Pacira BioSciences (PCRX) Q2 2024 earnings summary

Executive summary

• Q2 2024 revenues grew 5% year-over-year to $178.0M, with strong sales across EXPAREL ($136.9M), ZILRETTA ($30.7M), and iovera° ($5.7M), and a focus on non-opioid pain management solutions.

• Net income for Q2 2024 was $18.9M, with adjusted EBITDA of $62.1M, reflecting higher operating expenses and a higher effective tax rate.

• Expanded leadership team and commercial infrastructure, with a mission to lead in non-opioid pain management and regenerative medicine.

• Strategic focus on preparing for accelerated growth in 2025, driven by EXPAREL and readiness for NOPAIN Act implementation.

• Maintained solid liquidity with $404.2M in cash and investments at quarter end.

Financial highlights

• Q2 2024 total revenues: $178.0M, up from $169.5M in Q2 2023; EXPAREL sales $136.9M, ZILRETTA $30.7M, iovera° $5.7M.

• Non-GAAP gross margin for Q2 2024 was 76%, at the high end of guidance; GAAP gross margin was approximately 75.1%.

• Adjusted EBITDA for Q2 2024 was $62.1M; FY23 adjusted EBITDA was $214M.

• Cash and investments at June 30, 2024: $404.2M; working capital: $539.5M.

• Q2 2024 net income: $18.9M ($0.41 basic EPS), down from $25.8M ($0.56) in Q2 2023.

Outlook and guidance

• Full-year 2024 guidance reiterated: total revenue $680M–$705M, non-GAAP gross margin 74%–76%, non-GAAP R&D $70M–$80M, non-GAAP SG&A $245M–$265M, stock-based compensation $50M–$55M.

• CMS proposed rule for separate Medicare reimbursement for EXPAREL in outpatient settings at ASP+6% starting January 2025, expected to drive sales above $1B.

• Management expects cash and investments to be sufficient for operating needs and debt service over the next 12 months.

• Anticipated commercial launches and clinical milestones for EXPAREL, ZILRETTA, and iovera° in 2024–2025.

• Foundation set for strong, sustainable top-line growth in 2025 and beyond, with NOPAIN Act expected to drive further expansion.