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Pacira Pharmaceuticals, Inc. (NASDAQ:PCRX) today announced consolidated 2012 financial results and provided updates on the commercial launch of
EXPAREL® (bupivacaine liposome injectable suspension) for postsurgical pain in the United States.
“The launch of EXPAREL continues to go well. Weekly growth in new customers and continued expansion in hospitals that have gained experience with the product support our belief that EXPAREL provides a significant opportunity to improve patient care as well as hospital economics,” said Dave Stack, president and chief executive officer of Pacira. “We are in the fortunate position of hearing daily that clinicians are impressed with the ability of EXPAREL to reduce the requirement for opioids and to control postsurgical pain and that nurses and patients comment on the advantages of EXPAREL.”
Recent Highlights and Upcoming Events
EXPAREL Commercialization: In the fourth quarter ended December 31, 2012, EXPAREL sales totaled $7.8 million, up from $4.6 million in the third quarter of 2012. As of December 31, 2012, 819 accounts ordered EXPAREL, compared to 628 accounts as of October 26, 2012. Of these, 191 accounts reordered EXPAREL six times or more and 110 accounts reordered 10 times or more. Pacira continues its steady expansion since launch with access to 75 percent of the top 100 target hospital accounts and 53 percent of the top 500 target hospital accounts.
Strategic Partnerships: On December 5, 2012, Pacira entered into a global licensing agreement with Aratana Therapeutics Inc. for the development and commercialization of bupivacaine liposome injectable suspension for animal health indications. Aratana will develop and seek approval for the use of the product to manage postsurgical pain in veterinary surgery, focusing initially on cats, dogs and other companion animals. Veterinary development of this product may address the estimated 33 million surgeries performed every year on companion animals in the U.S.
Convertible Debt Transaction: On January 23, 2012, Pacira closed an offering of $120.0 million in aggregate principal amount of 3.25 percent convertible senior notes due February 1, 2019. Approximately $30.1 million of the net proceeds of the offering were used to repay all amounts outstanding and to terminate its senior secured credit facility. The remainder of the net proceeds will be used to fund the continued commercialization of EXPAREL, the development of additional indications for EXPAREL and for general corporate purposes.
Exploring Additional Indications for EXPAREL: During the fourth quarter, Pacira announced new positive data supporting the use of EXPAREL infiltrated into the transversus abdominis plane (iTAP) in robotic prostatectomy patients. These data showed that treatment with EXPAREL resulted in reduced need for opioids compared to historical controls and 100 percent patient satisfaction with postsurgical pain control. The findings were presented at the 11th Annual American Society of Regional Anesthesia and Pain Medicine (ASRA) Meeting. Additionally, Pacira has two ongoing pivotal Phase 3 trials, an intercostal block study in posterolateral thoracotomy patients and a femoral nerve block in total knee arthroplasty (TKA) patients.
Spring Data Presentations and Publications: Pacira continues to generate strong data supporting both the clinical and economic benefits of EXPAREL use. Over the next several months, Pacira expects data from several open and laparoscopic colectomy studies to be published in several top peer-reviewed pain and surgical journals.
Investor Meetings: Pacira management will be presenting at the Barclays Global Healthcare Conference on March 13, 2013 at 2:30 p.m. ET in Miami, and will be attending the Jefferies 2013 Denver Specialty Pharmaceuticals Summit on March 21, 2013 in Denver.
Full-Year 2012 Financial Results
Total revenues for the year ended December 31, 2012 were $39.1 million compared with $15.7 million for the year ended December 31, 2011. Total revenues for the fourth quarter of 2012 were $10.5 million compared with $4.2 million for the fourth quarter of 2011. The increase in revenues was primarily driven by product sales of EXPAREL, which totaled $7.8 million for the fourth quarter of 2012 and $14.6 million for the year ended December 31, 2012. EXPAREL was commercially launched in April 2012 and represents the sale of product shipped directly to end-users, including hospitals and ambulatory surgery centers. Collaborative licensing and development revenue also attributed to $13.3 million of the increase in total revenues for the year, primarily due to the recognition of deferred revenue associated with the termination of certain agreements.
Total operating expenses for the year ended December 31, 2012 were $88.4 million compared with $54.8 million for the year ended 2011. The increase was primarily driven by manufacturing and commercialization efforts for EXPAREL. Additionally, there were certain non-recurring costs relating to the repairs and maintenance to the manufacturing facilities.
Net loss for the year ended December 31, 2012 was $52.3 million, or $1.72 per share (based on 30.3 million weighted average shares outstanding). As of December 31, 2012, there were 32.6 million shares of common stock outstanding.
Pacira ended 2012 with cash and cash equivalents, restricted cash and short-term investments (“cash”) of $42.6 million. On January 23, 2013, the Company completed an offering of $120.0 million of 3.25 percent convertible senior notes, providing net proceeds of approximately $115.3 million after deducting offering expenses. Cash as of December 31, 2012, including the net proceeds of the convertible senior notes, and after the repayment of its senior secured credit facility, was $127.8 million.
Today’s Conference Call and Webcast Reminder
The Pacira management team will host a conference call to discuss the company’s financial results and recent and upcoming developments today, Thursday, March 7, 2013, at 9 a.m. ET. The call can be accessed by dialing 1-866-510-0705 (domestic) or 1-617-597-5363 (international) five minutes prior to the start of the call and providing the passcode 72738968.