly regarding the patent protections on Exparel, which were claimed to be critical for the company's growth [4]. - It is asserted that Pacira was aware of the weaknesses in its patent protections, particularly following a court ruling in favor of eVenus on June 6, 2023, yet continued to publicly affirm the strength of its patent [4]. - The lawsuit claims that when the true nature of the patent protections became known, investors suffered damages [4].

Core Viewpoint - Faruqi & Faruqi, LLP is investigating potential claims against Pacira BioSciences, Inc. following the invalidation of its '495 patent, which has led to significant stock price declines and investor losses [2][4][5]. Group 1: Legal Investigation - Faruqi & Faruqi, LLP is encouraging investors who suffered losses exceeding $75,000 in Pacira between August 2, 2023, and August 8, 2024, to discuss their legal options [1]. - The firm is reminding investors of the March 14, 2025, deadline to seek the role of lead plaintiff in a federal securities class action against Pacira [2]. Group 2: Patent Invalidation Impact - On August 9, 2024, a New Jersey District Court invalidated Pacira's '495 patent, ruling that eVenus did not infringe on the patent due to obviousness and anticipation [4]. - The invalidation announcement surprised investors, leading to a dramatic stock price decline from $22.36 per share on August 8, 2024, to a low of $11.70 per share on August 9, 2024, representing a decline of over 47% in a single day [5]. Group 3: Class Action Details - The court-appointed lead plaintiff is the investor with the largest financial interest in the relief sought by the class, who will oversee the litigation on behalf of the class members [6]. - Any member of the putative class may move the Court to serve as lead plaintiff or choose to remain an absent class member without affecting their ability to share in any recovery [6].