• Total Revenue: $701 million for 2024.
• EXPAREL Sales: $147.7 million in Q4 2024, up from $143.9 million in Q4 2023.
• ZILRETTA Sales: $33.1 million in Q4 2024, up from $28.7 million in Q4 2023.
• iovera Sales: $6.5 million in Q4 2024, compared to $6.0 million in Q4 2023.
• Non-GAAP Gross Margin: 79% in Q4 2024.
• Non-GAAP R&D Expense: $22.0 million in Q4 2024, up from $16.6 million in Q4 2023.
• Non-GAAP SG&A Expense: $78.6 million in Q4 2024, up from $57.4 million in Q4 2023.
• Adjusted EBITDA: $62.5 million in Q4 2024.
• Cash and Investments: $485 million at the end of Q4 2024.
• 2025 Revenue Guidance: $725 million to $765 million.
• 2025 Non-GAAP Gross Margin Guidance: 76% to 78%.
• 2025 Non-GAAP R&D Expense Guidance: $90 million to $105 million.
• 2025 Non-GAAP SG&A Expense Guidance: $290 million to $320 million.
• Stock-Based Compensation Guidance: $56 million to $61 million for 2025.
• 2025 Depreciation Expense: Approximately $30 million.

• Warning! GuruFocus has detected 4 Warning Signs with PCRX.

Release Date: February 27, 2025

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Positive Points

• Pacira BioSciences Inc (NASDAQ:PCRX) reported record revenues of $701 million for 2024, reaching the high end of their guided range.
• The company has secured separate CMS coverage and product-specific reimbursement codes for both EXPAREL and iovera, enhancing patient access and streamlining the billing process.
• Pacira BioSciences Inc (NASDAQ:PCRX) received RMAT designation from the FDA for PCRX-201, with compelling two-year data from a Phase 1 study.
• The company is focused on a 5x30 strategy, aiming to benefit over 3 million patients annually by 2030 and achieve double-digit CAGR in product revenues over the next five years.
• Pacira BioSciences Inc (NASDAQ:PCRX) has a strong balance sheet with $485 million in cash and investments, supporting their strategic initiatives and growth plans.

Negative Points

• The adoption of the new reimbursement pathway for EXPAREL under the NOPAIN Act is expected to take time, with more meaningful uptake anticipated in the second half of the year.
• There is pressure on gross margins due to discounting associated with GPO partnerships, despite volume growth and price increases.
• Non-GAAP SG&A expenses increased significantly, driven by investments in commercial, medical, and market access organizations.
• The company faces potential challenges from generic competition, although they remain confident in their IP estate and ongoing innovation.
• Pacira BioSciences Inc (NASDAQ:PCRX) anticipates increased R&D expenses due to clinical study costs and investments in new product development, which could impact short-term profitability.

Q & A Highlights

Q: Can you discuss the assumptions for NOPAIN implementation and uptake, and what might impede rapid adoption by customers? A: Frank Lee, CEO: We're excited about NOPAIN, but it will take time for customers to gain traction, likely starting in the second half. We need to raise awareness and ensure customers are comfortable with the J-code. Early signs are positive, but it takes time for full adoption.

Q: Are you seeing successful reimbursement with NOPAIN, and have you gained access to new accounts or geographies? A: Frank Lee, CEO: It's early, but we're seeing encouraging signs. Revenue cycles can take weeks to complete, and while it's early days, we're seeing good traction and some commercial payer wins, which is promising.

Q: Given your confidence in EXPAREL's exclusivity, why not be more aggressive with share buybacks? A: Frank Lee, CEO: We value certainty and long-term shareholder value. We're disciplined in capital allocation, focusing on operations, pipeline additions, and managing the balance sheet. We have $125 million left on our buyback program and will manage it strategically.

Q: Can you discuss the relative contributions of your product portfolio for 2025 and any sequential trends? A: Shawn Cross, CFO: EXPAREL remains our flagship product, with catalysts like the J-code and NOPAIN. We expect double-digit CAGR exiting the year. ZILRETTA and iovera will also contribute, with more meaningful uptake expected in the second half.

Q: How do you view ZILRETTA's potential contribution to revenue growth with Phase 3 data for shoulder OA expected in 2026? A: Frank Lee, CEO: We're excited about ZILRETTA's potential in shoulder OA, a market with about 1 million intra-articular injections annually. We expect top-line data mid to late next year, and it could be the first long-acting corticosteroid for shoulder use.

For the complete transcript of the earnings call, please refer to the full earnings call transcript.