Pacira BioSciences, Inc. (PCRX): Business Model Canvas [11-2024 Updated]

Pacira BioSciences, Inc. (PCRX) is revolutionizing pain management with its innovative approach to non-opioid therapies. Through a robust Business Model Canvas, we can explore how the company leverages key partnerships, cutting-edge research, and a strong value proposition to meet the needs of healthcare providers and patients alike. Discover how Pacira's strategic focus on long-acting analgesics and gene therapy positions it uniquely in the biotech landscape.

Pacira BioSciences, Inc. (PCRX) - Business Model: Key Partnerships

Collaborations with healthcare providers and institutions

Pacira BioSciences maintains strategic collaborations with various healthcare providers and institutions to facilitate the adoption of its products. This includes partnerships with hospitals and surgical centers where EXPAREL and ZILRETTA are utilized in pain management protocols. The company has reported ongoing efforts to educate healthcare professionals about the benefits of non-opioid pain management solutions.

Licensing agreements for drug technologies

Pacira has entered into licensing agreements to expand its product offerings and leverage its proprietary technologies. For instance, the company has licensing agreements related to its multivesicular liposome (MVL) technology, which is crucial for the formulation of EXPAREL. These agreements enable Pacira to enhance its product pipeline while sharing development costs and risks.

Partnerships with specialty distributors and pharmacies

Pacira collaborates with specialty distributors and pharmacies to ensure efficient distribution of its products. As of September 30, 2024, three wholesalers accounted for over 10% of the company's accounts receivable, representing 38%, 18%, and 16% respectively. This distribution network is vital for maintaining supply chain efficiencies and maximizing product availability in the market.

Strategic investments in complementary biotech firms

Pacira has made strategic investments in complementary biotech firms to foster innovation and expand its technological capabilities. As of September 30, 2024, Pacira reported holding equity investments valued at approximately $15.9 million and convertible notes receivable of $12.2 million. These investments are aimed at enhancing the company's research and development efforts and diversifying its product portfolio.

Partnership Type	Description	Value/Impact
Healthcare Collaborations	Partnerships with hospitals and surgical centers for product integration	Increased adoption of EXPAREL and ZILRETTA in pain management
Licensing Agreements	Agreements for MVL technology utilization	Enhanced product pipeline and shared R&D costs
Distribution Partnerships	Collaboration with specialty distributors and pharmacies	Efficient product distribution and market reach
Strategic Investments	Investments in biotech firms for innovation	$15.9 million in equity investments, $12.2 million in convertible notes

Pacira BioSciences, Inc. (PCRX) - Business Model: Key Activities

Research and development of non-opioid pain management therapies

Pacira BioSciences invests heavily in research and development (R&D), focusing on innovative non-opioid pain management therapies. For the nine months ended September 30, 2024, the company incurred R&D expenses totaling $57.68 million, reflecting an increase from $56.79 million during the same period in 2023. This investment is critical for developing new therapies and enhancing existing products, such as EXPAREL and PCRX-201.

Clinical trials for product candidates like EXPAREL and PCRX-201

Clinical trials are a cornerstone of Pacira's R&D efforts. The company has allocated $22.73 million towards clinical and preclinical development for the nine months ended September 30, 2024, marking a 32% increase from $17.26 million in the previous year. The ongoing trials for PCRX-201, a gene therapy candidate, and additional studies for EXPAREL are vital for regulatory approval and market introduction.

Manufacturing and quality control of drug products

Manufacturing capabilities are essential to Pacira's business model. The company reported a cost of goods sold (COGS) of $130.54 million for the nine months ended September 30, 2024. The gross margin improved to 75% compared to 72% in the same period of 2023, attributed to increased production efficiencies and higher volumes of EXPAREL. The company operates a 200-liter manufacturing suite, which was placed into service in July 2024, enhancing its production capacity.

Marketing and sales activities targeting healthcare professionals

Marketing and sales are crucial for driving product adoption among healthcare professionals. For the nine months ended September 30, 2024, Pacira's selling, general, and administrative expenses totaled $214.49 million, up from $203.64 million in 2023. The company generated total revenues of $513.71 million during the same period, with significant contributions from EXPAREL, ZILRETTA, and iovera°, highlighting the effectiveness of its marketing initiatives.

Activity	Expense (in millions)	Percentage Change	2024 Revenue Contribution (in millions)
R&D Expenses	$57.68	Increase from $56.79	N/A
Clinical Trials for EXPAREL and PCRX-201	$22.73	32% Increase	N/A
Manufacturing Costs (COGS)	$130.54	Decrease from $136.98	N/A
Total Revenues	N/A	N/A	$513.71

Pacira BioSciences, Inc. (PCRX) - Business Model: Key Resources

Proprietary pMVL drug delivery technology

Pacira BioSciences utilizes its proprietary pMVL (polymeric Micelle for Viscous Liquids) drug delivery technology, which is specifically designed to provide extended-release formulations for local anesthetics. This technology is instrumental in the production of EXPAREL, a liposome injection that delivers bupivacaine for postoperative pain management.

Experienced research and development team

The company boasts a highly skilled research and development team, which is essential for the innovation and enhancement of its product offerings. Research and development expenses for the nine months ended September 30, 2024, totaled $57.7 million, reflecting a focus on clinical trials and product development.

Manufacturing facilities in San Diego, California

Pacira operates a state-of-the-art manufacturing facility located in San Diego, California, which includes a newly operational 200-liter manufacturing suite for EXPAREL. Total fixed assets, including manufacturing process equipment, were valued at $166.9 million as of September 30, 2024. The facility is crucial for meeting production demands and ensuring product quality.

Strong intellectual property portfolio

Pacira has developed a robust intellectual property portfolio, which includes numerous patents for its drug delivery technologies and formulations. As of September 30, 2024, the company had intangible assets, primarily related to its intellectual property, valued at approximately $440.3 million.

Key Resource	Description	Value/Impact
pMVL Technology	Proprietary drug delivery technology for extended-release formulations	Critical for EXPAREL production
R&D Team	Skilled professionals focused on product innovation and clinical trials	R&D expenses: $57.7 million (9M 2024)
Manufacturing Facility	State-of-the-art facility in San Diego, CA	Fixed assets: $166.9 million as of Sept 30, 2024
Intellectual Property	Portfolio of patents for drug delivery technologies	Intangible assets: $440.3 million

Pacira BioSciences, Inc. (PCRX) - Business Model: Value Propositions

Innovative non-opioid pain management solutions

Pacira BioSciences focuses on developing innovative non-opioid pain management solutions to address the growing opioid crisis and the need for effective pain relief alternatives. The company leverages its proprietary drug delivery technology to create therapies that offer significant advantages over traditional opioid medications.

Long-acting local analgesic effects of EXPAREL

EXPAREL® (bupivacaine liposome injectable suspension) is a key product for Pacira, providing long-acting local analgesic effects. Launched in the U.S. in April 2012, EXPAREL is indicated for postsurgical pain management. As of September 30, 2024, net product sales of EXPAREL reached $401.3 million for the nine months, showing a 2% increase compared to $394.2 million in the same period of 2023 . The product utilizes a multivesicular liposome technology that allows for extended release, providing pain relief for up to 72 hours post-surgery, reducing the need for opioids .

Gene therapy potential with PCRX-201 for osteoarthritis

Pacira is also advancing the development of PCRX-201 (enekinragene inzadenovec), a novel gene therapy aimed at treating osteoarthritis (OA). This therapy has the potential to address a significant unmet medical need by providing a non-invasive treatment option that could alter the disease's progression rather than just managing symptoms. The ongoing research and potential commercialization of PCRX-201 represent a forward-looking aspect of Pacira's business model, aligning with the trend towards personalized medicine and innovative treatment modalities .

Enhanced patient outcomes and reduced reliance on opioids

By offering innovative solutions such as EXPAREL and exploring gene therapy, Pacira aims to enhance patient outcomes while significantly reducing reliance on opioids. The company's revenue from net product sales in the nine months ended September 30, 2024, totaled $509.9 million, reflecting a 4% increase from $492.5 million in the same period of 2023 . This growth in sales underscores the effectiveness of their products in providing pain management solutions that are both effective and safer alternatives to opioids.

Product	Net Product Sales (9M 2024)	Net Product Sales (9M 2023)	% Change
EXPAREL	$401.3 million	$394.2 million	+2%
ZILRETTA	$84.97 million	$82.39 million	+3%
iovera°	$16.36 million	$13.65 million	+20%
Bupivacaine liposome injectable suspension	$7.32 million	$2.24 million	+100%
Total Net Product Sales	$509.9 million	$492.5 million	+4%

Pacira BioSciences, Inc. (PCRX) - Business Model: Customer Relationships

Direct engagement with healthcare providers

Pacira BioSciences maintains strong relationships with healthcare providers through direct engagement strategies. The company focuses on educating providers about its products, particularly EXPAREL, which has generated net product sales of $132,004,000 in Q3 2024, reflecting a 3% increase compared to Q3 2023. This engagement includes one-on-one consultations, participation in medical conferences, and targeted outreach to ensure that healthcare providers are informed about the benefits of Pacira's non-opioid pain management solutions.

Educational programs and training for clinicians

Pacira invests in educational programs and training initiatives aimed at clinicians. These programs are designed to enhance the understanding of the clinical benefits and applications of its products. For instance, the company has allocated significant resources towards developing training modules that facilitate the effective use of EXPAREL and ZILRETTA. In Q3 2024, Pacira's selling, general and administrative expenses were $74,333,000, which includes costs associated with these educational initiatives.

Patient-focused registries to track treatment outcomes

To support the efficacy of its products, Pacira has established patient-focused registries that track treatment outcomes. These registries play a crucial role in collecting data on patient responses to treatments, thereby enabling the company to refine its product offerings and marketing strategies. The registries also help in demonstrating the clinical value of EXPAREL and ZILRETTA to healthcare providers and payers alike.

Registry Name	Focus Area	Established	Outcome Metrics
EXPAREL Registry	Post-surgical pain management	2012	Pain scores, opioid usage
ZILRETTA Registry	Osteoarthritis pain management	2021	Pain relief duration, patient satisfaction

Support for reimbursement processes with payers

Pacira actively supports reimbursement processes with payers to ensure that its products are accessible to patients. The company engages directly with insurance providers to advocate for coverage of EXPAREL and ZILRETTA. In the nine months ended September 30, 2024, Pacira recognized total revenues of $513,713,000, indicating the importance of reimbursement support in driving sales. This engagement includes providing clinical data and cost-effectiveness analyses to payers to facilitate favorable reimbursement decisions.

Pacira BioSciences, Inc. (PCRX) - Business Model: Channels

Direct sales to hospitals and surgical centers

Pacira BioSciences, Inc. primarily utilizes a direct sales strategy to reach hospitals and surgical centers. As of September 30, 2024, the company reported net product sales of $167.7 million for the third quarter. Notably, EXPAREL, its flagship product, generated $132.0 million in revenue, representing a 3% increase year-over-year . This direct sales approach enables Pacira to establish strong relationships with healthcare providers, ensuring effective communication of product benefits and uses.

Specialty distributors for ZILRETTA and iovera°

In addition to direct sales, Pacira collaborates with specialty distributors to enhance the distribution of its products, including ZILRETTA and iovera°. For the nine months ending September 30, 2024, ZILRETTA sales accounted for $85.0 million, reflecting a 3% increase compared to the previous year . iovera° also saw robust growth, with sales increasing by 20% year-over-year to $16.4 million . These partnerships with specialty distributors are critical for reaching niche markets and ensuring product availability across various healthcare settings.

Online platforms for educational resources and training

Pacira emphasizes the importance of education and training for healthcare professionals. The company provides online resources aimed at enhancing the understanding of its products and their applications in clinical settings. This strategy not only supports product adoption but also fosters a community of informed healthcare professionals. The effective utilization of digital platforms allows for broad dissemination of information, which is particularly valuable in a rapidly evolving medical landscape.

Participation in medical conferences and symposiums

Engagement in medical conferences and symposiums is another key channel for Pacira. These events facilitate networking with healthcare professionals and showcasing the latest data on product efficacy and safety. In 2024, Pacira participated in several major conferences, allowing direct interaction with surgeons and hospital decision-makers. This engagement is vital for building brand recognition and credibility within the medical community.

Channel	Key Metrics	Revenue (2024)
Direct Sales	EXPAREL: $132.0M	$167.7M (Q3 Total)
Specialty Distributors	ZILRETTA: $85.0M iovera°: $16.4M	$167.7M (Q3 Total)
Online Platforms	Training Resources Provided	Not directly quantified
Medical Conferences	Participation in Major Events	Not directly quantified

Pacira BioSciences, Inc. (PCRX) - Business Model: Customer Segments

Hospitals and ambulatory surgery centers

Pacira BioSciences primarily targets hospitals and ambulatory surgery centers (ASCs) for the distribution of its products, particularly EXPAREL and ZILRETTA. In 2024, net product sales from EXPAREL were approximately $401.3 million, representing a 2% increase from the previous year. This sales growth is attributed to the increasing adoption of long-acting analgesics in surgical settings, where pain management is critical for patient recovery.

Healthcare providers treating pain management

The company serves healthcare providers specializing in pain management, including anesthesiologists and pain management specialists. In the nine months ended September 30, 2024, Pacira reported total revenues of $513.7 million, with a significant portion derived from pain management treatments. The increasing focus on opioid-sparing strategies has further enhanced the demand for Pacira's products.

Patients with osteoarthritis and post-surgical pain

Patients suffering from osteoarthritis and those undergoing surgical procedures comprise a significant customer segment for Pacira. In 2024, the revenue from ZILRETTA, a treatment for osteoarthritis pain, was approximately $85 million. Additionally, the demand for bupivacaine liposome injectable suspension has surged, with revenues exceeding $7.3 million, indicating strong market acceptance among patients requiring effective pain relief.

Veterinary practices utilizing bupivacaine liposome injectable suspension

Pacira has expanded its customer segments to include veterinary practices that utilize its bupivacaine liposome injectable suspension. The veterinary market has shown a significant growth trajectory, with sales more than doubling year-over-year, contributing to a broader revenue base. This diversification reflects Pacira's strategy to tap into emerging markets beyond human healthcare.

Customer Segment	Products	2024 Revenue (in millions)	Growth Rate
Hospitals and ASCs	EXPAREL	$401.3	2%
Healthcare Providers	ZILRETTA	$85.0	3%
Patients with Osteoarthritis	Bupivacaine liposome injectable suspension	$7.3	100%+
Veterinary Practices	Bupivacaine liposome injectable suspension	Growth exceeded 100%	N/A

Pacira BioSciences, Inc. (PCRX) - Business Model: Cost Structure

Research and Development Expenditures

Research and development expenses for Pacira BioSciences, Inc. for the nine months ended September 30, 2024, totaled $57.68 million, compared to $56.79 million in the same period of 2023. The breakdown of R&D expenses is as follows:

Category	2024 (Q3)	2023 (Q3)	Change (%)
Clinical and Preclinical Development	$22.73 million	$17.26 million	32%
Product Development and Manufacturing Capacity Expansion	$21.95 million	$26.40 million	(17%)
Regulatory and Other	$7.47 million	$7.32 million	2%
Stock-based Compensation	$5.52 million	$5.82 million	(5%)

Manufacturing and Operational Costs

For the nine months ended September 30, 2024, the cost of goods sold was $130.54 million, a decrease from $136.98 million in 2023, reflecting a 5% decrease. Manufacturing costs include:

• Labor costs
• Raw materials
• Manufacturing overhead
• Occupancy costs
• Depreciation of facilities
• Royalty payments
• Quality control and engineering costs

Gross margin for the nine months ended September 30, 2024, was 75%, compared to 72% in 2023.

Marketing and Sales Expenses

The total selling, general, and administrative expenses for the nine months ended September 30, 2024, amounted to $214.49 million, up from $203.64 million in 2023, representing a 5% increase. The breakdown of marketing and sales expenses is as follows:

Category	2024 (Q3)	2023 (Q3)	Change (%)
Sales and Marketing	$121.67 million	$117.30 million	4%
General and Administrative	$66.84 million	$61.11 million	9%
Stock-based Compensation	$25.97 million	$25.23 million	3%

Legal and Regulatory Compliance Costs

Legal and regulatory compliance costs have increased due to ongoing litigation and consulting services. The general and administrative expenses increased due to:

• Third-party management consulting for strategic opportunities
• Compensatory costs associated with the transition of the CEO
• Increased legal expenses from ongoing litigation

Overall, the increase in legal and regulatory compliance costs has contributed to the rise in total operational expenses.

Pacira BioSciences, Inc. (PCRX) - Business Model: Revenue Streams

Net product sales from EXPAREL, ZILRETTA, iovera°

For the three months ended September 30, 2024, net product sales were as follows:

Product	Q3 2024 Sales (in $000)	Q3 2023 Sales (in $000)	% Change
EXPAREL	132,004	128,667	3%
ZILRETTA	28,420	28,798	(1)%
iovera°	5,655	5,260	8%
Bupivacaine liposome injectable suspension	1,643	858	91%
Total Net Product Sales	167,722	163,583	3%

For the nine months ended September 30, 2024, net product sales totaled:

Product	9M 2024 Sales (in $000)	9M 2023 Sales (in $000)	% Change
EXPAREL	401,286	394,202	2%
ZILRETTA	84,966	82,393	3%
iovera°	16,359	13,645	20%
Bupivacaine liposome injectable suspension	7,322	2,241	100%+
Total Net Product Sales	509,933	492,481	4%

Royalty revenues from licensing agreements

In Q3 2024, Pacira BioSciences reported royalty revenues of:

Period	Royalty Revenue (in $000)
Q3 2024	851
Q3 2023	343

For the nine months ended September 30, 2024, royalty revenues were:

Period	Royalty Revenue (in $000)
9M 2024	3,780
9M 2023	1,253

Potential milestone payments from strategic partnerships

As of September 30, 2024, Pacira has recognized contingent consideration related to the Flexion Acquisition:

Milestone Payments (in $000)	As of September 30, 2024	As of December 31, 2023
Contingent Consideration	19,157	24,698

The contingent consideration obligations are recorded at their estimated fair values and are revalued each reporting period. During the nine months ended September 30, 2024, the company recognized contingent consideration gains of:

Period	Gains (in $000)
Q3 2024	3,200
9M 2024	5,500

Income from veterinary product sales

Sales from the bupivacaine liposome injectable suspension for veterinary use contributed significantly to revenue. For the three months ended September 30, 2024, veterinary sales were:

Period	Veterinary Sales (in $000)
Q3 2024	1,643

For the nine months ended September 30, 2024:

Period	Veterinary Sales (in $000)
9M 2024	7,322

Updated on 16 Nov 2024

Resources:

1. Pacira BioSciences, Inc. (PCRX) Financial Statements – Access the full quarterly financial statements for Q3 2024 to get an in-depth view of Pacira BioSciences, Inc. (PCRX)' financial performance, including balance sheets, income statements, and cash flow statements.
2. SEC Filings – View Pacira BioSciences, Inc. (PCRX)' latest filings with the U.S. Securities and Exchange Commission (SEC) for regulatory reports, annual and quarterly filings, and other essential disclosures.