GlobeNewswire Inc | Feb 25, 2021 08:00AM EST

February 25, 2021

Reports record full-year 2020 revenue of $429.6 million

Anesthesia-driven regional approaches expanding and driving strong EXPAREL growth

Conference call today at 8:30 a.m. ET

PARSIPPANY, N.J., Feb. 25, 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 fourth quarter and full-year of 2020.

Our nations opioid crisis has escalated under the shadow of the COVID-19 pandemic, as isolation and lack of access to healthcare has exacerbated mental health challenges, particularly addiction. I am delighted to report that EXPAREL-based protocols are expanding opioid-sparing pain management for a variety of procedures where historically poor postsurgical pain management fueled such addictions. Despite these challenging times, we have quickly adapted to a virtual world and delivered record revenues for 2020, said Dave Stack, chairman and chief executive officer of Pacira BioSciences. Looking ahead to the balance of the year, we remain steadfast in our commitment to providing an opioid alternative to as many patients as possible and redefining the role of opioids as a rescue medication while enabling the migration to hospital outpatient and ambulatory surgery centers for elective surgery.

2020 Full-Year and Fourth Quarter Financial Highlights

-- Full-year revenues of $429.6 million and fourth quarter revenues of $131.0 million. -- Full-year GAAP net income of $145.5 million or $3.41 per share (basic) and $3.33 (diluted). -- Fourth quarter GAAP net income of $14.5 million or $0.33 per share (basic) and $0.32 (diluted). -- Full-year non-GAAP Adjusted EBITDA of $112.6 million and fourth quarter non-GAAP Adjusted EBITDA of $42.9 million.

Recent Business Highlights

-- Equity investment in GeneQuine Biotherapeutics. In January 2021, Pacira announced an equity investment in GeneQuine Biotherapeutics GmbH. Under the terms of the agreement, Pacira made an initial investment of 2.0 million with an additional 4.0 million investment predicated upon GeneQuine achieving certain prespecified near-term milestones related to its lead gene therapy product candidate, GQ-303. Up to 2.5 million of the total Pacira investment will be in the form of a convertible note. In addition, Pacira is entitled to appoint one member to GeneQuines board of directors. GeneQuine Biotherapeutics is a privately held biopharmaceutical company advancing a gene therapy platform for the treatment of osteoarthritis (OA) and other musculoskeletal disorders. GeneQuines product candidates are next-generation gene transfer vehicles that are highly efficient in entering joint cells to confer multi-year gene expression. -- European Commission approves EXPAREL for the treatment of postsurgical pain. In November 2020, the European Commission granted marketing authorization for EXPAREL as a brachial plexus block or femoral nerve block for treatment of post-operative pain in adults, and as a field block for treatment of somatic post-operative pain from small- to medium-sized surgical wounds in adults. The European Commission approval was based on the results of four pivotal Phase 3 studies that demonstrated improvements in pain reduction and opioid use. These studies include: lower extremity nerve block, upper extremity nerve block, and infiltration studies in hard and soft tissue surgeries. The European Commission decision is applicable to all 27 European Union member states plus the United Kingdom, Iceland, Norway and Liechtenstein. Commercial planning is underway, with an anticipated launch in the second half of 2021.

Fourth Quarter 2020 Financial Results

-- Total revenues were $131.0 million in the fourth quarter of 2020, a 7% increase over the $122.4 million reported for the fourth quarter of 2019. -- EXPAREL net product sales were $125.3 million in the fourth quarter of 2020, a 7% increase over the $116.9 million reported for the fourth quarter of 2019. -- Fourth quarter 2020 iovera net product sales were $2.4 million, a 25% decrease versus the $3.2million reported in the fourth quarter of 2019. -- Sales of bupivacaine liposome injectable suspension to a third-party licensee for use in veterinary practice were $2.0 million in the fourth quarter of 2020, compared to $1.7 million in 2019. -- Fourth quarter 2020 royalty revenue was $1.2 million compared to $0.6 million in 2019. -- Total operating expenses were $112.2 million in the fourth quarter of 2020, compared to $120.7 million in the fourth quarter of 2019. -- Research and development (R&D) expenses were $15.3 million in the fourth quarter of 2020, compared to $19.7 million in the fourth quarter of 2019. The companys R&D expenses include $5.2 million and $8.7 million of product development and manufacturing capacity expansion costs in the fourth quarters of 2020 and 2019, respectively. -- Selling, general and administrative (SG&A) expenses were $52.8 million in the fourth quarter of 2020, compared to $54.2 million in the fourth quarter of 2019. -- GAAP net income was $14.5 million, or $0.33 per share (basic) and $0.32 (diluted), in the fourth quarter of 2020, compared to a GAAP net loss of $4.9 million, or $0.12 per share (basic and diluted), in the fourth quarter of 2019. -- Non-GAAP net income was $38.8 million, or $0.89 per share (basic) and $0.87 per share (diluted), in the fourth quarter of 2020, compared to non-GAAP net income of $23.8 million, or $0.57 per share (basic) and $0.56 per share (diluted), in the fourth quarter of 2019. -- Adjusted EBITDA was $42.9 million in the fourth quarter of 2020, a 48% increase over $29.1 million in the fourth quarter of 2019. -- Pacira had 43.5 million basic and 44.7 million diluted weighted average shares of common stock outstanding in the fourth quarter of 2020.

Full-Year 2020 Financial Results

-- Total revenues were $429.6 million in 2020, a 2% increase over the $421.0 million reported in 2019. -- EXPAREL net product sales were $413.3 million in 2020, a 1% increase over the $407.9 million reported in 2019. -- Full-year iovera net product sales were $8.8 million, a 12% increase over the $7.9million reported in 2019. Pacira began recognizing sales of iovera in April 2019 after completing its acquisition of MyoScience, Inc., a privately held medical technology company. -- Sales of bupivacaine liposome injectable suspension to a third-party licensee for use in veterinary practice were $4.5 million in 2020, compared to $3.2 million in 2019. -- Full-year royalty revenue was $3.0 million compared to $2.1 million in 2019. -- Total operating expenses were $383.3 million in 2020, compared to $410.5 million in 2019. -- Research and development (R&D) expenses were $59.4 million in 2020, compared to $72.1 million in 2019. The companys R&D expenses include $23.5 million and $29.7 million of product development and manufacturing capacity expansion costs in 2020 and 2019, respectively. -- Selling, general and administrative (SG&A) expenses were $193.5 million in 2020, compared to $200.8 million in 2019. -- GAAP net income was $145.5 million, or $3.41 per share (basic) and $3.33 per share (diluted) in 2020, compared to a GAAP net loss of $11.0 million, or $0.27 per share (basic and diluted) in 2019. -- Non-GAAP net income was $96.6 million, or $2.26 per share (basic) and $2.21 per share (diluted), in 2020, compared to non-GAAP net income of $70.7 million, or $1.70 per share (basic) and $1.67 per share (diluted), in 2019. -- Adjusted EBITDA was $112.6 million in 2020, a 26% increase over $89.2 million in 2019. -- Pacira had 42.7 million basic and 43.7 million diluted weighted average shares of common stock outstanding in 2020.

See Non-GAAP Financial Information below.

Financial Guidance

The companys 2021 product sales continue to be negatively impacted by the COVID-19 pandemic, which mandated 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. In order to provide greater transparency, the company will continue to report monthly intra-quarter unaudited net product sales until it has gained enough visibility around the impacts of COVID-19 to reinstate financial guidance.

Todays Conference Call and Webcast Reminder

The Pacira management team will host a conference call to discuss the companys financial results and recent developments today, Thursday, February25, 2021, at 8:30 a.m. ET. To participate in the conference call, dial 1-877-845-0779 and provide the passcode 4864607. 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 4864607. 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 share, non-GAAP cost of goods sold, non-GAAP gross margins, non-GAAP research and development (R&D) expense and non-GAAP selling, general and administrative (SG&A) expense and adjusted EBITDA, because such measures exclude acquisition-related charges, product discontinuation costs and other expense; stock-based compensation; amortization of debt discount; loss on early extinguishment of debt, amortization of acquired intangible assets; an income tax benefit and a step-up in basis of inventory in connection with the acquisition of MyoScience, Inc., (gain) loss on investment and other non-operating income and the reversal of a deferred tax valuation allowance.

These measures supplement Paciras 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, gross margins, R&D expense and SG&A expense outlook for 2021 and to help make managerial decisions. In managements opinion, these non-GAAP measures are useful to investors and other users of our financial statements by providing greater transparency into the operating performance at 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, including adjusted EBITDA.

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 companys 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 for single-dose infiltration in adults to produce postsurgical local analgesia and 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 atwww.EXPAREL.com.

Important Safety Information for Patients

EXPAREL should not be used in obstetrical paracervical block anesthesia. In studies where EXPAREL was injected into the wound, the most common side effects were nausea, constipation, and vomiting. In studies where EXPAREL was injected near a nerve, the most common side effects were nausea, fever, and constipation. EXPAREL is not recommended to be used in patients younger than 18 years old or in pregnant women. Tell your healthcare provider if you have liver disease, since this may affect how the active ingredient (bupivacaine) in EXPAREL is eliminated from your body. EXPAREL should not be injected into the spine, joints, or veins. The active ingredient in EXPAREL: can affect your nervous system and your cardiovascular system; may cause an allergic reaction; may cause damage if injected into your joints.

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 systems 190 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; Raynauds 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.



1Radnovich, 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.

Forward-Looking Statements

Any statements in this press release about the companys 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 success of the companys sales and manufacturing efforts in support of the commercialization of EXPAREL; the rate and degree of market acceptance of EXPAREL; the size and growth of the potential markets for EXPAREL and the companys ability to serve those markets; the companys plans to expand the use of EXPAREL to additional indications and opportunities, and the timing and success of any related clinical trials; the ability to realize anticipated benefits and synergies from the acquisition of MyoScience; the ability to successfully integrate iovera and any other future acquisitions into the companys existing business; the commercial success of iovera and other factors discussed in the Risk Factors of the companys 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 companys 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 companys views as of any date subsequent to the date of this press release.

Pacira BioSciences, Inc.Condensed Consolidated Balance Sheets(in thousands)(unaudited)

December 31, December 2020 31, 2019ASSETS Current assets: Cash and cash equivalents $ 99,957 $ 78,228 Short-term investments 421,705 213,722 Accounts receivable, net 53,046 47,530 Inventories, net 64,650 58,296 Prepaid expenses and other current assets 12,265 10,781 Total current assets 651,623 408,557 Long-term investments 95,459 64,798 Fixed assets, net 136,688 104,681 Right-of-use assets, net 74,492 38,124 Goodwill 99,547 99,547 Intangible assets, net 96,521 104,387 Deferred tax assets 106,164 ? Equity investments and other assets 14,019 10,971 Total assets $ 1,274,513 $ 831,065 LIABILITIES AND STOCKHOLDERS? EQUITY Current liabilities: Accounts payable $ 10,431 $ 12,799 Accrued expenses 70,974 70,427 Lease liabilities 7,425 4,935 Convertible senior notes^ (1) 149,648 ? Contingent consideration 14,736 18,179 Income taxes payable 114 1,333 Total current liabilities 253,328 107,673 Convertible senior notes ^(2) 313,030 306,045 Lease liabilities 71,025 40,938 Contingent consideration 13,610 19,963 Other liabilities 3,832 1,502 Total stockholders? equity 619,688 354,944 Total liabilities and stockholders? $ 1,274,513 $ 831,065 equity

(1) Relates to our 2.375% convertible senior notes due 2022. These notes are classified as current at December 31, 2020 because the note holders can convert any time on or after October 1, 2021.(2) Relates to our 0.750% convertible senior notes due 2025 that are not currently convertible.

Pacira BioSciences, Inc.Consolidated Statements of Operations(in thousands, except per share amounts)(unaudited)

Three Months Ended Year Ended December 31, December 31, 2020 2019 2020 2019Net product sales: EXPAREL $ 125,309 $ 116,939 $ 413,338 $ 407,877 Bupivacaineliposome injectable 2,029 1,685 4,459 3,153 suspension Total EXPAREL /bupivacaine liposomeinjectable 127,338 118,624 417,797 411,030 suspension netproduct sales iovera 2,426 3,221 8,817 7,896 Total net product sales 129,764 121,845 426,614 418,926 Royalty revenue 1,210 579 3,033 2,100 Total revenues 130,974 122,424 429,647 421,026 Operating expenses: Cost of goods sold 35,298 31,904 117,328 106,712 Research and 15,331 19,653 59,421 72,119 development Selling, general and 52,831 54,223 193,516 200,782 administrative Amortization ofacquired intangible 1,966 1,967 7,866 5,703 assets Acquisition-relatedcharges, product 6,765 12,965 5,166 25,230 discontinuation and other Total operating 112,191 120,712 383,297 410,546 expensesIncome from operations 18,783 1,712 46,350 10,480 Other (expense) income: Interest income 693 1,667 4,629 7,376 Interest expense (7,062 ) (5,997 ) (25,671 ) (23,628 ) Loss on early ? ? (8,071 ) ? extinguishment of debt Other, net 279 (923 ) 2,852 (4,976 ) Total other (6,090 ) (5,253 ) (26,261 ) (21,228 )expense, netIncome (loss) before 12,693 (3,541 ) 20,089 (10,748 )income taxes Income tax benefit 1,821 (1,347 ) 125,434 (268 )(expense)Net income (loss) $ 14,514 $ (4,888 ) $ 145,523 $ (11,016 ) Net income (loss) per share: Basic net income $ 0.33 $ (0.12 ) $ 3.41 $ (0.27 )(loss) per common share Diluted net income $ 0.32 $ (0.12 ) $ 3.33 $ (0.27 )(loss) per common shareWeighted average common shares outstanding: Basic 43,503 41,784 42,671 41,513 Diluted 44,730 41,784 43,682 41,513

Pacira BioSciences, Inc.Reconciliation of GAAP to Non-GAAP Financial Information(in thousands, except per share amounts)(unaudited)

Three Months Ended Year Ended December 31, December 31, 2020 2019 2020 2019GAAP net income (loss) $ 14,514 $ (4,888 ) $ 145,523 $ (11,016 ) Non-GAAP adjustments: Acquisition-relatedcharges, product 6,765 12,965 5,166 25,230 discontinuation and otherStock-based compensation 10,896 9,189 39,920 33,650 Loss on early ? ? 8,071 ? extinguishment of debtAmortization of debt 5,570 3,530 18,254 13,746 discountAmortization of acquired 1,966 1,967 7,866 5,703 intangible assetsIncome tax benefit in ? ? ? (1,828 )connection with acquisitionRecognition of step-upbasis in inventory from ? ? ? 220 acquisitionRelease of valuationallowance on deferred tax (2,041 ) ? (126,613 ) ? assetsLoss (gain) on investmentand other non-operating 1,161 1,023 (1,618 ) 4,981 income, netTotal Non-GAAP adjustments 24,317 28,674 (48,954 ) 81,702 Non-GAAP net income $ 38,831 $ 23,786 $ 96,569 $ 70,686 GAAP basic net income $ 0.33 $ (0.12 ) $ 3.41 $ (0.27 )(loss) per common shareGAAP diluted net income $ 0.32 $ (0.12 ) $ 3.33 $ (0.27 )(loss) per common share Non-GAAP basic net income $ 0.89 $ 0.57 $ 2.26 $ 1.70 per common shareNon-GAAP diluted net income $ 0.87 $ 0.56 $ 2.21 $ 1.67 per common share Weighted average common 43,503 41,784 42,671 41,513 shares outstanding - basicWeighted average commonshares outstanding - 44,730 42,612 43,682 42,370 diluted Cost of goods sold reconciliation:GAAP cost of goods sold $ 35,298 $ 31,904 $ 117,328 $ 106,712 Stock-based compensation (1,539 ) (1,174 ) (5,589 ) (4,665 )Recognition of step-upbasis in inventory from ? ? ? (220 )acquisitionNon-GAAP cost of goods sold $ 33,759 $ 30,730 $ 111,739 $ 101,827 Research and development reconciliation:GAAP research and $ 15,331 $ 19,653 $ 59,421 $ 72,119 developmentStock-based compensation (1,267 ) (1,342 ) (5,211 ) (5,114 )Non-GAAP research and $ 14,064 $ 18,311 $ 54,210 $ 67,005 development Selling, general andadministrative reconciliation:GAAP selling, general and $ 52,831 $ 54,223 $ 193,516 $ 200,782 administrativeStock-based compensation (8,090 ) (6,672 ) (29,120 ) (23,871 )Non-GAAP selling, general $ 44,741 $ 47,551 $ 164,396 $ 176,911 and administrative

Pacira BioSciences, Inc.Reconciliation of GAAP Net Income (Loss) to Adjusted EBITDA(in thousands)(unaudited)

Three Months Ended Year Ended December 31, December 31, 2020 2019 2020 2019GAAP net income (loss) $ 14,514 $ (4,888 ) $ 145,523 $ (11,016 ) Interest income (693 ) (1,667 ) (4,629 ) (7,376 )Interest expense ^(1) 7,062 5,997 25,671 23,628 Income tax (benefit) (1,821 ) 1,347 (125,434 ) 268 expense ^(2) (3)Depreciation expense 3,095 3,124 12,042 13,873 Amortization of acquired 1,966 1,967 7,866 5,703 intangible assetsEBITDA 24,123 5,880 61,039 25,080 Other adjustments: Acquisition-related chargesand product 6,765 12,965 5,166 25,230 discontinuation, netStock-based compensation 10,896 9,189 39,920 33,650 Loss on early ? ? 8,071 ? extinguishment of debtRecognition of step-upbasis in inventory from ? ? ? 220 acquisitionLoss (gain) on investment 1,161 1,023 (1,618 ) 4,981 Adjusted EBITDA (non-GAAP) $ 42,945 $ 29,057 $ 112,578 $ 89,161

(1) Includes amortization of debt discount(2) Includes an income tax benefit in connection with the April 2019 acquisition of MyoScience, Inc.(3) Includes the reversal of a deferred tax valuation allowance during the year ended December 31, 2020

Adjusted earnings before interest, taxes, depreciation and amortization (EBITDA) includes GAAP to non-GAAP adjustments that reflect how the Companys management analyzes its financial results. The adjusted EBITDA figures presented here are unlikely to be comparable with adjusted EBITDA disclosures released by other companies.



Investor Contact:Susan Mesco, (973) 451-4030susan.mesco@pacira.com

Media Contact:Coyne Public RelationsAlyssa Schneider, (973) 588-2270aschneider@coynepr.com