Pacira BioSciences (PCRX) Q3 2024 earnings summary

Executive summary

• Q3 2024 revenues reached $168.6 million, up 3% year-over-year, with EXPAREL, ZILRETTA, and iovera° contributing $132.0 million, $28.4 million, and $5.7 million, respectively.

• Reported a GAAP net loss of $143.5 million, or $3.11 per share, primarily due to a $163.2 million goodwill impairment following FDA approval of a generic EXPAREL and an adverse patent ruling.

• Adjusted EBITDA was $54.7 million, up from $52.9 million in the prior year quarter.

• Company is focused on long-term growth, investing in commercial organization, pipeline assets like PCRX-201, and restructuring to prepare for new Medicare reimbursement rules.

• Cash and investments at quarter-end totaled $454 million, supporting ongoing investments and operations.

Financial highlights

• Q3 2024 revenues rose to $168.6 million from $163.9 million year-over-year, with nine-month revenues up 4% to $513.7 million.

• EXPAREL sales grew to $132.0 million (3% volume growth, 1% price increase), ZILRETTA sales were $28.4 million, and iovera° sales were $5.7 million.

• Gross margin improved to 77% GAAP and 78% non-GAAP for Q3 2024.

• Operating expenses rose to $308.1 million, driven by the goodwill impairment.

• Adjusted EBITDA for the quarter was $54.7 million.

Outlook and guidance

• Reiterated full-year 2024 guidance: total revenue of $680 million–$705 million, non-GAAP gross margins of 74%–76%, non-GAAP R&D expense of $70 million–$80 million, non-GAAP SG&A expense of $245 million–$265 million, and stock-based compensation of $50 million–$55 million.

• Management expects continued investment in commercial readiness for EXPAREL and iovera° as new Medicare reimbursement (NOPAIN Act) takes effect in January 2025.

• Cash and investments are expected to be sufficient to fund operations, capital expenditures, and debt service for at least the next 12 months.