PCRX

A month has gone by since the last earnings report for Sarepta Therapeutics (SRPT). Shares have added about 37% in that time frame, outperforming the S&P 500. Will the recent positive trend continue leading up to its next earnings release, or is Sarepta Therapeutics due for a pullback? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at the latest earnings report in order to get a better handle on the important catalysts. Sarepta reported second-quarter 2026 adjusted EPS of 64 cents, which beat the Zacks Consensus Estimate of 58 cents. However, the reported figure fell 68% year over year. The adjusted figures exclude depreciation and amortization costs, stock-based compensation expenses, gains on strategic investments and certain interest expense/income. Including these items, EPS during the second quarter stood at a loss of 5 cents against earnings of $1.89 in the year-ago period. Sarepta recorded total revenues of $401.3 million, down 34% year over year, primarily due to lower sales of Elevidys. Yet, the figure beat the Zacks Consensus Estimate of $355.6 million. PMO product revenues totaled $230.6 million, relatively flat year over year. The figure beat the Zacks Consensus Estimate of $225.9 million. Management attributed the PMO franchise’s durability to stable demand, extensive real-world experience and established safety profiles. Elevidys' revenues were $98.1 million, down 65% year over year, primarily due to its decision to suspend shipments to non-ambulatory patients in June 2025 amid safety concerns. Nonetheless, the therapy’s sales marginally beat the Zacks Consensus Estimate of $97.8 million. Collaboration and other revenues totaled $72.6 million, down 26% year over year. The year-ago period benefited from a $63.5 million milestone payment received from Roche related to the regulatory approval of Elevidys in Japan, with no comparable payment in the reported quarter. The decline was partly offset by a $27.4 million increase in contract manufacturing revenues associated with higher commercial Elevidys supply delivered to Roche. Sarepta also recognized $10 million in license revenues related to intellectual property rights granted under a licensing agreement. Adjusted research and development (R&D) expenses declined 58% year over year to $76.7 million. The reduction reflected lower manufacturing and clinical spending following Sarepta’s pipeline reprioritization and lower employee-related costs under the July 2025 restructuring program. Adjusted selling, general and administrative (SG&A) expenses decreased 22% to $88 million, driven by lower personnel costs and reduced professional services related to Elevidys commercialization. Sarepta narrowed its 2026 net product revenue guidance to $1.2-$1.3 billion from the previous range of $1.2-$1.4 billion. The company expects second-half product revenues to be modestly lower than first-half levels. Elevidys revenues are also projected to decline sequentially in the third quarter because revenue recognition reflects patients who entered the treatment process several months earlier. Enrollment forms improved sequentially during the second quarter, supported by Sarepta’s expanded commercial team and increased engagement with health care providers. However, the roughly six-month journey from enrollment to infusion means the recent improvement is expected to benefit revenues more meaningfully in 2027. The company raised its 2026 collaboration and other revenues forecast to $550-$600 million, primarily due to higher expected contract manufacturing revenues. The new guidance marked an increase of $75 million from the midpoint of the company’s previous guidance. Sarepta tightened its combined adjusted R&D and SG&A expense guidance to $800-$850 million from $800-$900 million. It turns out, estimates revision have trended downward during the past month. The consensus estimate has shifted -11.11% due to these changes. Currently, Sarepta Therapeutics has a average Growth Score of C, though it is lagging a lot on the Momentum Score front with an F. However, the stock has a grade of B on the value side, putting it in the second quintile for value investors. Overall, the stock has an aggregate VGM Score of C. If you aren't focused on one strategy, this score is the one you should be interested in. Estimates have been broadly trending downward for the stock, and the magnitude of these revisions indicates a downward shift. Notably, Sarepta Therapeutics has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months. Sarepta Therapeutics belongs to the Zacks Medical - Biomedical and Genetics industry. Another stock from the same industry, Pacira (PCRX), has gained 4% over the past month. More than a month has passed since the company reported results for the quarter ended June 2026. Pacira reported revenues of $192.4 million in the last reported quarter, representing a year-over-year change of +6.2%. EPS of $0.73 for the same period compares with $0.74 a year ago. Pacira is expected to post earnings of $0.76 per share for the current quarter, representing a year-over-year change of +8.6%. Over the last 30 days, the Zacks Consensus Estimate has changed -2.1%. The overall direction and magnitude of estimate revisions translate into a Zacks Rank #3 (Hold) for Pacira. Also, the stock has a VGM Score of A. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Sarepta Therapeutics, Inc. (SRPT) : Free Stock Analysis Report Pacira BioSciences, Inc. (PCRX) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

It has been about a month since the last earnings report for Pacira (PCRX). Shares have added about 6.9% in that time frame, outperforming the S&P 500. Will the recent positive trend continue leading up to its next earnings release, or is Pacira due for a pullback? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at its latest earnings report in order to get a better handle on the important drivers. Pacira reported second-quarter 2026 adjusted earnings of 73 cents per share, beating the Zacks Consensus Estimate of 64 cents. In the year-ago quarter, the company had reported adjusted earnings of 74 cents per share. Second-quarter revenues of $192.4 million increased 6.2% from the year-ago quarter and beat the Zacks Consensus Estimate of $190 million. Top-line growth was supported by momentum across the commercial portfolio, highlighted by continued demand for Exparel and incremental revenues from Zilretta and iovera sales. Exparel volume growth was 4% in the quarter. Total product sales reached $190.5 million in the quarter, increasing 5.7% on a year-over-year basis. Exparel remained the largest contributor, with net product sales rising 3% year over year to $147.8 million. Exparel’s volume growth was partly offset by an unfavorable vial mix and discounting tied to the company’s group purchasing organization contract. Zilretta net product sales increased 4% year over year to $32.6 million in the reported quarter. Management attributed the improvement to commercial initiatives launched last year, including a dedicated sales force and the company’s partnership with Johnson & Johnson. Second-quarter iovera net product sales climbed 22% year over year to $6.8 million. Sales of bupivacaine liposome injectable suspension to third-party licensees came in at $3.2 million during the second quarter compared with $0.5 million in the year-ago period. Meanwhile, royalty revenues increased to $1.9 million in the second quarter from $0.8 million in the year-ago period. Adjusted research and development (R&D) expenses rose 9.7% year over year to $27.1 million, mainly due to the advancing phase II study of PCRX-201 and label-expansion programs. Adjusted selling, general and administrative (SG&A) expenses increased 5.3% year over year to $81.3 million, partly due to nonrecurring costs related to the contested director election. Pacira ended the quarter with $251 million in cash, cash equivalents and available-for-sale investments compared with $202.2 million as of March 31, 2026. Following the July 31 closing of the iovera divestiture to Zimmer Biomet, Pacira lowered its 2026 total revenue guidance from $745-$770 million to $735-$760 million. The revised range includes iovera sales only through the transaction closing date. The company also reduced its adjusted SG&A expense forecast to $310-$330 million from $320-$340 million. The adjusted R&D expenses guidance remained unchanged in the range of $105-$115 million. Stock-based compensation guidance was tightened from $54-$62 million to $54-$59 million. Pacira maintained its 2026 Exparel net product sales outlook of $600-$620 million. Management said the second half assumes continued macroeconomic softness, with growth expected from outpatient settings and procedures viewed as more resilient to economic pressure. In the past month, investors have witnessed a downward trend in fresh estimates. Currently, Pacira has a nice Growth Score of B, though it is lagging a lot on the Momentum Score front with a D. However, the stock has a grade of A on the value side, putting it in the top quintile for value investors. Overall, the stock has an aggregate VGM Score of A. If you aren't focused on one strategy, this score is the one you should be interested in. Estimates have been broadly trending downward for the stock, and the magnitude of these revisions indicates a downward shift. Notably, Pacira has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months. Pacira belongs to the Zacks Medical - Biomedical and Genetics industry. Another stock from the same industry, Astrazeneca (AZN), has gained 0.1% over the past month. More than a month has passed since the company reported results for the quarter ended June 2026. Astrazeneca reported revenues of $15.38 billion in the last reported quarter, representing a year-over-year change of +6.4%. EPS of $2.63 for the same period compares with $2.18 a year ago. Astrazeneca is expected to post earnings of $2.60 per share for the current quarter, representing a year-over-year change of +9.2%. Over the last 30 days, the Zacks Consensus Estimate has changed -1.3%. The overall direction and magnitude of estimate revisions translate into a Zacks Rank #3 (Hold) for Astrazeneca. Also, the stock has a VGM Score of C. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Pacira BioSciences, Inc. (PCRX) : Free Stock Analysis Report AstraZeneca PLC (AZN) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

Image source: The Motley Fool. Tuesday, Aug. 4, 2026 at 4:30 p.m. ET Head of Investor Relations - Susan Mesco Chief Executive Officer - Frank Lee Chief Commercial Officer - Brendan Teehan Chief Financial Officer - Shawn Cross Chief Administrative Officer and Secretary - Kristen Williams Chief Legal Officer - Tony Molloy Chief Medical Officer - Jonathan Slonin Operator: Thank you for standing by. Welcome to Pacira BioSciences' second quarter 2026 earnings conference call. Please be advised that today's conference is being recorded. I would now like to hand the conference over to your first speaker today, Susan Mesco, Head of Investor Relations. Please go ahead. Susan Mesco: Thank you. Good afternoon, everyone. Welcome to today's conference call to discuss our Second Quarter of 2026 Financial Results. Joining me are Frank Lee, Chief Executive Officer, Brendan Teehan, Chief Commercial Officer, and Shawn Cross, Chief Financial Officer. Kristen Williams, Chief Administrative Officer and Secretary, Tony Molloy, Chief Legal Officer, and Jonathan Slonin, Chief Medical Officer, are also here for today's question and answer session. Before we begin, let me remind you that this call will include forward-looking statements subject to the safe harbor provisions of federal securities laws. These statements represent our judgment as of today and may involve risks and uncertainties. This may cause our actual results, performance, or achievements to differ materially. For information concerning risk factors that could affect the company, please refer to our filings with the SEC or the Pacira website. Lastly, as a reminder, we will be discussing non-GAAP financial measures on today's call. A description of these metrics along with our reconciliation to GAAP can be found in the news release issued this afternoon. With that, I will now turn the call over to Frank Lee. Frank Lee: Thank you, Susan, and good afternoon to everyone joining today's call. On behalf of the remarkable team here at Pacira, I'm pleased to share our continued progress in executing our 5x30 strategy and transitioning into a more innovation-driven pharmaceutical company. Our second quarter performance reflects disciplined execution of our 5x30 strategy, translating into commercial momentum, strong cash generation, pipeline advancement, and high-caliber partnerships. Furthermore, our 5x30 progress was clearly recognized with a decisive shareholder vote for both our strategy and director nominees at our annual meeting in June. Notable second quarter accomplishments include revenues of more than $109 million, even as macroeconomic pressures weighed on certain elective procedures in the hospital setting. Adjusted EBITDA of nearly $50 million. Establishing a scalable, commercially viable, U.S.-based manufacturing process for PCRX-201, a testament to our team's clinical development and manufacturing capabilities. Opening enrollment in Part B of our Phase 2 ASCENT study for PCRX-201, completing enrollment in iovera registrational study in spasticity, and completing the iovera divestiture on July 31st, and forming a partnership in spasticity with Zimmer Biomet. I'd like to thank the Pacira and Zimmer Biomet teams for working so collaboratively and efficiently for past 30 days to close this transaction. I look forward to continued partnership with our Zimmer Biomet colleagues going forward. I'll begin with a high-level overview of EXPAREL, and then Brendan will cover additional commercial details shortly. EXPAREL continues to penetration share across all segments. Despite softness and certain deferable soft tissue procedures, which historically wax and wane with macroeconomic conditions. This is particularly notable in-patient settings where separate reimbursement outside the bundle is not available. Looking ahead, we believe we're well positioned to continue to outperform the elective surgery market by advancing 3 key priorities: first, expanding patient access by broadening commercial payer coverage. We recently secured a major win with UnitedHealthcare, now providing separate reimbursement for EXPAREL outside of the surgical bundle. This milestone brings our total covered lives to 150 million at midyear and well within reach of our full year goal of 160 million covered lives. Separately, on ZILRETTA, Brent has some great news to share about ZILRETTA coverage on UnitedHealthcare. Second, generating disseminating compelling health economic data to strengthen the EXPAREL value proposition. Here, we're also seeing strong momentum with many commercial plans reimbursing significantly higher are getting higher than CMS. And third, increasing penetration in existing and new accounts while driving expansion within macroeconomic resilient procedures in outpatient sites of care. Turning to lifecycle management, we remain on track to report top-line results for our Phase 3 study of ZILRETTA in shoulder OA later this year. If approved, ZILRETTA would become the first drug with an FDA-approved indication specifically for shoulder OA. We also recently completed enrollment in our registrational iovera spasticity study and remain on track to report top-line results before year-end. As a reminder, we will collaborate with Zimmer Biomet on advancing the spasticity program. The transaction structure provides us with the opportunity to receive additional compensation, assuming clinical and regulatory success. Beyond our commercial products, our pipeline is entering what we believe will be a catalyst-rich period. We expect top-line data from PCRX-201 later this year and continue to advance PCRX-202 with Phase 2 development scheduled to begin later this year. PCRX-202 is a novel hydrogel formulation of ropivacaine designed to provide both rapid onset and long-acting analgesia from a single, simple instillation into the surgical field. If successful, we believe it has potential to complement EXPAREL and further strengthen our leadership position in post-surgical pain management. Let me spend a moment on PCRX-201, which we believe has potential to represent a paradigm shift in the treatment of knee OA. Our scalable commercial manufacturing process is now up and running, and enrollment in Part B of our Phase 2 study is underway. As a reminder, top-line results for Part A are expected later this year. Part A randomized 49 patients to 1 of 3 treatment groups, PCRX-201 dose A, PCRX-201 dose B, or saline control. All patients received an intra-articular corticosteroid before treatment, allowing the durability of PCRX-201 to be evaluated against the standard of care. The primary objective is safety with secondary efficacy endpoints evaluated at weeks 38 and 52. We recently received some exciting news for our PCRX-201 program with the acceptance of a Phase 1 manuscript for publication in the Annals of the Rheumatic Diseases, the leading journal in rheumatology. The paper highlights encouraging results from the 72-patient Phase 1 study over 104 weeks. We're also advancing HCAT-based pre-clinical candidates in degenerative disc disease, dry eye disease, and canine OA. We completed a pilot safety study in canine OA and our pilot efficacy study is now initiating. Finally, the last item I'd like to cover is important progress we've made executing new partnerships, a pillar of our strategy. I'll begin with the recently completed divestiture of iovera to Zimmer Biomet. For Pacira, the transaction sharpens our focus as an innovation-driven biopharmaceutical company while improving our margin profile. Further, it allows us to redirect capital and resources toward higher return growth opportunities aligned with our long-term strategic priorities. We're also excited about what this transaction means for patients. Zimmer is uniquely positioned to maximize iovera's global potential for patients through its scale, orthopedic leadership, and strong presence in [ total knees ]. On the financial front, Pacira will receive up to $140 million with $70 million upfront and an additional $70 million linked to revenue-based milestones. The structure preserves our participation in iovera's future success in both existing indications and spasticity. We're also pleased to share important progress with LG Chem's recent regulatory filing for EXPAREL in South Korea. This places revenues on track to begin in 2027. As we move forward in the second half of the year, we plan to provide visibility into additional commercial partnerships outside of the U.S. Importantly, we expect EXPAREL revenues to extend through the life of our patents, which provide exclusivity into the 2040s. Taken together, these transactions show how the partnership pillar, the 5x30 strategy, can extend our reach, improve our capital efficiency, and allow us to concentrate resources on our highest priority growth opportunities. Our experience has shown that partnerships with top-tier organizations can generate value beyond the initial agreement by mutually leveraging our scale, expertise, customer relationships, unlocking commercial value for our partnered assets. In parallel, these partnerships create pathways for potential future collaborations across our portfolios. In summary, Pacira exits the second quarter with strong execution of our 5x30 strategy with commercial momentum, a broader market access position, meaningful upcoming pipeline catalysts, and a growing roster of top-tier partners. With that, I'd like to turn the call over to Bren to share more details on our second quarter commercial performance. Bren? Brendan Teehan: Thank you, Frank, and good afternoon to all joining us today. During the second quarter, EXPAREL gained penetration and share across orthopedic and soft tissue market segments, even as the broader elective surgery market slowed in certain areas. The impact varied by procedure category. While orthopedic procedures were relatively stable, elective soft tissue procedures experienced a slowdown with more pronounced declines in the hospital inpatient setting. As a reminder, EXPAREL volumes are approximately 60% orthopedic and 40% soft tissue. This dynamic was likely driven by factors including softer consumer health care spending and broader economic uncertainty impacting near-term elective soft tissue procedures. EXPAREL's continued penetration and share gains this quarter reinforce our confidence that the brand can deliver durable growth as access expands, procedures migrate to outpatient settings and customers continue to prioritize opioid-sparing care. We are particularly encouraged by momentum in 23-hour sites of care as the continued shift towards outpatient surgery and favorable reimbursement dynamics continue to provide a meaningful long-term tailwind for EXPAREL. Another critical area where we continue to make excellent progress is market access. At the beginning of July, we shared that UnitedHealthcare became the latest major national payer to expand coverage for EXPAREL through separate reimbursement outside the surgical bundle. With approximately 40 million covered lives, United is not only the largest health insurer in the U.S., but also among the most influential. With United and additional recent wins, EXPAREL is now available to well over 150 million covered lives with separate reimbursement outside the surgical bundle. This represents roughly 50% of all medically insured lives in the U.S. and significant progress towards our year-end goal of 160 million covered lives. As providers gain visibility into expanding coverage, we anticipate further adoption and utilization for EXPAREL overtime. We also believe United's decision will encourage commercial payers to evaluate similar reimbursement approaches, which could help expand patient access in the future. Looking ahead, our team remains firmly focused on expanding market access through additional commercial coverage, utilizing our growing body of compelling health, economic, and outcome studies to drive awareness around the EXPAREL value proposition, and broadening utilization within existing and new accounts while increasing demand with the new service line less susceptible for economic pressures. Turning to ZILRETTA and iovera. Both products are performing well with solid growth in the quarter as the commercial investments we made last year are creating lift. For ZILRETTA, we are seeing demonstrated momentum from the Pacira team's focus on promotional impact, along with our J&J partnership. For iovera, the Pacira team delivered another stellar quarter, and with the Zimmer transaction now closed, we believe iovera sits within the ideal portfolio to further unlock its full global potential. Separately on the payer front, beyond the positive coverage of EXPAREL, UnitedHealthcare has placed ZILRETTA on its preferred drug list. Importantly, this eliminates any prior authorization requirements, which is a key advantage versus competing early OA interventions. In summary, we are pleased with the first half of the year and believe we are well positioned for sustainable top-line growth for the remainder of the year and beyond. I'd like to now turn the call over to Shawn for his financial review. Shawn Cross Thank you, Bren. I'll start with an update on revenue and margin trends. Second quarter total revenues were $192.4 million, representing a 6% increase over the second quarter of 2025. EXPAREL remains a significant source of revenue with net sales increasing by 3% to $147.8 million versus $142.9 million in 2025. Volume growth of approximately 4% was partially offset by a shift in vial mix and discounting from our third GPO, which went live mid-2025. As we move forward for the remainder of 2026, we expect the delta between volume and revenue growth to narrow with the recent lapping of the third GPO. For ZILRETTA, second quarter sales grew by 4% to $32.6 million versus $31.3 million reported in 2025. As Bren mentioned, this was largely attributable to the growth initiatives implemented last year, including our dedicated ZILRETTA sales force. [ For ] iovera, sales increased by 21% to $6.8 million, compared to $5.6 million in the second quarter of 2025. Again, this was largely attributable to growth initiatives implemented last year. [ Turning to ] gross margins, on a consolidated basis, our second quarter non-GAAP gross margin was in line with our expectations at 78% versus 82% for last year. For the non-GAAP R&D expense, the second quarter increased to $27.1 million from $24.7 million last year. This increase relates to our advancing Phase 2 study of PCRX-201 as well as our label expansion studies, all of which are on track for top-line readouts at year-end. In addition, we're supporting three promising HCAT-based pre-clinical programs. Non-GAAP SG&A expense came in at $81.3 million for the second quarter versus $77.2 million last year. This increase relates to non-recurring costs specific to the contested election of directors at our 2026 Annual Meeting of Stockholders. All of this resulted in the GAAP net income of $4.7 million, or $0.12 per basic diluted share, and another quarter of significant adjusted EBITDA of approximately $48.7 million. As for the balance sheet, we continue to be in a position of strength with $251 million in cash and investments, which will be further enhanced by a $70 million upfront payment related to the closing of the Zimmer transaction. With a strong balance sheet and a business that is producing significant operating cash flow, we believe we are well-equipped to advance our 5x30 growth strategy and create shareholder value. That brings us to our full year guidance for 2026, where we are updating the following ranges to adjust for the closing of the Zimmer transaction. The total revenue range is now $735 million to $760 million versus our previously guided range of $745 million to $770 million. For SG&A, we are now guiding to $310 million to $330 million versus our previously guided range of $320 million to $340 million. And lastly, stock-based compensation of $54 million to $59 million versus our previously guided range of $54 million to $62 million. For all remaining items, we are reiterating our previously guided ranges as follows: EXPAREL net product sales of $600 million to $620 million. With respect to quarterly trends, we anticipate the remainder of 2026 will largely follow historical patterns, [ EXPAREL ] being our largest dollar contributor. For ZILRETTA, our guidance assumes the remainder of 2026 will be largely in line with 2025. While we are encouraged by the recent quarterly performance, we will wait to gain more visibility before updating growth assumptions. The final component of our 2026 revenue guidance relates to approximately $7 million expected revenues from our licensing agreement for the veterinary market. Non-GAAP gross margin of 77% to 79%. With respect to quarterly cadence, we expect the next quarter to continue to benefit from the sale of lower cost EXPAREL inventory to fall within our guided range. For the fourth quarter, we expect margins to be slightly below our full year range through the sale of higher cost inventory as well as shutdown-related costs and other expenses. Non-GAAP R&D expense of $105 million to $115 million. With the recent initiation of Part B of our Phase 2 ASCENT study of PCRX-201 and certain EXPAREL and ZILRETTA product development efforts, we expect an uptick in R&D expense in the fourth quarter. And lastly, for those modeling adjusted EBITDA, we expect our 2026 depreciation expense to be approximately $30 million. With a focused business model, durable cash flows supported by EXPAREL and ZILRETTA, and a pipeline entering a catalyst-rich period, we believe Pacira is exceptionally well-positioned for the future. With that, I'll turn the call back to Frank. Frank Lee: Thanks, Shawn. As we discussed this morning, our second quarter reflects clear progress against our 5x30 strategy. We delivered solid financial performance, forms key partnerships, and advanced multiple value-driving pipeline programs. I'm excited about the second half of the year in the base business and in our upcoming pipeline catalysts. So with that, we're ready to open up the call for questions. Operator? Operator: Yes, thank you. Your first question comes from the line of Dennis Ding with Jefferies. Your line is now open. Yuchen Ding: I have two, if I may. Number 1, on [NOPAIN, is there risk of this expiring at the end of 2027? And I guess what are the logistics here to renewing this and is there any particular bill we should be focused on or do you think this would be tacked on to a larger bill? And then number 2, you guys reiterated EXPAREL guidance despite Q2 being a little bit soft. So I guess talk about your confidence in navigating these broader macro dynamics around consumer spending. And I guess what's going to be the driver of growth here? And do you still expect NOPAIN-driven volume acceleration in the second half or is that going to be tougher to achieve because of the macro dynamics you mentioned? Frank Lee: Hey, Dennis, Frank Lee here. Thanks for the question. So on the first one about NOPAIN expiry, maybe some thoughts here and I'll turn it over to Tony, our General Counsel and Head of Government Relations. First off, as we step back, as we know, at present, it's due to expire/be re-upped at the end of last year -- I'm sorry, next year. And we're making very good progress, as you've just heard from Brendan, in terms of what we're doing around commercial payers. And the fact that we've got United on board is a real win. For those of you who've been around payers, United is the benchmark. And so we're really pleased by that and all the health economic data that supports inclusion in payers going forward. So bottom line there is what I'm saying is that commercial payers are picking it up. There's a clear health economic story. And so let me just turn it over to Tony to talk a little bit about NOPAIN, which is specifically for CMS patients in the outpatient setting. So, Tony? Anthony Molloy: Thanks, Frank. We're working -- we're actually trying to -- we're working with two paths. We're working directly with CMS who has the ability to provide, basically, the same reimbursement that NOPAIN does through its annual grant rulemaking cycle. And then we're also working with Congress. We would expect, similar to last time, that this would be tacked on and be part of a larger bill. We're not anticipating it being a standalone legislation. And the reality is these things usually happen when they need to happen and not earlier. So we're anticipating something towards the end of next year. Frank Lee: Thanks, Tony. And then Dennis, you had asked about Q2. And so just maybe some high-level thoughts here, and I'll turn it over to Bren for some additional commentary. Just at a high level, just to make sure we're super clear on this, is we're optimistic about the second half. And the reason is that, as Bren mentioned, we've increased penetration across all segments. So that's very important. And again, as I mentioned in my comments, these sorts of procedures and the inpatient setting that are more deferable tend to wax and wane with macroeconomic conditions. So, I mean, with that, let me turn it to Bren for his additional thoughts here. Brendan Teehan: Dennis and Frank gives good commentary there. In the second half, we're focused on several, I think, key and important growth drivers. The first is the rapidly growing ASC and hospital outpatient segments, both of which are outpacing the broader hospital market for us. We can and will increase our breadth of coverage there to cover those procedures that are taking place. The second is this, what I would call payer tipping point. UnitedHealthcare, as Frank pointed out, is a substantial addition. Even -- since the UnitedHealthcare contract, we've had several other payers come on board pushing us well beyond the 150 million patient range. That to us is an encouraging sign of where everything is headed. And then finally, we take a lot of confidence in both the penetration and share that we've been able to generate. It is significantly outpacing the total available market near term, and we expect with these additional payer wins, it will continue long term. That, coupled with our health economics and outcomes research data, which is an expanding evidence package that demonstrates that EXPAREL is well worth the price for the substantial cost that it offsets, give us a lot of confidence both near term and longer term. Frank Lee: Thanks, Bren. And just one last thought here, Dennis, is that as a reminder, these commercial payer wins are very important in the outpatient setting where EXPAREL is reimbursed outside the bundle separately. And as we've talked about before in commercial payer settings, the reimbursement, that is the remittance, is substantially higher versus the CMS reimbursement. So we've got a good tailwind there. Operator: Your next question comes from the line of Serge Belanger with Needham. Serge Belanger: I guess just a follow-up on EXPAREL. Volume growth of 4%, a bit of a step down from the prior quarters. I'm just curious if the softness that you've seen in the second quarter has continued into the third quarter and could continue later in the summer. And then now that you've divested iovera, just curious if that kind of changes your appetite for BD and adding additional assets to the portfolio. Frank Lee: So the first one was around Q2 and what are we seeing in Q3. I'd say it's early days. And as Bren mentioned, what we're really excited about is that in the outpatient setting and places where we have a tailwind from a commercial payer perspective, we're seeing it substantially outperform the marketplace. And so stay tuned. Our business is focused on growth going forward in those macro resilient procedure types. And again, our penetration has increased across all these segments. So we'll see how long-lasting the cycle is. As I mentioned, these kinds of procedures in the inpatient setting, where it's not reimbursed separately outside of the bundle, tends to wax and wane historically. So second question was around iovera divestiture and what that means from a BD perspective. So first of all, let me just say that the team did a remarkable job of getting us here. And as you know, initially, we started out with partnership discussions with Zimmer Biomet, and this matured into a very thorough process where we believe we have the right person, right group of people and company taking this asset forward, not only in the U.S., but outside the U.S. So it was closed this past Friday, July 31st, with tremendous effort, and I'm very, very confident that this team is the right team, that is Zimmer Biomet, to maximize the value of iovera, both here in the U.S. and outside of the U.S. Separately, with respect to BD, as Shawn has reiterated many times, we're going to be very, very thoughtful about maximizing shareholder value and returns in our capital allocation. So we'll be looking very carefully at that, but our strategy, as we've articulated before, is to focus on those things that could be accretive in the near term and take very careful calculated, I would say, risk-managed approaches to the pipeline. So that hasn't changed, and so we'll continue to make sure that our capital allocation is consistent with the way we've behaved going forward to maximize shareholder value. And I guess one last thing that I'd add is that now we are very clear-minded about being a pharmaceutical company as opposed to being a pharmaceutical and medtech company, which as we've talked about before, is very different. And I think this focus will help us execute even better going forward. Operator: Your last question comes from the line of Hardik Parikh with JPMorgan. Hardik Parikh: So two part. One, well, first is just building off some of the earlier questions. To achieve your kind of implied second half guide for EXPAREL, what have you assumed about the macro headwinds? Do you need a recovery to meet that guide? And then the second part is you guys have utilized the partnership model in ZILRETTA, could you envision yourself partnering in the U.S. with EXPAREL with like a distributor model? Frank Lee: You asked about whether a quota recovery is needed. What we're basing our growth and numbers on is continued in terms of what we see right now in the softness and really growing in the places where we can grow. As Bren articulated very clearly, we've had very good success in the outpatient setting, in those procedures that are macro resilient. And you can see that we've had some substantial commercial payer wins that are directly applicable in those kind of settings. So again, as you know, that in an inpatient setting, EXPAREL is not reimbursed separately outside of the bundle. And so that's what we've assumed, and we've seen good results as we've focused our business toward that, those segments of our business. In terms of the partnering model, I want to step back a little bit. As we've articulated in our 5x30, partnerships are very important. And to-date, we've signed some very good partnerships. We signed LG Chem, we signed Johnson & Johnson, and now with Zimmer Biomet, a partnership for spasticity. So we remain open-minded about how we can cost effectively and efficiently get our products out to our customers, both here in the U.S. and outside the U.S. So we remain very open-minded about that. We will certainly always have our direct field forces and support, but if the question is would we want to, at some point, consider partnership of EXPAREL to extend our reach? That's certainly within the realm of possibility, but we'd have to do that in a way that's very cost-effective and returns value to both organizations. And one of the ways we've done that is ex-U.S. As you can see with our LG Chem partnership, and the good news there is, as I mentioned, they have already filed now in South Korea and we are going to see the fruits of that labor in terms of revenue come to us in 2027. Operator: The next question comes from the line of Sahil Dhingra with RBC Capital Markets. Sahil Dhingra: This is Sahil for [ Dagne ]. I have two questions. First is on the EXPAREL volume growth. Can you expand what was the ASC versus HOPD versus community hospital split in terms of the volume growth? And are larger IDNs finally moving the needle or is the growth still concentrated in the ASCs and the community hospitals? Frank Lee: Let me address it briefly and I'll turn it over to Bren for some additional commentary. With regard to the breakout of the EXPAREL volume, as you've asked, we typically don't break it out that way, so we don't have those data to provide to you. With respect to the contribution and growth of IDNs versus other parts of our business, I'm going to turn it over to Bren for his thoughts here. Brendan Teehan: I'm confident that the split of our business probably is reflective of other things you've heard in the second quarter. There are two dynamics that we have to take into account. One is the migration of procedures to the outpatient setting, and particularly, to ASCs. The hospital volumes, I think, in general are down, but they're further impacted, I would say, by this deferred elective soft tissue procedure dynamic. So, EXPAREL volumes were still significantly higher than what we saw for hospital procedures. In ASCs, which were modestly up for total available market, I would say that we significantly outpaced that in the ASC setting, which is another reason, given the reimbursement that we've just discussed, multiple payer wins including UnitedHealthcare in that space, that we feel confident in our ability to continue to capitalize on both the migration of procedures to that particular site of care, but also the value proposition for EXPAREL there. Frank Lee: Anything else? Sahil Dhingra: Yes, my next question is on the PCRX-201 Part A timing. Can you tighten the year-end timeline for us and will the data be disclosed at the medical meeting or will it be a standalone disclosure? Frank Lee: So let me step back here. I'm very excited about the upcoming catalysts as we go through the second half of the year and certainly the catalysts include, as I mentioned earlier, number 1, the spasticity data, registrational study with iovera. Number 2, the ZILRETTA shoulder OA data, which is again, another registrational study. And number 3, as you mentioned, PCRX-201 Part A. So with that Part A piece, I'm going to turn it over to Jonathan here, our Chief Medical Officer, to talk a little bit about your question and you had asked about timing and some other things. So, Jonathan? Jonathan Slonin: So, yes, our plan is at the end of the year, we're going to have these three readouts, top-line readouts for Part A. Remember that Part A is the first part of our two-part Phase 2 trial, and we'll provide insights and powered for safety, and we will look for some efficacy trends. We estimate reporting those top-line results at the end of the year, and we'll continue throughout 2027 to report additional data sets. Operator: I'm showing no further questions at this time. I would now like to turn it back to Susan Mesco for closing remarks. Susan Mesco: Thank you, [ Kathy ], and thanks to all on the call for your questions and time today. We are excited about the opportunities that lie ahead for us. Throughout the remainder of the year, we will continue to ensure we are well positioned for long-term success by executing our 5x30 plan to advance our mission. Thank you and be well. Operator: Thank you. This does conclude the program and you may now disconnect. 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This article is a transcript of this conference call produced for The Motley Fool. While we strive for our Foolish Best, there may be errors, omissions, or inaccuracies in this transcript. As with all our articles, The Motley Fool does not assume any responsibility for your use of this content, and we strongly encourage you to do your own research, including listening to the call yourself and reading the company's SEC filings. Please see our Terms and Conditions for additional details, including our Obligatory Capitalized Disclaimers of Liability. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. Pacira (PCRX) Q2 2026 Earnings Call Transcript was originally published by The Motley Fool

Our analysts just identified a stock with the potential to be the next Nvidia. Tell us how you invest and we'll show you why it's our #1 pick. Tap here. Performance was driven by disciplined execution of the 5x30 strategy, resulting in commercial momentum and strong cash generation despite macroeconomic headwinds. EXPAREL achieved increased penetration across all segments, though elective soft tissue procedures in hospital inpatient settings saw softness due to deferrable procedure trends. The divestiture of iovera to Zimmer Biomet sharpens the company's focus as a pure-play innovation-driven biopharmaceutical entity while improving margin profiles. Market access reached a 'tipping point' with UnitedHealthcare providing separate reimbursement for EXPAREL, bringing total covered lives to 150 million. Management attributes EXPAREL's resilience to its value proposition in opioid-sparing care and its ability to outperform the broader elective surgery market. The transition to a U.S.-based manufacturing process for PCRX-201 marks a critical milestone in scaling the company's gene therapy capabilities. The second half of 2026 is viewed as a catalyst-rich period with top-line data expected for ZILRETTA in shoulder OA and iovera in spasticity. Revenue guidance was adjusted to $735 million to $760 million solely to account for the iovera divestiture, while EXPAREL sales targets remain unchanged. Management expects the delta between volume and revenue growth to narrow as the impact of the third GPO discount lapping is fully realized. PCRX-201 Phase 2 Part A results are anticipated by year-end, with Part B enrollment already underway to evaluate long-term durability against corticosteroids. International expansion is on track with EXPAREL revenues in South Korea expected to begin in 2027 following LG Chem's regulatory filing. The iovera divestiture includes $70 million upfront and up to $70 million in milestones, allowing Pacira to redirect capital to higher-return pharmaceutical assets. SG&A expenses included non-recurring costs associated with a contested election of directors at the 2026 Annual Meeting. Fourth-quarter margins are expected to be slightly lower due to the sale of higher-cost inventory and planned facility shutdown-related costs. The NOPAIN Act is scheduled for potential re-upping at the end of 2027, with management pursuing both legislative and CMS rulemaking paths for extension. One stock. Nvidia-level potential. 30M+ investors trust Moby to find it first. Get the pick. Tap here. Management is working on two paths: direct CMS rulemaking and congressional action to tack the extension onto a larger bill by late 2027. The UnitedHealthcare win serves as a commercial benchmark that reduces reliance on government-only reimbursement frameworks. Volume growth of 4% was impacted by a slowdown in soft tissue procedures, but management expects recovery through expansion in ASCs and hospital outpatient departments. Growth is specifically targeted at 'macro-resilient' procedure types where separate reimbursement is available outside the surgical bundle. Pacira remains open to distributor or partnership models for EXPAREL in the U.S. to extend reach, provided they are cost-effective and return value. The company will maintain its direct field force but views the Zimmer and J&J partnerships as templates for future collaboration.

Pacira BioSciences PCRX reported second-quarter 2026 adjusted earnings of 73 cents per share, beating the Zacks Consensus Estimate of 64 cents. In the year-ago quarter, the company had reported adjusted earnings of 74 cents per share. Second-quarter revenues of $192.4 million increased 6.2% from the year-ago quarter and beat the Zacks Consensus Estimate of $190 million. Top-line growth was supported by momentum across the commercial portfolio, highlighted by continued demand for Exparel and incremental revenues from Zilretta and iovera sales. Exparel volume growth was 4% in the quarter. Year to date, Pacira shares have risen 6.7% compared with the industry’s 1.6% increase. Image Source: Zacks Investment Research Total product sales reached $190.5 million in the quarter, increasing 5.7% on a year-over-year basis. Exparel remained the largest contributor, with net product sales rising 3% year over year to $147.8 million. Exparel’s volume growth was partly offset by an unfavorable vial mix and discounting tied to the company’s group purchasing organization contract. Exparel (bupivacaine liposome injectable suspension) is indicated in patients aged six years and older for single-dose infiltration to produce postsurgical local analgesia. It is also indicated for regional analgesia in adults via an interscalene brachial plexus nerve block, sciatic nerve block in the popliteal fossa and femoral nerve block in the adductor canal. Zilretta net product sales increased 4% year over year to $32.6 million in the reported quarter. Management attributed the improvement to commercial initiatives launched last year, including a dedicated sales force and the company’s partnership with Johnson & Johnson. Second-quarter iovera net product sales climbed 22% year over year to $6.8 million. Sales of bupivacaine liposome injectable suspension to third-party licensees came in at $3.2 million during the second quarter compared with $0.5 million in the year-ago period. Meanwhile, royalty revenues increased to $1.9 million in the second quarter from $0.8 million in the year-ago period. Pacira’s adjusted gross margin contracted to 78% from 82% in the prior-year quarter. Adjusted research and development (R&D) expenses rose 9.7% year over year to $27.1 million, mainly due to the advancing phase II study of PCRX-201 and label-expansion programs. Adjusted selling, general and administrative (SG&A) expenses increased 5.3% year over year to $81.3 million, partly due to nonrecurring costs related to the contested director election. Adjusted EBITDA fell to $48.7 million from $54.3 million. Adjusted net income was $29.5 million compared with $36 million in the prior-year quarter. Pacira ended the quarter with $251 million in cash, cash equivalents and available-for-sale investments compared with $202.2 million as of March 31, 2026. Following the July 31 closing of the iovera divestiture to Zimmer Biomet, Pacira lowered its 2026 total revenue guidance from $745-$770 million to $735-$760 million. The revised range includes iovera sales only through the transaction closing date. The company also reduced its adjusted SG&A expense forecast to $310-$330 million from $320-$340 million. The adjusted R&D expenses guidance remained unchanged in the range of $105-$115 million. Stock-based compensation guidance was tightened from $54-$62 million to $54-$59 million. Pacira maintained its 2026 Exparel net product sales outlook of $600-$620 million. Management said the second half assumes continued macroeconomic softness, with growth expected from outpatient settings and procedures viewed as more resilient to economic pressure. The company also maintained adjusted gross margin guidance of 77-79%. In July 2026, the company secured a major win when UnitedHealthcare began providing separate reimbursement for Exparel across hospital outpatient departments and ambulatory surgery centers. The addition brought Exparel’s covered lives to more than 150 million and moved Pacira closer to its year-end target of 160 million. UnitedHealthcare is the largest U.S. health insurer with about 40 million members. UnitedHealthcare also placed Zilretta on its preferred drug list without prior authorization requirements. Meanwhile, the iovera sale brought Pacira $73.6 million in cash after purchase price adjustments and preserved potential revenue-based milestone payments of up to $70 million. Pacira and Zimmer Biomet will collaborate on advancing the iovera spasticity program. Pacira could earn incremental compensation if the program successfully completes its registrational study and secures regulatory approval. Top-line data from the phase III registrational study of Zilretta for osteoarthritis (OA) pain of the shoulder is expected later in 2026. Enrollment is underway in Part B of the phase II ASCEND study of PCRX-201, a gene therapy for osteoarthritis of the knee, after the program transitioned to a scalable commercial manufacturing process. Enrollment in Part A of the study concluded in June, with top-line data expected by the end of 2026. Pacira BioSciences, Inc. price-consensus-eps-surprise-chart | Pacira BioSciences, Inc. Quote Pacira currently carries a Zacks Rank #3 (Hold). Some better-ranked stocks in the biotech sector are Repligen RGEN and Liquidia Corporation LQDA, each currently sporting a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here. Over the past 60 days, estimates for Repligen’s 2026 earnings per share have risen from $1.99 to $2.06, while estimates for 2027 have increased from $2.57 to $2.62 during the same time. RGEN shares have declined 8.6% year to date. Repligen’s earnings beat estimates in each of the trailing four quarters, with the average surprise being 16.80%. Over the past 60 days, estimates for Liquidia’s 2026 earnings per share have risen from $2.97 to $3.02, while estimates for 2027 have increased from $4.81 to $5.31 during the same time. LQDA shares have surged 156.3% year to date. Liquidia’s earnings beat estimates in three of the trailing four quarters, while missing the same on the remaining occasion, with the average surprise being 54.40%. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Pacira BioSciences, Inc. (PCRX) : Free Stock Analysis Report Repligen Corporation (RGEN) : Free Stock Analysis Report Liquidia Corporation (LQDA) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

Interested in Pacira BioSciences, Inc.? Here are five stocks we like better. Second-quarter revenue rose 6% to $192.4 million, driven by EXPAREL, ZILRETTA and iovera° sales; adjusted EBITDA was approximately $48.7 million. EXPAREL continued gaining share despite weakness in elective soft-tissue procedures, supported by growth in outpatient settings and expanded UnitedHealthcare coverage that brought separate reimbursement to more than 150 million covered lives. Pacira completed the sale of iovera° to Zimmer Biomet and expects up to $140 million in proceeds, while lowering full-year revenue guidance to $735 million-$760 million; three key clinical readouts are expected by year-end. Pacira BioSciences (NASDAQ:PCRX) reported second-quarter 2026 revenue growth, led by higher sales of its EXPAREL, ZILRETTA and iovera° products, while highlighting expanded payer coverage, pipeline progress and the completed sale of iovera° to Zimmer Biomet. Total second-quarter revenue rose 6% from the prior-year period to $192.4 million, according to Chief Financial Officer Shawn Cross. The company reported GAAP net income of $4.7 million, or $0.12 per diluted share, and adjusted EBITDA of approximately $48.7 million. → SpaceX’s First Earnings Report Could Decide Whether Shorts or Bulls Have Control EXPAREL net product sales increased 3% to $147.8 million, while volume grew approximately 4%. Cross said the difference between volume and revenue growth reflected vial mix and discounting associated with the company’s third group purchasing organization, which began operating in mid-2025. Pacira expects that gap to narrow as it laps the prior-year impact. Chief Executive Officer Frank Lee said EXPAREL continued to gain penetration across market segments even as macroeconomic pressure affected certain elective soft-tissue procedures, particularly in hospital inpatient settings. The company said EXPAREL volumes are approximately 60% orthopedic and 40% soft tissue. → Financials Hit Record Highs as the AI Trade Unravels—Can They Keep Leading? Chief Commercial Officer Brendan Teehan said orthopedic procedures remained relatively stable during the quarter, while elective soft-tissue procedures slowed, with the declines more pronounced in inpatient hospitals. He attributed the trend in part to softer consumer healthcare spending and broader economic uncertainty affecting deferrable procedures. Pacira said it is concentrating on ambulatory surgery centers, hospital outpatient settings and procedures it considers more resilient to macroeconomic conditions. Teehan said EXPAREL significantly outpaced the broader market in ambulatory surgery centers, where procedure volumes were modestly higher overall. → Why Rare Earth Processing Could Be the Real 2027 Opportunity The company also cited progress on reimbursement. UnitedHealthcare expanded EXPAREL coverage to provide separate reimbursement outside the surgical bundle, adding approximately 40 million covered lives. Pacira said EXPAREL now has separate reimbursement for more than 150 million covered lives, or roughly half of medically insured lives in the United States, and remains on track toward its year-end target of 160 million. During the question-and-answer session, Lee said Pacira’s outlook does not assume a broad recovery in elective procedures. Instead, the company expects growth from outpatient settings, commercially reimbursed procedures, payer wins and continued share gains. ZILRETTA sales rose 4% to $32.6 million in the quarter. Teehan said growth reflected commercial investments made last year, including a dedicated ZILRETTA sales force and the company’s partnership with Johnson & Johnson. UnitedHealthcare also placed ZILRETTA on its preferred drug list, eliminating prior authorization requirements, according to Pacira. iovera° sales grew 21% to $6.8 million. Pacira completed the divestiture of the product to Zimmer Biomet on July 31. Under the transaction, Pacira is eligible to receive up to $140 million, including $70 million upfront and up to $70 million in revenue-based milestones. Lee said the transaction sharpens Pacira’s focus on becoming an innovation-driven biopharmaceutical company and allows it to direct capital toward higher-return opportunities. Pacira will continue collaborating with Zimmer Biomet on the iovera° spasticity program, with potential additional compensation tied to clinical and regulatory success. The company also said LG Chem recently submitted a regulatory filing for EXPAREL in South Korea. Pacira expects revenue from that arrangement to begin in 2027 and plans to provide updates on additional international commercial partnerships during the second half of the year. Pacira said it expects three top-line clinical readouts by year-end: a registrational study of iovera° in spasticity, a Phase III study of ZILRETTA in shoulder osteoarthritis, and Part A of the Phase II ASCEND study for PCRX-201 in knee osteoarthritis. Enrollment has been completed in the iovera° spasticity registrational study, while enrollment has opened for Part B of the PCRX-201 Phase II trial. Part A randomized 49 patients to two PCRX-201 dose groups or a saline control. All participants received an intra-articular corticosteroid before treatment, with safety as the primary objective and efficacy endpoints assessed at weeks 38 and 52. Chief Medical Officer Jonathan Slonin said the Part A data are expected at the end of the year and are designed to provide safety insights and assess efficacy trends. Pacira expects to report additional data sets during 2027. The company also said it has established a U.S.-based commercial manufacturing process for PCRX-201 and has begun a pilot efficacy study in canine osteoarthritis. In addition, Pacira plans to begin Phase II development later this year for PCRX-2002, a hydrogel formulation of ropivacaine intended to provide rapid-onset and long-acting postsurgical analgesia from a single instillation into the surgical field. Pacira lowered its full-year total revenue guidance to $735 million to $760 million from a previous range of $745 million to $770 million, reflecting the iovera° divestiture. The company maintained its EXPAREL net product sales outlook of $600 million to $620 million. The company reduced its full-year SG&A guidance to $310 million to $330 million, from $320 million to $340 million, and narrowed stock-based compensation guidance to $54 million to $59 million. Pacira reiterated guidance for non-GAAP gross margin of 77% to 79% and non-GAAP research and development expense of $105 million to $115 million. Pacira ended the quarter with $251 million in cash and investments, before the $70 million upfront payment from the Zimmer Biomet transaction. Cross said the company expects the fourth quarter to be its largest dollar contributor for EXPAREL sales, following historical seasonal patterns. Pacira BioSciences, Inc is a specialty pharmaceutical company focused on developing and commercializing non-opioid, non-addictive pain management and regenerative health solutions. The company's flagship product, EXPAREL, is a bupivacaine liposome injectable suspension designed to provide long-lasting postsurgical analgesia. EXPAREL is used by clinicians across a broad range of surgical procedures to reduce reliance on opioid medications and to help manage acute postoperative pain. In addition to its marketed offering, Pacira maintains an active pipeline of investigational products aimed at addressing unmet needs in pain management and inflammation control. This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to [email protected]. The article "Pacira BioSciences Q2 Earnings Call Highlights" was originally published by MarketBeat. View MarketBeat's top stocks for August 2026.

This article first appeared on GuruFocus. Total Revenue: $192.4 million, a 6% increase over the second quarter of 2025. EXPAREL Net Sales: $109.5 million, a 3% increase year-over-year. ZILRETTA Sales: $32.6 million, a 4% increase versus $31.3 million in 2025. iovera Sales: $6.8 million, a 21% increase compared to $5.6 million in the second quarter of 2025. Non-GAAP Gross Margin: 78% on a consolidated basis. Non-GAAP R&D Expense: $27.1 million, up from $24.7 million last year. Non-GAAP SG&A Expense: $81.3 million, versus $77.2 million last year. GAAP Net Income: $4.7 million, or $0.12 per basic diluted share. Adjusted EBITDA: Approximately $48.7 million. Cash and Investments: $251 million, to be enhanced by a $70 million upfront payment from the Zimmer transaction. Warning! GuruFocus has detected 8 Warning Signs with PCRX. Is PCRX fairly valued? Test your thesis with our free DCF calculator. Release Date: August 04, 2026 For the complete transcript of the earnings call, please refer to the full earnings call transcript. Pacira BioSciences Inc (NASDAQ:PCRX) delivered solid Q2 2026 financial results with total revenues of $192.4 million, a 6% increase year-over-year, and adjusted EBITDA of approximately $48.7 million. The company achieved a significant commercial milestone with UnitedHealthcare providing separate reimbursement for EXPAREL outside the surgical bundle, expanding access to over 150 million covered lives and potentially driving future adoption. Pacira BioSciences Inc (NASDAQ:PCRX) successfully completed the divestiture of iovera to Zimmer Biomet, receiving $70 million upfront with potential for an additional $70 million in milestones, sharpening its focus as an innovation-driven biopharmaceutical company. The pipeline is advancing with multiple catalysts expected by year-end, including top-line data from the Phase 3 ZILRETTA shoulder OA study, the iovera spasticity registrational study, and Part A of the PCRX-201 Phase 2 ASCENT study. The company established a scalable, commercially viable U.S.-based manufacturing process for PCRX-201, a key step toward potential commercialization, and received acceptance of a Phase 1 manuscript for publication in the Annals of the Rheumatic Diseases. Pacira BioSciences Inc (NASDAQ:PCRX) reported strong growth in its non-EXPAREL products, with ZILRETTA sales up 4% and iovera sales up 21% in Q2, driven by commercial investments and partnerships. The company maintains a strong balance sheet with $251 million in cash and investments, further enhanced by the $70 million upfront from the Zimmer transaction, positioning it well to fund its 5x30 growth strategy. Pacira BioSciences Inc (NASDAQ:PCRX) is expanding its partnership network, including LG Chem's regulatory filing for EXPAREL in South Korea, which is expected to generate revenue starting in 2027. The company's focus on outpatient settings and macro-resilient procedures is yielding results, with EXPAREL volumes outpacing the broader market in ASCs and hospital outpatient departments. Pacira BioSciences Inc (NASDAQ:PCRX) received a decisive shareholder vote supporting its 5x30 strategy and director nominees, indicating strong investor confidence in its direction. Pacira BioSciences Inc (NASDAQ:PCRX) experienced a slowdown in elective soft tissue procedures, particularly in the hospital inpatient setting, due to macroeconomic pressures, which impacted EXPAREL volume growth to 4% in Q2. The company's total revenue guidance for 2026 was reduced to $735-$760 million from $745-$770 million, reflecting the impact of the iovera divestiture and ongoing macro headwinds. EXPAREL net sales growth of 3% was partially offset by a shift in vial mix and discounting from the third GPO, which went live mid-2025, pressuring revenue growth relative to volume. Non-GAAP SG&A expenses increased to $81.3 million in Q2, driven by non-recurring costs related to the contested election of directors at the 2026 Annual Meeting, which could weigh on profitability. The company faces uncertainty regarding the renewal of the NOPAIN Act, which is set to expire at the end of 2027, with potential legislative and regulatory hurdles that could impact future CMS reimbursement for EXPAREL. Pacira BioSciences Inc (NASDAQ:PCRX) expects gross margins to be slightly below the full-year range in Q4 due to higher-cost inventory sales and shutdown-related costs, indicating potential margin pressure. The company's ZILRETTA guidance assumes the remainder of 2026 will be largely in line with 2025, suggesting limited near-term growth expectations despite recent quarterly performance. The iovera divestiture reduces the company's revenue base, and the $70 million upfront payment, while beneficial, may not fully offset the loss of future iovera sales and associated growth potential. The company's reliance on partnerships for ex-U.S. expansion, such as LG Chem, introduces execution risks and delays, with EXPAREL revenue from South Korea not expected until 2027. Pacira BioSciences Inc (NASDAQ:PCRX) faces ongoing macroeconomic headwinds that could continue to impact elective procedures, and the company did not provide specific guidance on whether a recovery is needed to meet its second-half EXPAREL targets. Q: On NOPAIN, is there risk of this expiring at the end of 2027? What are the logistics to renewing this, and is there any particular bill we should be focused on? Also, you reiterated EXPAREL guidance despite Q2 being a little soft. What is the driver of growth here, and do you still expect NOPAIN-driven volume acceleration in the second half? A: Frank Lee (CEO) and Anthony Molloy (Chief Legal Officer) addressed the NOPAIN Act, noting they are working on two paths: directly with CMS through its annual rulemaking cycle and with Congress, expecting it to be tacked onto a larger bill towards the end of next year rather than standalone legislation. Regarding guidance, Lee expressed optimism for the second half, citing increased penetration across all segments and noting that deferrable inpatient procedures tend to wax and wane with macroeconomic conditions. Brendan Teehan (Chief Commercial Officer) added that growth drivers include the rapidly growing ASC and hospital outpatient segments, the "payer tipping point" with UnitedHealthcare and other recent wins pushing covered lives beyond 150 million, and an expanding health economics evidence package. Q: Volume growth of 4% was a bit of a step down from prior quarters. Has the softness seen in Q2 continued into Q3? Now that you've divested iovera, does that change your appetite for BD and adding additional assets? A: Frank Lee (CEO) stated it's early days for Q3, but the company is seeing substantial outperformance in outpatient settings with commercial payer tailwinds. He noted the business is focused on macro-resilient procedure types. Regarding BD, Lee emphasized the team did a remarkable job maturing the Zimmer Biomet partnership into a divestiture, expressing confidence in Zimmer to maximize iovera's value globally. He reiterated that capital allocation remains thoughtful and focused on near-term accretive opportunities with calculated, risk-managed approaches to the pipeline. He added that the divestiture clarifies Pacira's focus as a pure pharmaceutical company, which should improve execution. Q: To achieve your implied second half guide for EXPAREL, what have you assumed about the macro headwinds? Do you need a recovery to meet that guide? Also, could you envision partnering in the U.S. with EXPAREL using a distributor model? A: Frank Lee (CEO) clarified that guidance is based on continued growth in macro-resilient areas like outpatient settings, not on a macro recovery. He highlighted substantial commercial payer wins directly applicable to those settings. On partnerships, Lee stated Pacira remains open-minded about cost-effective ways to reach customers, both in the U.S. and abroad. He cited the LG Chem partnership for ex-U.S. expansion, noting the recent regulatory filing in South Korea puts revenue on track for 2027. He confirmed that a U.S. partnership for EXPAREL is within the realm of possibility if it creates value for both organizations. Q: Can you expand on the ASC versus HOPD versus community hospital split in terms of volume growth? Are larger IDNs finally moving the needle, or is growth still concentrated in ASCs and community hospitals? A: Frank Lee (CEO) noted the company typically doesn't break out volume by site of care. Brendan Teehan (Chief Commercial Officer) provided context, explaining that hospital volumes are down generally, further impacted by deferred elective soft tissue procedures. However, EXPAREL volumes were significantly higher than overall hospital procedure volumes. In ASCs, where the total available market was modestly up, Pacira significantly outpaced the market. Teehan expressed confidence in capitalizing on the migration of procedures to outpatient settings, especially given the favorable reimbursement environment with payers like UnitedHealthcare. Q: Can you tighten the year-end timeline for the PCRX-201 Part A data? Will the data be disclosed at a medical meeting or as a standalone disclosure? A: Jonathan Slonin (Chief Medical Officer) confirmed the plan is to report top-line results from Part A of the Phase 2 ASCENT study at the end of the year. Part A is the first part of the two-part Phase 2 trial, powered for safety with a look at efficacy trends. He noted additional data sets will be reported throughout 2027. Frank Lee (CEO) added that this is one of three major catalysts expected in the second half, alongside the iovera spasticity registrational study data and the ZILRETTA shoulder OA Phase 3 data. Q: What is driving the confidence in the second half of 2026 for EXPAREL, given the macro dynamics and the recent payer wins? A: Brendan Teehan (Chief Commercial Officer) highlighted three key growth drivers: 1) The rapidly growing ASC and hospital outpatient segments, which are outpacing the broader hospital market. 2) The "payer tipping point," with UnitedHealthcare being a substantial addition and several other payers coming on board, pushing covered lives well beyond 150 million. 3) Penetration and share gains that are significantly outpacing the total available market. He also cited the expanding health economics and outcomes research data package demonstrating EXPAREL's value proposition. Q: Can you provide more detail on the financial impact of the iovera divestiture to Zimmer Biomet and the updated 2026 guidance? A: Shawn Cross (Chief Financial Officer) explained the updated guidance reflects the closing of the Zimmer transaction. Total revenue guidance was adjusted to $735-$760 million from $745-$770 million, SG&A to $310-$330 million from $320-$340 million, and stock-based compensation to $54-$59 million from $54-$62 million. He reiterated EXPAREL guidance of $600-$620 million and noted the balance sheet will be enhanced by the $70 million upfront payment from Zimmer. The company maintains a strong cash position of $251 million, further bolstered by this payment. Q: What are the expectations for gross margins and R&D expenses for the remainder of 2026? A: Shawn Cross (CFO) reiterated non-GAAP gross margin guidance of 77-79%. He noted Q3 should benefit from selling lower-cost EXPAREL inventory, while Q4 margins are expected to be slightly below the full-year range due to higher-cost inventory sales and shutdown-related costs. Non-GAAP R&D expense guidance remains at $105-$115 million, with an expected uptick in Q4 driven by the initiation of Part B of the PCRX-201 Phase 2 study and other product development efforts. Depreciation expense for 2026 is expected to be approximately $30 million. Q: How is the ZILRETTA performance trending, and what is the outlook for the remainder of For the complete transcript of the earnings call, please refer to the full earnings call transcript.

-- Continued execution of 5x30 strategy marked by solid revenue growth, durable cashflows, advancing pipeline, and high-caliber commercial partnerships -- -- Delivered second quarter total revenue of $192.4 million, representing 6 percent year-over-year growth -- -- Conference call today at 4:30 p.m. ET -- BRISBANE, Calif., Aug. 04, 2026 (GLOBE NEWSWIRE) -- Pacira BioSciences, Inc. (Nasdaq: PCRX), the industry leader in its commitment to deliver innovative, non-opioid pain therapies to transform the lives of patients, today reported financial results for the second quarter of 2026. “The first half of 2026 was marked by solid revenue growth and strong execution of our 5x30 strategy across the business,” said Frank D. Lee, chief executive officer of Pacira BioSciences. “Just 18 months into the initiative, we are delivering meaningful progress against each of our strategic objectives to drive long-term growth and create significant value. The quarter was also highlighted by our recently closed transaction with Zimmer Biomet, which positions iovera®° to reach its full global potential while preserving Pacira’s participation in its future success and further sharpening our focus as an innovation-driven biopharmaceutical company.” Second Quarter 2026 Financial Highlights Second quarter revenues of $192.4 million Second quarter GAAP net income of $4.7 million, or $0.12 per share (basic and diluted) Second quarter adjusted earnings before interest, taxes, depreciation and amortization (EBITDA) of $48.7 million Second quarter non-GAAP net income of $29.5 million, or $0.75 per share (basic) and $0.73 per share (diluted) See “Non-GAAP Financial Information” below. Recent Business Highlights Divestiture of iovera° Business to Zimmer Biomet. Pacira recently completed the divestiture of its iovera° business to Zimmer Biomet Holdings, Inc. (NYSE and SIX: ZBH), a global medical technology leader. Under the terms of the transaction, Pacira will receive up to $140 million with an upfront payment of $70 million, subject to customary adjustments, and potential future revenue-based milestone payments totaling up to an additional $70 million during the period up to and through December 31, 2031. The parties will collaborate on advancing the spasticity program with an opportunity for Pacira to receive incremental compensation assuming successful completion of the registrational study and subsequent regulatory approval. The transaction closed on July 31, 2026 and the Company received cash of $73.6 million, after purchase price adjustments. UnitedHealthcare Now Providing Separate Reimbursement for EXPAREL. UnitedHealthcare is now providing separate reimbursement for EXPAREL® (bupivacaine liposome injectable suspension) across outpatient settings, including hospital outpatient departments and ambulatory surgery centers. This update enables EXPAREL to be reimbursed outside of the surgical bundle for eligible UnitedHealthcare members, representing an additional step in expanding access to non-opioid postsurgical pain management options. With approximately 40 million covered lives, UnitedHealthcare is the largest health insurer in the United States. Advancement of PCRX-201 Development Program. PCRX-201 (enekinragene inzadenovec), our investigational, locally administered, gene therapy for osteoarthritis of the knee, has successfully transitioned to a scalable commercial manufacturing process intended to support future registrational development and commercialization. Following implementation of the new process and availability of clinical supply, enrollment is underway in Part B of the Phase 2 ASCEND study. Enrollment in Part A concluded in June, with topline data expected by the end of 2026. Leading Peer-Reviewed Rheumatology Journal to Publish Phase 1 Study of PCRX-201. Our Phase 1 study of PCRX-201 has been accepted for publication in the Annals of the Rheumatic Diseases journal in a paper entitled “Safety, Biodistribution, and Exploratory Clinical Outcomes of a Novel Intraarticular IL-1Ra Gene Therapy (PCRX-201) in Moderate-to-Severe Knee Osteoarthritis: 2-Year Results of a Phase 1 Study”. The lead author is Dr. Stanley Cohen, a leading rheumatologist and Clinical Professor at the University of Texas Southwestern Medical Center. Real-world Study Highlights Benefits of EXPAREL in TSA Procedures. Findings from a real-world study were presented at ISPOR 2026. ISPOR is recognized as the global leader in the field of health economics and outcomes research excellence. The study evaluated outcomes associated with the use of EXPAREL following outpatient total shoulder arthroplasty (TSA) in Medicare Advantage patients. Findings showed lower opioid consumption, reduced healthcare costs, and fewer opioid-related adverse events associated with EXPAREL use. The retrospective analysis assessed more than 6,400 opioid-naïve Medicare Advantage patients undergoing outpatient TSA and compared outcomes between those receiving EXPAREL and those receiving standard-of-care analgesia. Second Quarter 2026 Financial Results Total revenues were $192.4 million in the second quarter of 2026, a 6 percent increase over the $181.1 million reported for the second quarter of 2025. EXPAREL net product sales were $147.8 million in the second quarter of 2026, a 3 percent increase over the $142.9 million reported for the second quarter of 2025. Second quarter volume growth of 4 percent was partially offset by a shift in vial mix and the expansion of discount contracting programs related to group purchasing organizations (GPOs). ZILRETTA® (triamcinolone acetonide extended-release injectable suspension) net product sales were $32.6 million in the second quarter of 2026, a 4 percent increase over the $31.3 million reported for the second quarter of 2025. Second quarter 2026 iovera° net product sales were $6.8 million, a 22 percent increase over the $5.6 million reported for the second quarter of 2025. Sales of bupivacaine liposome injectable suspension to third-party licensees were $3.2 million in the second quarter of 2026, versus the $0.5 million reported for the second quarter of 2025. Total operating expenses were $188.1 million in the second quarter of 2026, compared to $172.6 million in the second quarter of 2025. Research and development (R&D) expenses were $30.2 million in the second quarter of 2026, compared to $28.2 million in the second quarter of 2025. Selling, general and administrative (SG&A) expenses were $91.8 million in the second quarter of 2026, compared to $88.6 million in the second quarter of 2025. GAAP net income was $4.7 million, or $0.12 per share (basic and diluted) in the second quarter of 2026, compared to a $4.8 million net loss, or $0.11 per share (basic and diluted) in the second quarter of 2025. Non-GAAP net income was $29.5 million, or $0.75 per share (basic) and $0.73 per share (diluted) in the second quarter of 2026, compared to $36.0 million, or $0.79 per share (basic) and $0.74 per share (diluted), in the second quarter of 2025. Adjusted EBITDA was $48.7 million in the second quarter of 2026, compared to $54.3 million in the second quarter of 2025. Pacira ended the second quarter of 2026 with cash, cash equivalents and available-for-sale investments (“cash”) of $251.0 million. Pacira had 40.3 million and 45.5 million diluted weighted average shares of common stock outstanding in the second quarters of 2026 and 2025, respectively. For non-GAAP measures, Pacira had 40.3 million and 49.0 million diluted weighted average shares of common stock outstanding for the second quarters of 2026 and 2025, respectively. See “Non-GAAP Financial Information” below. 2026 Financial Guidance Today the company is updating its full-year 2026 guidance to adjust for the recently completed divestiture of iovera° to Zimmer Biomet as follows: Total revenue of $735 million to $760 million versus the previously guided range of $745 million to $770 million(1); Non-GAAP SG&A expense of $310 million to $330 million versus the previously guided range of $320 million to $340 million; and Stock-based compensation of $54 million to $59 million versus the previously guided range of $54 million to $62 million. The company is reiterating its remaining full-year 2026 guidance as follows: EXPAREL net product sales of $600 million to $620 million; Non-GAAP gross margin of 77 percent to 79 percent; and Non-GAAP R&D expense of $105 million to $115 million. (1) Total revenue reflects the contribution of iovera° net product sales through July 31, 2026, the closing date of the transaction with Zimmer Biomet. 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, Tuesday, August 4, 2026, at 4:30 p.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. 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 cost of goods sold, non-GAAP gross margin, non-GAAP R&D expense, non-GAAP SG&A expense, non-GAAP net income, non-GAAP net income per common share, non-GAAP weighted average diluted common shares outstanding, EBITDA (earnings before interest, taxes, depreciation and amortization) and adjusted EBITDA, because these non-GAAP financial measures exclude the impact of items that management believes affect comparability or underlying business trends. 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 margin, R&D expense and SG&A expense outlook for 2026 and to help make managerial decisions. In management’s opinion, these non-GAAP measures are useful to investors and other users of the company’s financial statements by providing greater transparency into the ongoing operating performance of 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. The non-GAAP measures presented here 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. About Pacira Pacira delivers innovative, non-opioid pain therapies to transform the lives of patients. Pacira has two commercial-stage non-opioid treatments: EXPAREL® (bupivacaine liposome injectable suspension), a long-acting local analgesic currently approved for infiltration, fascial plane block, and as an interscalene brachial plexus nerve block, an adductor canal nerve block, and a sciatic nerve block in the popliteal fossa for postsurgical pain management and ZILRETTA® (triamcinolone acetonide extended-release injectable suspension), an extended-release, intra-articular injection indicated for the management of osteoarthritis knee pain. The company is also advancing a pipeline of clinical-stage assets for musculoskeletal pain and adjacencies. Its most advanced product candidate, PCRX-201 (enekinragene inzadenovec), is a novel, locally administered gene therapy in Phase 2 clinical development for osteoarthritis of the knee. To learn more about Pacira, visit www.pacira.com. About EXPAREL® (bupivacaine liposome injectable suspension) EXPAREL is indicated to produce postsurgical local analgesia via infiltration in patients aged 6 years and older, and postsurgical regional analgesia via an interscalene brachial plexus block in adults, a sciatic nerve block in the popliteal fossa in adults, and an adductor canal block in adults. The safety and effectiveness of EXPAREL have not been established to produce postsurgical regional analgesia via other nerve blocks besides an interscalene brachial plexus nerve block, a sciatic nerve block in the popliteal fossa, or an adductor canal block. The product combines bupivacaine with multivesicular liposomes, 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 multivesicular liposome 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 about EXPAREL for Patients EXPAREL should not be used in obstetrical paracervical block anesthesia. In studies in adults where EXPAREL was injected into a wound, the most common side effects were nausea, constipation, and vomiting. In studies in adults where EXPAREL was injected near a nerve, the most common side effects were nausea, fever, and constipation. In the study where EXPAREL was given to children, the most common side effects were nausea, vomiting, constipation, low blood pressure, low number of red blood cells, muscle twitching, blurred vision, itching, and rapid heartbeat. EXPAREL can cause a temporary loss of feeling and/or loss of muscle movement. How much and how long the loss of feeling and/or muscle movement depends on where and how much of EXPAREL was injected and may last for up to 5 days. EXPAREL is not recommended to be used in patients younger than 6 years old for injection into the wound, for patients younger than 18 years old, for injection near a nerve, and/or in pregnant women. Tell your health care provider if you or your child has liver disease, since this may affect how the active ingredient (bupivacaine) in EXPAREL is eliminated from the body. EXPAREL should not be injected into the spine, joints, or veins. The active ingredient in EXPAREL can affect the nervous system and the cardiovascular system; may cause an allergic reaction; may cause damage if injected into the joints; and can cause a rare blood disorder. About ZILRETTA® (triamcinolone acetonide extended-release injectable suspension) On October 6, 2017, ZILRETTA was approved by the U.S. Food and Drug Administration as the first and only extended-release intra-articular therapy for patients confronting osteoarthritis (OA)-related knee pain. ZILRETTA employs proprietary microsphere technology combining triamcinolone acetonide—a commonly administered, short-acting corticosteroid—with a poly lactic-co-glycolic acid (PLGA) matrix to provide extended pain relief. The pivotal Phase 3 trial on which the approval of ZILRETTA was based showed that ZILRETTA significantly reduced OA knee pain for 12 weeks, with some people experiencing pain relief through Week 16. Learn more at www.zilretta.com. Indication and Select Important Safety Information for ZILRETTA Indication: ZILRETTA is indicated as an intra-articular injection for the management of OA pain of the knee. Limitation of Use: The efficacy and safety of repeat administration of ZILRETTA have not been demonstrated. Contraindication: ZILRETTA is contraindicated in patients who are hypersensitive to triamcinolone acetonide, corticosteroids or any components of the product. Warnings and Precautions: Intra-articular Use Only: ZILRETTA has not been evaluated and should not be administered by epidural, intrathecal, intravenous, intraocular, intramuscular, intradermal, or subcutaneous routes. ZILRETTA should not be considered safe for epidural or intrathecal administration. Serious Neurologic Adverse Reactions with Epidural and Intrathecal Administration: Serious neurologic events have been reported following epidural or intrathecal corticosteroid administration. Corticosteroids are not approved for this use. Hypersensitivity reactions: Serious reactions have been reported with triamcinolone acetonide injection. Institute appropriate care if an anaphylactic reaction occurs. Joint infection and damage: A marked increase in joint pain, joint swelling, restricted motion, fever and malaise may suggest septic arthritis. If this occurs, conduct appropriate evaluation and if confirmed, institute appropriate antimicrobial treatment. Adverse Reactions: The most commonly reported adverse reactions (incidence ≥1%) in clinical studies included sinusitis, cough, and contusions. Please see ZILRETTALabel.com for full Prescribing Information. About iovera®° The iovera° system uses the body’s natural response to cold to treat peripheral nerves and immediately reduce pain without the use of drugs. Treated nerves are temporarily stopped from sending pain signals for a period of time, followed by a restoration of function. Treatment with iovera° works by applying targeted cold to a peripheral nerve. A precise cold zone is formed under the skin that is cold enough to immediately prevent the nerve from sending pain signals without causing damage to surrounding structures. The effect on the nerve is temporary, providing pain relief until the nerve regenerates and function is restored. Treatment with iovera° does not include injection of any substance, opioid, or any other drug. The effect is immediate and can last up to 90 days. The iovera° system is not indicated for treatment of central nervous system tissue. Additional information is available at www.iovera.com. Indication and Select Important Safety Information for iovera° Indication: iovera° applies freezing cold to peripheral nerve tissue to block and/or relieve pain for up to 90 days. It should not be used to treat central nervous system tissue. Important Safety Information Do not receive treatment with iovera° if you experience hypersensitivity to cold or have open and/or infected wounds near the treatment site. You may experience bruising, swelling, inflammation and/or redness, local pain and/or tenderness, and altered feeling at the site of application. In treatment area(s), you may experience damage to the skin, skin darkening or lightening, and dimples in the skin. You may experience a temporary loss of your ability to use your muscles normally outside of the treatment area. Talk to your doctor before receiving treatment with iovera°. About PCRX-201 (enekinragene inzadenovec) PCRX-201 (enekinragene inzadenovec) features an innovative design based on the company’s proprietary high-capacity adenovirus vector platform. It is currently being studied in the fundamental, underlying chronic inflammatory processes that contribute to “wear and tear” over time in osteoarthritis of the knee, a condition that affects more than 14 million individuals in the U.S. today. In November 2024, Pacira reported promising data from a large Phase 1 study in which PCRX-201 provided sustained improvements in knee pain, stiffness, and function through two years following local administration, with a well-tolerated safety profile. PCRX-201 has received Regenerative Medicine Advanced Therapy (RMAT) designation from the U.S. Food and Drug Administration and Advanced Therapy Medicinal Products (ATMP) designation from the European Medicines Agency. PCRX-201 is the first gene therapy to achieve these clinical results and earn these regulatory designations in osteoarthritis of the knee—a testament to its promise and potential. Given the promising Phase 1 results, dosing is underway in a Phase 2 study of PCRX-201 (the ASCEND study) for the treatment of knee osteoarthritis. To learn more about PCRX-201 and the company’s clinical development program, please visit the investor events section of the company’s investor website. About the High-capacity Adenovirus Vector Platform In February 2025, in support of the company’s ‘5x30’ growth strategy, Pacira acquired GQ Bio Therapeutics GmbH (GQ Bio) and its novel high-capacity adenovirus (HCAd) gene therapy vector platform. This platform solves many of the challenges in the field of gene therapy that have prevented its utilization in treating common diseases, such as osteoarthritis. Key features include: The HCAd vector is much more efficient at delivering genes into cells compared to many other gene therapies that rely on adenovirus associated virus, or AAV, vectors. As a result, the desired effect can be achieved with much smaller doses. The vector used in the HCAd platform can carry up to 30,000 base pairs of DNA, which enables gene therapy with multiple or larger genes compared to AAV vectors. Genetic medicines based on the HCAd platform can be administered locally and have the potential for redosing at therapeutically appropriate intervals. Lower dose levels and efficient delivery of genes into cells means that thousands of doses can be produced in a single batch. As a result, therapies built on the HCAd platform are expected to have a commercially attractive and viable cost of goods profile. Beyond PCRX-201 and other product candidates in preclinical development, the company has identified numerous well-validated cytokines that could also be the basis for locally administered genetic therapies using the HCAd platform. Forward-Looking Statements Any statements in this press release about Pacira’s future expectations, plans, trends, outlook, projections and prospects, and other statements containing the words “anticipate,” “believe,” “can,” “could,” “estimate,” “expect,” “intend,” “may,” “plan,” “project,” “should,” “will,” “would,” and similar expressions, constitute forward-looking statements within the meaning of Section 21E of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), and the Private Securities Litigation Reform Act of 1995, including, without limitation, statements related to: the ability to realize the anticipated benefits of the divestiture of iovera®°; '5x30', our growth and business strategy, our future outlook, the strength and efficacy of our intellectual property protection and patent terms, our future growth potential and future financial and operating results and trends, our plans, objectives, expectations (financial or otherwise) and intentions, including our plans with respect to the repayment of our indebtedness, anticipated product portfolio and product development programs, strategic alliances, plans with respect to the Non-Opioids Prevent Addiction in the Nation (“NOPAIN”) Act, and any other statements that are not historical facts. For this purpose, any statement that is not a statement of historical fact should be considered a forward-looking statement. We cannot assure you that our estimates, assumptions and expectations will prove to have been correct. Actual results may differ materially from these indicated by such forward-looking statements as a result of various important factors, including risks relating to, among others: risks associated with acquisitions, such as the risk that the acquired businesses and/or assets will not be integrated successfully, that such integration may be more difficult, time-consuming or costly than expected or that the expected benefits of the transaction will not occur; risks associated with divestitures; our manufacturing and supply chain, global and United States economic conditions (including tariffs, inflation and rising interest rates), and our business, including our revenues, financial condition, cash flows and results of operations; the success of our sales and manufacturing efforts in support of the commercialization of EXPAREL and ZILRETTA; the rate and degree of market acceptance of EXPAREL and ZILRETTA; the size and growth of the potential markets for EXPAREL and ZILRETTA and our ability to serve those markets; our plans to expand the use of EXPAREL and ZILRETTA to additional indications and opportunities, and the timing and success of any related clinical trials for EXPAREL, ZILRETTA and any of our other product candidates, including, but not limited to, PCRX-201 and PCRX-2002; the commercial success of EXPAREL and ZILRETTA; the related timing and success of United States Food and Drug Administration supplemental New Drug Applications and premarket notification 510(k)s; the related timing and success of European Medicines Agency Marketing Authorization Applications; our plans to evaluate, develop and pursue additional product candidates utilizing our proprietary high-capacity adenovirus (“HCAd”) vector platform; the approval of the commercialization of our products in other jurisdictions (by either us or our partners); clinical trials in support of an existing or potential HCAd-based product candidate; our commercialization and marketing capabilities; our ability to successfully complete capital projects; the outcome of any litigation; the recoverability of our deferred tax assets; assumptions associated with contingent consideration payments; assumptions used for estimated future cash flows associated with determining the fair value of the Company; the anticipated funding or benefits of our share repurchase program; and factors discussed in the “Risk Factors” of our most recent Annual Report on Form 10-K and in other filings that we periodically make with the Securities and Exchange Commission (the “SEC”). In addition, the forward-looking statements included in this press release represent our 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 we anticipate that subsequent events and developments will cause our views to change. Except as required by applicable law, we undertake no intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, and readers should not rely on these forward-looking statements as representing our views as of any date subsequent to the date of this press release. These forward-looking statements involve known and unknown risks, uncertainties and other factors that may cause our actual results, levels of activity, performance or achievements to differ materially from those expressed or implied by these statements. These factors include the matters discussed and referenced in the “Risk Factors” of our most recent Annual Report on Form 10-K and in other filings that we periodically make with the SEC. (1) In June 2026, we entered into a Stock and Asset Purchase Agreement with Zimmer, Inc., a subsidiary of Zimmer Biomet Holdings, Inc. to divest iovera°. The transaction closed on July 31, 2026, after which, we will no longer recognize revenue associated with iovera°. Descriptions of the other adjustments are noted above in the reconciliation of GAAP to Non-GAAP financial information. (1) Includes amortization of debt discount and debt issuance costs. (2) Excludes $5.5 million of accelerated depreciation expense on fixed assets associated with the decommissioned 45-liter EXPAREL batch manufacturing suite, which is included in EBITDA above. (1) In June 2026, we entered into a Stock and Asset Purchase Agreement with Zimmer, Inc., a subsidiary of Zimmer Biomet Holdings, Inc. to divest iovera°. The transaction closed on July 31, 2026, and total revenues reflect the contribution of iovera° net product sales through the closing date of the transaction and exclude any net product sales of iovera° thereafter. (1) The full-year impact of GAAP to Non-GAAP adjustments primarily relates to stock-based compensation, as well as employee transaction bonuses payable by Zimmer Biomet related to the divestiture of iovera°.(2) Full-year guidance excludes the transaction costs and potential impact of any acquisitions or business development transactions that have not been completed. Our long-term targets for any of the measures noted above are also non-GAAP financial measures that exclude or otherwise have been adjusted for non-GAAP adjustment items from our U.S. GAAP consolidated financial statements. When we provide long-term targets for any of the non-GAAP metrics described above, we do not provide reconciliations of the U.S. GAAP measures as we are unable to predict with a reasonable degree of certainty the actual impact of the non-GAAP adjustment items. By their very nature, non-GAAP adjustment items are difficult to anticipate with precision because they are generally associated with unexpected and unplanned events that impact us and our financial results. Therefore, we are unable to provide a reconciliation of these measures without unreasonable efforts. CONTACT: Investor Contact: Susan Mesco, (973) 451-4030 [email protected] Media Contact: Sara Marino, (973) 370-5430 [email protected]

Pacira (PCRX) came out with quarterly earnings of $0.73 per share, beating the Zacks Consensus Estimate of $0.64 per share. This compares to earnings of $0.74 per share a year ago. These figures are adjusted for non-recurring items. This quarterly report represents an earnings surprise of +14.06%. A quarter ago, it was expected that this specialty drugmaker would post earnings of $0.61 per share when it actually produced earnings of $0.6, delivering a surprise of -1.64%. Over the last four quarters, the company has surpassed consensus EPS estimates two times. Pacira, which belongs to the Zacks Medical - Biomedical and Genetics industry, posted revenues of $192.4 million for the quarter ended June 2026, surpassing the Zacks Consensus Estimate by 1.01%. This compares to year-ago revenues of $181.1 million. The company has topped consensus revenue estimates two times over the last four quarters. The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earnings call. Pacira shares have added about 4% since the beginning of the year versus the S&P 500's gain of 11%. While Pacira has underperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock? There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately. Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions. Ahead of this earnings release, the estimate revisions trend for Pacira was mixed. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #3 (Hold) for the stock. So, the shares are expected to perform in line with the market in the near future. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here. It will be interesting to see how estimates for the coming quarters and the current fiscal year change in the days ahead. The current consensus EPS estimate is $0.80 on $190.57 million in revenues for the coming quarter and $2.83 on $767.68 million in revenues for the current fiscal year. Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, Medical - Biomedical and Genetics is currently in the top 42% of the 250 plus Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1. One other stock from the same industry, MeiraGTx Holdings PLC (MGTX), is yet to report results for the quarter ended June 2026. This company is expected to post quarterly loss of $0.39 per share in its upcoming report, which represents a year-over-year change of +18.8%. The consensus EPS estimate for the quarter has been revised 2% higher over the last 30 days to the current level. MeiraGTx Holdings PLC's revenues are expected to be $1.55 million, down 58% from the year-ago quarter. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Pacira BioSciences, Inc. (PCRX) : Free Stock Analysis Report MeiraGTx Holdings PLC (MGTX) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research