Pacira ((PCRX)) has held its Q3 earnings call. Read on for the main highlights of the call.
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Pacira BioSciences’ recent earnings call conveyed a generally positive sentiment, highlighting robust revenue growth and improved manufacturing efficiencies. The company also shared exciting developments in its clinical pipeline. However, the call was not without its challenges, as slower-than-expected sales growth for Zilretta and pricing impacts from new GPO agreements were noted. Additionally, the growth in the elective procedure market was described as sluggish.
Revenue Growth
Pacira reported a 6% year-over-year increase in revenues, driven by strong performances from its products EXPAREL and iovera. Notably, EXPAREL demand surged with a 9% increase in year-over-year volumes, marking the highest quarterly growth in over three years.
Manufacturing and Gross Margin
The company achieved improved manufacturing efficiencies and gross margins, which supported an increase in full-year guidance. Non-GAAP gross margins rose to 82% in the third quarter, up from 78% the previous year.
Pipeline Expansion
Pacira’s clinical pipeline saw significant expansion with the in-licensing of AMT-143, a novel long-acting formulation of bupivacaine. Progress was also reported in the Phase II study of PCRX-201 for osteoarthritis of the knee.
Market Access and Coverage
The company is on track to exceed its full-year goal of 100 million covered lives across commercial and government payers. Currently, approximately 60 million commercial lives have access to EXPAREL via separate reimbursement.
Cash Flow and Shareholder Returns
Pacira’s strong operating cash flow and balance sheet have enabled investments in new growth initiatives. The company executed an additional $50 million in share repurchases during the quarter, reflecting its commitment to shareholder returns.
Zilretta Sales
Sales of Zilretta were slower than anticipated, with only a slight increase to $29.0 million from $28.4 million in 2024, indicating a need for strategic adjustments.
GPO Discount Impact
The third GPO agreement resulted in a higher-than-expected single-digit year-over-year impact on net selling prices, affecting the company’s pricing strategy.
Elective Procedure Market
The elective procedure market experienced sluggish growth in the first half of the year. Although there were modest improvements in the third quarter, the growth was not substantial.
Forward-Looking Guidance
Looking ahead, Pacira provided guidance for full-year revenues, narrowing the range to $725 million to $735 million. The company emphasized its strategic initiatives, including the in-licensing of AMT-143 and robust patent protection, positioning itself to advance its 5×30 growth strategy, aiming for a five-year double-digit compound annual growth rate (CAGR) for revenue.
In summary, Pacira BioSciences’ earnings call reflected a positive outlook with strong revenue growth and strategic advancements, despite facing some challenges. The company’s commitment to innovation and shareholder returns, coupled with its strategic initiatives, positions it well for future growth.