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PCRX | May 2025 1Q25 Earnings
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2 Better 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 directors and executives, our intellectual property and patent terms, the acquisition of GQ Bio and the anticipated benefits thereof, our growth and future operating results and trends, our strategy, plans, objectives, expectations (financial or otherwise) and intentions, and 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, 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: the failure to realize the anticipated benefits and synergies from the acquisition of GQ Bio; the ability to successfully integrate GQ Bio into our existing business; the commercial success of GQ Bio’s high-capacity adenovirus gene therapy vector platform; future opportunities and plans for GQ Bio and its product candidates, including uncertainty of the expected financial performance of GQ Bio and its product candidates; disruption from the acquisition of GQ Bio, making it more difficult to conduct business as usual or maintain relationships with customers, employees or suppliers; the possibility that if we do not achieve the perceived benefits of the transaction as rapidly or to the extent anticipated by financial analysts or investors, the market price of our common stock could decline; 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 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. 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 presentation. 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.
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3 Better is possible. We are transitioning into an innovative biopharmaceutical organization and intend to become the therapeutic area leader in musculoskeletal pain and adjacencies ACCELERATING GROWTH IN BASE BUSINESS ADVANCING PIPELINE VALUE 1 2 3 4 5 Patients: More than 3 million patients treated per year Product revenue: Double-digit compounded annual growth rate Profitability: 5-percentage point gross margin improvement over 2024 Pipeline: Clinical pipeline expansion with 5 novel programs in development Partnerships: Establishing 5 partnerships including pipeline and commercial agreements
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4 Better is possible. ACCELERATING GROWTH IN BASE BUSINESS MILESTONES ADVANCING PIPELINE VALUE MILESTONES Successfully settled patent litigation for EXPAREL – agreement recognizes strength of IP estate establishing exclusivity runway extending to 2039 Expanded EXPAREL IP estate with 18th FDA Orange Book listed patent Favorable court ruling eliminating RDF royalty obligation provides low-single-digit percentage benefit to EXPAREL gross margins Added novel platform, preclinical portfolio and R&D talent with GQ Bio acquisition New PCRX-201 datasets reading out in 2025 Patient dosing underway in Phase 2 ASCEND study of PCRX-201 in knee OA
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5 Better is possible. Key penetration and market expansion drivers for EXPAREL 1FY2023 IQVIA Market Procedural Data. Abbreviations: ADS, average daily sales. • 1Q25 EXPAREL ADS up ~7% YoY • Expect adoption inflection in 2H25 • Positive early indicators: – >30% increase in both new and reactivated EXPAREL accounts with customer expansion across all sites of care – Mounting utilization of new J-code – Community hospital and ASC growth – Integrated Delivery Network formulary wins Patent litigation settlement establishes exclusivity runway extending to 2039 NOPAIN provides opportunity to significantly expand utilization Reimbursement pathway for 18M surgical procedures in HOPD and ambulatory settings1 6M CMS 12M Commercial HOPD ASC+ • Volume-limited with no pricing restrictions, royalties or technology transfer • Sole generic ANDA filer – future filer would need to overcome entire patent estate Sets the stage for long-term growth and market expansion for next 14 years
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6 Better is possible. ZILRETTA and iovera° key growth drivers Abbreviations: PK, pharmacokinetic; IA, intra-articular Phase 3 shoulder OA study progressing; topline results expected in 2026 • Sizeable market opportunity; ~1M shoulder IA injections/year ZILRETTA iovera° Registration study for treatment of spasticity advancing; topline results expected in 2026 • Highly debilitative condition; patients seeking better treatment options Launching new SmartTip for low back pain • Millions of Americans suffer from chronic low back pain – Often leads to poor quality-of-life, lost wages, opioid use • Initial focus on Spine KOLs before broader targeted audience expansion Initiatives rolling out this Spring: • Value-based contracting with large accounts • Broadening Medicare-based use; favorable access/coverage • Driving awareness on unique delivery mechanism and strong safety/PK profile • Strategic partnership assessments Evaluating other opportunities with near-to-mid-term path to revenue accretion including lifecycle management/line extensions and Ex-U.S. commercial partnerships
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7 Better is possible. Understanding pain at the molecular level is essential to advancing patient care • Our novel HCAd platform enables locally-administered genetic medicines to boost cellular production of therapeutic proteins and to mimic the body’s natural response to disease • New product development focusing on validated mechanisms of action in need of delivery, safety or durability enhancements Driving innovation in chronic pain beginning with musculoskeletal pain and adjacencies Chronic pain: A public health crisis affecting nearly 1 in 4 Americans • Chronic pain breakthroughs have trailed behind advances in other medical fields, creating urgent unmet patient needs Innovation is critical for treating chronic pain – Pacira is leading the way • We are advancing novel treatments for the underlying cause of chronic pain using a targeted molecular approach to alleviate multiple patient stressors -- difficulty working, exercising, socializing, sleeping, loneliness, depression Precise, targeted treatments have transformative potential in treating pain • Targeted, disease-modifying treatments with safe and durable efficacy would be clinically and economically meaningful to patients and the healthcare system • Pacira is at the forefront of this shift with a long history of leadership in best-in-class, locally administered, and long-acting opioid-sparing pain management PROBLEM WHY IT MATTERS SOLUTION BENEFITS
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8 Better is possible. The IL-1 pathway is a well-validated, de-risked target for knee OA treatment innovation* *Several approved therapies target IL-1, but doses required to treat knee OA would be too large and require very frequent administration Abbreviations: DNA, deoxyribonucleic acid; IL-1R, IL-1 receptor; IL-1Ra, IL-1 receptor antagonist; NF-κB, nuclear factor kappa B. IL-1 pathway activation leads to pro-inflammatory signaling Chronic inflammation NF-κB monomer IL-1R IL-1 Outcompeted IL-1Ra IL-1 pathway signaling Synovial joint cell Nucleus DNA NF-κB dimer Transcription of MMP-1, MMP-13 miR-365, IL-6, IL-8 TNF-α, IL-1β Bone remodeling Cartilage degradation Pain Synovial membrane Cytosol
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9 Better is possible. PCRX-201: Potential to transform knee OA treatment by supplementing IL1-Ra when needed to reduce inflammation Abbreviations: DNA, deoxyribonucleic acid; IL-1R, IL-1 receptor; IL-1Ra, IL-1 receptor antagonist; NF-κB, nuclear factor kappa B; OAK, osteoarthritis of the knee.
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10 Better is possible. PCRX-201 underscores HCAd platform potential with encouraging data in OA Abbreviations: HCAd, High-Capacity Adenovirus gene therapy vector; OARSI, Osteoarthritis Research Society International; ASGCT, Annual Meeting of the American Society of Gene and Cell Therapy; EULAR, European Alliance of Association for Rheumatologists. Upcoming dataset readouts EULAR 3-year poster presentation ASGCT Neutralizing Antibody oral presentation ASGCT Symposium on HCAd platform OARSI Poster Phase 1 subgroup analysis by structural severity Phase 1 Immunogenicity analysis to assess future dosing/re-dosing Overview of high-capacity adenovirus delivery technology Phase 1 3-year follow-up data Patient dosing underway in Phase 2 ASCEND study Phase 2 study design educational webinar Click here HCAd platform directly aligned with • Numerous well-validated cytokines identified that would be strong candidates for HCAd platform • Potential for partnering in areas outside of strategic focus Potential to extend HCAd platform into other conditions of high unmet need
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11 Better is possible. HCAd platform solves many of the challenges that have made gene therapy inaccessible for common diseases Abbreviations: HCAd, High-Capacity Adenovirus gene therapy vector; AAV, adenovirus associated virus. Multiple or larger genes Vector can carry up to 30,000 base pairs of DNA, enabling gene therapy with multiple or larger genes compared to AAV vectors Locally sustained delivery with redosing potential Differs from systemic approaches requiring much higher dosing to achieve desired effect Smaller doses to achieve desired effect HCAd is much more efficient at delivering genes into cells compared to many other gene therapies that rely on AAV vectors Favorable cost of goods profile Lower dose levels coupled with efficient manufacturing support a favorable and commercially viable cost of goods profile
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12 Better is possible. Disciplined capital allocation strategy to drive shareholder value Accelerating growth in best-in-class base business Advancing innovative pipeline and becoming the leader in musculoskeletal pain and adjacencies Opportunistically returning capital to shareholders utilizing recently authorized new share repurchase program of $300 million
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13 Better is possible. Strong financial footing with a business that is generating significant cash flow 1See non-GAAP disclosure in appendix for reconciliation to GAAP. 2As of 3/31/2025. 2025 Financial Guidance (reiterated as of 1Q25) Total Revenue $725-765 Non-GAAP Gross Margins 76-78% Non-GAAP R&D $90-105 Non-GAAP SG&A $290-320 Stock-based Compensation $56-61 1Q25 EXPAREL $137 ZILRETTA $23 iovera° $5 Total Revenue $169 Non-GAAP Gross Margins 81% Adjusted EBITDA1 $44 Cash and Investments2 >$493 $ in M $ in M
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14 Better is possible. • All intellectual property domiciled in U.S. • Majority of manufacturing occurs in U.S. • Capacity to allocate more EXPAREL manufacturing to U.S. Impact of potential tariffs Based on everything proposed to date, we don’t expect a material impact to operations We are closely monitoring developments and committed to minimizing any potential impact to business
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Website Investor-toolkit Social: X Social: LinkedIn
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16 Better is possible. APPENDIX
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17 Better is possible. Non-GAAP disclosure