Asked if Q2 Expiril softness continued into Q3 and how the Iovera divestiture impacts the company's appetite for business development.

Stated it's 'early days' for Q3, but outpatient settings with commercial payer tailwinds are outperforming. Reaffirmed focus on growth in macro-resilient procedures. Post-Iovera divestiture, the company is now solely a pharmaceutical company, which sharpens focus. BD strategy remains consistent: thoughtful capital allocation, near-term accretive opportunities, and risk-managed pipeline approaches. “now we are very clear-minded about being a pharmaceutical company as opposed to being a pharmaceutical and medtech company, which as we've talked about before is very different. And I think this focus will help us execute even better, you know, going forward.”

Asked if H2 Expiril guidance assumes a macro recovery and if the company would consider a US partnership model for Expiril, similar to Zolretta.

H2 guidance does not assume a macro recovery but rather continued growth in macro-resilient outpatient procedures with commercial payer reimbursement. Confirmed openness to partnerships for Expiril to extend reach cost-effectively, citing the LG Chem partnership for ex-US as an example, but emphasized maintaining direct field forces. “if the question is, would we want to at some point consider partnership of ExpoRail to extend our reach, that's certainly within the realm of possibility, but we'd have to do that in a way that's very cost effective and returns value. to both organizations”

Inquired about the ASC vs. HoCTE vs. community hospital split for Expiril volume growth and whether larger IDNs are driving growth. Also asked for tighter timing on PCRX201 Part A data readout and disclosure method.

Did not provide specific volume splits but noted ASCs significantly outpaced the total available market, while hospital volumes were down due to deferred elective soft tissue procedures. Confirmed PCRX201 Part A top-line results are expected 'at the end of the year' and will provide insights into safety and efficacy trends, with additional data throughout 2027. “The hospital volumes, I think, in general are down, but they're further impacted, I would say, by this deferred elective soft tissue procedure dynamic. So, X-ray volumes were still significantly significantly higher than what we saw for hospital procedures. In ASCs, which were modestly up for total available market, I would say that we significantly outpaced that in the ASC setting”

PCRX

Pacira BioSciences (PCRX) Q2 FY26 earnings call: guidance and Q&A

Earnings call· Jun 2026 (Q2 FY26)· Health Care· Aug 4, 2026

Source: earnings call transcript

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

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

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

Category	Target	Timeline	Confidence
Full-year 2026 Total Revenue	$735 million to $760 million high materiality	FY26	High
Full-year 2026 SG&A Expense	$310 million to $330 million medium materiality	FY26	High
Full-year 2026 Stock-Based Compensation	$54 million to $59 million low materiality	FY26	High
Full-year 2026 Expiril Net Product Sales	$600 million to $620 million high materiality	FY26	High
Full-year 2026 Non-GAAP Gross Margin	77% to 79% medium materiality	FY26	High
Full-year 2026 Non-GAAP R&D Expense	$105 million to $115 million medium materiality	FY26	High
Full-year 2026 Depreciation Expense	approximately $30 million low materiality	FY26	High
Expiril Revenues from LG Chem Partnership	beginning 2027 medium materiality	CY27	High

Segment performance

Segment	Revenue	YoY	QoQ	Margin
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 million	3%	—	—
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 million	4%	—	—
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 million	21%	—	—

Deals & partnerships

Zimmer Biomet Divestiture 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 Biomet Collaboration on advancing the Iovera spasticity program.

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

LG Chem Regulatory 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

Macroeconomic pressures on elective procedures Q2 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 expiry End 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

Xelretta Shoulder OA Phase III Top-line Results

Later this year (FY26)

Current Enrollment completed, results pending.

Target Top-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.

Find out whether PCRX delivers this. Inve re-checks your case every morning.

Q&A highlights

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 read 6 chapters

Detailed narrative

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.

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.

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.

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.

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.

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.

Summary of the company's earnings call; see how call summaries are prepared. Not investment advice.