Pacira BioSciences Reports Record Revenue of $135.6 Million for the Second Quarter of 2021
08/03/2021 - 08:00 AM
-- EXPAREL average daily sales at 178% of the prior year second quarter -- -- Conference call today at 8:30 a.m. ET --
PARSIPPANY, N.J., Aug. 03, 2021 (GLOBE NEWSWIRE) -- Pacira BioSciences, Inc. (Nasdaq: PCRX), the industry leader in its commitment to non-opioid pain management and regenerative health solutions, today reported financial results for the second quarter of 2021.
Second Quarter 2021 Financial Highlights
Total revenues of $135.6 million GAAP net income of $19.1 million , or $0.43 per share (basic) and $0.42 (diluted) Non-GAAP Adjusted EBITDA of $50.3 million “We made terrific progress in the first half of 2021 with strong sales momentum in the second quarter and continuing in recent weeks,” said Dave Stack, chairman and chief executive officer of Pacira BioSciences. “Record revenue in the second quarter significantly ramped our bottom line, allowing us to achieve our highest-ever adjusted EBITDA for a quarter. Market dynamics remain highly favorable and leave us confident that we will deliver robust topline growth, improved margins, and accelerating earnings for the remainder of 2021, leaving us well-positioned to achieve the goals laid out within our five-year plan.”
Second Quarter 2021 Financial Results
Total revenues were $135.6 million in the second quarter of 2021, versus the $75.5 million reported for the second quarter of 2020. EXPAREL net product sales were $130.1 million in the second quarter of 2021, versus the $73.0 million reported for the second quarter of 2020. Second quarter 2021 iovera° net product sales were $3.8 million , versus the $1.4 million reported for the second quarter of 2020. Sales of bupivacaine liposome injectable suspension to a third-party licensee for use in veterinary practice were $1.0 million in the second quarter of 2021, versus the $0.8 million in the second quarter of 2020. Second quarter 2021 royalty and collaborative licensing and milestone revenues were $0.7 million , versus the $0.3 million in the second quarter of 2020. Total operating expenses were $100.7 million in the second quarter of 2021, compared to $82.7 million in the second quarter of 2020. Research and development (R&D) expenses were $12.6 million in the second quarter of 2021, compared to $13.6 million in the second quarter of 2020. R&D expenses included $4.6 million and $6.1 million of product development and manufacturing capacity expansion costs in the second quarters of 2021 and 2020, respectively. Selling, general and administrative (SG&A) expenses were $50.8 million in the second quarter of 2021, compared to $43.3 million in the second quarter of 2020. GAAP net income was $19.1 million , or $0.43 per share (basic) and $0.42 (diluted), in the second quarter of 2021, compared to a GAAP net loss of $7.3 million , or $0.17 per share (basic and diluted), in the second quarter of 2020. Non-GAAP net income was $35.3 million , or $0.80 per share (basic) and $0.77 (diluted), in the second quarter of 2021, compared to non-GAAP net income of $5.0 million , or $0.12 per share (basic and diluted), in the second quarter of 2020. Adjusted EBITDA was $50.3 million in the second quarter of 2021, compared to $8.5 million in the second quarter of 2020. Pacira ended the second quarter of 2021 with cash, cash equivalents and short-term investments (“cash”) of $646.6 million . Cash provided by operations was $30.1 million in the second quarter of 2021, compared to cash used in operations of $15.6 million in the second quarter of 2020. Pacira had 44.1 million basic and 45.6 million diluted weighted average shares of common stock outstanding in the second quarter of 2021. See “Non-GAAP Financial Information” below.
Recent Business Highlights
FDA approval of enhanced EXPAREL manufacturing process. Patent granted for EXPAREL. Distribution agreement with Eurofarma in Latin America. Financial Guidance
The company’s net product sales were negatively impacted by the COVID-19 pandemic in 2020 due to the significant postponement or suspension in the scheduling of elective surgical procedures resulting from public health guidance and government directives. Elective surgery restrictions began to lift on a state-by-state basis in April 2020, allowing EXPAREL sales to return to year-over-year growth in June 2020. However, while many restrictions have since eased and COVID-19 vaccines become more widely available and administered to the general public, it is still unclear how long it will take the elective surgery market to normalize, or if restrictions on elective procedures will recur due to COVID-19 variant strains or otherwise. In order to provide greater transparency, the company is reporting monthly intra-quarter unaudited net product sales until it has gained enough visibility around the impacts of COVID-19. The company reports average daily growth rates for EXPAREL to normalize for differences in the number of selling days per reporting period. The company is also providing weekly EXPAREL utilization and elective surgery data within its investor presentation, which is accessible at investor.pacira.com.
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 3, 2021, at 8:30 a.m. ET. To participate in the conference call, dial 1-877-845-0779 and provide the passcode 9991311. International callers may dial 1-720-545-0035 and use the same passcode. 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.
For those unable to participate in the live call, a replay will be available at 1-855-859-2056 (domestic) or 1-404-537-3406 (international) using the passcode 9991311. The replay of the call will be available for one week from the date of the live call. The webcast will be available on the Pacira website for approximately two weeks following the call.
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 net income, non-GAAP net income per common share, non-GAAP cost of goods sold, non-GAAP research and development (R&D) expense, non-GAAP selling, general and administrative (SG&A) expense 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, R&D expense and SG&A expense outlook for 2021 and to help make managerial decisions. In management’s opinion, these non-GAAP measures are useful to investors and other users of our financial statements by providing greater transparency into the 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. Non-GAAP measures 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 BioSciences
Pacira BioSciences, Inc. (Nasdaq: PCRX) is the industry leader in its commitment to non-opioid pain management and regenerative health solutions to improve patients’ journeys along the neural pain pathway. The company’s long-acting local analgesic, EXPAREL® (bupivacaine liposome injectable suspension) was commercially launched in the United States in April 2012. EXPAREL utilizes DepoFoam® , a unique and proprietary product delivery technology that encapsulates drugs without altering their molecular structure, and releases them over a desired period of time. In April 2019, Pacira acquired the iovera° system, a handheld cryoanalgesia device used to deliver precise, controlled doses of cold temperature only to targeted nerves. To learn more about Pacira, including the corporate mission to reduce overreliance on opioids, visit www.pacira.com .
About EXPAREL ®
EXPAREL (bupivacaine liposome injectable suspension) is indicated in patients 6 years of age and older for single-dose infiltration to produce postsurgical local analgesia, and in adults as an interscalene brachial plexus nerve block to produce postsurgical regional analgesia. Safety and efficacy have not been established in other nerve blocks. The product combines bupivacaine with DepoFoam® , 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 DepoFoam 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 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 iovera°
The iovera° system is used to destroy tissue during surgical procedures by applying freezing cold. It can also be used to produce lesions in peripheral nervous tissue by the application of cold to the selected site for the blocking of pain. It is also indicated for the relief of pain and symptoms associated with osteoarthritis of the knee for up to 90 days. In one study, the majority of the patients suffering from osteoarthritis of the knee experienced pain and system relief beyond 150 days.1 The iovera° system’s “1×90” Smart Tip configuration (indicating one needle which is 90 mm long) can also facilitate target nerve location by conducting electrical nerve stimulation from a separate nerve stimulator. The iovera° system is not indicated for treatment of central nervous system tissue.
Important Safety Information
The iovera° system is contraindicated for use in patients with the following: Cryoglobulinemia; Paroxysmal cold hemoglobinuria; cold urticaria; Raynaud’s disease; open and/or infected wounds at or near the treatment line. Potential complications: As with any surgical treatment that uses needle-based therapy, there is potential for temporary site-specific reactions, including but not limited to: bruising (ecchymosis); swelling (edema); inflammation and/or redness (erythema); pain and/or tenderness; altered sensation (localized dysesthesia). Typically, these reactions resolve with no physician intervention. Patients may help the healing process by applying ice packs to the affected sites, and by taking over-the-counter analgesics.
Forward-Looking Statements
Any statements in this press release about the company’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 The Private Securities Litigation Reform Act of 1995. Actual results may differ materially from those indicated by such forward-looking statements as a result of various important factors, including risks relating to: the impact of the worldwide COVID-19 (Coronavirus) pandemic and related global economic conditions on our business and results of operations; the success of the company’s sales and manufacturing efforts in support of the commercialization of EXPAREL and iovera°; the rate and degree of market acceptance of EXPAREL and iovera°; the size and growth of the potential markets for EXPAREL and iovera° and the company’s ability to serve those markets; the company’s plans to expand the use of EXPAREL and iovera° to additional indications and opportunities, and the timing and success of any related clinical trials for EXPAREL and iovera°; the ability to successfully integrate any future acquisitions into the company’s existing business and the recoverability of our deferred tax assets and other factors discussed in the “Risk Factors” of the company’s most recent Annual Report on Form 10-K and in other filings that the company periodically makes with the SEC. In addition, the forward-looking statements included in this press release represent the company’s 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 the company anticipates that subsequent events and developments will cause its views to change. However, while the company may elect to update these forward-looking statements at some point in the future, it specifically disclaims any obligation to do so. These forward-looking statements should not be relied upon as representing the company’s views as of any date subsequent to the date of this press release.
1 Radnovich, R. et al. “Cryoneurolysis to treat the pain and symptoms of knee osteoarthritis: a multicenter, randomized, double-blind, sham-controlled trial.” Osteoarthritis and Cartilage (2017) p1-10.
(Tables to Follow)
Pacira BioSciences, Inc. Condensed Consolidated Balance Sheets (in thousands) (unaudited)
June 30, 2021 December 31, 2020 ASSETS Current assets: Cash and cash equivalents $ 105,774 $ 99,957 Short-term investments 540,821 421,705 Accounts receivable, net 68,357 53,046 Inventories, net 65,264 64,650 Prepaid expenses and other current assets 12,363 12,265 Total current assets 792,579 651,623 Long-term investments — 95,459 Fixed assets, net 153,302 136,688 Right-of-use assets, net 71,252 74,492 Goodwill 99,547 99,547 Intangible assets, net 92,588 96,521 Deferred tax assets 98,599 106,164 Equity investment and other assets 17,966 14,019 Total assets $ 1,325,833 $ 1,274,513 LIABILITIES AND STOCKHOLDERS’ EQUITY Current liabilities: Accounts payable $ 12,179 $ 10,431 Accrued expenses 52,163 70,974 Lease liabilities 5,644 7,425 Convertible senior notes (1) 153,681 149,648 Contingent consideration 5,026 14,736 Income taxes payable — 114 Total current liabilities 228,693 253,328 Convertible senior notes (2) 321,708 313,030 Lease liabilities 68,235 71,025 Contingent consideration 12,332 13,610 Other liabilities 7,697 3,832 Total stockholders’ equity 687,168 619,688 Total liabilities and stockholders’ equity $ 1,325,833 $ 1,274,513
(1) Relates to our 2.375% convertible senior notes due 2022. These notes are classified as current at June 30, 2021 and December 31, 2020 because the note holders can convert any time on or after October 1, 2020.0.750% convertible senior notes due 2025 that are not currently convertible.
Pacira BioSciences, Inc. Condensed Consolidated Statements of Operations (in thousands, except per share amounts) (unaudited)
Three Months Ended Six Months Ended June 30, June 30, 2021 2020 2021 2020 Net product sales: EXPAREL $ 130,059 $ 73,046 $ 244,736 $ 174,315 Bupivacaine liposome injectable suspension 991 775 1,784 1,981 Total EXPAREL / bupivacaine liposome 131,050 73,821 246,520 176,296 iovera° 3,813 1,395 7,081 3,665 Total net product sales 134,863 75,216 253,601 179,961 Collaborative licensing and milestone revenue 125 — 125 — Royalty revenue 602 289 891 1,228 Total revenues 135,590 75,505 254,617 181,189 Operating expenses: Cost of goods sold 35,248 22,305 66,597 52,037 Research and development 12,573 13,620 28,453 29,440 Selling, general and administrative 50,813 43,342 99,335 88,122 Amortization of acquired intangible assets 1,967 1,967 3,933 3,933 Acquisition-related charges (gains), product 146 1,418 2,019 (2,290 ) Total operating expenses 100,747 82,652 200,337 171,242 Income (loss) from operations 34,843 (7,147 ) 54,280 9,947 Other (expense) income: Interest income 224 1,323 639 2,911 Interest expense (7,023 ) (5,456 ) (13,994 ) (11,477 ) Other, net (2,396 ) 3,969 (2,554 ) (136 ) Total other expense, net (9,195 ) (164 ) (15,909 ) (8,702 ) Income (loss) before income taxes 25,648 (7,311 ) 38,371 1,245 Income tax (expense) benefit (6,567 ) 42 (8,921 ) (356 ) Net income (loss) $ 19,081 $ (7,269 ) $ 29,450 $ 889 Net income (loss) per share: Basic net income (loss) per common share $ 0.43 $ (0.17 ) $ 0.67 $ 0.02 Diluted net income (loss) per common share $ 0.42 $ (0.17 ) $ 0.64 $ 0.02 Weighted average common shares outstanding: Basic 44,145 42,221 43,989 42,126 Diluted 45,592 42,221 45,779 42,861
Pacira BioSciences, Inc. Reconciliation of GAAP to Non-GAAP Financial Information (in thousands, except per share amounts) (unaudited)
Three Months Ended Six Months Ended June 30, June 30, 2021 2020 2021 2020 GAAP net income (loss) $ 19,081 $ (7,269 ) $ 29,450 $ 889 Non-GAAP adjustments: Milestone revenue (125 ) — (125 ) — Acquisition-related charges (gains), product 146 1,418 2,019 (2,290 ) Stock-based compensation 10,461 9,222 20,571 18,070 Amortization of debt discount 5,744 3,660 11,401 7,254 Amortization of acquired intangible assets 1,967 1,967 3,933 3,933 Loss (gain) on investment 2,476 (3,979 ) 2,585 (8 ) Tax impact of non-GAAP adjustments (4,488 ) — (10,048 ) — Total Non-GAAP adjustments 16,181 12,288 30,336 26,959 Non-GAAP net income $ 35,262 $ 5,019 $ 59,786 $ 27,848 GAAP basic net income (loss) per common share $ 0.43 $ (0.17 ) $ 0.67 $ 0.02 GAAP diluted net income (loss) per common share $ 0.42 $ (0.17 ) $ 0.64 $ 0.02 Non-GAAP basic net income per common share $ 0.80 $ 0.12 $ 1.36 $ 0.66 Non-GAAP diluted net income per common share $ 0.77 $ 0.12 $ 1.31 $ 0.65 Weighted average common shares outstanding - basic 44,145 42,221 43,989 42,126 Weighted average common shares outstanding - diluted 45,592 42,937 45,779 42,861 Cost of goods sold reconciliation: GAAP cost of goods sold $ 35,248 $ 22,305 $ 66,597 $ 52,037 Stock-based compensation (1,465 ) (1,284 ) (2,917 ) (2,503 ) Non-GAAP cost of goods sold $ 33,783 $ 21,021 $ 63,680 $ 49,534 Research and development reconciliation: GAAP research and development $ 12,573 $ 13,620 $ 28,453 $ 29,440 Stock-based compensation (1,329 ) (1,357 ) (2,435 ) (2,544 ) Non-GAAP research and development $ 11,244 $ 12,263 $ 26,018 $ 26,896 Selling, general and administrative reconciliation: GAAP selling, general and administrative $ 50,813 $ 43,342 $ 99,335 $ 88,122 Stock-based compensation (7,667 ) (6,581 ) (15,219 ) (13,023 ) Non-GAAP selling, general and administrative $ 43,146 $ 36,761 $ 84,116 $ 75,099
Pacira BioSciences, Inc. Reconciliation of GAAP Net Income (Loss) to Adjusted EBITDA (Non-GAAP) (in thousands) (unaudited)
Three Months Ended Six Months Ended June 30, June 30, 2021 2020 2021 2020 GAAP net income (loss) $ 19,081 $ (7,269 ) $ 29,450 $ 889 Interest income (224 ) (1,323 ) (639 ) (2,911 ) Interest expense (1) 7,023 5,456 13,994 11,477 Income tax expense (benefit) 6,567 (42 ) 8,921 356 Depreciation expense 2,931 3,023 5,815 5,877 Amortization of acquired intangible assets 1,967 1,967 3,933 3,933 EBITDA 37,345 1,812 61,474 19,621 Other adjustments: Acquisition-related charges (gains), product discontinuation 146 1,418 2,019 (2,290 ) Stock-based compensation 10,461 9,222 20,571 18,070 Milestone revenue (125 ) — (125 ) — Loss (gain) on investment 2,476 (3,979 ) 2,585 (8 ) Adjusted EBITDA (Non-GAAP) $ 50,303 $ 8,473 $ 86,524 $ 35,393
(1) Includes amortization of debt discount
Adjusted earnings before interest, taxes, depreciation and amortization (EBITDA) includes GAAP to non-GAAP adjustments that reflect how the Company’s management analyzes its financial results. The adjusted EBITDA figures presented here are unlikely to be comparable with adjusted EBITDA disclosures released by other companies.
