Pacira BioSciences Reaffirms Commitment to Enhancing Value for All Shareholders

Rhea-AI Summary

Pacira BioSciences (PCRX) has announced strategic actions to enhance shareholder value, including a $300 million share repurchase authorization through December 2026. The company outlined its '5x30' strategy goals for 2030, which include:

• Treating over 3 million patients annually
• Achieving double-digit revenue growth rate
• Improving gross margins by 5 percentage points over 2024
• Expanding clinical pipeline with 5 novel programs
• Establishing 5 new pipeline and commercial partnerships

The company emphasized its EXPAREL exclusivity runway extending to 2039, providing long-term visibility for strategy execution. Management remains focused on operational efficiency and margin expansion at the pre-tax net income level to enhance shareholder value.

Positive

• $300M share repurchase program authorized through December 2026
• EXPAREL exclusivity secured until 2039
• Targeting double-digit revenue growth rate
• 5 percentage points gross margin improvement planned over 2024 levels

Negative

• None.

Insights

Financial Analyst

Pacira's $300M buyback program (26% of market cap) and margin expansion focus signal strong management confidence in long-term growth prospects.

Pacira BioSciences' announcement of a $300 million share repurchase program represents a substantial capital return initiative that speaks volumes about management's confidence in the company's future. With a current market capitalization of approximately $1.16 billion, this authorization encompasses roughly 26% of Pacira's market value – a significantly higher percentage than typical buyback programs in the pharmaceutical sector.

The replacement of the previous May 2024 authorization with this expanded program suggests strong cash flow generation capabilities and a management team committed to shareholder returns. The program's extension through December 2026 provides a lengthy window for strategic repurchases, allowing the company to potentially take advantage of market volatility while maintaining financial flexibility.

Particularly noteworthy is the dual focus on capital returns and operational improvements. The explicit commitment to margin expansion at the pre-tax net income level indicates a disciplined approach to cost management alongside growth initiatives. This balanced strategy typically creates more sustainable value than growth-only approaches, especially in the pharmaceutical sector where R&D efficiency is paramount.

The EXPAREL exclusivity extension to 2039 represents a critical value driver often underappreciated in pharmaceutical valuations. This 14+ year runway provides exceptional visibility into future cash flows, substantially reducing the risk profile compared to peers facing nearer-term patent cliffs. This exclusivity window creates a solid foundation for funding both the share repurchase program and the innovation initiatives outlined in their 5x30 strategy without compromising financial stability.

Healthcare Industry Specialist

Extended EXPAREL exclusivity until 2039 provides rare revenue certainty in biopharma, supporting Pacira's ambitious patient expansion and pipeline diversification goals.

Pacira's 5x30 strategy represents an ambitious transformation from a single-product specialty pharmaceutical company into a diversified pain management leader. The goal of treating 3 million patients annually by 2030 would position Pacira among the most significant players in the non-opioid pain management sector – a space gaining increased attention amid ongoing concerns about opioid addiction.

The 5% gross margin improvement target suggests meaningful manufacturing optimization opportunities, likely involving economies of scale as patient numbers increase and potential formulation improvements that could reduce production costs. This level of margin enhancement is realistic but ambitious in pharmaceutical manufacturing.

Most critically, the EXPAREL exclusivity runway through 2039 represents an exceptionally rare asset in the biopharmaceutical landscape. While most companies face patent cliffs within 5-10 years for key products, Pacira has secured nearly 15 years of protection. This extended exclusivity creates a stable commercial foundation that significantly de-risks the company's pipeline investment strategy.

The emphasis on establishing five new partnerships indicates a pragmatic approach to pipeline expansion. Rather than building everything internally, this partnership-focused strategy allows Pacira to leverage external innovation while contributing commercialization expertise in the pain management space. This approach typically accelerates development timelines while reducing capital requirements compared to fully internal development programs.

The commitment to five novel development programs demonstrates a balanced innovation strategy – substantial enough to drive future growth but focused enough to avoid the dilution of resources that often plagues mid-sized pharmaceutical companies attempting to expand too rapidly.

-- $300 million aggregate share repurchase authorization--

-- Reinforces confidence in 5x30 plan –

-- Continued focus on margin expansion and operational efficiency --

BRISBANE, Calif., April 17, 2025 (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 reaffirmed its commitment to enhancing shareholder value by outlining a series of strategic actions designed to optimize operational performance and create sustainable, long-term value for shareholders.

The company has made meaningful progress advancing its 5x30 strategy to transition into an innovative biopharmaceutical organization and become a therapeutic area leader in musculoskeletal pain and adjacencies. The Board and management team see a clear path to achieving the following key objectives by 2030:

• Treating more than 3 million patients per year;
• Achieving a double-digit compounded annual growth rate for revenue;
• Improving gross margins by 5 percentage points over 2024;
• Expanding the company’s clinical pipeline with 5 novel programs in development; and
• Establishing 5 new partnerships including pipeline and commercial agreements.
  

In addition to the 5x30 plan, today the company announced the following initiatives focused on enhancing value creation.

• Repurchase Authorization. The Board of Directors has authorized a share repurchase program of up to an aggregate of $300 million with respect to the company’s common stock, under the same terms as the authorization announced on May 7, 2024 and replacing the prior authorization. The Pacira Board and management team remain committed to a diligent, strategic approach to repurchases that aligns with the company’s long-term objectives and enhances shareholder value. The share repurchase authorization expires at the end of December 2026.
  

• Commitment to Efficiency and Margin Expansion. The Pacira Board and management team are committed to enhancing the company’s operational efficiency and expect to prioritize opportunities to drive margin expansion at the pre-tax net income level to further enhance value for shareholders.
  

Frank D. Lee, chief executive officer of Pacira BioSciences, said, “This increased share repurchase authorization underscores the Board’s confidence in Pacira’s growth strategy and our commitment to delivering value to shareholders. Our recently established EXPAREL exclusivity runway extends to 2039 and provides long-term visibility that empowers us to confidently execute our 5x30 strategy as we generate significant cash flow. We have already made significant progress implementing our value creation plan and remain focused on executing with discipline, positioning the company for growth and accelerating our transition into an innovative biopharmaceutical organization and therapeutic area leader in musculoskeletal pain and adjacencies. We look forward to building on our momentum and executing on our 5x30 strategy to accelerate long-term growth and drive innovation to transform how pain is managed.”

About Pacira
Pacira delivers innovative, non-opioid pain therapies to transform the lives of patients. Pacira has three 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; ZILRETTA^® (triamcinolone acetonide extended-release injectable suspension), an extended-release, intra-articular injection indicated for the management of osteoarthritis knee pain; and iovera_®º, a novel, handheld device for delivering immediate, long-acting, drug-free pain control using precise, controlled doses of cold temperature to a targeted nerve. The company is also advancing the development of PCRX-201, a novel locally administered gene therapy with the potential to treat large prevalent diseases like osteoarthritis. To learn more about Pacira, visit www.pacira.com.

Forward-Looking Statements
Any statements in this document 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: Pacira’s board of directors, ‘5x30’, Pacira’s growth and business strategy; Pacira’s future outlook, Pacira’s intellectual property and patent terms, Pacira’s growth and future operating results and trends, Pacira’s strategy, plans, objectives, expectations (financial or otherwise) and intentions, future financial results and growth potential, including Pacira’s plans with respect to the repayment of Pacira’s indebtedness, anticipated product portfolio, development programs, development of products, strategic alliances 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. Pacira cannot assure you that its 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 Therapeutics GmbH; 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; Pacira’s manufacturing and supply chain, global and U.S. economic conditions (including inflation and rising interest rates), and Pacira’s business, including Pacira’s revenues, financial condition, cash flow and results of operations; the success of Pacira’s 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 Pacira’s ability to serve those markets; Pacira’s 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; Pacira’s plans to evaluate, develop and pursue additional product candidates utilizing Pacira’s proprietary multivesicular liposome (“pMVL”) drug delivery technology; the approval of the commercialization of Pacira’s products in other jurisdictions; clinical trials in support of an existing or potential pMVL-based product; Pacira’s commercialization and marketing capabilities; Pacira’s ability to successfully complete capital projects; the outcome of any litigation; the recoverability of Pacira’s 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 Pacira’s share repurchase program; and factors discussed in the “Risk Factors” of Pacira’s most recent Annual Report on Form 10-K and in other filings that it periodically makes with the SEC. In addition, the forward-looking statements included in this document represent Pacira’s views as of the date of this document. Important factors could cause actual results to differ materially from those indicated or implied by forward-looking statements, and as such Pacira anticipates that subsequent events and developments will cause its views to change. Except as required by applicable law, Pacira undertakes 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 Pacira’s views as of any date subsequent to the date of this document.

These forward-looking statements involve known and unknown risks, uncertainties and other factors that may cause Pacira’s 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 Pacira’s most recent Annual Report on Form 10-K and in other filings that Pacira periodically makes with the SEC.

Important Additional Information Regarding Proxy Solicitation
Pacira intends to file a proxy statement and BLUE proxy card with the U.S. Securities and Exchange Commission (the “SEC”) in connection with its solicitation of proxies for Pacira’s 2025 annual meeting of stockholders (the “2025 Proxy Statement,” and such meeting the “2025 Annual Meeting”). BEFORE MAKING ANY VOTING DECISION, INVESTORS AND STOCKHOLDERS OF PACIRA ARE URGED TO READ ALL RELEVANT DOCUMENTS FILED WITH OR FURNISHED TO THE SEC, INCLUDING PACIRA’S DEFINITIVE PROXY STATEMENT AND ANY AMENDMENTS AND SUPPLEMENTS THERETO, BECAUSE THEY WILL CONTAIN IMPORTANT INFORMATION. These documents, including the definitive 2025 Proxy Statement (and any amendments or supplements thereto) and other documents filed by Pacira with the SEC, are, or will be when filed, available for no charge on the SEC’s website at http://www.sec.gov and on Pacira’s investor relations website at https://investor.pacira.com.

Participants in the Solicitation
Pacira, its directors, director nominees, certain of its executive officers and other employees may be deemed participants in the solicitation of proxies from stockholders in respect of the 2025 Annual Meeting. Information regarding the names of Pacira’s directors and executive officers and their respective interests in Pacira by security holdings or otherwise is set forth in Pacira’s proxy statement for the 2024 Annual Meeting of stockholders, filed with the SEC on April 22, 2024 (the “2024 Proxy Statement”). Please refer to the sections captioned “Director Compensation,” “Executive Compensation,” and “Stock Ownership Information” in the 2024 Proxy Statement. To the extent holdings of such participants in Pacira’s securities have changed since the amounts described in the 2024 Proxy Statement, such changes have been reflected on Initial Statements of Beneficial Ownership of Securities on Form 3 or Statements of Changes in Beneficial Ownership of Securities on Form 4 filed with the SEC:  Form 4, filed by Jonathan Slonin on June 5, 2024; Form 4, filed by Daryl Gaugler on June 5, 2024; Form 4, filed by Kristen Williams on June 5, 2024; Form 4, filed by Lauren Riker on June 5, 2024; Form 4, filed by Mark A. Kronenfeld on June 13, 2024; Form 4, filed by Laura Brege on June 13, 2024; Form 4, filed by Kristen Williams on June 13, 2024; Form 4, filed by Alethia Young on June 13, 2024; Form 4, filed by Mark Froimson on June 13, 2024; Form 4, filed by Daryl Gaugler on June 13, 2024; Form 4, filed by Abraham Ceesay on June 13, 2024; Form 4, filed by Michael J. Yang on June 13, 2024; Form 4, filed by Marcelo Bigal on June 13, 2024; Form 4, filed by Christopher Christie on June 13, 2024; Form 4, filed by Jonathan Slonin on June 13, 2024; Form 4, filed by Lauren Riker on June 13, 2024; Form 4, filed by Jonathan Slonin on July 3, 2024; Form 4, filed by Daryl Gaugler on July 3, 2024; Form 4, filed by Jonathan Slonin on August 2, 2024; Form 4, filed by Marcelo Bigal on August 12, 2024; Form 4, filed by Mark Froimson on August 12, 2024; Form 4/A, filed by Marcelo Bigal on August 13, 2024; Form 4, filed by Frank D. Lee on August 13, 2024; Form 4, filed by Michael J. Yang on August 14, 2024; Form 4, filed by Laura Brege on August 19, 2024; Form 4, filed by Marcelo Bigal on August 19, 2024; Form 4, filed by Daryl Gaugler on September 13, 2024; Form 3, filed by Shawn Cross on October 23, 2024; Form 4, filed by Shawn Cross on November 5, 2024; Form 4, filed by Daryl Gaugler on December 16, 2024; Form 4, filed by Lauren Riker on January 6, 2025; Form 4, filed by Daryl Gaugler on January 6, 2025; Form 4, filed by Jonathan Slonin on January 6, 2025; Form 4, filed by Frank D. Lee on January 6, 2025; Form 3, filed by Brendan Teehan on January 28, 2025; Form 4, filed by Lauren Riker on February 4, 2025; Form 4, filed by Brendan Teehan on February 4, 2025; Form 4, filed by Frank D. Lee on February 4, 2025; Form 4, filed by Kristen Williams on February 4, 2025; and Form 4, filed by Jonathan Slonin on February 4, 2025. Additional information can also be found in Pacira’s Annual Report on Form 10-K for the year ended December 31, 2024, filed with the SEC on February 27, 2025. Details concerning potential participants in the solicitation, including Pacira’s director nominees for election at the 2025 Annual Meeting, will also be included in the 2025 Proxy Statement. These documents, including the definitive 2025 Proxy Statement (and any amendments or supplements thereto) and other documents filed by Pacira with the SEC, are, or will be when filed, available for no charge on the SEC’s website at http://www.sec.gov and on Pacira’s investor relations website at https://investor.pacira.com.

Investor Contact:
Susan Mesco, (973) 451-4030
susan.mesco@pacira.com

Media Contact:
Sara Marino, (973) 370-5430
sara.marino@pacira.com

FAQ

What is the size and duration of Pacira BioSciences' (PCRX) new share repurchase program?

Pacira authorized a $300 million share repurchase program that expires at the end of December 2026, replacing the previous authorization from May 7, 2024.

What are the key targets in Pacira's 5x30 strategy plan?

The 5x30 plan targets treating 3M+ patients yearly, double-digit revenue growth, 5% gross margin improvement, 5 new pipeline programs, and 5 new partnerships by 2030.

How long does Pacira's EXPAREL exclusivity extend?

Pacira's EXPAREL exclusivity runway extends to 2039, providing long-term visibility for strategy execution.

What operational improvements is PCRX focusing on in 2025?

PCRX is prioritizing operational efficiency and margin expansion at the pre-tax net income level to enhance shareholder value.