Pacira BioSciences, Inc. Q4 FY2025 earnings call

Frank Lee noted that 2025 was a transformative year for PACER with a clear strategic direction, reinvigorated top - line growth, solidified exclusivity runway, expanded patent protection, and an advancing pipeline. The 5 by 30 strategy is guiding growth towards helping 3 million patients annually by 2030. Bren Thien reviewed the increased commercial momentum of Expiril in 2025, including expanding patient and provider access, the impact of no pain legislation, increased commercial payer adoption, GPO contracting, and real - world data generation. Sean Cross reviewed sales and margin trends, R&D and SG&A expenses, and the balance sheet, emphasizing disciplined capital deployment such as stock repurchases.

In 2025, PACER's revenue was $726 million. The flagship product Expiril had fourth - quarter sales of $155.8 million, up from $147.7 million in 2024, with a volume growth of approximately 7% but offset by a shift in bio mix and discounting from the third GPO going live. Fourth - quarter RETA sales were $33 million, essentially flat compared to 2024. IOVERA fourth - quarter sales grew to $7 million from $6.5 million in 2024. On a consolidated basis, the fourth - quarter non - GAAP gross margin improved to 80% from 79% in the previous year. For 2026, total revenue is guided to be between $745 million and $770 million, with XBRL sales expected to be $600 - $620 million. Non - GAAP gross margin is guided to be 77 - 79%, non - GAAP R&D expense is $105 - $115 million, non - GAAP SG&A expense is $320 - $340 million, stock - based compensation is $54 - $62 million, and depreciation expense is expected to be approximately $30 million.

2026 total revenue is expected to be in the range of $745 - $770 million. XBRL sales are guided to be $600 - $620 million. Non - GAAP gross margin is projected to be 77 - 79%. Non - GAAP R&D expense is estimated at $105 - $115 million, which is a 5% increase over 2025. Non - GAAP SG&A expense is expected to be $320 - $340 million. Stock - based compensation is budgeted at $54 - $62 million, and depreciation expense is anticipated to be around $30 million in 2026.

No specific risks were explicitly detailed in the transcript other than the general forward - looking statement disclaimers about actual results potentially differing from expectations due to risks and uncertainties.

Q: Anthea for Dennis Ding inquired about clinically meaningful signals in the OA readout for PCRX201.

A: Jonathan Slonin stated that ASCEND is not powered for efficacy but looks at endpoints like NRS pain scores, WOMAC for pain and stiffness, and functional indicators using CUS and ABLs. Frank Lee added that it is primarily a safety study but has context from phase one and IGOR registry data.

Q: Douglas Sal with HC Wainwright asked about factors influencing the X4L guidance range and the potential acceleration of the PCRX201 program.

A: Frank Lee and Bren Thien discussed the potential for steady growth, market factors such as elective procedures, and that PCRX201 data in phase two will inform the program's progression.

Q: Les Salewski with Truist Securities asked about bridging the double - digit revenue growth target and the 2026 mid - single - digit growth, and headwinds for Zilretta.

A: Frank Lee talked about the progress of the 5 by 30 strategy, partnerships, and the situation of Zilretta with the J&J MedTech partnership.

Q: Serge Bellinger with Niedemann Company asked about Zilretta and the J&J MedTech partnership's headwinds and 2026 growth.

A: Frank Lee and Brynn discussed the restructuring impact on Zilretta sales in 2025 and the growth objectives for 2026 with J&J.

Q: Hardik Parikh with JPMorgan asked about unexpected business development costs.

A: Frank Lee discussed disciplined investment in business development for core growth and portfolio replenishment