On August 2, 2023 Pacira BioSciences, Inc. (Nasdaq: PCRX), the industry leader in its commitment to non-opioid pain management and regenerative health solutions, reported financial results for the second quarter of 2023 (Press release, Pacira Pharmaceuticals, AUG 2, 2023, View Source;991.htm [SID1234633653]).
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Second Quarter 2023 Financial Highlights
•Total revenues of $169.5 million
•Net product sales of $135.1 million for EXPAREL, $29.3 million for ZILRETTA, and $4.4 million for iovera°
•Net income of $25.8 million, or $0.56 per share (basic) and $0.51 per share (diluted)
•Adjusted EBITDA of $54.3 million
See "Non-GAAP Financial Information" below.
"We were pleased to see EXPAREL year-over-year growth rates improve as the quarter progressed, with a meaningful uptick in June. Solid year-over-year growth continued in July, leaving us optimistic for a stronger second half of the year given improving market conditions and rising demand for joint replacements and other elective surgeries. We also expect to benefit from several ongoing growth initiatives in the second half of 2023, such as continued volume expansion for existing and new 340B customers, as well as new initiatives with oral and maxillofacial surgeons, Plastics, Outpatient, and Sports Management." said Dave Stack, chairman and chief executive officer of Pacira.
Second Quarter 2023 Financial Results
•Total revenues were $169.5 million in the second quarter of 2023, versus $169.4 million reported for the second quarter of 2022.
•EXPAREL net product sales were $135.1 million in the second quarter of 2023, versus $137.0 million reported for the second quarter of 2022. Second quarter volume growth of 4 percent was offset by a lower net selling price primarily due to the implementation of 340B Drug Pricing and other contracted relationships. There were 64 selling days in each of the second quarters of 2023 and 2022.
•ZILRETTA net product sales were $29.3 million in the second quarter of 2023, versus $27.4 million reported for the second quarter of 2022.
•Second quarter 2023 iovera° net product sales were $4.4 million, versus $3.2 million reported for the second quarter of 2022.
•Sales of bupivacaine liposome injectable suspension to third-party licensees were $0.7 million in the second quarter of 2023, versus $1.0 million reported for the second quarter of 2022.
•Total operating expenses were $129.6 million in the second quarter of 2023, versus $138.2 million reported for the second quarter of 2022.
•Research and development (R&D) expenses were $18.8 million in the second quarter of 2023, compared to $26.3 million in the second quarter of 2022. R&D expenses included $9.3 million and $5.1 million of product development and manufacturing capacity expansion costs in the second quarters of 2023 and 2022, respectively.
•Selling, general and administrative (SG&A) expenses were $64.9 million in the second quarter of 2023, compared to $65.0 million in the second quarter of 2022.
•GAAP net income was $25.8 million, or $0.56 per share (basic) and $0.51 per share (diluted) in the second quarter of 2023, compared to $19.9 million, or $0.44 per share (basic) and $0.40 per share (diluted), in the second quarter of 2022.
•Non-GAAP net income was $36.0 million, or $0.78 per share (basic and diluted) in the second quarter of 2023, compared to $24.0 million, or $0.53 per share (basic) and $0.51 per share (diluted), in the second quarter of 2022.
•Adjusted EBITDA was $54.3 million in the second quarter of 2023, compared to $44.9 million in the second quarter of 2022.
•Pacira ended the second quarter of 2023 with cash, cash equivalents and available-for-sale investments ("cash") of $220.8 million. Cash provided by operations was $43.5 million in the second quarter of 2023, compared to $29.8 million in the second quarter of 2022.
•Pacira had 46.1 million basic and 52.1 million diluted weighted average shares of common stock outstanding in the second quarter of 2023.
See "Non-GAAP Financial Information" below.
Financial Guidance
Pacira is revising the following full-year financial guidance:
•EXPAREL net product sales of $550 million to $560 million versus the company’s previously guided range of $570 million to $580 million;
•ZILRETTA net product sales of $110 million to $115 million versus the company’s previously guided range of $115 million to $125 million;
•Non-GAAP gross margin of 73% to 74% versus the company’s previously guided range of 76% to 78%; and
•Stock-based compensation of $46 million to $49 million versus the company’s previously guided range of $51 million to $54 million.
Pacira is reiterating the following full-year financial guidance:
•iovera° net product sales of $17 million to $20 million;
•Non-GAAP R&D expense of $70 million to $80 million; and
•Non-GAAP SG&A expense of $220 million to $230 million.
See "Non-GAAP Financial Information" below.
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, Wednesday, August 2, 2023, at 8:30 a.m. ET. For listeners who wish to participate in the question-and-answer session via telephone, please pre-register at investor.pacira.com/upcoming-events. All registrants will receive dial-in information and a PIN allowing them to access the live call. 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.