Pacira BioSciences reported third‑quarter 2025 results on November 6, 2025, showing total revenue of $179.5 million, a 6% year‑over‑year increase from $168.6 million in Q3 2024. Non‑GAAP diluted earnings per share rose to $0.70, beating the consensus estimate of $0.65 by $0.05 (7.7%). The company also completed a share‑repurchase of 2.0 million shares at an average price of $25.30, spending $50 million and leaving $200 million of the $300 million authorization unused.
The revenue miss of roughly $2.9 million against analyst expectations was driven by a 9% rise in EXPAREL volume, the company’s flagship product, but offset by a shift toward lower‑priced vial sizes and discounting associated with a new group‑purchasing organization (GPO) partnership. EXPAREL sales reached $139.9 million, up 9% from $132.0 million in Q3 2024, while other product lines such as ZILRETTA and iovera° remained flat, keeping overall revenue growth modest. The mix shift and GPO discounting reduced average selling price, explaining the top‑line shortfall despite strong volume growth.
EPS beat was largely a result of disciplined cost management and margin expansion. Non‑GAAP gross margin climbed to 82% from 78% in the prior year, driven by higher manufacturing efficiencies and a favorable production volume mix. Operating expenses were controlled, and the company avoided one‑time charges, allowing earnings to rise even as revenue fell short of estimates. CEO Frank D. Lee noted that “accelerating topline growth, expanding market access, and meaningful pipeline advancements, including the in‑licensing of AMT‑143, position us well for continued leadership in musculoskeletal pain.”
Pacira raised its full‑year non‑GAAP gross margin guidance to 80–82% and reiterated a revenue range of $725 million–$735 million, reflecting confidence in sustained demand for EXPAREL and the company’s 5×30 growth strategy. The guidance signals management’s belief that the company can maintain high margins while scaling sales, and the 5×30 plan—targeting 3 million patients annually and significant revenue growth by 2030—remains the core of its long‑term strategy. CFO Shawn Cross highlighted that “our third‑quarter non‑GAAP gross margin improved to 82% versus 78% last year,” underscoring operational efficiency gains.
Market reaction was muted, with the stock declining 3.4% in aftermarket trading. Analysts cited the revenue miss and the perceived earnings shortfall—particularly the GAAP EPS of $0.12 versus an estimate of $0.19—as key drivers of the negative sentiment, despite the company’s strong EXPAREL volume growth and margin expansion. Management emphasized continued focus on cost discipline and strategic investments, reinforcing confidence in the company’s trajectory while acknowledging the short‑term impact of GPO discounting on revenue figures.
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