PCRX — Pacira BioSciences, Inc.

Summary of Pacira BioSciences Q2 2026 Earnings Call

1. Key Financial Results and Metrics

• Total Revenues: $192.4 million, up 6% year-over-year.
• EXPAREL Sales: $147.8 million, a 3% increase from $142.9 million in Q2 2025, with volume growth of approximately 4%.
• ZILRETTA Sales: Grew by 4% to $32.6 million.
• iovera Sales: Increased by 21% to $6.8 million.
• Adjusted EBITDA: Approximately $48.7 million.
• GAAP Net Income: $4.7 million, or $0.12 per diluted share.
• Cash and Investments: $251 million, expected to increase with a $70 million upfront payment from the iovera divestiture.

2. Strategic Updates and Business Highlights

• Continued execution of the 5x30 strategy, focusing on innovation and partnerships.
• Established a scalable manufacturing process for PCRX-201 and opened enrollment for its Phase 2 study.
• Completed the divestiture of iovera to Zimmer Biomet, which is expected to enhance focus and improve margins.
• Secured separate reimbursement for EXPAREL from UnitedHealthcare, increasing covered lives to over 150 million, with a goal of 160 million by year-end.
• Anticipated top-line results for ZILRETTA in shoulder osteoarthritis and PCRX-201 later this year.

3. Forward Guidance and Outlook

• Revenue Guidance: Updated to $735 million to $760 million for 2026, down from a previous range of $745 million to $770 million.
• EXPAREL Sales Guidance: Reiterated at $600 million to $620 million.
• SG&A Guidance: Adjusted to $310 million to $330 million.
• R&D Expense Guidance: Expected to be $105 million to $115 million.
• Anticipation of continued growth in outpatient settings and resilience in macroeconomic conditions.

4. Bad News, Challenges, or Points of Concern

• Softness in Elective Procedures: Notable decline in certain elective soft tissue procedures, particularly in inpatient settings, due to macroeconomic pressures affecting consumer healthcare spending.
• Volume Growth Decline: The 4% volume growth for EXPAREL represents a slowdown compared to previous quarters, raising concerns about sustaining growth amidst economic headwinds.
• NOPAIN Expiry Risk: Potential expiration of the NOPAIN initiative at the end of 2027, with ongoing efforts to secure its renewal through CMS and Congress.

5. Notable Q&A Insights

• Management expressed optimism about the second half of 2026, focusing on outpatient settings where they have seen strong growth.
• The divestiture of iovera is seen as a strategic move to sharpen focus on core pharmaceutical operations, with a cautious approach to future business development.
• The company is open to potential partnerships for EXPAREL distribution but emphasizes the need for cost-effective arrangements that provide value to both parties.
• Management remains confident in their ability to navigate macroeconomic challenges, citing recent payer wins and the ongoing shift towards outpatient procedures as key growth drivers.

Overall, Pacira BioSciences demonstrated solid financial performance in Q2 2026 while navigating challenges in the elective surgery market. The company remains focused on strategic partnerships and innovation to drive future growth.