Pacira Announces New Five-Year Objectives to Accelerate Transition into an Innovative Biopharmaceutical Organization

Rhea-AI Summary

Pacira BioSciences (PCRX) announced its five-year strategic plan '5x30' alongside preliminary unaudited 2024 revenue of $701.0 million, up from $675.0 million in 2023. The 5x30 plan aims to achieve five key objectives by 2030, including treating over three million patients annually, achieving double-digit revenue growth, improving gross margin by five percentage points, expanding clinical pipeline with five novel programs, and establishing five partnerships.

Key 2024 revenue highlights include EXPAREL net product sales of $549.0 million (up from $538.1 million in 2023), ZILRETTA sales of $118.1 million (up from $111.1 million), and iovera° sales of $22.8 million (up from $19.7 million). Fourth quarter EXPAREL sales reached $147.7 million, with growth driven by volume increases and pricing, partially offset by vial mix shifts and GPO partnership discounts.

Positive

• Total revenue increased to $701.0M in 2024 from $675.0M in 2023
• EXPAREL sales grew to $549.0M from $538.1M with 4% volume growth
• ZILRETTA sales improved to $118.1M from $111.1M
• iovera° sales increased to $22.8M from $19.7M
• Other revenue grew to $11.1M from $6.1M

Negative

• EXPAREL growth partially offset by discounting from new GPO partnerships
• One less selling day in 2024 compared to 2023 (249 vs 250 days)

Insights

Financial Analyst

The preliminary 2024 results reveal total revenue of $701.0 million, marking a modest 3.9% increase from 2023's $675.0 million. Key product performance shows mixed results:

• EXPAREL sales grew to $549.0 million (2% YoY)
• ZILRETTA reached $118.1 million (6.3% YoY)
• iovera° achieved $22.8 million (15.7% YoY)

The company's 5x30 strategic plan targets double-digit revenue growth, suggesting current growth rates need significant acceleration. While the company maintains market leadership in non-opioid pain management, the modest growth rates and trading at roughly 1.2x sales indicate potential market skepticism about near-term growth prospects. The five percentage point gross margin improvement target by 2030 will be important for demonstrating operational leverage and profitability enhancement.

Market Research Analyst

The pharmaceutical pain management market dynamics present both opportunities and challenges for Pacira. The company's strategic pivot towards becoming an innovative biopharmaceutical organization, focusing on musculoskeletal pain, aligns with growing demand for non-opioid alternatives. However, the 4% volume growth in EXPAREL, their flagship product, suggests market penetration challenges. The new GPO partnerships, while potentially expanding market access, are impacting margins through increased discounting. The commitment to develop five novel programs and establish strategic partnerships indicates a necessary shift from reliance on current products. The target of treating over three million patients annually by 2030 would require significant market expansion from current levels.

Company also reports preliminary unaudited 2024 revenue of $701.0 million

PARSIPPANY, N.J., Jan. 10, 2025 (GLOBE NEWSWIRE) -- Pacira BioSciences, Inc. (Nasdaq: PCRX), the industry leader in its commitment to deliver innovative, non-opioid pain therapies to transform the lives of patients, today announced its five-year growth-oriented plan to accelerate its ongoing transition into an innovative biopharmaceutical organization and become a therapeutic area leader in musculoskeletal pain and adjacencies. In addition, the company reported preliminary unaudited total revenue of $701.0 million for the year ended December 31, 2024, compared with $675.0 million for the year ended December 31, 2023.

5x30 Path to growth and value creation

The company intends to achieve the following five objectives by 2030 (“5x30”):

• Patients: More than three million patients treated per year
• Product revenue: Double-digit compounded annual growth rate
• Profitability: Five percentage point gross margin improvement over 2024
• Pipeline: Clinical pipeline expansion with five novel programs in development
• Partnerships: Establishing five partnerships including pipeline and commercial agreements

“We enter 2025 with a sharp focus on growth, operational excellence and a clear mission to deliver innovative, non-opioid pain therapies to transform the lives of patients,” said Frank D. Lee, chief executive officer of Pacira BioSciences. “Looking ahead, I am energized to lead Pacira during this exciting new chapter as we advance our 5x30 plan to address unmet patient needs in musculoskeletal pain and adjacencies. With a best-in-class commercial portfolio that is producing significant cash flow, we believe we are well equipped to extend our leadership in non-opioid pain management and transform Pacira into an innovative biopharmaceutical organization with a robust pipeline to support sustainable growth and enhanced value creation.”

Preliminary Unaudited Fourth Quarter Revenue Highlights

• Fourth quarter EXPAREL net product sales of $147.7 million in 2024, compared with $143.9 million in 2023. Volume growth and a price increase in 2024 were partially offset by a shift in vial mix and discounting associated with the company’s new group purchasing organization, or GPO, partnerships.
• Fourth quarter ZILRETTA net product sales of $33.1 million in 2024, compared with $28.7 million in 2023.
• Fourth quarter iovera° net product sales of $6.5 million in 2024, compared with $6.0 million in 2023.
• Other revenue, including sales of bupivacaine liposome injectable suspension and royalties, was zero in the fourth quarter of 2024, compared with $2.6 million in the fourth quarter of 2023.

Preliminary Unaudited Full-year Revenue Highlights

• Full-year EXPAREL net product sales of $549.0 million in 2024, compared with $538.1 million in 2023. Full-year net product sales were comprised of average daily volume growth of 4 percent. There were 249 selling days in 2024 and 250 selling days in 2023.
• Full-year ZILRETTA net product sales of $118.1 million in 2024, compared with $111.1 million in 2023.
• Full-year iovera° net product sales of $22.8 million in 2024, compared with $19.7 million in 2023.
• Other revenue, including sales of bupivacaine liposome injectable suspension and royalties, was $11.1 million in 2024, compared with $6.1 million in 2023.

The financial information included in this press release is preliminary, unaudited, and subject to adjustment. It does not present all information necessary for an understanding of the company’s financial results for the fourth quarter or full year 2024. Pacira expects to report its complete financial results for the fourth quarter and full-year 2024, along with the company’s financial guidance, later in the first quarter of 2025.

Inducement Grants Under Nasdaq Listing Rule 5635(c)(4)

Pacira today announced the granting of inducement awards on January 3, 2025 to eight new employees under Pacira’s Amended and Restated 2014 Inducement Plan as a material inducement to each employee's entry into employment with the company. In accordance with Nasdaq Listing Rule 5635(c)(4), the awards were approved by the Compensation Committee of the Board of Directors.

Four employees received stock options to purchase an aggregate of 20,300 shares of Pacira common stock and eight employees received restricted stock units for an aggregate of 30,400 shares of Pacira common stock.

The stock options have a 10-year term and a four-year vesting schedule with 25 percent of the underlying shares vesting on the first anniversary of the recipient’s first day of employment and in successive equal quarterly installments over the 36 months thereafter. The stock options have an exercise price of $18.40 per share, the closing trading price of Pacira common stock on the Nasdaq Global Select Market on the date of grant. Each restricted stock unit represents the contingent right to receive one share of Pacira common stock and the restricted stock unit awards vest annually in four equal installments beginning on the first anniversary of January 2, 2025.

Vesting of the equity awards is subject to the employee’s continued employment with Pacira. Each equity award is also subject to the terms and conditions of an award agreement.

About Pacira

Pacira delivers innovative, non-opioid pain therapies to transform the lives of patients. Pacira has three commercial-stage non-opioid treatments: EXPAREL^® (bupivacaine liposome injectable suspension), a long-acting local analgesic currently approved for infiltration, fascial plane block, and as an interscalene brachial plexus nerve block, an adductor canal nerve block, and a sciatic nerve block in the popliteal fossa for postsurgical pain management; ZILRETTA^® (triamcinolone acetonide extended-release injectable suspension), an extended-release, intra-articular injection indicated for the management of osteoarthritis knee pain; and ioveraº^®, a novel, handheld device for delivering immediate, long-acting, drug-free pain control using precise, controlled doses of cold temperature to a targeted nerve. The company is also advancing the development of PCRX-201, a novel locally administered gene therapy with the potential to treat large prevalent diseases like osteoarthritis. To learn more about Pacira, visit www.pacira.com.

About EXPAREL^® (bupivacaine liposome injectable suspension)

EXPAREL is indicated to produce postsurgical local analgesia via infiltration in patients aged 6 years and older, and postsurgical regional analgesia via an interscalene brachial plexus block in adults, a sciatic nerve block in the popliteal fossa in adults, and an adductor canal block in adults. The safety and effectiveness of EXPAREL have not been established to produce postsurgical regional analgesia via other nerve blocks besides an interscalene brachial plexus nerve block, a sciatic nerve block in the popliteal fossa, or an adductor canal block. The product combines bupivacaine with multivesicular liposomes, a proven product delivery technology that delivers medication over a desired time period. EXPAREL represents the first and only multivesicular liposome local anesthetic that can be utilized in the peri- or postsurgical setting. By utilizing the multivesicular liposome platform, a single dose of EXPAREL delivers bupivacaine over time, providing significant reductions in cumulative pain scores with up to a 78 percent decrease in opioid consumption; the clinical benefit of the opioid reduction was not demonstrated. Additional information is available at www.EXPAREL.com.

Important Safety Information about EXPAREL for Patients

EXPAREL should not be used in obstetrical paracervical block anesthesia. In studies in adults where EXPAREL was injected into a wound, the most common side effects were nausea, constipation, and vomiting. In studies in adults where EXPAREL was injected near a nerve, the most common side effects were nausea, fever, and constipation. In the study where EXPAREL was given to children, the most common side effects were nausea, vomiting, constipation, low blood pressure, low number of red blood cells, muscle twitching, blurred vision, itching, and rapid heartbeat. EXPAREL can cause a temporary loss of feeling and/or loss of muscle movement. How much and how long the loss of feeling and/or muscle movement depends on where and how much of EXPAREL was injected and may last for up to 5 days. EXPAREL is not recommended to be used in patients younger than 6 years old for injection into the wound, for patients younger than 18 years old, for injection near a nerve, and/or in pregnant women. Tell your health care provider if you or your child has liver disease, since this may affect how the active ingredient (bupivacaine) in EXPAREL is eliminated from the body. EXPAREL should not be injected into the spine, joints, or veins. The active ingredient in EXPAREL can affect the nervous system and the cardiovascular system; may cause an allergic reaction; may cause damage if injected into the joints; and can cause a rare blood disorder.

About ZILRETTA^® (triamcinolone acetonide extended-release injectable suspension)

On October 6, 2017, ZILRETTA was approved by the U.S. Food and Drug Administration as the first and only extended-release intra-articular therapy for patients confronting osteoarthritis (OA)- related knee pain. ZILRETTA employs proprietary microsphere technology combining triamcinolone acetonide—a commonly administered, short-acting corticosteroid—with a poly lactic-co-glycolic acid (PLGA) matrix to provide extended pain relief. The pivotal Phase 3 trial on which the approval of ZILRETTA was based showed that ZILRETTA significantly reduced OA knee pain for 12 weeks, with some people experiencing pain relief through Week 16. Learn more at www.zilretta.com.

Indication and Select Important Safety Information for ZILRETTA

Indication: ZILRETTA is indicated as an intra-articular injection for the management of OA pain of the knee. Limitation of Use: The efficacy and safety of repeat administration of ZILRETTA have not been demonstrated.

Contraindication: ZILRETTA is contraindicated in patients who are hypersensitive to triamcinolone acetonide, corticosteroids or any components of the product.

Warnings and Precautions:

• Intra-articular Use Only: ZILRETTA has not been evaluated and should not be administered by epidural, intrathecal, intravenous, intraocular, intramuscular, intradermal, or subcutaneous routes. ZILRETTA should not be considered safe for epidural or intrathecal administration.
• Serious Neurologic Adverse Reactions with Epidural and Intrathecal Administration: Serious neurologic events have been reported following epidural or intrathecal corticosteroid administration. Corticosteroids are not approved for this use.
• Hypersensitivity reactions: Serious reactions have been reported with triamcinolone acetonide injection. Institute appropriate care if an anaphylactic reaction occurs.
• Joint infection and damage: A marked increase in joint pain, joint swelling, restricted motion, fever and malaise may suggest septic arthritis. If this occurs, conduct appropriate evaluation and if confirmed, institute appropriate antimicrobial treatment.

Adverse Reactions: The most commonly reported adverse reactions (incidence ≥1%) in clinical studies included sinusitis, cough, and contusions.

Please see ZILRETTALabel.com for full Prescribing Information.

About iovera°^®

The iovera° system is used to destroy tissue during surgical procedures by applying freezing cold. It can also be used to produce lesions in peripheral nervous tissue by the application of cold to the selected site for the blocking of pain. It is also indicated for the relief of pain and symptoms associated with osteoarthritis of the knee for up to 90 days. In one study, the majority of the patients suffering from osteoarthritis of the knee experienced pain and system relief beyond 150 days. When stimulation compatible components are used, the iovera° system can also facilitate targeting nerve location by conducting electrical nerve stimulation from a compatible 3rd party nerve stimulator. The iovera° system is not indicated for treatment of central nervous system tissue.

Indication and Select Important Safety Information for iovera°^®

Indication: iovera° applies freezing cold to peripheral nerve tissue to block and/or relieve pain for up to 90 days. It should not be used to treat central nervous system tissue.

Important Safety Information

• Do not receive treatment with iovera° if you experience hypersensitivity to cold or have open and/or infected wounds near the treatment site.
• You may experience bruising, swelling, inflammation and/or redness, local pain and/or tenderness, and altered feeling at the site of application.
• In treatment area(s), you may experience damage to the skin, skin darkening or lightening, and dimples in the skin.
• You may experience a temporary loss of your ability to use your muscles normally outside of the treatment area.
• Talk to your doctor before receiving treatment with iovera°.

Forward-Looking Statements

Any statements in this press release about Pacira’s future expectations, plans, trends, outlook, projections and prospects, and other statements containing the words “believes,” “anticipates,” “plans,” “estimates,” “expects,” “intends,” “may,” “will,” “would,” “could,” “can” and similar expressions, constitute forward-looking statements within the meaning of Section 21E of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), and the Private Securities Litigation Reform Act of 1995, including, without limitation, statements related to ‘5x30’, our growth and business strategy, our future outlook, contributions of new executives, our intellectual property and patent terms, our future operating results and trends, our strategy, plans, objectives, expectations (financial or otherwise) and intentions, future financial results and growth potential, including our plans with respect to the repayment of our indebtedness, anticipated product portfolio, development programs, development of products, strategic alliances, plans with respect to the Non-Opioids Prevent Addiction in the Nation (“NOPAIN”) Act and other statements that are not historical facts. For this purpose, any statement that is not a statement of historical fact should be considered a forward-looking statement. We cannot assure you that our estimates, assumptions and expectations will prove to have been correct. Actual results may differ materially from those indicated by such forward-looking statements as a result of various important factors, including risks relating to, among others: risks associated with acquisitions, such as the risk that the acquired businesses will not be integrated successfully, that such integration may be more difficult, time-consuming or costly than expected or that the expected benefits of the transaction will not occur; our manufacturing and supply chain, global and U.S. economic conditions (including inflation and rising interest rates), and our business, including our revenues, financial condition, cash flow and results of operations; the success of our sales and manufacturing efforts in support of the commercialization of EXPAREL, ZILRETTA and iovera°; the rate and degree of market acceptance of EXPAREL, ZILRETTA and iovera°; the size and growth of the potential markets for EXPAREL, ZILRETTA and iovera° and our ability to serve those markets; our plans to expand the use of EXPAREL, ZILRETTA and iovera° to additional indications and opportunities, and the timing and success of any related clinical trials for EXPAREL, ZILRETTA and iovera°; the commercial success of EXPAREL, ZILRETTA and iovera°; the related timing and success of U.S. Food and Drug Administration supplemental New Drug Applications and premarket notification 510(k)s; the related timing and success of European Medicines Agency Marketing Authorization Applications; our plans to evaluate, develop and pursue additional product candidates utilizing our proprietary multivesicular liposome (“pMVL”) drug delivery technology; the approval of the commercialization of our products in other jurisdictions; clinical trials in support of an existing or potential pMVL-based product; our commercialization and marketing capabilities; our ability to successfully complete capital projects; the outcome of any litigation; the ability to successfully integrate any future acquisitions into our existing business; the recoverability of our deferred tax assets; assumptions associated with contingent consideration payments; assumptions used for estimated future cash flows associated with determining the fair value of the Company; the anticipated funding or benefits of our share repurchase program; and factors discussed in the “Risk Factors” of our most recent Annual Report on Form 10-K and in other filings that we periodically make with the Securities and Exchange Commission (the “SEC”).

In addition, the forward-looking statements included in this press release represent our views as of the date of this press release. These forward-looking statements involve known and unknown risks, uncertainties and other important factors that could cause actual results to differ materially from those indicated or implied by forward-looking statements, and as such we anticipate that subsequent events and developments will cause our views to change. Except as required by applicable law, we undertake no intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, and readers should not rely on these forward-looking statements as representing our views as of any date subsequent to the date of this press release.

Investor Contact: Susan Mesco, (973) 451-4030 susan.mesco@pacira.com

Media Contact: Sara Marino, (973) 370-5430 sara.marino@pacira.com

FAQ

What are Pacira's (PCRX) 5x30 objectives announced for 2030?

Pacira's 5x30 objectives include treating over 3 million patients annually, achieving double-digit revenue growth, improving gross margin by 5 percentage points, expanding clinical pipeline with 5 novel programs, and establishing 5 partnerships.

What was Pacira's (PCRX) total revenue for 2024?

Pacira reported preliminary unaudited total revenue of $701.0 million for 2024, compared to $675.0 million in 2023.

How did EXPAREL sales perform in Q4 2024 for Pacira (PCRX)?

EXPAREL net product sales were $147.7 million in Q4 2024, up from $143.9 million in Q4 2023, driven by volume growth and price increases but partially offset by vial mix shifts and GPO discounts.

What was the full-year 2024 sales performance of ZILRETTA and iovera° for Pacira (PCRX)?

ZILRETTA net product sales were $118.1 million (up from $111.1 million in 2023) and iovera° net product sales were $22.8 million (up from $19.7 million in 2023).