Pacira BioSciences, Inc.

Second quarter total revenue was $192.4 million, up 6% versus Q2 2025. EXPAREL net sales were $147.8 million, up 3% from $142.9 million, with about 4% volume growth partially offset by vial mix and GPO-related discounting. ZILRETTA sales were $32.6 million, up 4% from $31.3 million, and iovera sales were $6.8 million, up 21% from $5.6 million. Non-GAAP gross margin was 78% versus 82% last year; non-GAAP R&D was $27.1 million versus $24.7 million; non-GAAP SG&A was $81.3 million versus $77.2 million; GAAP net income was $4.7 million, or $0.12 per diluted share; adjusted EBITDA was about $48.7 million. Cash and investments were $251 million, before the $70 million upfront Zimmer payment. Full-year 2026 guidance now calls for total revenue of $735 million to $760 million, SG&A of $310 million to $330 million, stock-based compensation of $54 million to $59 million, EXPAREL net product sales of $600 million to $620 million, non-GAAP gross margin of 77% to 79%, non-GAAP R&D of $105 million to $115 million, and about $30 million of depreciation expense. Management said the revenue guide still assumes about $7 million from veterinary licensing and that Q4 margins should be slightly below the full-year range due to higher-cost inventory, shutdown-related costs, and other expenses.

Frank Lee framed the quarter as evidence that Pacira is executing its 5x30 strategy and becoming a more innovation-driven pharmaceutical company. He emphasized commercial momentum, expanding payer access, pipeline catalysts, and partnerships, especially the Zimmer Biomet deal and LG Chem filing in South Korea. His tone was constructive and confident, while acknowledging that elective procedures can remain sensitive to macro conditions.

Shawn Cross highlighted that revenue rose 6% year over year to $192.4 million, while gross margin came in at 78% versus 82% last year. He explained the margin and expense profile with specific figures: R&D increased to $27.1 million, SG&A to $81.3 million, and adjusted EBITDA was about $48.7 million. He also pointed to a strong balance sheet with $251 million in cash and investments, plus a $70 million upfront payment from Zimmer, and updated full-year guidance mainly to reflect the transaction.

Analysts focused on whether NOPAIN reimbursement support could be extended beyond 2027 and how Pacira plans to pursue renewal; management said it is working both with CMS through the annual rulemaking cycle and with Congress, expecting any extension to be attached to a larger bill rather than standalone legislation. Questions also centered on softer EXPAREL volume growth and whether macro weakness would force a guide cut; management said the company is focusing on outpatient and other macro-resilient procedures, and that commercial payer wins and health-economic data support the second-half outlook. Another question asked about potentially partnering EXPAREL in the U.S.; management said it is open-minded about partnerships if they are cost-effective and value-accretive, while keeping direct sales capabilities.