Pacira BioSciences (PCRX) Jefferies 2024 Global Healthcare Conference summary

Financial performance and guidance

• Q1 top-line results met expectations, with all three products performing well and anticipated to strengthen through the year.

• EXPAREL saw 3% volume growth and 2% price increase; one GPO contract signed in January had a modest impact.

• Full-year revenue guidance reiterated at $685M–$705M (1%–4% growth), with slower growth expected as more GPO contracts are signed.

• No product-level guidance provided this year due to a new CEO's preference for top-line guidance.

• San Diego manufacturing facility approval expected to benefit gross margins in 2025 as commercial production ramps up.

Strategic initiatives and market access

• Three GPO contracts targeted for 2024 to reduce barriers to EXPAREL adoption; Premier contract signed, two more close to completion.

• GPO and 340B efforts focus on reducing friction and increasing product adoption, especially ahead of NOPAIN implementation.

• Lower extremity nerve block label expansion launched in January, seen as a $100M opportunity over 4–5 years.

• Major investments in commercial infrastructure, including hiring for key marketing and market access roles, to support education and reimbursement efforts.

Regulatory and reimbursement landscape

• NOPAIN legislation will require CMS reimbursement for non-opioid pain meds in HOPD, impacting about 40% of business.

• 70%–72% of EXPAREL's total addressable market is in HOPD and ASC settings; 6M CMS-reimbursed procedures in these settings vs. 2.2M EXPAREL procedures in 2023.

• Commercial payers expected to follow CMS reimbursement changes, especially as NOPAIN is implemented.

• Education and commercial ramp-up needed for full benefit realization; growth from NOPAIN expected to be gradual, not immediate.