Executive Summary

Q4 2024 revenue was $187.3M (+3% YoY); GAAP diluted EPS $0.34 and non-GAAP diluted EPS $0.91; adjusted EBITDA $62.5M; non-GAAP gross margin 79% .
Full-year 2024 revenue reached a record $701.0M; GAAP net loss was $99.6M due to a $163.2M goodwill impairment; non-GAAP net income was $157.7M; adjusted EBITDA $223.9M .
Management introduced 2025 guidance: total revenue $725–$765M, non-GAAP gross margin 76–78%, non-GAAP R&D $90–$105M, non-GAAP SG&A $290–$320M; stock-based comp $56–$61M; depreciation expected ~$30M; uptake from NOPAIN expected to be more meaningful in H2 2025 .
Strategic catalysts: NOPAIN separate reimbursement and a product-specific EXPAREL J-code effective Jan 1, 2025; new EXPAREL composition patent expected to protect into 2044; iovera° SmartTip FDA clearance for chronic low back pain; PCRX-201 Phase II underway with encouraging 2-year data .

What Went Well and What Went Wrong

What Went Well

EXPAREL, ZILRETTA, and iovera° all grew YoY in Q4: EXPAREL $147.7M (+3%), ZILRETTA $33.1M (+15%), iovera° $6.5M (+7%) .
Non-GAAP gross margin was strong at 79% in Q4; adjusted EBITDA was $62.5M; operating cash flow positive with cash/investments ~$485M at quarter-end .
Management emphasized the 5x30 plan and early positive indicators from NOPAIN and J0666 J-code: “We’re sharply focused on executing our 5/30 strategy… early indicators… formulary wins… rising awareness around the J code” .

What Went Wrong

GAAP diluted EPS fell YoY ($0.34 vs $0.50 in Q4 2023) and adjusted EBITDA down ~4% YoY ($62.5M vs $65.4M) as SG&A rose with commercial/market access investments; GAAP net income also decreased YoY .
Full-year GAAP net loss of $99.6M driven by a $163.2M goodwill impairment tied to generic dynamics and patent ruling in Q3 2024 .
CFO commentary indicated price increases were offset by discounting (GPOs) and vial mix; near-term NOPAIN uptake will take time (claims data lag, customer learning curve), with more meaningful impact in H2 2025 .

Financial Results

Revenue, EPS, Margins, EBITDA (Comparisons vs prior quarters)

Metric	Q2 2024	Q3 2024	Q4 2024
Total Revenues ($USD Millions)	$178.0	$168.6	$187.3
GAAP Diluted EPS ($)	$0.39	$(3.11)	$0.34
Non-GAAP Diluted EPS ($)	$0.89	$0.72	$0.91
Adjusted EBITDA ($USD Millions)	$62.1	$54.7	$62.5
GAAP Gross Margin %	—	77%	79%
Non-GAAP Gross Margin %	—	78%	79%

Segment Net Product Sales and Royalty

Metric ($USD Millions)	Q2 2024	Q3 2024	Q4 2024
EXPAREL Net Product Sales	$136.9	$132.0	$147.7
ZILRETTA Net Product Sales	$30.7	$28.4	$33.1
iovera° Net Product Sales	$5.7	$5.7	$6.5
Bupivacaine Liposome Injectable Suspension Sales	$3.2	$1.6	$0.0
Royalty Revenue	$1.6	$0.9	$0.0

KPIs and Operating Metrics

KPI	Q2 2024	Q3 2024	Q4 2024
Cash, Cash Equivalents & AFS Investments ($USD Millions)	$404.2	$453.8	$484.6
Cash from Operations ($USD Millions)	$53.2	$53.9	$33.1
Total Operating Expenses ($USD Millions)	$149.8	$308.1	$162.5
GAAP R&D Expense ($USD Millions)	$20.3	$19.1	$23.9
GAAP SG&A Expense ($USD Millions)	$68.1	$74.3	$79.6
Non-GAAP R&D Expense ($USD Millions)	$18.4	$17.3	$22.0
Non-GAAP SG&A Expense ($USD Millions)	$59.0	$65.0	$70.6
Weighted Avg Shares (Diluted, GAAP) (Millions)	50.5	52.1	49.0

Note: Q3 operating expenses include goodwill impairment of $163.2M (non-cash) .

Guidance Changes

Metric	Period	Previous Guidance	Current Guidance	Change
Total Revenue	FY 2024	$680–$705M	—	Maintained in Q3 2024
Total Revenue	FY 2025	—	$725–$765M	New
Non-GAAP Gross Margin	FY 2024	74–76%	—	Maintained in Q3 2024
Non-GAAP Gross Margin	FY 2025	—	76–78%	New
Non-GAAP R&D Expense	FY 2024	$70–$80M	—	Maintained in Q3 2024
Non-GAAP R&D Expense	FY 2025	—	$90–$105M	New (higher investment)
Non-GAAP SG&A Expense	FY 2024	$245–$265M	—	Maintained in Q3 2024
Non-GAAP SG&A Expense	FY 2025	—	$290–$320M	New (higher investment)
Stock-based Compensation	FY 2024	$50–$55M	—	Maintained in Q3 2024
Stock-based Compensation	FY 2025	—	$56–$61M	New
Depreciation	FY 2025	—	~$30M	New

Management expects NOPAIN impact to ramp in H2 2025, contributing to revenue trajectory; early signs positive but adoption and claims processing will take time .

Earnings Call Themes & Trends

Topic	Previous Mentions (Q2 & Q3 2024)	Current Period (Q4 2024)	Trend
NOPAIN separate reimbursement & EXPAREL J-code	Proposed rule (CMS OPPS/ASC) for 2025; share repurchase; positioning for NOPAIN	Final rule confirmed; EXPAREL J0666 J-code effective Jan 1, 2025; early positive indicators; more meaningful uptake H2 2025	Strengthening execution; adoption ramp expected H2 2025
Product performance (EXPAREL/ZILRETTA/iovera°)	Q2: EXPAREL +ZILRETTA growth; iovera° growth	Q4: YoY growth across all three products; iovera° separate code and SmartTip expansion	Broad-based growth; new reimbursement tailwinds
IP & generics	Q3 goodwill impairment tied to FDA generic approval and patent ruling	New EXPAREL composition patent (‘940) protection into 2044; mgmt expects no risk of generic launch in near term	IP strengthened; reduced perceived near-term generic risk
PCRX-201 pipeline	Q3 highlighted upcoming 2-year data presentation	2-year data showed sustained efficacy; Phase II opened; RMAT designation reiterated	Advancing clinical program
GPO partnerships & pricing/mix	Not emphasized in Q2 press;	Two GPOs launched; volume up with modest net sales impact; third to go live H1 2025; vial mix/discounting offset price increases	Contracts expanding; pricing headwinds vs mix/discounts
SG&A & R&D investments	2024 guidance lower levels	2025 guide increases to fund commercial/DTC and clinical programs; R&D up driven by PCRX-201/HCAd and registrational studies	Investment ramp supports growth
Leadership/Board	CFO appointment	New CCO & CBO; Board chair and refresh	Management depth increasing

Management Commentary

“We’re sharply focused on executing our 5/30 strategy and becoming an innovative biopharmaceutical organization… early indicators of progress since the rollout of NOPAIN… formulary wins and rising awareness around the J code” — CEO Frank Lee .
“Fourth quarter non-GAAP gross margin was 79%… non-GAAP SG&A up due to investments in commercial, medical and market access… adjusted EBITDA of $62.5M… cash and investments ~$485M” — CFO Shawn Cross .
“We do not believe there will be a risk launch a generic this year or in the foreseeable future… we continue to build on our IP estate” — CEO Frank Lee .
“We expect more meaningful NOPAIN uptake to begin in the second half of the year” — CFO Shawn Cross .

Q&A Highlights

NOPAIN adoption cadence: Customers need time to adopt new reimbursement; IQVIA claims lag; early anecdotally positive; commercial payers now covering ~40M lives including TRICARE; more meaningful H2 2025 ramp .
Capital allocation and buyback: $125M remaining authorization through 2026; balanced approach funding commercial growth, pipeline (PCRX-201/HCAd), and debt management (2025/2028/2029 maturities) .
Gross margin trajectory: Quarter-to-quarter variability; full-year non-GAAP 76–78% guide informed by volume; 200L San Diego suite and mix supportive over time .
Product mix/revenue drivers: 2025 revenue growth “effectively all volume growth”; price increases offset by GPO discounting and vial mix .
Pipeline investment: R&D step-up aligned with transition from specialty to innovative biopharma; PCRX-201 Phase II underway; GQ Bio acquisition adds HCAd platform and preclinical assets .

Estimates Context

Wall Street consensus (S&P Global) for Q4 2024 EPS and revenue was unavailable due to data access limits at the time of analysis; comparisons vs estimates are therefore not provided [GetEstimates error].

Key Takeaways for Investors

Q4 delivered solid product growth and strong non-GAAP margins; operating cash flow remained positive despite elevated SG&A to support market access and DTC pilots .
The introduction of 2025 guidance and commentary point to a volume-led growth strategy; the primary catalyst is NOPAIN/J-code enabling expanded EXPAREL use across outpatient and office settings, with uptake skewed to H2 2025 — position for the adoption curve and potential estimate revisions into H2 .
IP positioning improved materially with the ‘940 patent (protection to 2044) and management’s view of limited near-term generic launch risk; litigation appeals continue, but patent estate is broadening .
iovera° receives a separate CMS code (~$256 payment) and a SmartTip 510(k) for low back pain, creating potential incremental 2025 growth avenues beyond surgical pain .
PCRX-201 is emerging as a medium-term value driver; Phase II initiation following durable 2-year Phase I data positions the asset for potential de-risking milestones over the next 12–18 months .
Watch SG&A and R&D ramps in 2025; while margin guidance is stable, near-term profitability will reflect investments in commercialization and clinical programs; scale benefits and manufacturing mix (200L suite) should improve margins over time .
Tactical implication: Ahead of H2 2025, monitor payer coverage expansion, formulary adoption, and claims data for EXPAREL; near-term stock narrative likely tied to NOPAIN/J-code adoption evidence, IP updates, and PCRX-201 study progress .

Pacira BioSciences, Inc. (PCRX)·Q4 2024 Earnings Summary