Pacira BioSciences Reports Third Quarter 2020 Financial Results and Business Update

Irene L. Joffman

— EXPAREL average daily sales at 110% of the prior year for the third quarter–

— Conference call today at 8:30 a.m. ET —

PARSIPPANY, N.J., Oct. 29, 2020 (GLOBE NEWSWIRE) — Pacira BioSciences, Inc. (Nasdaq: PCRX), the leading provider of innovative non-opioid pain management options, today reported financial results for the third quarter of 2020.

“Throughout the third quarter, we continued to make meaningful progress in growing EXPAREL sales despite lingering challenges in the elective surgery market due to the COVID-19 pandemic. The ongoing transition from procedures in the inpatient setting to the 23-hour ambulatory surgical center setting has accelerated because of the pandemic and we expect this trend to continue. The recent opening of our state-of-the art Pacira Innovation and Training Facility in Tampa is expected to further drive the adoption of EXPAREL and iovera° by providing digital and educational tools that meet the needs of our physician customers, as they seek to improve patient care in a variety of surgical settings. Looking ahead, Pacira remains well-positioned as the leading provider of innovative non-opioid pain management solutions,” said Dave Stack, chairman and chief executive officer of Pacira BioSciences.

Third Quarter 2020 Financial Results

  • Total revenues were $117.5 million in the third quarter of 2020, a 12% increase versus the $104.7 million reported for the third quarter of 2019.
  • EXPAREL net product sales were $113.7 million in the third quarter of 2020, a 12% increase versus the $101.5 million reported for the third quarter of 2019.
  • Third quarter 2020 iovera° net product sales were $2.7 million, a 3% increase versus the $2.6 million reported for the third quarter of 2019.
  • Sales of bupivacaine liposome injectable suspension to a third-party licensee for use in veterinary practice were $0.4 million in the third quarter of 2020, compared to $0.3 million in the third quarter of 2019.
  • Third quarter 2020 royalty revenues were $0.6 million, compared to $0.3 million in the third quarter of 2019.
  • Total operating expenses were $99.9 million in the third quarter of 2020, compared to $102.3 million in the third quarter of 2019.
  • Research and development (R&D) expenses were $14.7 million in the third quarter of 2020, compared to $20.3 million in the third quarter of 2019. R&D expenses include $5.6 million and $7.8 million of product development and manufacturing capacity expansion costs in the third quarters of 2020 and 2019, respectively.
  • Selling, general and administrative (SG&A) expenses were $52.6 million in the third quarter of 2020, compared to $50.1 million in the third quarter of 2019.
  • GAAP net income was $130.1 million, or $3.03 per share (basic) and $2.94 (diluted), in the third quarter of 2020, compared to a GAAP net loss of $6.1 million, or $(0.15) per share (basic and diluted), in the third quarter of 2019. Included in GAAP net income in the third quarter of 2020 was a $124.6 million income tax benefit related to the release of a valuation allowance on deferred tax assets.
  • Non-GAAP net income was $29.9 million, or $0.70 per share (basic) and $0.68 (diluted), in the third quarter of 2020, compared to non-GAAP net income of $20.2 million, or $0.48 per share (basic and diluted), in the third quarter of 2019.
  • Adjusted EBITDA was $34.2 million in the third quarter of 2020, versus adjusted EBITDA of $24.8 million in the third quarter of 2019.
  • Pacira ended the third quarter of 2020 with cash, cash equivalents, short-term and long-term investments (“cash”) of $576.2 million. Cash provided by operations was $39.8 million in the third quarter of 2020, compared to cash provided by operations of $18.4 million in the third quarter of 2019.
  • Pacira had 42.9 million basic weighted average shares of common stock outstanding in the third quarter of 2020.
  • Pacira had 44.3 million diluted weighted average shares of common stock outstanding in the third quarter of 2020.

See “Non-GAAP Financial Information” below.

Recent Highlights

  • Launch of state-of-the-art training center dedicated to advancing best practice regional approaches to manage acute pain.   In October 2020, Pacira announced the grand opening of the Pacira Innovation and Training Center of Tampa (the PITT). Designed to advance clinician understanding of the latest local, regional and field block approaches for managing pain, the PITT will provide an unparalleled training environment for healthcare providers working to reduce or eliminate patient exposure to opioids. The PITT is a fully adaptable environment constructed with guidance and input from leaders in the field of regional anesthesia, and is equipped with state-of-the-art technology and audio/visual capabilities to support a full range of educational events from didactic presentations to hands-on workshops.
     
  • Preliminary net product sales for September 2020.   In October 2020, Pacira reported preliminary unaudited net product sales of EXPAREL and iovera° of $39.5 million and $1.1 million, respectively, for the month of September 2020. In order to provide greater transparency, the company will continue to report monthly intra-quarter unaudited net product sales until it has gained enough visibility around the impacts of COVID-19.
     
  • Positive CHMP opinion for EXPAREL for the treatment of postsurgical pain. In September 2020, Pacira announced the European Medicines Agency’s (EMA) Committee for Medicinal Products for Human Use (CHMP) adopted a positive opinion recommending marketing authorization for EXPAREL for postsurgical analgesia. The CHMP is a scientific committee of the EMA that reviews medical product applications on their scientific and clinical merit. The CHMP positive opinion was based on the results of four pivotal Phase 3 studies that demonstrated improvements in pain reduction and opioid use.
     
  • Collaboration with IPG to reduce postsurgical opioid prescribing and surgical procedure costs. In September 2020, IPG, the industry-leading provider of surgical cost management solutions, and Pacira announced a collaboration to reduce postsurgical opioid prescribing and surgical procedure costs across the IPG national health plan and provider network. Through this partnership, IPG will offer reimbursement for EXPAREL to its health plan provider clients across the country to further support its mission to bring high quality, cost-effective surgical solutions to the U.S. healthcare market. Pacira will work alongside IPG to provide education and training to ensure consistent, positive outcomes are achieved across procedures, clinicians, and provider facilities.

Today’s Conference Call and Webcast Reminder

The Pacira management team will host a conference call to discuss the company’s financial results and recent developments today, Thursday, October 29, 2020, at 8:30 a.m. ET. To participate in the conference call, dial 1-877-845-0779 and provide the passcode 5997369. International callers may dial 1-720-545-0035 and use the same passcode. In addition, a live audio of the conference call will be available as a webcast. Interested parties can access the event through the “Events” page on the Pacira website at investor.pacira.com.

For those unable to participate in the live call, a replay will be available at 1-855-859-2056 (domestic) or 1-404-537-3406 (international) using the passcode 5997369. The replay of the call will be available for one week from the date of the live call. The webcast will be available on the Pacira website for approximately two weeks following the call.

Non-GAAP Financial Information

This press release contains financial measures that do not comply with U.S. generally accepted accounting principles (GAAP), such as non-GAAP net income, non-GAAP net income per share, non-GAAP cost of goods sold, non-GAAP gross margins, non-GAAP research and development (R&D) expense, non-GAAP selling, general and administrative (SG&A) expense and adjusted EBITDA, because such measures exclude acquisition-related charges (gains) and product discontinuation costs; stock-based compensation; amortization of debt discount; loss on early extinguishment of debt, amortization of acquired intangible assets, an income tax benefit, a step-up in basis of inventory in connection with the acquisition of MyoScience, Inc., (gain) loss on investment and the reversal of a deferred tax valuation allowance.

These measures supplement the company’s financial results prepared in accordance with GAAP. Pacira management uses these measures to better analyze its financial results, estimate its future cost of goods sold, gross margins, R&D expense and SG&A expense outlook for 2020 and to help make managerial decisions. In management’s opinion, these non-GAAP measures are useful to investors and other users of our financial statements by providing greater transparency into the operating performance at Pacira and its future outlook. Such measures should not be deemed to be an alternative to GAAP requirements or a measure of liquidity for Pacira. Non-GAAP measures are also unlikely to be comparable with non-GAAP disclosures released by other companies. See the tables below for a reconciliation of GAAP to non-GAAP measures, including adjusted EBITDA.

About Pacira BioSciences

Pacira BioSciences, Inc. (Nasdaq: PCRX) is a leading provider of non-opioid pain management and regenerative health solutions dedicated to advancing and improving outcomes for health care practitioners and their patients. The company’s long-acting local analgesic, EXPAREL® (bupivacaine liposome injectable suspension) was commercially launched in the United States in April 2012. EXPAREL utilizes DepoFoam®, a unique and proprietary product delivery technology that encapsulates drugs without altering their molecular structure, and releases them over a desired period of time. In April 2019, Pacira acquired the iovera°® system, a handheld cryoanalgesia device used to deliver precise, controlled doses of cold temperature only to targeted nerves. To learn more about Pacira, including the corporate mission to reduce overreliance on opioids, visit www.pacira.com.

About EXPAREL

EXPAREL (bupivacaine liposome injectable suspension) is indicated for single-dose infiltration in adults to produce postsurgical local analgesia and as an interscalene brachial plexus nerve block to produce postsurgical regional analgesia. Safety and efficacy have not been established in other nerve blocks. The product combines bupivacaine with DepoFoam, 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 DepoFoam 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 for Patients

EXPAREL should not be used in obstetrical paracervical block anesthesia. In studies where EXPAREL was injected into the wound, the most common side effects were nausea, constipation, and vomiting. In studies where EXPAREL was injected near a nerve, the most common side effects were nausea, fever, and constipation. EXPAREL is not recommended to be used in patients younger than 18 years old or in pregnant women. Tell your healthcare provider if you have liver disease, since this may affect how the active ingredient (bupivacaine) in EXPAREL is eliminated from your body. EXPAREL should not be injected into the spine, joints, or veins. The active ingredient in EXPAREL: can affect your nervous system and your cardiovascular system; may cause an allergic reaction; may cause damage if injected into your joints.

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.1 The iovera° system’s “1×90” Smart Tip configuration (indicating one needle which is 90 mm long) can also facilitate target nerve location by conducting electrical nerve stimulation from a separate nerve stimulator. The iovera° system is not indicated for treatment of central nervous system tissue.

Important Safety Information

The iovera° system is contraindicated for use in patients with the following: Cryoglobulinemia; Paroxysmal cold hemoglobinuria; cold urticaria; Raynaud’s disease; open and/or infected wounds at or near the treatment line. Potential complications: As with any surgical treatment that uses needle-based therapy, there is potential for temporary site-specific reactions, including but not limited to: bruising (ecchymosis); swelling (edema); inflammation and/or redness (erythema); pain and/or tenderness; altered sensation (localized dysesthesia). Typically, these reactions resolve with no physician intervention. Patients may help the healing process by applying ice packs to the affected sites, and by taking over-the-counter analgesics.

Forward-Looking Statements

Any statements in this press release about the company’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 The Private Securities Litigation Reform Act of 1995. Actual results may differ materially from those indicated by such forward-looking statements as a result of various important factors, including risks relating to: the impact of the worldwide COVID-19 (Coronavirus) pandemic and related global economic conditions on our business and results of operations; the cost and timing of an early termination payment to DePuy Synthes Sales, Inc.; the success of the company’s sales and manufacturing efforts in support of the commercialization of EXPAREL; the rate and degree of market acceptance of EXPAREL; the size and growth of the potential markets for EXPAREL and the company’s ability to serve those markets; the company’s plans to expand the use of EXPAREL to additional indications and opportunities, and the timing and success of any related clinical trials for EXPAREL; the ability to realize anticipated benefits and synergies from the acquisition of MyoScience; the ability to successfully integrate iovera° and any other future acquisitions into the company’s existing business; the commercial success of iovera°; the rate and degree of market acceptance of iovera°; the size and growth of the potential markets for iovera° and our ability to serve those markets; our plans to expand the use of iovera° to additional indications and opportunities, and the timing and success of any related clinical trials for iovera°; the recoverability of our deferred tax assets and other factors discussed in the “Risk Factors” of the company’s most recent Annual Report on Form 10-K and in other filings that the company periodically makes with the SEC. In addition, the forward-looking statements included in this press release represent the company’s views as of the date of this press release. Important factors could cause actual results to differ materially from those indicated or implied by forward-looking statements, and as such the company anticipates that subsequent events and developments will cause its views to change. However, while the company may elect to update these forward-looking statements at some point in the future, it specifically disclaims any obligation to do so. These forward-looking statements should not be relied upon as representing the company’s views as of any date subsequent to the date of this press release.

1Radnovich, R. et al. “Cryoneurolysis to treat the pain and symptoms of knee osteoarthritis: a multicenter, randomized, double-blind, sham-controlled trial.” Osteoarthritis and Cartilage (2017) p1-10.

(Tables to Follow)

Pacira BioSciences, Inc.
Condensed Consolidated Balance Sheets
(in thousands)
(unaudited)


































  September 30,
2020
  December 31,
2019
ASSETS      
Current assets:      
     Cash and cash equivalents $ 125,244      $ 78,228   
     Short-term investments 406,881      213,722   
     Accounts receivable, net 46,143      47,530   
     Inventories, net 68,542      58,296   
     Prepaid expenses and other current assets 11,710      10,781   
          Total current assets 658,520      408,557   
Long-term investments 44,062      64,798   
Fixed assets, net 125,527      104,681   
Right-of-use assets, net 76,047      38,124   
Goodwill 99,547      99,547   
Intangible assets, net 98,487      104,387   
Deferred tax assets 104,122      —   
Equity investment and other assets 13,957      10,971   
          Total assets $ 1,220,269      $ 831,065   
       
LIABILITIES AND STOCKHOLDERS’ EQUITY      
Current liabilities:      
     Accounts payable $ 13,008      $ 12,799   
     Accrued expenses 60,403      70,427   
     Lease liabilities 7,455      4,935   
     Contingent consideration 5,406      18,179   
     Income taxes payable —      1,333   
          Total current liabilities 86,272      107,673   
Convertible senior notes 456,464      306,045   
Lease liabilities 72,448      40,938   
Contingent consideration 16,176      19,963   
Other liabilities 4,219      1,502   
Total stockholders’ equity 584,690      354,944   
          Total liabilities and stockholders’ equity $ 1,220,269      $ 831,065   
               

Pacira BioSciences, Inc.
Condensed Consolidated Statements of Operations
(in thousands, except per share amounts)
(unaudited)







































  Three Months Ended   Nine Months Ended
  September 30,   September 30,
  2020   2019   2020   2019
 Net product sales:              
      EXPAREL $ 113,714        $ 101,456        $ 288,029        $ 290,938     
      Bupivacaine liposome injectable suspension 449        255        2,430        1,468     
      Total EXPAREL / bupivacaine liposome
      injectable suspension net product sales
114,163        101,711        290,459        292,406     
      iovera° 2,726        2,639        6,391        4,674     
 Total net product sales 116,889        104,350        296,850        297,080     
 Royalty revenue 595        335        1,823        1,522     
      Total revenues 117,484        104,685        298,673        298,602     
               
Operating expenses:              
     Cost of goods sold 29,993        22,304        82,031        74,809     
     Research and development 14,651        20,255        44,090        52,466     
     Selling, general and administrative 52,561        50,128        140,683        146,559     
     Amortization of acquired intangible assets 1,967        1,967        5,900        3,736     
     Acquisition-related charges (gains) and product discontinuation, net 692        7,618        (1,599 )     12,266     
          Total operating expenses 99,864        102,272        271,105        289,836     
Income from operations 17,620        2,413        27,568        8,766     
               
Other (expense) income:              
     Interest income 1,025        1,736        3,936        5,709     
     Interest expense (7,132 )     (5,940 )     (18,609 )     (17,631 )  
     Loss on early extinguishment of debt (8,071 )     —        (8,071 )     —     
     Other, net 2,708        (4,025 )     2,571        (4,051 )  
          Total other expense, net (11,470 )     (8,229 )     (20,173 )     (15,973 )  
Income (loss) before income taxes 6,150        (5,816 )     7,395        (7,207 )  
     Income tax benefit (expense) 123,969        (271 )     123,613        1,079     
Net income (loss) $ 130,119        $ (6,087 )     $ 131,008        $ (6,128 )  
               
Net income (loss) per share:              
     Basic net income (loss) per common share $ 3.03        $ (0.15 )     $ 3.09        $ (0.15 )  
     Diluted net income (loss) per common share $ 2.94        $ (0.15 )     $ 3.02        $ (0.15 )  
Weighted average common shares outstanding:              
     Basic 42,928        41,645        42,393        41,423     
     Diluted 44,275        41,645        43,333        41,423     
                               

Pacira BioSciences, Inc.
Reconciliation of GAAP to Non-GAAP Financial Information
(in thousands, except per share amounts)
(unaudited)













































  Three Months Ended   Nine Months Ended
  September 30,   September 30,
  2020   2019   2020   2019
GAAP net income (loss) $ 130,119        $ (6,087 )     $ 131,008        $ (6,128 )  
               
Non-GAAP adjustments:              
     Acquisition-related charges (gains) and product discontinuation, net 692        7,618        (1,599 )     12,266     
     Stock-based compensation 10,954        9,244        29,024        24,461     
     Loss on early extinguishment of debt 8,071        —        8,071        —     
     Amortization of debt discount 5,430        3,467        12,684        10,216     
     Amortization of acquired intangible assets 1,967        1,967        5,900        3,736     
     Recognition of step-up basis in inventory from acquisition —        —        —        220     
     Income tax benefit in connection with acquisition —        —        —        (1,828 )  
     (Gain) loss on investment and other non-operating income, net (2,771 )     3,957        (2,779 )     3,957     
     Release of valuation allowance on deferred tax assets (124,572 )     —        (124,572 )     —     
          Total Non-GAAP adjustments (100,229 )     26,253        (73,271 )     53,028     
               
Non-GAAP net income $ 29,890        $ 20,166        $ 57,737        $ 46,900     
               
GAAP basic net income (loss) per common share $ 3.03        $ (0.15 )     $ 3.09        $ (0.15 )  
GAAP diluted net income (loss) per common share $ 2.94        $ (0.15 )     $ 3.02        $ (0.15 )  
               
Non-GAAP basic net income per common share $ 0.70        $ 0.48        $ 1.36        $ 1.13     
Non-GAAP diluted net income per common share $ 0.68        $ 0.48        $ 1.33        $ 1.11     
               
Weighted average common shares outstanding – basic 42,928        41,645        42,393        41,423     
Weighted average common shares outstanding – diluted 44,275        42,404        43,333        42,289     
               
Cost of goods sold reconciliation:              
GAAP cost of goods sold $ 29,993        $ 22,304        $ 82,031        $ 74,809     
     Recognition of step-up basis in inventory from acquisition —        —        —        (220 )  
     Stock-based compensation (1,546 )     (1,243 )     (4,050 )     (3,490 )  
Non-GAAP cost of goods sold $ 28,447        $ 21,061        $ 77,981        $ 71,099     
               
Research and development reconciliation:              
GAAP research and development $ 14,651        $ 20,255        $ 44,090        $ 52,466     
     Stock-based compensation (1,401 )     (1,297 )     (3,944 )     (3,772 )  
Non-GAAP research and development $ 13,250        $ 18,958        $ 40,146        $ 48,694     
               
Selling, general and administrative reconciliation:              
GAAP selling, general and administrative $ 52,561        $ 50,128        $ 140,683        $ 146,559     
     Stock-based compensation (8,007 )     (6,704 )     (21,030 )     (17,199 )  
Non-GAAP selling, general and administrative $ 44,554        $ 43,424        $ 119,653        $ 129,360     
                                       

Pacira BioSciences, Inc.
Reconciliation of GAAP Net Income (Loss) to Adjusted EBITDA (Non-GAAP)
(in thousands)
(unaudited)




















  Three Months Ended   Nine Months Ended
  September 30,   September 30,
  2020   2019   2020   2019
GAAP net income (loss) $ 130,119        $ (6,087 )     $ 131,008        $ (6,128 )  
               
   Interest income (1,025 )     (1,736 )     (3,936 )     (5,709 )  
   Interest expense (1) 7,132        5,940        18,609        17,631     
   Income tax (benefit) expense (2) (3) (123,969 )     271        (123,613 )     (1,079 )  
   Depreciation expense 3,070        3,638        8,947        10,750     
   Amortization of acquired intangible assets 1,967        1,967        5,900        3,736     
EBITDA 17,294        3,993        36,915        19,201     
               
Other adjustments:              
   Acquisition-related charges (gains) and product discontinuation, net 692        7,618        (1,599 )     12,266     
   Stock-based compensation 10,954        9,244        29,024        24,461     
   Loss on early extinguishment of debt 8,071        —        8,071        —     
   Recognition of step-up basis in inventory from acquisition —        —        —        220     
   (Gain) loss on investment and other non-operating income, net (2,771 )     3,957        (2,779 )     3,957     
Adjusted EBITDA (Non-GAAP) $ 34,240        $ 24,812        $ 69,632        $ 60,105     

(1) Includes amortization of debt discount
(2) Includes an income tax benefit in connection with the April 2019 acquisition of MyoScience, Inc.
(3) Includes the reversal of a deferred tax valuation allowance in the third quarter of 2020

Adjusted earnings before interest, taxes, depreciation and amortization (EBITDA) includes GAAP to non-GAAP adjustments that reflect how the Company’s management analyzes its financial results. The adjusted EBITDA figures presented here are unlikely to be comparable with adjusted EBITDA disclosures released by other companies.

Investor Contact: Susan Mesco, (973) 451-4030 [email protected]             Media Contact: Coyne Public Relations Alyssa Schneider, (973) 588-2270 [email protected]

Next Post

MiX Telematics Reports Second Quarter Fiscal 2021 U.S. GAAP Financial Results

MIDRAND, South Africa & BOCA RATON, Fla.–(BUSINESS WIRE)–Oct 29, 2020– MiX Telematics Limited (“MiX Telematics”) (NYSE: MIXT, JSE: MIX), a leading global provider of fleet and mobile asset management solutions delivered as Software-as-a-Service (“SaaS”), today announced financial results, in accordance with accounting principles generally accepted in the United States (“GAAP”), […]

Subscribe US Now