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PCRX | January 15, 2025 JP Morgan 43rd Annual Healthcare Conference Frank D. Lee Chief Executive Officer
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2Better is possible. Forward-looking statements and where to find additional information Any statements in this presentation about Pacira’s future expectations, plans, trends, outlook, projections and prospects, and other statements containing the words “believes,” “anticipates,” “plans,” “estimates,” “expects,” “intends,” “may,” “will,” “would,” “could,” “can” 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 ‘5x30’, our growth and business strategy, our future outlook, contributions of new executives, our intellectual property and patent terms, our future operating results and trends, our strategy, plans, objectives, expectations (financial or otherwise) and intentions, future financial results and growth potential, including our plans with respect to the repayment of our indebtedness, anticipated product portfolio, development programs, development of products, strategic alliances, plans with respect to the Non- Opioids Prevent Addiction in the Nation (“NOPAIN”) Act and 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 those 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 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; our manufacturing and supply chain, global and U.S. economic conditions (including inflation and rising interest rates), and our business, including our revenues, financial condition, cash flow and results of operations; the success of our sales and manufacturing efforts in support of the commercialization of EXPAREL, ZILRETTA and iovera°; the rate and degree of market acceptance of EXPAREL, ZILRETTA and iovera°; the size and growth of the potential markets for EXPAREL, ZILRETTA and iovera° and our ability to serve those markets; our plans to expand the use of EXPAREL, ZILRETTA and iovera° to additional indications and opportunities, and the timing and success of any related clinical trials for EXPAREL, ZILRETTA and iovera°; the commercial success of EXPAREL, ZILRETTA and iovera°; the related timing and success of U.S. 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 multivesicular liposome (“pMVL”) drug delivery technology; the approval of the commercialization of our products in other jurisdictions; clinical trials in support of an existing or potential pMVL-based product; our commercialization and marketing capabilities; our ability to successfully complete capital projects; the outcome of any litigation; the ability to successfully integrate any future acquisitions into our existing business; 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 presentation represent our views as of the date of this presentation. These forward-looking statements involve known and unknown risks, uncertainties and other important factors that 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 presentation.
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3Better is possible. When a patient is in pain, their world gets smaller. Our goal is to remove the constraints that pain imposes. 3
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4Better is possible. MISSION We deliver innovative, non-opioid pain therapies to transform the lives of patients. Frank D. Lee Chief Executive Officer & Director
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5Better is possible. Strong execution in 2024 has set the foundation for sustainable success in 2025 and beyond Achieved FY2024 revenue guidance Established commercial, medical & market access powerhouse Secured EXPAREL & ioveraº reimbursement under NOPAIN Obtained FDA RMAT designation for PCRX-201 & presented compelling 2-year data from robust Phase 1 study Abbreviations: FY, full-year; FDA, Food and Drug Administration; RMAT, Regenerative Medicine Advanced Therapy.
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6Better is possible. We enter 2025 with a clear corporate mission, guiding principles, values… GUIDING PRINCIPLES VALUES • Every day, we are determined to achieve the extraordinary • Integrity is the foundation of who we are • We respect diverse talent and the collective power of a unified team 6 “
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7Better is possible. …a disciplined growth- oriented plan, and a commercial, medical and market access powerhouse. Frank D. Lee Chief Executive Officer & Director “ More than 3 million patients treated per year Double-digit compounded annual growth rate 5-percentage point gross margin improvement over 2024 Clinical pipeline expansion with 5 novel programs in development Partnerships: Establishing 5 partnerships including pipeline and commercial agreements ACCELERATING GROWTH IN BASE BUSINESS ADVANCING PIPELINE VALUE 7 path to growth & value creation
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8Better is possible. path to growth & value creation 8 More than 3 million patients treated per year Double-digit compounded annual growth rate 5-percentage point gross margin improvement over 2024 Clinical pipeline expansion with 5 novel programs in development Partnerships: Establishing 5 partnerships including pipeline and commercial agreements ACCELERATING GROWTH IN BASE BUSINESS ADVANCING PIPELINE VALUE
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9Better is possible. Best-in-class non-opioid commercial portfolio addressing significant unmet needs 1FY2023 IQVIA Market Procedural Data; IQVIA EXPAREL Utilization Data Triangulated With Pacira Internal Sales Data. 2FY2023 IQVIA Market Procedural Data; ZILRETTA SOB (Source of Business) Utilization Data Triangulated With Pacira Internal Sales Data. 3FY2023 IQVIA Market Procedural Data; Spasticity Patient Model; Secondary Market Research; Pacira Internal Sales Utilization Data. Abbreviations: IA, intra-articular. EXPAREL ZILRETTA ioveraº The market’s leading long-acting, local analgesic for postsurgical pain The only FDA-approved extended-release IA injection for 3 months of OA knee pain The only novel, handheld device for immediate, long-lasting, drug-free pain control using advanced cold technology Orthopedics General Surgery Women’s Health Cardiothoracic OMFS IA Injection (Knee) IA Injection (Shoulder) Foot & Ankle Spasticity Knee Arthroplasty Spine Chronic Severe OA Pain Lower Back Pain Rib Fracture (Intercostal) Product Penetration Market Procedures 1 2 3
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10Better is possible. NOPAIN: Expected to significantly expand access to EXPAREL and iovera° by overcoming flaws in bundled payments Flaws of bundled payments for surgical procedures • Impedes patient and provider access to best-practice pain management by incentivizing the use of cheaper, generic approaches that often incorporate opioids • Separate reimbursement at ASP+6% eliminates the cost barriers Patient-centric legislative solution • Founding of Voices for Non-Opioid Choices–a non- partisan coalition dedicated to preventing addiction before it starts by improving access to non-opioid options for acute pain • NOPAIN Act signed into law in 2023 Reimbursement pathway for 18M surgical procedures in HOPD and ambulatory settings1 6M CMS 12M Commercial HOPD ASC 1FY2023 IQVIA Market Procedural Data. +
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11Better is possible. Strong base business with significant growth potential 1See non-GAAP disclosure in appendix for reconciliation to GAAP. 2Pacira began recognizing ZILRETTA sales upon completing its acquisition of Flexion in November 2021. 3Pacira began recognizing sales of iovera° in April 2019 after completing its acquisition of MyoScience, Inc. 4Preliminary and unaudited. Abbreviations: CAGR, compouned annual growth rate; HCP, healthcare practioner. $0 $100 $200 $300 $400 $500 $600 $700 2019 2020 2021 2022 2023 2024 $ in M ioverao • NOPAIN reimbursement • New C-code • Medial Branch (New Smart Tip for low-back pain) • Spasticity registration study ZILRETTA • Targeted HCP and patient campaigns • Shoulder OA registration study EXPAREL • NOPAIN reimbursement • New J-code • GPO partnerships • Targeted patient education Product revenues and adjusted EBITDA 4 EXPAREL ZILRETTA2 ioverao3 Adj. EBITDA1 Bars not to scale, for illustrative purposes only
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12Better is possible. 12 More than 3 million patients treated per year Double-digit compounded annual growth rate 5-percentage point gross margin improvement over 2024 Clinical pipeline expansion with 5 novel programs in development Partnerships: Establishing 5 partnerships including pipeline and commercial agreements ACCELERATING GROWTH IN BASE BUSINESS ADVANCING PIPELINE VALUE path to growth & value creation
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13Better is possible. Uniquely positioned to deliver better outcomes across the patient journey 1Potential duration as product is not FDA approved. Abbreviations: OA, osteoarthritis. Enekinragene inzadenovec (PCRX-201) Innovative Pipeline Commercial Base Days Weeks Months Years1
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14Better is possible. Product Target 2025 2026 2027+ Innovative Pipeline PCRX-201 Knee OA Commercial Base Pediatric 0 to <6 Intrathecal Shoulder OA Spasticity New SmartTip for Medial Branch Block (low back pain) Key data catalysts expected to begin in 2026 PK/Safety Clinical Trial Phase 1 Clinical Trial Registration Clinical Trial Registration Clinical Trial 2026: Phase 3 topline 2026: Phase 3 topline 1Q25: Commercial launch Abbreviations: PK, pharmacokinetics. Phase 2 Clinical Trial: Part A Phase 2 Clinical Trial: Part B 2026: Phase 2 topline
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15Better is possible. Unprecedented pain relief and durability across all levels of disease severity for at least 2 years from a single injection Enekinragene inzadenovec (PCRX-201) has the potential to transform osteoarthritis (OA) treatment FDA-approved drugs successfully target the IL-1 pathway in inflammatory joint diseases Existing drugs that target IL-1 not practical in OA due to high and frequent dosing regimens Robust Phase 1 trial with 72 adult patients aged 30 to 80 with moderate to severe OA First therapy to achieve these results and only one to earn FDA RMAT designation in osteoarthritis A first-of-its-kind, locally-administered gene therapy for the treatment of common diseases like OA Localized administration and low dosing results in thousands of doses produced in a single batch
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16Better is possible. Osteoarthritis: A serious disease of significant and growing economic burden that is starved for innovation 1Orthobiologic approaches are not FDA approved. 2www.multivu.com/players/English/9104351-pacira-iovera-knee-pain-survey. Abbreviations: CS, Corticosteroids; D, day; HA, hyaluronic acids; IA, intra articular; M, month; NSAID, nonsteroidal anti-inflammatory drug; TKA, total knee arthroplasty; Y, year. Patients suffering from knee OA say it impacts2 Treatment Established durability Potential durability D0 3M 6M 9M 1Y Platelet-rich Plasma1,2 Injectable CS2 Injectable HA 2
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17Better is possible. PCRX-201 is locally administered to boost IL-1Ra production by the joint cells in the knee in response to inflammation Abbreviations: IL-1R, IL-1 receptor 17
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18Better is possible. >70% of patients saw a >50% improvement in pain and stiffness vs. baseline at week 16 and 78 1Data from steroid pretreated cohort. 2Review of available literature shows ~1.0-2.5-point reduction in WOMAC scale attributable to placebo effect. Most studies go out to 12-24 weeks; very limited data available at 12-24 months. Abbreviations: AE, adverse event; GC, genome copies; WOMAC, Western Ontario and McMaster Universities Osteoarthritis Index; ACR, American College of Rheumatology. WOMAC Pain1 WOMAC Stiffness1 WOMAC Improvement Sample size, N=36 Low 13 12 11 11 8 7 7 6 6 Mid 15 14 12 13 13 12 9 9 8 High 8 8 7 8 6 6 5 5 5 13 12 11 11 8 7 7 6 6 15 14 12 13 13 12 9 9 8 8 8 7 8 6 6 5 5 5 • 72 adult patients aged 30 to 80 with moderate to severe OA • Two three-dose cohorts: co-administered intra-articular steroid cohort and a cohort that did not receive a steroid – Doses: 1.4×1010 GC (low); 1.4×1011 GC (mid); 1.4×1012 GC (high) – Well tolerated with most common AE dose-dependent, transient knee effusion • 104-week data presented at ACR 2024 – Unprecedented pain relief and durability across all levels of disease severity for at least 2 years from a single injection – Greatest efficacy in co-administered steroid group – Well tolerated with most common AE dose-dependent, transient knee effusion Data presented at ACR 2024 (Cohen et. al.): Literature placebo response range2 Literature placebo response range2
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19Better is possible. PCRX-201 has the potential to be a pipeline within a product PCRX-201 in OA PCRX-201 Adjacencies Musculoskeletal Expansion Beyond Musculoskeletal
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20Better is possible. Disciplined capital allocation strategy to drive shareholder value 1As of 9/30/2024. Abbreviations: MOA, mechanism of action. • Established commercial, medical & market access powerhouse • Life cycle management programs in areas of high unmet need with favorable return on invested capital • Educating patients and providers • Therapeutic area focus on musculoskeletal pain and adjacencies – Large market, high unmet need and lacking innovation to date • Prioritize mid-to-late-stage/derisked opportunities with validated MOAs and established reimbursement pathway • PCRX-201 for Knee OA and adjacencies • Convertible notes maturing in 2025 and 2029, total of $480M1 – Strong cash balance and significant cash flow generation provides optionality for upcoming debt maturities • Resourcefully leverage debt financing (Term Loan A, total of $108M1) • Investment in growth with disciplined return of capital to shareholders – $125mm available on share repurchase plan
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21Better is possible. We are transitioning into an innovative biopharmaceutical organization and intend to become the therapeutic area leader in musculoskeletal pain and adjacencies 21 path to long-term value creation More than 3 million patients treated per year Double-digit compounded annual growth rate 5-percentage point gross margin improvement over 2024 Clinical pipeline expansion with 5 novel programs in development Partnerships: Establishing 5 partnerships including pipeline and commercial agreements ACCELERATING GROWTH IN BASE BUSINESS ADVANCING PIPELINE VALUE
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Website Investor-toolkit Social: X Social: LinkedIn Website Investor-toolkit Social: X Social: LinkedIn Investor Contact: investor@pacira.com
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23Better is possible. APPENDIX
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24Better is possible. Seasoned executive leadership team CEO Forma Therapeutics 13+ years Genentech/Roche 13+ years Novartis/Janssen/Lilly Frank D. Lee Chief Executive Officer & Director 20+ years Quintiles Transnational organization (now IQVIA) 30+ years commercial leadership experience Daryl Gaugler Chief Operating Officer 3 years Bioenvision Inc. 5 years Paul Hastings LLP Kristen Williams Chief Administrative Officer & Secretary 20 years board-certified anesthesiologist Jonathan Slonin Chief Medical Officer 20+ years biopharmaceutical investment banking experience Shawn Cross Chief Financial Officer Christopher Young Chief Manufacturing Officer 7+ years Patton Boggs LLP 6+ years The Okonite Company Anthony Molloy Chief Legal & Compliance Officer Chief Business Officer Chief Commercial Officer Brendan Teehan Krys Corbett 14+ years Actavis 4+ years Akorn Inc. 4+ years Alvogen Inc. Michael Rozycki SVP, Regulatory Affairs 6+ years Bayer Healthcare Pharmaceuticals 4+ years Allergan 2+ years Aventis 10+ years Genentech/Roche 4+ years Lyell Immunopharma 2+ years ORIC Pharmaceuticals 6+ years Acadia Pharmaceuticals 13+ years Johnson & Johnson 11+ years Amgen/TESARO/RainTree
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25Better is possible. Refreshed board of directors with diversified talent Director since 2024 Frank Lee CEO of Pacira Biosciences Director since 2011 Paul J. Hastings CEO of Nkarta Therapeutics Chris Christie 55th Governor of the State of New Jersey Marcelo Bigal, MD, PhD President & CEO of Ventus Therapeutics Director since 2023 Laura Brege Former CEO of Nodality Abraham Ceesay CEO of Rapport Therapeutics Mark I. Froimson, MD Principal at Riverside Health Advisors Mark Kronenfeld, MD Chairman of Anesthesiology, Maimonides Medical Center Andreas Wicki, PhD CEO of HBM Healthcare Michael Yang Former President & CEO of ViaCyte Alethia Young CFO of Bicycle Therapeutics Director since 2011 Director since 2023 Director since 2019 Director since 2017 Director since 2013 Director since 2006 Director since 2023 Director since 2023 1 1 3 3 6 1 1 3 0 – 4 4 – 8 8 – 12 12+ years 2023 2025 Board Tenure (Number of Directors) 11.1 Average years tenure
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26Better is possible. Non-GAAP disclosure ($ in 000's) 2019 2020 2021 2022 2023 GAAP net income (loss) (11,016) 145,523 41,980 15,909 41,955 Interest income (7,376) (4,629) (896) (4,542) (11,444) Interest expense (1) 23,628 25,671 31,750 39,976 20,306 Income tax (benefit) expense 268 (125,434) (2) 14,424 (3) (2,607) 19,746 Depreciation expense 13,873 12,042 14,995 34,213 18,286 Amortization of acquired intangible assets 5,703 7,866 13,553 57,288 57,288 EBITDA 25,080 61,039 115,806 140,237 146,137 Other adjustments: Contingent consideration (gains) charges, acquisition-related charges, and other: Severance-related expenses - - - 4,494 - Acquisition-related charges, product discontinuation and other (4) 25,230 5,166 42,911 5,546 1,963 Changes in fair value of contingent consideration - - - (29,476) (3,424) Restructuring charges - - - - 1,109 Impairment of acquired IPR&D - - - 26,134 - Termination of license agreement - - - 3,000 - Milestone revenue - - (125) - - Stock-based compensation 33,650 39,920 42,246 48,092 47,895 Loss on early extinguishment of debt - 8,071 - - 16,926 Recognition of step-up basis in inventory from acquisition 220 - 581 4,719 3,884 Loss (gain) on investment 4,981 (1,618) 2,585 10,000 - Adjusted EBITDA 89,161 112,578 204,004 212,746 214,490 Notes: (1) Includes amortization of debt discount. (2) Includes the reversal of a deferred tax valuation allowance during the year ended December 31, 2020. (3) Includes an income tax benefit in connection with the acquisition of Flexion Therapeutics, Inc. during the three months and year ended December 31, 2021. (4) Excludes any depreciation expense included in EBITDA above. Year Ended December 31,