Sign in

You're signed outSign in or to get full access.

PB

Pacira BioSciences, Inc. (PCRX)·Q3 2025 Earnings Summary

Executive Summary

  • Q3 2025 delivered solid execution: total revenue $179.5M (+6% YoY) with EXPAREL net sales $139.9M (+6% YoY, +9% volume), non-GAAP gross margin lifted to 82% and adjusted EBITDA $49.4M .
  • Versus consensus, revenue was a slight miss while EPS was a notable beat: Revenue $179.5M vs $182.3M consensus (–$2.8M); Primary EPS $0.70 vs $0.65 consensus; 6 estimates each. Management raised FY non-GAAP gross margin to 80–82% and narrowed revenue to $725–$735M (from $730–$750M) . Values retrieved from S&P Global*.
  • Guidance mix: non-GAAP gross margin raised; revenue range lowered; non-GAAP R&D/SG&A narrowed upward; SBC narrowed. Key catalysts: margin guidance increase, EXPAREL volume momentum, and AMT-143 in-licensing strengthening pipeline .
  • Shareholder returns and balance sheet: $50M repurchase (2.0M shares) in Q3; quarter-end cash/investments ~$246M .

What Went Well and What Went Wrong

What Went Well

  • EXPAREL volume growth of ~9% YoY (highest in 3+ years) driving topline; management: “momentum behind our 5x30 growth strategy… EXPAREL demand… volumes up approximately 9%” .
  • Margin execution: non-GAAP gross margin improved to 82% vs 78% in Q3’24, underpinned by large-scale manufacturing efficiencies and elimination of EXPAREL royalty obligation .
  • Strategic pipeline progress: concluded Part A enrollment of PCRX-201 Phase 2; in-licensed AMT-143 to extend non-opioid post-surgical pain franchise; strengthened EXPAREL patent estate to 21 Orange Book listings .

What Went Wrong

  • Revenue guide narrowed lower ($725–$735M) vs prior ($730–$750M), reflecting slower-than-expected ZILRETTA acceleration despite J&J MedTech co-promotion ramp .
  • Pricing headwinds: GPO discounting and vial mix shift modestly pressured net price; CFO: ~50/50 split between vial mix toward 10 mL and GPO discounting caused the price-volume delta .
  • Non-GAAP SG&A up to $81.7M (+26% YoY) from commercial, medical, market access investments; adjusted EBITDA down YoY to $49.4M (from $54.7M) .

Financial Results

Consolidated Summary vs Prior Quarters

MetricQ1 2025Q2 2025Q3 2025
Total Revenue ($M)$168.9 $181.1 $179.5
GAAP Diluted EPS$0.10 $(0.11) $0.12
Non-GAAP Diluted EPS$0.62 $0.74 $0.70
GAAP Gross Margin %80% 77% 81%
Non-GAAP Gross Margin %81% 82% 82%
Adjusted EBITDA ($M)$44.1 $54.3 $49.4
Cash & Investments ($M)$493.6 $445.9 (pro forma ≈$270.0 after debt repay/royalty receipt) $246.3

Year-over-Year (Q3 2025 vs Q3 2024)

MetricQ3 2024Q3 2025
Total Revenue ($M)$168.6 $179.5
GAAP Net Income (Loss) ($M)$(143.5) $5.4
GAAP Diluted EPS$(3.11) $0.12
Non-GAAP Diluted EPS$0.79 $0.70
GAAP Gross Margin %77% 81%
Non-GAAP Gross Margin %78% 82%
Adjusted EBITDA ($M)$54.7 $49.4

Segment and Revenue Detail

Revenue Line ($M)Q1 2025Q2 2025Q3 2025Q3 2024
EXPAREL Net Product Sales$136.5 $142.9 $139.9 $132.0
ZILRETTA Net Product Sales$23.3 $31.3 $29.0 $28.4
iovera° Net Product Sales$5.1 $5.6 $6.5 $5.7
Bupivacaine Liposome Sales to Licensees$2.6 $0.5 $2.7 $1.6
Royalty Revenue$1.3 $0.8 $1.5 $0.9
Total Net Product Sales$167.6 $180.3 $178.0 $167.7
Total Revenues$168.9 $181.1 $179.5 $168.6

KPIs

KPIQ1 2025Q2 2025Q3 2025
EXPAREL YoY Volume Growth~7% ~6% ~9%
ASC EXPAREL Volume Growth YoY——>25%
Community Hospital EXPAREL Volume Growth YoY——Low-teens
Share Repurchases (Shares, $)—2.0M; $50.0M 2.0M; $50.0M
Diluted Weighted Avg Shares (GAAP)46.5M 45.5M 44.5M

Guidance Changes

MetricPeriodPrevious GuidanceCurrent GuidanceChange
Total RevenueFY 2025$730M–$750M $725M–$735M Lowered
Non-GAAP Gross Margin %FY 202578%–80% 80%–82% Raised
Non-GAAP R&D Expense ($M)FY 2025$90–$105 $95–$105 Narrowed Up
Non-GAAP SG&A Expense ($M)FY 2025$290–$320 $310–$320 Narrowed Up
Stock-based Compensation ($M)FY 2025$56–$61 $56–$59 Narrowed

Earnings Call Themes & Trends

TopicPrevious Mentions (Q1 & Q2)Current Period (Q3)Trend
EXPAREL performanceQ1: Avg daily sales/volumes +~7%; early NOPAIN wins; low single-digit surgical volumes decline . Q2: EXPAREL volumes +6%; contracted pricing >80% of business; payer coverage targeting top 5 states Volumes +~9%; ASC >25% growth; community hospitals low-teens; ~90% contracted pricing; nearly 90M covered lives across payers Improving
Market access/NOPAINQ1: Education ramp; adoption takes time; targeting commercial payer coverage Q2: Aiming 60M commercial lives; formulary wins IDNs Accelerating coverage; strong J-code utilization; patient assistance programs
Pricing/GPO impactQ1: Mid-single-digit impact as GPOs come online Q2: Third GPO signed; gross-to-net low single-digit; margin guide raised Q3: Volume growth offset by vial mix and GPO discounting; convergence expected in 2026
Gross margin trajectoryQ1: Non-GAAP 81%; RDF royalty eliminated (low single-digit margin benefit) Q2: Non-GAAP 82%; guide raised to 78–80% Q3: Non-GAAP 82%; guide raised to 80–82%; inventory and yields favorable
Pipeline: PCRX-201Q1: Phase 2 ASCEND dosing underway; 2-year improvement and KL grade 4 efficacy Q2: 3-year data presented at EULAR; Part A enrollment >50% Q3: Part A enrollment concluded; strong enthusiasm; redosing potential highlighted at ACR
Regulatory/legal/IPQ1: EXPAREL settlement provides runway to 2039; RDF royalty eliminated Q2: Patent estate reexam/reissue and new patents; 20 Orange Book listings Q3: 21 patents listed; new PIV ANDA notices; intent to litigate and 30-month stay
BD/in-licensingQ2: Ex-U.S. partnership exploration —Q3: AMT-143 in-licensed; accretive expectation; IP to 2042

Management Commentary

  • CEO on growth momentum: “We’re seeing top-line growth accelerate, with year-over-year revenues increasing by 6%, driven by a strong quarter for EXPAREL and iovera… increasing EXPAREL demand, with year-over-year volumes up approximately 9%.”
  • CFO on margins and pricing: “Third-quarter non-GAAP gross margin improved to 82%… volume growth of 9% was partially offset by a shift in vial mix and discounting from our third GPO… we expect volume and revenue growth to converge over time as we anniversary these three-year agreements.”
  • CCO on access: “Approximately 60 million commercial lives now have access to EXPAREL via this separate reimbursement… total covered population of nearly 90 million lives across both commercial and government payers.”
  • CEO on IP defense vs ANDA filers: “Our current EXPAREL patent estate is stronger than it’s ever been… any antifiler has a very high series of hurdles.”
  • CEO on AMT-143 rationale: “We think there’s a place in the market for a product with longer durability and ease of use… complementary to EXPAREL… IP goes out to 2042.”

Q&A Highlights

  • Pricing/GPO: Analysts probed ASP headwinds; management cited the ~50/50 impact of vial mix and GPO discounting on the volume-to-sales delta and expects convergence with price actions and anniversaries in 2026 .
  • Adoption pace at large hospitals: Larger IDNs take longer due to more decision-makers; formulary gains are improving, with community hospital and ASC adoption fastest under NOPAIN .
  • ZILRETTA co-promotion: J&J MedTech team fully trained in Q3; meaningful momentum expected in Q4 and stronger in 2026 as reach expands across sports medicine, pain, rheumatology .
  • Gross margin trajectory: Management reaffirmed 5x30 goal of steady improvement; current year benefited from higher yields and lower-cost inventory; normalization expected before further improvements in 2H 2026 .
  • BD strategy: Preference for validated mechanisms and later-stage assets; AMT-143 in-licensed to extend local analgesia options; IP through 2042 .

Estimates Context

MetricSPGI ConsensusActual
Revenue ($M)$182.3*$179.5
Primary EPS ($)$0.65*$0.70
# of Estimates (Revenue / EPS)6 / 6*—
  • Result vs consensus: Revenue slight miss; EPS beat. Given stronger margin guidance and volume momentum, non-GAAP EPS estimates may need upward revision while revenue estimates tighten to the lower band. Values retrieved from S&P Global*.

Key Takeaways for Investors

  • EXPAREL growth re-accelerating with 9% volume and broadening access; pricing headwinds from GPOs are transitory with expected convergence to revenue growth in 2026 .
  • Margin story strengthening: non-GAAP gross margin raised to 80–82% for FY; manufacturing efficiencies and royalty elimination underpin expansion, a key driver for EPS leverage .
  • Pipeline durability and optionality: PCRX-201 advancing with compelling 3-year data; AMT-143 broadens perioperative pain options; combined with patent estate enhancements, supports medium-term moat .
  • ZILRETTA co-promotion should inflect into 2026; near-term drag on revenue guide reflects ramp timing, not structural demand headwinds .
  • IP defense remains active (new ANDA filings), but strengthened Orange Book listings and planned litigation (30-month stay) reduce near-term generic risk to EXPAREL .
  • Capital allocation remains shareholder-friendly with continued buybacks ($50M in Q3) and liquidity to fund growth; watch depreciation/amortization guidance and SG&A normalization for EPS trajectory .
  • Trading setup: EPS beat vs miss on revenue, plus margin guidance raise, is supportive for sentiment; monitor payer coverage milestones and price actions for convergence of revenue to volume in 2026 .