Pacira ((PCRX)) has held its Q4 earnings call. Read on for the main highlights of the call.
Pacira BioSciences’ recent earnings call painted a picture of robust financial health, marked by record revenues and significant strides in reimbursement for its flagship product, EXPAREL. While the company celebrated these achievements, it also acknowledged challenges such as delayed uptake of the No Pain Act reimbursement and rising operating expenses. Strategic moves, including the acquisition of GQ Bio and expanded commercial coverage, were highlighted as key steps forward.
Record Revenues Achieved
Pacira BioSciences reported record revenues of $701 million for 2024, reaching the high end of their guided range. This achievement underscores the company’s strong market position and successful execution of its strategic initiatives.
EXPAREL Reimbursement Milestone
A significant highlight was the reimbursement progress for EXPAREL, which received its own product-specific J code. This development, with a reimbursement rate of average selling price plus 6%, is expected to enhance patient access and streamline reimbursement processes, bolstering the product’s market presence.
Commercial Coverage Expansion
The company announced a substantial expansion in commercial coverage, now encompassing approximately 40 million lives. This growth, which includes TRICARE, effectively doubles previous coverage and is a testament to Pacira’s efforts in broadening its market reach.
Strategic Acquisition of GQ Bio
Pacira’s acquisition of the remaining ownership stake in GQ Bio was a strategic move to enhance its capabilities in genetic medicines. This acquisition adds a high-capacity local delivery platform, positioning the company for future growth in this innovative field.
Strong Product Portfolio Performance
All three of Pacira’s product lines—EXPAREL, ZILRETTA, and iovera—demonstrated sales growth. Notably, ZILRETTA’s sales increased to $33.1 million from $28.7 million in 2023, reflecting the strength and demand for Pacira’s diverse product offerings.
Delayed No Pain Uptake
Despite positive early indicators, the adoption of the No Pain Act reimbursement is progressing slower than anticipated. Meaningful uptake is expected in the second half of 2025, indicating a need for continued focus and strategic planning in this area.
Increased Operating Expenses
The company reported increased operating expenses, with non-GAAP R&D expenses rising to $22.0 million from $16.6 million year-over-year, and SG&A expenses up to $78.6 million from $57.4 million. These increases highlight the company’s investment in growth and development.
Forward-Looking Guidance
Looking ahead, Pacira BioSciences provided optimistic guidance for 2025, projecting total revenue between $725 million and $765 million. The company anticipates volume-driven growth, particularly for EXPAREL, and expects a double-digit compound annual growth rate in product revenues over the next five years. Additionally, Pacira plans to expand its gross margin by 5 percentage points from 2024 levels and aims to establish five novel programs and partnerships by 2030.
In conclusion, Pacira BioSciences’ earnings call highlighted a strong financial performance and strategic initiatives that position the company for continued growth. While challenges such as delayed reimbursement uptake and rising expenses exist, the company’s forward-looking guidance and strategic acquisitions underscore its commitment to innovation and market expansion.