Skip to content
    PCRX
    Earnings call· Jun 2026(Q2 FY26)

    Pacira BioSciences Q2 FY26 earnings call PCRX

    Aug 4, 2026 Source

    Executive summary

    Pacira BioSciences Q2 FY26 — Strategic Execution and Pipeline Advancement

    Pacira BioSciences delivered solid Q2 FY26 results, demonstrating disciplined execution of its 5x30 strategy. The company advanced its pipeline with key clinical readouts expected later this year and strengthened its financial position through the strategic divestiture of Iovera. Despite macroeconomic headwinds impacting certain elective procedures, commercial momentum was sustained, particularly in outpatient settings and through expanded payer access.

    Highlights

    6

    • Total revenues increased by 6% year-over-year to $192.4 million.

    • Adjusted EBITDA reached nearly $50 million.

    • Iovera sales grew by 21% year-over-year to $6.8 million.

    • Zulretta sales increased by 4% year-over-year to $32.6 million.

    • Completed Iovera divestiture for up to $140 million, with $70 million upfront.

    • LG Chem filed for Expiril regulatory approval in South Korea, with revenues expected by 2027.

    Concerns

    4

    • Elective soft tissue procedures experienced a slowdown, particularly in the hospital inpatient setting, impacting Expiril volumes.

    • Expiril volume growth of approximately 4% was partially offset by a shift in vial mix and discounting from a third GPO.

    • Full-year 2026 total revenue guidance was updated to $735-$760 million from $745-$770 million due to the Iovera divestiture.

    • Full-year 2026 SG&A guidance was updated to $310-$330 million from $320-$340 million due to the Iovera divestiture.

    Guidance & targets

    8
    CategoryTargetConfidence
    Full-year 2026 Total Revenue
    $735 million to $760 million
    high materiality
    High
    Full-year 2026 SG&A Expense
    $310 million to $330 million
    medium materiality
    High
    Full-year 2026 Stock-Based Compensation
    $54 million to $59 million
    low materiality
    High
    Full-year 2026 Expiril Net Product Sales
    $600 million to $620 million
    high materiality
    High
    Full-year 2026 Non-GAAP Gross Margin
    77% to 79%
    medium materiality
    High
    Full-year 2026 Non-GAAP R&D Expense
    $105 million to $115 million
    medium materiality
    High
    Full-year 2026 Depreciation Expense
    approximately $30 million
    low materiality
    High
    Expiril Revenues from LG Chem Partnership
    beginning 2027
    medium materiality
    High

    Segment performance

    3
    SegmentRevenueYoYQoQMargin
    Expiril
    Net sales increased by 3% to $147.8 million versus $142.9 million in 2025. Volume growth of approximately 4% was partially offset by a shift in vial mix and discounting from a third GPO. Available to over 150 million covered lives with separate reimbursement outside the surgical bundle, including UnitedHealthcare. Growth in ASC and hospital outpatient segments outpacing broader hospital market. Transcription note: The transcript states "$109.5 147.8 million" which is an ASR error. Based on context and total revenue, $147.8 million is used as the Q2 FY26 sales figure.
    Volume growth: 4%
    		$147.8 million3%——
    Zulretta
    Sales grew by 4% to $32.6 million versus $31.3 million reported in 2025, largely attributable to growth initiatives including a dedicated sales force. UnitedHealthcare placed Zolretta on its preferred drug list, eliminating prior authorization requirements.
    		$32.6 million4%——
    Iovera
    Sales increased by 21% to $6.8 million compared to $5.6 million in 2025, largely attributable to growth initiatives. Divestiture to Zimmer Biomet completed on July 31st.
    		$6.8 million21%——

    Operational metrics

    8
    Total Revenues Growth
    6%YoY
    Q2 FY26

    Total revenues were $192.4 million, a 6% increase over the second quarter of 2025.

    Adjusted EBITDA
    $48.7 million
    Q2 FY26

    Significant adjusted EBITDA of approximately $48.7 million.

    Non-GAAP Gross Margin
    78%
    Q2 FY26

    On a consolidated basis, our second quarter non-GAAP gross margin was in line with our expectations at 78%.

    Non-GAAP R&D Expense
    $27.1 millionup from $24.7 million last year
    Q2 FY26

    Increase relates to advancing Phase 2 study of PCRx201 and label expansion studies.

    Non-GAAP SG&A Expense
    $81.3 millionup from $77.2 million last year
    Q2 FY26

    Increase relates to non-recurring costs specific to the contested election of directors at the 2026 Annual Meeting of Stockholders.

    Cash and Investments Balance
    $251 million
    Q2 FY26

    Transcription note: The transcript states "251 billion" which is an obvious ASR error. Corrected to "251 million" based on typical company cash balances. This will be further enhanced by $70 million upfront payment from Zimmer transaction.

    Covered lives for Expiril
    over 150 million
    Q2 FY26

    Expiril is now available to well over 150 million covered lives with separate reimbursement outside the surgical bundle, including UnitedHealthcare. Transcription note: The transcript states "50% of all men" which is an ASR error, likely referring to "50% of all covered lives" or "commercially insured lives". Corrected to reflect the broader context of covered lives.

    Expiril Volumes
    approximately 620 hours/week
    Q2 FY26

    Expiril volumes are approximately 620 hours a week.

    Industry KPIs

    3
    MetricValueDetails
    EPS revenue guidanceTotal revenue: $735-$760 million (FY26); GAAP EPS: $0.12 (Q2 FY26)USD
    Price volume mix decomposition4%%
    Business development capacity deal appetiteUp to $140 millionUSD

    Deals & partnerships

    3
    Zimmer BiometDivestiture of Iovera business.Up to $140 million

    The divestiture of Iovera to Zimmer Biomet was completed on July 31st. Pacira will receive up to $140 million, with $70 million upfront and additional $70 million linked to revenue-based milestones.

    Zimmer BiometCollaboration on advancing the Iovera spasticity program.

    Pacira will collaborate with Zimmer Biomet on advancing the spasticity program.

    LG ChemRegulatory filing for Expiril in South Korea.

    LG Chem's recent regulatory filing for Expiril in South Korea places revenues on track to beginning 2027.

    Risks & headwinds

    2
    Macroeconomic pressures on elective proceduresQ2 FY26, potentially ongoing

    Elective soft tissue procedures experienced a slowdown, with more pronounced declines in the hospital inpatient setting. Expiril volume growth of approximately 4% was partially offset by a shift in vial mix and discounting.

    Mitigation: Focus on rapidly growing ASC and hospital outpatient segments, expanding commercial payer access, leveraging health economic data to drive awareness and utilization.

    No Pain Act expiryEnd of 2027

    The No Pain Act is due to expire/be re-upped at the end of 2027, which provides separate reimbursement for Expiril in the outpatient setting for CMS patients.

    Mitigation: Working with CMS through its annual grant rulemaking cycle and with Congress to include renewal in a larger bill. Commercial payers are increasingly adopting separate reimbursement, providing a tailwind.

    What to watch in Q3 FY26

    5

    Xelretta Shoulder OA Phase III Top-line Results

    Later this year (FY26)
    CurrentEnrollment completed, results pending.
    TargetTop-line data readout.

    Why it matters

    Potential for first FDA-approved indication specifically for shoulder OA, expanding market and growth opportunities.

    We remain on track to report top line results for our Phase III study of Xelretta and shoulder OA later this year.

    Q&A highlights

    4

    Inquired about the risk of the No Pain Act expiring at the end of 2027, renewal logistics, and confidence in Expiril guidance despite Q2 softness, especially regarding macro headwinds and future volume acceleration.

    Management confirmed active engagement with CMS and Congress for No Pain Act renewal, expecting it to be part of a larger bill. Expressed optimism for H2 Expiril performance, driven by outpatient setting growth, commercial payer wins (e.g., UnitedHealthcare), and macro-resilient procedures.

    “We're working directly with CMS, who has the ability to provide basically the same reimbursement that No Pain does through its annual grant. rulemaking cycle. And then we're also working with Congress. We would expect, similar to last time, that this would be tacked on and be part of a larger bill.”

    asked by Dennis Sting · answered by Frank Lee

    2 min read6 chapters

    Detailed Narrative

    01

    5x30 Strategy Progress and Shareholder Support

    Pacira BioSciences highlighted continued progress on its 5x30 strategy, which focuses on innovation, commercial momentum, cash generation, pipeline advancement, and strategic partnerships. The company noted strong shareholder support for its strategy and director nominees at the annual meeting in June, reinforcing confidence in its long-term direction and execution capabilities.

    02

    Strategic Iovera Divestiture and Partnership

    The company completed the divestiture of its Iovera business to Zimmer Biomet on July 31st, receiving $70 million upfront and potentially an additional $70 million linked to revenue-based milestones. This strategic move is intended to sharpen Pacira's focus as an innovation-driven biopharmaceutical company, improve its margin profile, and allow for the redirection of capital and resources towards higher-return growth opportunities aligned with its strategic priorities. Pacira will also collaborate with Zimmer Biomet on advancing the Iovera spasticity program.

    03

    Expiril Commercial Performance and Payer Access

    Expiril demonstrated continued commercial momentum, gaining penetration in orthopedic and soft tissue market segments despite a slowdown in broader elective surgery. The product is now available to over 150 million covered lives with separate reimbursement outside the surgical bundle, including a significant win with UnitedHealthcare. Growth is primarily driven by the rapidly expanding ASC and hospital outpatient segments, which are outpacing the broader hospital market.

    04

    Advancing a Catalyst-Rich Pipeline

    Pacira's pipeline is entering a catalyst-rich period with several key readouts expected. Top-line results for the Phase III study of Xelretta in shoulder OA and the Registrational Iovera Spasticity Study are anticipated later this year. PCRX201, a novel treatment for NeoA, has initiated Part B of its Phase II study, with Part A results expected by year-end. Additionally, PCRX2002, a ropivacaine hydrogel, is scheduled to begin Phase 2 development later this year, aiming to complement Expiril in post-surgical pain management.

    05

    No Pain Act and Reimbursement Advocacy

    Management is actively working to ensure the continued separate reimbursement for Expiril in the outpatient setting for CMS patients, as the No Pain Act is due to expire at the end of 2027. The company is pursuing a dual approach, engaging directly with CMS for annual grant rulemaking and collaborating with Congress for potential legislative action, expecting it to be included in a larger bill. This effort is bolstered by increasing commercial payer adoption and compelling health economic data.

    06

    Capital Allocation and Business Development Strategy

    Following the Iovera divestiture, Pacira remains committed to thoughtful capital allocation aimed at maximizing shareholder value and returns. The business development strategy prioritizes near-term accretive opportunities and risk-managed approaches to pipeline expansion. The company maintains an open-minded stance on partnerships, both domestically and internationally, to cost-effectively extend product reach and leverage external expertise, as exemplified by the LG Chem partnership for Expiril in South Korea.

    AI-generated summary of the company’s earnings call. Not investment advice.