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Pacira Q3 Earnings Top, Revenues Miss Despite Exparel Sales Growth
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Pacira BioSciences, Inc. (PCRX - Free Report) reported third-quarter 2024 adjusted earnings of 79 cents per share, which beat the Zacks Consensus Estimate of 72 cents. The company had reported adjusted earnings of 72 cents per share in the year-ago quarter.
Total revenues amounted to $168.6 million, which increased 3% year over year but missed the Zacks Consensus Estimate of $169 million.
PCRX’s Q3 Results in Detail
Pacira’s top line comprises product sales and royalty revenues. The company recognizes product revenues from the sales of its three marketed drugs — Exparel, Zilretta and iovera.
Exparel’s net product sales were $132 million, which increased 3% from the year-ago quarter figure. The reported figure beat the Zacks Consensus Estimate of $131.2 million and our model estimate of $130 million. Revenue growth from Exparel sales was partially offset by a shift in vial mix and contracted discounts.
Exparel (bupivacaine liposome injectable suspension) is indicated in patients aged six years and older for single-dose infiltration to produce postsurgical local analgesia. It is also indicated for regional analgesia in adults via an interscalene brachial plexus nerve block, sciatic nerve block in the popliteal fossa and femoral nerve block in the adductor canal.
Zilretta’s net product sales came in at $28.4 million, down slightly year over year. Pacira completed the acquisition of Flexion Therapeutics in November 2021, following which the former began recognizing Zilretta sales. The reported figure missed the Zacks Consensus Estimate of $30.6 million as well as our model estimate of $30.1 million.
Year to date, shares of Pacira have plunged 47.6% compared with the industry’s 2.4% decline.
Image Source: Zacks Investment Research
Net product sales of iovera were $5.7 million, up 8% from the year-ago quarter. The figure missed the Zacks Consensus Estimate of $5.99 million as well as our model estimate of $5.9 million.
Revenues generated from the sales of bupivacaine liposome injectable suspension to third-party licenses were pegged at $1.6 million, up significantly from the year-ago quarter’s figure. Royalty revenues amounted to $0.9 million in the reported quarter, up significantly year over year.
Research and development (R&D) expenses (excluding stock-based compensation) came in at $17.3 million, down 7% from the year-ago quarter due to lower product development and manufacturing capacity expansion costs as well as regulatory expenses in the reported quarter.
Selling, general and administrative (SG&A) expenses (excluding stock-based compensation) of $65 million increased 10% year over year, largely due to litigation costs as well as a rise in investments made in commercial, medical and market access organizations.
As of Sept. 30, 2024, Pacira had cash, cash equivalents and available-for-sale investments of $453.8 million compared with $404.2 million as of June 30, 2024.
PCRX Maintains 2024 Financial Guidance
Pacira reiterated its previously announced financial guidance for 2024. It expects total revenues in the band of $680-$705 million for the full year.
The company anticipates adjusted R&D expenses between $70 million and $80 million, while adjusted SG&A expenses are expected in the range of $245-$265 million.
The adjusted gross margin of the company is projected between 74% and 76% in 2024.
PCRX’s Recent Updates
In July, Pacira announced that the Centers for Medicare and Medicaid Services (CMS) has proposed the Hospital Outpatient Prospective Payment System and Ambulatory Surgical Center Payment System rule for 2025. In this rule, Exparel is among six non-opioid treatments, out of which two are specific to ophthalmology, eligible for separate Medicare reimbursement in both ambulatory surgical centers (ASC) and hospital outpatient (HOPD) settings. This policy, which was recently finalized, is set to take effect on Jan. 1, 2025. Iovera is also eligible for reimbursement under this policy.
The proposed rule is part of the implementation of the Non-Opioids Prevent Addiction in the Nation (NOPAIN) Act, which requires separate CMS payments for qualifying non-opioid drugs and devices in HOPD and ASC settings. Pacira believes that the successful implementation of the NOPAIN Act will drive expanded Exparel utilization in outpatient settings and accelerate top-line growth in 2025 and beyond.
Last month, Pacira announced that the CMS has issued a permanent product-specific J-code for Exparel to facilitate better insurance coverage for the drug. This new J-code will take effect on Jan. 1, 2025, replacing the existing C-code, which has been in use since 2019.
The company faced a massive setback in August after the U.S. District Court for the District of New Jersey ruled that the company’s ‘495 patent for Exparel is not valid. Pacira is currently evaluating its legal options, which include pursuing an appellate review at the U.S. Court of Appeals for the Federal Court as warranted.
Allogene Therapeutics’ loss estimates have remained constant at $1.41 per share for 2024 over the past 60 days, while that for 2025 has narrowed from $1.46 to $1.45 per share. ALLO’s shares have gained 0.3% year to date.
Allogene Therapeutics’ earnings beat estimates in three of the trailing four quarters and matched once, delivering an average surprise of 11.82%.
Biogen’s earnings estimates have risen from $16.12 to $16.37 per share for 2024 over the past 60 days, while that for 2025 has increased from $17.09 to $17.15. BIIB’s shares have lost 32.6% year to date.
Biogen’s earnings beat estimates in three of the trailing four quarters and missed the same in one, delivering an average surprise of 9.99%.
Novartis’ earnings estimates have risen from $7.50 to $7.56 per share for 2024 over the past 60 days, while that for 2025 has increased from $8.30 to $8.33. NVS’ shares have risen 5.8% year to date.
Novartis’ earnings beat estimates in three of the trailing four quarters and missed the same in one, delivering an average surprise of 2.22%.
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Pacira Q3 Earnings Top, Revenues Miss Despite Exparel Sales Growth
Pacira BioSciences, Inc. (PCRX - Free Report) reported third-quarter 2024 adjusted earnings of 79 cents per share, which beat the Zacks Consensus Estimate of 72 cents. The company had reported adjusted earnings of 72 cents per share in the year-ago quarter.
Total revenues amounted to $168.6 million, which increased 3% year over year but missed the Zacks Consensus Estimate of $169 million.
PCRX’s Q3 Results in Detail
Pacira’s top line comprises product sales and royalty revenues. The company recognizes product revenues from the sales of its three marketed drugs — Exparel, Zilretta and iovera.
Exparel’s net product sales were $132 million, which increased 3% from the year-ago quarter figure. The reported figure beat the Zacks Consensus Estimate of $131.2 million and our model estimate of $130 million. Revenue growth from Exparel sales was partially offset by a shift in vial mix and contracted discounts.
Exparel (bupivacaine liposome injectable suspension) is indicated in patients aged six years and older for single-dose infiltration to produce postsurgical local analgesia. It is also indicated for regional analgesia in adults via an interscalene brachial plexus nerve block, sciatic nerve block in the popliteal fossa and femoral nerve block in the adductor canal.
Zilretta’s net product sales came in at $28.4 million, down slightly year over year. Pacira completed the acquisition of Flexion Therapeutics in November 2021, following which the former began recognizing Zilretta sales. The reported figure missed the Zacks Consensus Estimate of $30.6 million as well as our model estimate of $30.1 million.
Year to date, shares of Pacira have plunged 47.6% compared with the industry’s 2.4% decline.
Image Source: Zacks Investment Research
Net product sales of iovera were $5.7 million, up 8% from the year-ago quarter. The figure missed the Zacks Consensus Estimate of $5.99 million as well as our model estimate of $5.9 million.
Revenues generated from the sales of bupivacaine liposome injectable suspension to third-party licenses were pegged at $1.6 million, up significantly from the year-ago quarter’s figure. Royalty revenues amounted to $0.9 million in the reported quarter, up significantly year over year.
Research and development (R&D) expenses (excluding stock-based compensation) came in at $17.3 million, down 7% from the year-ago quarter due to lower product development and manufacturing capacity expansion costs as well as regulatory expenses in the reported quarter.
Selling, general and administrative (SG&A) expenses (excluding stock-based compensation) of $65 million increased 10% year over year, largely due to litigation costs as well as a rise in investments made in commercial, medical and market access organizations.
As of Sept. 30, 2024, Pacira had cash, cash equivalents and available-for-sale investments of $453.8 million compared with $404.2 million as of June 30, 2024.
PCRX Maintains 2024 Financial Guidance
Pacira reiterated its previously announced financial guidance for 2024. It expects total revenues in the band of $680-$705 million for the full year.
The company anticipates adjusted R&D expenses between $70 million and $80 million, while adjusted SG&A expenses are expected in the range of $245-$265 million.
The adjusted gross margin of the company is projected between 74% and 76% in 2024.
PCRX’s Recent Updates
In July, Pacira announced that the Centers for Medicare and Medicaid Services (CMS) has proposed the Hospital Outpatient Prospective Payment System and Ambulatory Surgical Center Payment System rule for 2025. In this rule, Exparel is among six non-opioid treatments, out of which two are specific to ophthalmology, eligible for separate Medicare reimbursement in both ambulatory surgical centers (ASC) and hospital outpatient (HOPD) settings. This policy, which was recently finalized, is set to take effect on Jan. 1, 2025. Iovera is also eligible for reimbursement under this policy.
The proposed rule is part of the implementation of the Non-Opioids Prevent Addiction in the Nation (NOPAIN) Act, which requires separate CMS payments for qualifying non-opioid drugs and devices in HOPD and ASC settings. Pacira believes that the successful implementation of the NOPAIN Act will drive expanded Exparel utilization in outpatient settings and accelerate top-line growth in 2025 and beyond.
Last month, Pacira announced that the CMS has issued a permanent product-specific J-code for Exparel to facilitate better insurance coverage for the drug. This new J-code will take effect on Jan. 1, 2025, replacing the existing C-code, which has been in use since 2019.
The company faced a massive setback in August after the U.S. District Court for the District of New Jersey ruled that the company’s ‘495 patent for Exparel is not valid. Pacira is currently evaluating its legal options, which include pursuing an appellate review at the U.S. Court of Appeals for the Federal Court as warranted.
Pacira BioSciences, Inc. Price and Consensus
Pacira BioSciences, Inc. price-consensus-chart | Pacira BioSciences, Inc. Quote
PCRX’s Zacks Rank and Stocks to Consider
Pacira currently carries a Zacks Rank #4 (Sell).
Some better-ranked pharma stocks are Allogene Therapeutics (ALLO - Free Report) , Biogen (BIIB - Free Report) and Novartis (NVS - Free Report) , each carrying a Zacks Rank #2 (Buy) at present. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Allogene Therapeutics’ loss estimates have remained constant at $1.41 per share for 2024 over the past 60 days, while that for 2025 has narrowed from $1.46 to $1.45 per share. ALLO’s shares have gained 0.3% year to date.
Allogene Therapeutics’ earnings beat estimates in three of the trailing four quarters and matched once, delivering an average surprise of 11.82%.
Biogen’s earnings estimates have risen from $16.12 to $16.37 per share for 2024 over the past 60 days, while that for 2025 has increased from $17.09 to $17.15. BIIB’s shares have lost 32.6% year to date.
Biogen’s earnings beat estimates in three of the trailing four quarters and missed the same in one, delivering an average surprise of 9.99%.
Novartis’ earnings estimates have risen from $7.50 to $7.56 per share for 2024 over the past 60 days, while that for 2025 has increased from $8.30 to $8.33. NVS’ shares have risen 5.8% year to date.
Novartis’ earnings beat estimates in three of the trailing four quarters and missed the same in one, delivering an average surprise of 2.22%.