Pacira BioSciences (PCRX 1.33%) is a specialty pharmaceutical company known for its non-opioid pain management products. On August 5, 2025, it reported financial results for the quarter. The headline results showed non-GAAP earnings per share of $0.74, beating analyst consensus by 4.2% (non-GAAP), while revenue (GAAP) came in at $181.1 million, missing GAAP revenue expectations by 1.1%. Compared to a year ago, GAAP revenue rose 1.7%, with modest growth in the flagship EXPAREL product and slight gains for ZILRETTA net product sales. The quarter saw higher operating expenses (GAAP) and a narrowed revenue guidance range for the year. Overall performance reflected progress in manufacturing and innovation, but top-line growth (GAAP revenue) remained subdued.
| Metric | Q2 2025 | Q2 2025 Estimate | Q2 2024 | Y/Y Change |
|---|---|---|---|---|
| EPS (Non-GAAP) | $0.74 | $0.71 | $0.89 | (16.9%) |
| Revenue (GAAP) | $181.1 million | N/A | $178.0 million | 1.7% |
| Adjusted EBITDA (Non-GAAP) | $54.3 million | $62.1 million | (12.5%) | |
| Non-GAAP Gross Margin | 82.0% | 76.0% | 6.0 pp | |
| Operating Expenses (GAAP) | $172.6 million | $149.8 million | 15.2% |
Source: Analyst estimates provided by FactSet. Management expectations based on management's guidance, as provided in Q1 2025 earnings report.
Business Overview and Success Factors
Pacira BioSciences develops and markets non-opioid pain products for surgical and musculoskeletal conditions. Its key offerings include EXPAREL, a bupivacaine liposome injectable suspension for postsurgical pain; ZILRETTA, an injectable extended-release steroid for osteoarthritis knee pain; and iovera°, a device for nerve block treatments. EXPAREL accounts for most of Pacira’s revenue, making its continued adoption essential for the company’s results.
The company’s recent strategies have focused on a program called the 5x30 Plan, which seeks to extend market reach and drive growth through expanding product offerings, partnerships, and improved manufacturing efficiency. Regulatory compliance, innovation in new products such as PCRX-201 (a gene therapy for osteoarthritis), and maintaining an edge in a competitive pharmaceutical landscape are critical to long-term success. Adapting to changes in healthcare reimbursement, especially through programs like the NOPAIN Act, also plays a central role for future growth.
Quarterly Highlights: Financial and Operational Results
During the quarter, EXPAREL remained the core product, generating $142.9 million in sales in Q2 2025, a 4.4% increase compared to the second quarter of 2024. This growth was primarily due to higher unit sales volumes, which rose 6%, but profits were held back by a shift in vial mix and strategic discounting linked to new group purchasing organization contracts. The company’s growing exposure to institutional buyers increased pricing pressure.
ZILRETTA delivered a modest increase in sales, totaling $31.3 million. The company entered into a new co-promotion agreement with Johnson & Johnson MedTech, aiming to accelerate ZILRETTA’s market penetration. Earlier in the year, a restructuring of sales teams created temporary headwinds for both ZILRETTA and iovera°, but leadership expects these impacts to ease as the new teams gain traction. Sales of iovera°, a cryoanalgesia device for nerve blocks, were essentially flat at $5.6 million.
Bupivacaine liposome injectable sales to third-party licensees saw a steep decline to $0.5 million from $3.2 million versus Q2 2024 (GAAP). This reduction reflected a shrinking contribution from out-licensing, further highlighting the company’s dependence on its own branded products for growth. Royalty revenue (GAAP) fell by more than half year over year.
On expenses, total operating costs rose 15.2% compared to the second quarter of 2024. Research and development spending jumped 39% (GAAP) compared to the second quarter of 2024. Selling, general, and administrative expense (GAAP) increased 30.1% compared to the second quarter of 2024. Adjusted EBITDA, a measure of operating profit that excludes interest, taxes, depreciation, and some non-cash charges, fell to $54.3 million, down 12.5% compared to the second quarter of 2024. The net result was a $4.8 million GAAP loss, shifting from GAAP net income in Q2 2024.
The company benefited from a legal settlement in April that eliminated future royalty expenses on EXPAREL and led to a $28.3 million recovery during the quarter. Manufacturing improvements, including a shift to larger batch production and elimination of some royalty costs, contributed to a significant rise in non-GAAP gross margin in Q1, which reached 82.0% on a non-GAAP basis, up from 76.0% in Q2 2024. Pacira also repurchased 2.0 million shares, using $50 million of its available authorization, and finalized a new credit facility to bolster liquidity.
Product Families and Pipeline Development
EXPAREL remains Pacira's core, with its position reinforced by new patents extending U.S. exclusivity potentially through July 2044. As a long-acting local anesthetic, EXPAREL delivers sustained pain relief in postsurgical settings, reducing the need for opioids. Management reported that market adoption is benefiting from increased awareness of new reimbursement pathways, especially in smaller hospitals and surgery centers, highlighting in Q1 that community hospitals and ambulatory surgical centers are embracing the new reimbursement policies, though broader uptake among larger health systems will take more time.
ZILRETTA is an extended-release injectable steroid specifically engineered for knee osteoarthritis. The recent co-promotion deal with Johnson & Johnson MedTech is expected to expand its commercial reach, particularly in early intervention settings. iovera° is a cryoneurolysis system used to freeze targeted nerves and block pain signals, and while sales showed little growth, new product enhancements such as the SmartTip for medial branch blocks are under rollout. PCRX-201, the company’s next-generation gene therapy, completed over half of its Phase 2 clinical trial enrollment as of the quarter, aiming to deliver disease-modifying treatment for knee osteoarthritis. Interim clinical data from the ASCEND Phase 2 study of PCRX-201 in osteoarthritis of the knee is expected by late 2026.
On the pipeline front, Pacira completed its acquisition of GQ Bio in February to support gene therapy development. Its expanding intellectual property for EXPAREL, with 20 patents now listed in the U.S. Food and Drug Administration’s Orange Book as of the earnings release, is intended to deter future generic competition and protect revenue streams.
Guidance, Capital Management, and Look Ahead
For FY2025, Pacira updated its revenue guidance, now forecasting $730 million to $750 million in total sales. This reflects a narrowed range with the same midpoint as before, indicating less upside. The company raised its expected non-GAAP gross margin to 78–80%, up from 76–78%, driven by ongoing manufacturing efficiencies and the benefit from the royalty litigation outcome. Other guidance for expenses and investment levels remain unchanged.
Management has refrained from providing specific quarterly outlook details but continues to emphasize that broad adoption of new reimbursement related to the NOPAIN Act—a U.S. law that expands Medicare payment for non-opioid pain alternatives—will become more visible in the second half of the year and beyond. There were no changes to R&D, selling and general administrative expense, or capital expenditure guidance.
Revenue and net income presented using U.S. generally accepted accounting principles (GAAP) unless otherwise noted.
