Pacira BioSciences’ Q2 2026 Call: NOPAIN Act Timelines, Coverage Claims, and Data Delays Diverge

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Date of Call: Aug 4, 2026

Financials Results

• Revenue: $192.4M, representing a 6% increase over Q2 2025
• EPS: $0.12 per basic diluted share (GAAP net income)
• Gross Margin: 78% (non-GAAP), versus 82% for last year

Guidance:

• Total revenue range for 2026 updated to $735M-$760M (previously $745M-$770M).
• EXPAREL net product sales guided at $600M-$620M.
• SG&A expense guided at $310M-$330M (previously $320M-$340M).
• Stock-based compensation guided at $54M-$59M (previously $54M-$62M).
• Non-GAAP gross margin expected at 77%-79%.
• Non-GAAP R&D expense guided at $105M-$115M.
• Adjusted EBITDA depreciation expense expected at ~$30M for 2026.

Business Commentary:

Revenue and Financial Performance:

• Pacira BioSciences reported total revenues of $192.4 million for Q2 2026, representing a 6% increase over Q2 2025.
• EXPAREL net sales increased by 3% to $147.8 million, and ZILRETTA sales grew by 4% to $32.6 million.
• The growth was driven by continued penetration and share gains in orthopedic and soft tissue market segments despite macroeconomic pressures.

Market Access and Payer Coverage:

• EXPAREL now has coverage for 150 million lives with separate reimbursement outside the surgical bundle, representing approximately 50% of all medically insured lives in the U.S.
• This expansion is attributed to strategic wins with major payers like UnitedHealthcare, enhancing patient access and reimbursement visibility for providers.

Pipeline and Product Development:

• The company is advancing its pipeline with PCRX-201, expecting top-line results later in 2026, and has begun phase II development for PCRX-2002.
• These efforts are part of Pacira's strategy to maintain innovation and leadership in post-surgical pain management.

Partnerships and Strategic Transactions:

• The divestiture of iovera° to Zimmer Biomet is expected to provide up to $140 million, with an upfront payment of $70 million.
• This transaction allows Pacira to focus on its pharmaceutical core and leverages Zimmer Biomet's global reach to maximize iovera°'s potential.

Outpatient and Macroeconomic Resilient Procedures:

• EXPAREL volumes in outpatient settings, such as ASCs and hospital outpatient departments, are growing significantly despite a slowdown in inpatient deferrable procedures.
• This trend is supported by favorable reimbursement dynamics and a strategic focus on macroeconomic resilient procedure types.

Sentiment Analysis:

Overall Tone: Positive

• CEO states 'second quarter reflects clear progress against our 5 by 30 strategy' and 'delivered solid financial performance, formed key partnerships, and advanced multiple value-driving pipeline programs.' Also notes management is 'excited about the second half of the year, in the base business and in our upcoming pipeline catalysts.'

Q&A:

• Question from Dennis Ding (Jefferies): On NOPAIN Act expiration risk and renewal logistics, and confidence in navigating macro dynamics for EXPAREL growth.
  Response: Management is making good progress with commercial payers (e.g., UnitedHealthcare win), which provides a tailwind; the NOPAIN Act is expected to be renewed as part of a larger bill toward the end of next year. Confidence for second half growth is based on increased penetration, focus on macro-resilient outpatient procedures, and expanding coverage.

• Question from Dennis Ding (Jefferies): Regarding the softness in Q2 and its continuation into Q3, and the impact of the iovera° divestiture on future business development (BD) appetite.
  Response: Softness is primarily in inpatient, deferrable procedures; outpatient performance is strong. The iovera° divestiture sharpens Pacira's focus as a pharma company; BD will remain thoughtful and focused on accretive, risk-managed opportunities consistent with the 5 by 30 strategy.

• Question from Hardik Parikh (J.P. Morgan): What macro assumptions are needed to meet implied second-half EXPAREL guidance, and whether a partnership model for EXPAREL in the U.S. is envisionable.
  Response: Growth is based on continued softness in inpatient but strong performance in outpatient settings with commercial payer wins; a partnership model for EXPAREL in the U.S. is within the realm of possibility if it is cost-effective and returns value, similar to the ex-U.S. partnership approach with LG Chem.

• Question from Sahil Dhingra (RBC Capital Markets): Can you expand on EXPAREL volume growth split by ASC, HOPD, and community hospital, and on the PCRX-201 Part A data timing and disclosure.
  Response: Volume breakout not provided, but growth is strong in outpatient ASCs which are migrating procedures. PCRX-201 Part A top-line results are expected at the end of the year, with additional data sets reported throughout 2027.

Contradiction Point 1

NOPAIN Act Renewal Process and Timeline

Specific legislative action timeline versus general encouragement.

What were the key drivers of this quarter's performance? - Dennis Ding (Jefferies)

20260501-2026 Q2: Two paths are being pursued: direct renewal with CMS... Anticipate action towards the end of next year. - Anthony Molloy(CFO)

Is there a risk of the NOPAIN Act expiring at the end of 2027, and what are the logistics for its renewal? - Serge Belanger (Needham)

20260501-2026 Q1: They are in discussions with CMS and stakeholders... No specific legislation has been confirmed. - Frank Lee(CEO)

Contradiction Point 2

Commercial Payer Coverage Progress for EXPAREL

Specific, quantified coverage expansion versus general, forward-looking statements.

Dennis Ding (Jefferies) - Dennis Ding (Jefferies)

20260501-2026 Q2: Commercial payers are increasingly covering EXPAREL... now covering ~150M lives, aiming for 160M by year-end. - Frank Lee(CEO)

Given the potential expiration of the NOPAIN Act at the end of 2027 and its renewal logistics, what factors drive confidence in maintaining EXPAREL guidance despite Q2 softness and achieving NOPAIN Act-driven volume acceleration in H2? - Serge Belanger (Needham)

20260501-2026 Q1: The company is encouraged by its uptake and the expansion of coverage... now 110 million covered lives outside the surgical bundle and growing. - Frank Lee(CEO)

Contradiction Point 3

R&D Expense Cadence

Contradiction on the timing and level of R&D spending throughout the year.

N/A - N/A

20260501-2026 Q2: Not applicable. The Q2 transcript does not discuss R&D expense cadence for the year. - N/A

N/A (The Q2 transcript does not contain a question on R&D cadence) - Douglas Tsao (H.C. Wainwright)

20260501-2026 Q1: R&D expense is expected to increase in Q2 to the low $30 million range due to the initiation of Part B of the PCRX-201 Phase II study and certain EXPAREL product development, then decline back to Q1 levels in Q3 and Q4. - Shawn Cross and Brendan Teehan(CFO and COO)

Contradiction Point 4

Expected Timeline for PCRX-201 Part A Data

Contradiction on when top-line data from the Phase II study will be available.

N/A - N/A

20260501-2026 Q2: Not applicable. The Q2 transcript does not provide an update on the PCRX-201 Part A timeline. - N/A

N/A - Anthea Li (Jefferies) on behalf of Dennis Ding

20260501-2026 Q1: The top-line data for Part A of the Phase II ASCEND study will read out at the end of 2026. - Frank Lee and Jonathan Slonin(CFO and CSO)

Contradiction Point 5

PCRX-201 Part A Data Disclosure Timeline

Inconsistent timeline for reporting top-line results from the PCRX-201 Phase II study.

Sahil Dhingra (RBC Capital Markets) - Sahil Dhingra (RBC Capital Markets)

20260501-2026 Q2: Top-line results for Part A... are expected to be reported at the end of 2026. - Jonathan Slonin(Chief Medical Officer)

Will you accelerate the timeline for PCRX-201 Part A data release? - Douglas Tsao (H.C. Wainwright)

20260227-2025 Q4: Data from Part A (end of 2025) and Part B (starting mid-2026 with ~90 patients) will inform next steps. - Frank Lee(CEO)

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