On February 29, 2024, Pacira BioSciences Inc (PCRX, Financial) released its 8-K filing, announcing its financial results for the fourth quarter and full-year of 2023. The company, a leader in non-opioid pain management and regenerative health solutions, reported record revenues of $675 million for the year, a modest increase from the previous year's $666.8 million. The full-year GAAP net income stood at $42 million, with an adjusted EBITDA of $214.5 million.
Pacira BioSciences Inc is known for its flagship product, EXPAREL, which utilizes its proprietary DepoFoam technology to deliver pain medication over an extended period. This innovative approach has now reached over 14 million patients, marking a significant milestone for the company.
The company's financial achievements are particularly noteworthy in the context of the drug manufacturing industry, where innovation and the ability to scale production efficiently can significantly impact profitability. The approval of a new 200-liter EXPAREL manufacturing suite by the FDA is expected to enhance gross margins over time, reflecting the company's commitment to operational excellence and growth.
Financial Performance Analysis
The year 2023 saw a nominal increase in EXPAREL net product sales, which amounted to $538.1 million, despite having two fewer selling days compared to 2022. ZILRETTA net product sales also grew by 5% to $111.1 million. The company's iovera° net product sales witnessed a significant 29% increase, reaching $19.7 million for the year.
Operating expenses for the year were reduced to $587.3 million from $606.8 million in 2022, reflecting the company's efforts to streamline operations and manage costs effectively. Research and development expenses decreased to $76.3 million in 2023 from $84.8 million in the previous year, while selling, general, and administrative expenses increased slightly to $269.4 million.
For the fourth quarter of 2023, Pacira reported total revenues of $181.2 million, a 5% increase over the same period in the previous year. GAAP net income for the quarter was $24.9 million, translating to $0.54 per basic share and $0.50 per diluted share. Adjusted EBITDA for the quarter was $65.4 million, an 11% increase compared to the fourth quarter of 2022.
The company ended the year with $281.0 million in cash, cash equivalents, and available-for-sale investments, with cash provided by operations at $47.6 million for the fourth quarter, up from $42.0 million in the same quarter of the previous year.
Looking ahead, Pacira has provided a full-year 2024 financial guidance projecting total revenue between $680 million to $705 million, with a non-GAAP gross margin of 74% to 76%. The company anticipates non-GAAP R&D expenses to be between $70 million to $80 million and non-GAAP SG&A expenses to range from $245 million to $265 million.
The company's CEO, Frank D. Lee, expressed enthusiasm for the future, highlighting plans to drive long-term growth and the upcoming launch of EXPAREL in two key lower extremity nerve blocks. Lee also emphasized the company's commitment to reallocating resources to position Pacira for sustainable success.
For value investors and potential GuruFocus.com members, Pacira BioSciences Inc's financial results demonstrate a strong performance in a competitive industry, with strategic FDA approvals and a focus on non-opioid solutions positioning the company for continued growth and profitability.
For more detailed financial information and the full earnings report, please refer to the provided 8-K filing.
Explore the complete 8-K earnings release (here) from Pacira BioSciences Inc for further details.
