Pacira BioSciences (PCRX) 10-Q 6 Aug 20 2020 Q2 Quarterly report Financial data

Cover Page

Cover Page - shares	6 Months Ended
	Jun. 30, 2020	Aug. 02, 2020
Cover [Abstract]
Document Type	10-Q
Document Quarterly Report	true
Document Period End Date	Jun. 30, 2020
Document Transition Report	false
Entity File Number	001-35060
Entity Registrant Name	PACIRA BIOSCIENCES, INC.
Entity Incorporation, State or Country Code	DE
Entity Tax Identification Number	51-0619477
Entity Address, Address Line One	5 Sylvan Way, Suite 300
Entity Address, City or Town	Parsippany
Entity Address, State or Province	NJ
Entity Address, Postal Zip Code	07054
City Area Code	973
Local Phone Number	254-3560
Title of 12(b) Security	Common Stock, par value $0.001 per share
Trading Symbol	PCRX
Security Exchange Name	NASDAQ
Entity Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Entity Filer Category	Large Accelerated Filer
Entity Small Business	false
Entity Emerging Growth Company	false
Entity Shell Company	false
Entity Common Stock, Shares Outstanding		42,742,176
Entity Central Index Key	0001396814
Current Fiscal Year End Date	--12-31
Document Fiscal Year Focus	2020
Document Fiscal Period Focus	Q2
Amendment Flag	false

CONDENSED CONSOLIDATED BALANCE

CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands	Jun. 30, 2020	Dec. 31, 2019
Current assets:
Cash and cash equivalents	$ 78,552	$ 78,228
Short-term investments	248,240	213,722
Accounts receivable, net	44,013	47,530
Inventories, net	66,690	58,296
Prepaid expenses and other current assets	18,328	10,781
Total current assets	455,823	408,557
Long-term investments	8,261	64,798
Fixed assets, net	113,297	104,681
Right-of-use assets, net	77,799	38,124
Goodwill	99,547	99,547
Intangible assets, net	100,454	104,387
Equity investment and other assets	10,930	10,971
Total assets	866,111	831,065
Current liabilities:
Accounts payable	9,160	12,799
Accrued expenses	47,684	70,427
Lease liabilities	7,620	4,935
Contingent consideration	4,504	18,179
Income taxes payable	1,615	1,333
Total current liabilities	70,583	107,673
Convertible senior notes	314,182	306,045
Lease liabilities	73,888	40,938
Contingent consideration	16,326	19,963
Other liabilities	2,984	1,502
Total liabilities	477,963	476,121
Commitments and contingencies (Note 16)
Stockholders’ equity:
Preferred stock, par value $0.001; 5,000,000 shares authorized; none issued and outstanding at June 30, 2020 and December 31, 2019	0	0
Common stock, par value $0.001; 250,000,000 shares authorized; 42,608,257 shares issued and outstanding at June 30, 2020; 41,908,148 shares issued and outstanding at December 31, 2019	43	42
Additional paid-in capital	785,124	753,978
Accumulated deficit	(398,509)	(399,398)
Accumulated other comprehensive income	1,490	322
Total stockholders’ equity	388,148	354,944
Total liabilities and stockholders’ equity	$ 866,111	$ 831,065

CONDENSED CONSOLIDATED BALANC_2

CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) - $ / shares	Jun. 30, 2020	Dec. 31, 2019
Statement of Financial Position [Abstract]
Preferred stock, par value (in dollars per share)	$ 0.001	$ 0.001
Preferred stock, shares authorized (in shares)	5,000,000	5,000,000
Preferred stock, shares issued (in shares)	0	0
Preferred stock, shares outstanding (in shares)	0	0
Common stock, par value (in dollars per share)	$ 0.001	$ 0.001
Common stock, shares authorized (in shares)	250,000,000	250,000,000
Common stock, shares issued (in shares)	42,608,257	41,908,148
Common stock, shares outstanding (in shares)	42,608,257	41,908,148

CONDENSED CONSOLIDATED STATEMEN

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) shares in Thousands, $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2020	Jun. 30, 2019	Jun. 30, 2020	Jun. 30, 2019
Revenues:
Total revenues	$ 75,505	$ 102,604	$ 181,189	$ 193,917
Operating expenses:
Cost of goods sold	22,305	25,201	52,037	52,505
Research and development	13,620	17,827	29,440	32,210
Selling, general and administrative	43,342	49,126	88,122	96,431
Amortization of acquired intangible assets	1,967	1,770	3,933	1,770
Acquisition-related charges (gains) and product discontinuation, net	1,418	3,405	(2,290)	4,647
Total operating expenses	82,652	97,329	171,242	187,563
Income (loss) from operations	(7,147)	5,275	9,947	6,354
Other (expense) income:
Interest income	1,323	1,817	2,911	3,973
Interest expense	(5,456)	(5,878)	(11,477)	(11,691)
Other, net	3,969	(87)	(136)	(26)
Total other expense, net	(164)	(4,148)	(8,702)	(7,744)
Income (loss) before income taxes	(7,311)	1,127	1,245	(1,390)
Income tax benefit (expense)	42	1,603	(356)	1,349
Net income (loss)	$ (7,269)	$ 2,730	$ 889	$ (41)
Net income (loss) per share:
Basic net income (loss) per common share (in USD per share)	$ (0.17)	$ 0.07	$ 0.02	$ 0
Diluted net income (loss) per common share (in USD per share)	$ (0.17)	$ 0.06	$ 0.02	$ 0
Weighted average common shares outstanding:
Basic (in shares)	42,221	41,384	42,126	41,312
Diluted (in shares)	42,221	42,345	42,861	41,312
Product
Revenues:
Total revenues	$ 75,216	$ 101,824	$ 179,961	$ 192,730
Royalty
Revenues:
Total revenues	$ 289	$ 780	$ 1,228	$ 1,187

CONDENSED CONSOLIDATED STATEM_2

CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2020	Jun. 30, 2019	Jun. 30, 2020	Jun. 30, 2019
Statement of Comprehensive Income [Abstract]
Net income (loss)	$ (7,269)	$ 2,730	$ 889	$ (41)
Other comprehensive income:
Net unrealized gain on investments	2,536	318	1,168	780
Total other comprehensive income	2,536	318	1,168	780
Comprehensive income (loss)	$ (4,733)	$ 3,048	$ 2,057	$ 739

CONDENSED CONSOLIDATED STATEM_3

CONDENSED CONSOLIDATED STATEMENT OF STOCKHOLDERS' EQUITY - USD ($) $ in Thousands	Total	Cumulative Effect, Period of Adoption, Adjustment	Common Stock	Additional Paid-In Capital	Accumulated Deficit	Accumulated DeficitCumulative Effect, Period of Adoption, Adjustment	Accumulated Other Comprehensive Income (Loss)
Balances (in shares) at Dec. 31, 2018			41,223,000
Balance at beginning of period at Dec. 31, 2018	$ 321,226	$ (156)	$ 41	$ 709,691	$ (388,226)	$ (156)	$ (280)
Increase (Decrease) in Stockholders' Equity
Exercise of stock options (in shares)			159,000
Exercise of stock options	3,586		$ 0	3,586
Vested restricted stock units (in shares)			188,000
Vested restricted stock units	1		$ 1
Shares issued under employee stock purchase plan (shares)			36,000
Shares issued under employee stock purchase plan	1,270			1,270
Stock-based compensation	15,217			15,217
Retirement of equity component of 2019 convertible senior notes	(233)			(233)
Net unrealized gain on investments	780						780
Net Income (Loss) Attributable to Parent	(41)				(41)
Balances (in shares) at Jun. 30, 2019			41,606,000
Balance at end of period at Jun. 30, 2019	$ 341,650		$ 42	729,531	(388,423)		500
Increase (Decrease) in Stockholders' Equity
Accounting Standards Update [Extensible List]	us-gaap:AccountingStandardsUpdate201602Member
Balances (in shares) at Mar. 31, 2019			41,289,000
Balance at beginning of period at Mar. 31, 2019	$ 327,519		$ 41	718,449	(391,153)		182
Increase (Decrease) in Stockholders' Equity
Exercise of stock options (in shares)			97,000
Exercise of stock options	2,029			2,029
Vested restricted stock units (in shares)			184,000
Vested restricted stock units	1		$ 1
Shares issued under employee stock purchase plan (shares)			36,000
Shares issued under employee stock purchase plan	1,270			1,270
Stock-based compensation	7,783			7,783
Net unrealized gain on investments	318						318
Net Income (Loss) Attributable to Parent	2,730				2,730
Balances (in shares) at Jun. 30, 2019			41,606,000
Balance at end of period at Jun. 30, 2019	341,650		$ 42	729,531	(388,423)		500
Balances (in shares) at Dec. 31, 2019			41,908,000
Balance at beginning of period at Dec. 31, 2019	$ 354,944		$ 42	753,978	(399,398)		322
Increase (Decrease) in Stockholders' Equity
Exercise of stock options (in shares)	427,606		427,000
Exercise of stock options	$ 11,656		$ 1	11,655
Vested restricted stock units (in shares)			236,000
Vested restricted stock units	$ 0		$ 0
Shares issued under employee stock purchase plan (shares)	36,668		37,000
Shares issued under employee stock purchase plan	$ 1,421			1,421
Stock-based compensation	18,070			18,070
Net unrealized gain on investments	1,168						1,168
Net Income (Loss) Attributable to Parent	889				889
Balances (in shares) at Jun. 30, 2020			42,608,000
Balance at end of period at Jun. 30, 2020	388,148		$ 43	785,124	(398,509)		1,490
Balances (in shares) at Mar. 31, 2020			42,117,000
Balance at beginning of period at Mar. 31, 2020	374,036		$ 42	766,280	(391,240)		(1,046)
Increase (Decrease) in Stockholders' Equity
Exercise of stock options (in shares)			220,000
Exercise of stock options	8,202		$ 1	8,201
Vested restricted stock units (in shares)			234,000
Vested restricted stock units	0
Shares issued under employee stock purchase plan (shares)			37,000
Shares issued under employee stock purchase plan	1,421			1,421
Stock-based compensation	9,222			9,222
Net unrealized gain on investments	2,536						2,536
Net Income (Loss) Attributable to Parent	(7,269)				(7,269)
Balances (in shares) at Jun. 30, 2020			42,608,000
Balance at end of period at Jun. 30, 2020	$ 388,148		$ 43	$ 785,124	$ (398,509)		$ 1,490

CONDENSED CONSOLIDATED STATEM_4

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($)	6 Months Ended
	Jun. 30, 2020	Jun. 30, 2019
Operating activities:
Net income (loss)	$ 889,000	$ (41,000)
Adjustments to reconcile net income (loss) to net cash (used in) provided by operating activities:
Depreciation of fixed assets and amortization of intangible assets	9,810,000	8,881,000
Amortization of debt issuance costs	883,000	844,000
Amortization of debt discount	7,254,000	6,749,000
Loss on disposal and impairment of fixed assets	22,000	157,000
Stock-based compensation	18,070,000	15,217,000
Changes in contingent consideration	(2,312,000)	0
Gain on investment	(8,000)	0
Changes in operating assets and liabilities (net of MyoScience, Inc. acquisition):
Accounts receivable, net	3,517,000	(2,141,000)
Inventories, net	(8,394,000)	(2,519,000)
Prepaid expenses and other assets	(1,701,000)	(1,163,000)
Accounts payable	(3,517,000)	(1,321,000)
Accrued expenses and income taxes payable	(21,468,000)	1,844,000
Other liabilities	(3,052,000)	(245,000)
Payment of contingent consideration to MyoScience, Inc. securityholders	(9,409,000)	0
Net cash (used in) provided by operating activities	(9,416,000)	26,262,000
Investing activities:
Acquisition of MyoScience, Inc. (net of cash acquired)	0	(118,683,000)
Purchases of fixed assets	(15,630,000)	(4,070,000)
Purchases of investments	(72,263,000)	(141,960,000)
Sales of investments	95,450,000	163,017,000
Equity Investment	0	(1,622,000)
Net cash provided by (used in) investing activities	7,557,000	(103,318,000)
Financing activities:
Proceeds from exercises of stock options	6,353,000	3,568,000
Proceeds from shares issued under employee stock purchase plan	1,421,000	1,270,000
Repayment of 2019 convertible senior notes	0	(338,000)
Conversion premium on 2019 convertible senior notes	0	(233,000)
Payment of contingent consideration to MyoScience, Inc securityholders	(5,591,000)	0
Net cash provided by financing activities	2,183,000	4,267,000
Net increase (decrease) in cash and cash equivalents	324,000	(72,789,000)
Cash and cash equivalents, beginning of period	78,228,000	132,526,000
Cash and cash equivalents, end of period	78,552,000	59,737,000
Supplemental cash flow information:
Cash paid for interest	4,097,000	4,102,000
Cash paid for income taxes, net of refunds	80,000	490,000
Non-cash investing and financing activities:
Net increase in contingent consideration liabilities	0	28,470,000
Net decrease in accrued fixed assets	$ (1,115,000)	$ (682,000)

DESCRIPTION OF BUSINESS

DESCRIPTION OF BUSINESS	6 Months Ended
	Jun. 30, 2020
Organization, Consolidation and Presentation of Financial Statements [Abstract]
DESCRIPTION OF BUSINESS	DESCRIPTION OF BUSINESS Pacira BioSciences, Inc. and its subsidiaries (collectively, the “Company” or “Pacira”) is a leading provider of non-opioid pain management and regenerative health solutions to advance and improve outcomes for health care practitioners and their patients. The Company’s long-acting, local analgesic, EXPAREL ® (bupivacaine liposome injectable suspension), was commercially launched in the United States in April 2012. EXPAREL utilizes DepoFoam ® , a unique and proprietary delivery technology that encapsulates drugs without altering their molecular structure, and releases them over a desired period of time. In April 2019, the Company added iovera° ® to its commercial offering with the acquisition of MyoScience, Inc., or MyoScience. The iovera° system is a handheld cryoanalgesia device used to deliver a precise, controlled application of cold temperature to only targeted nerves. Pacira is subject to risks common to companies in similar industries and stages, including, but not limited to, competition from larger companies, reliance on revenue from two products, reliance on a limited number of manufacturing sites, new technological innovations, dependence on key personnel, reliance on third-party service providers and sole source suppliers, protection of proprietary technology, compliance with government regulations and risks related to cybersecurity. For information on the Company’s risks related to the ongoing worldwide novel coronavirus (COVID-19) pandemic, see Part II, Item 1A. “Risk Factors”, included in this Quarterly Report on Form 10-Q. The Company is managed and operated as a single business focused on the discovery, development, manufacture, marketing, distribution and sale of non-opioid pain management and regenerative health solutions. The Company is managed by a single management team, and consistent with its organizational structure, the Chief Executive Officer and Chairman manages and allocates resources at a consolidated level. Accordingly, the Company views its business as one reportable segment to evaluate performance, allocate resources, set operational targets and forecast its future financial results. Novel Coronavirus (COVID-19) Pandemic During the second quarter of 2020, the Company’s net product sales were negatively impacted by the global pandemic caused by a novel strain of coronavirus (COVID-19), which mandated significant postponement or suspension in the scheduling of elective surgical procedures resulting from public health guidance and government directives. Elective surgery restrictions began to lift on a state-by-state basis in April 2020; however, the Company does not know how long other states will mandate stay at home orders, how long it will take the surgical community to return to normal operations or if states will return to placing restrictions on elective surgical procedures. The Company’s manufacturing sites are operational and have implemented new safety protocols and guidelines as recommended by federal, state and local governments. To date, there have been no material impacts to the Company’s supply chain. The situation remains dynamic and subject to rapid and possibly material changes. Additional negative impacts may also arise from the COVID-19 pandemic that the Company is unable to foresee. The nature and extent of such impacts will depend on future developments, which are highly uncertain and cannot be predicted.

SUMMARY OF SIGNIFICANT ACCOUNTI

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES	6 Months Ended
	Jun. 30, 2020
Accounting Policies [Abstract]
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES	SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Basis of Presentation and Principles of Consolidation These interim condensed consolidated financial statements have been prepared in accordance with generally accepted accounting principles in the United States of America, or GAAP, and in accordance with the rules and regulations of the United States Securities and Exchange Commission (SEC), for interim reporting. Pursuant to these rules and regulations, certain information and footnote disclosures normally included in complete annual financial statements have been condensed or omitted. Therefore, these interim condensed consolidated financial statements should be read in conjunction with the audited annual consolidated financial statements and notes thereto included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2019 . The condensed consolidated financial statements at June 30, 2020, and for the three and six-month periods ended June 30, 2020 and 2019, are unaudited, but include all adjustments (consisting of only normal recurring adjustments) which, in the opinion of management, are necessary to present fairly the financial information set forth herein in accordance with GAAP. The condensed consolidated balance sheet at December 31, 2019 is derived from the audited consolidated financial statements included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2019. The condensed consolidated financial statements as presented reflect certain reclassifications from previously issued financial statements to conform to the current year presentation. The accounts of wholly-owned subsidiaries are included in the condensed consolidated financial statements. Intercompany accounts and transactions have been eliminated in consolidation. The results of operations for these interim periods are not necessarily indicative of results that may be expected for any other interim periods or for the full year. Concentration of Major Customers The Company sells EXPAREL through a drop-ship program under which orders are processed through wholesalers (including AmerisourceBergen Health Corporation, Cardinal Health, Inc. and McKesson Drug Company), but shipments of the product are sent directly to individual accounts, such as hospitals, ambulatory surgery centers and individual doctors. The Company also sells EXPAREL directly to ambulatory surgery centers and physicians. The Company sells its bupivacaine liposome injectable suspension for veterinary use to a third-party licensee and sells iovera° directly to end users. The table below includes the percentage of revenues comprised by the Company’s three largest wholesalers in each period presented: Three Months Ended Six Months Ended 2020 2019 2020 2019 Largest wholesaler 32% 32% 31% 34% Second largest wholesaler 30% 29% 31% 29% Third largest wholesaler 24% 26% 25% 26% Total 86% 87% 87% 89% Recently Adopted Accounting Pronouncements In February 2016, the Financial Accounting Standards Board, or FASB, issued Accounting Standards Update, or ASU, 2016-02, Leases (Topic 842) , which was adopted by the Company on January 1, 2019 using the effective date method. At adoption, the Company recorded $36.5 million of lease liabilities and $27.6 million of right-of-use, or ROU, assets as of January 1, 2019, the difference representing previously recorded lease-related assets and liabilities. There was a cumulative-effect adjustment to retained earnings of $0.2 million upon adoption. In June 2016, the FASB issued ASU 2016-13, Financial Instruments—Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments , which requires entities to measure all expected credit losses for financial assets held at the reporting date based on historical experience, current conditions and reasonable and supportable forecasts. The Company now includes forward-looking information to better form its credit loss estimates. This update also required enhanced disclosures to help financial statement users better understand significant estimates and judgments used in estimating credit losses, as well as the credit quality and underwriting standards of an entity’s portfolio. This standard became effective for the Company beginning January 1, 2020. There were no credit losses recognized upon adoption at January 1, 2020. In August 2018, the FASB issued ASU 2018-13, Fair Value Measurement (Topic 820): Disclosure Framework . The update added the following disclosures: (i) changes in unrealized gains and losses for the period included in other comprehensive income (loss) for recurring Level 3 fair value measurements held at the end of the reporting period and (ii) the range and weighted average of significant unobservable inputs used to develop Level 3 fair value measurements. The standard became effective for the Company beginning January 1, 2020 and the Company has applied these new disclosure requirements in its condensed consolidated financial statements as of and for the three and six months ended June 30, 2020. In August 2018, the FASB issued ASU 2018-15, Intangibles—Goodwill and Other Internal-Use Software (Subtopic 350-40): Customer’s Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement That is a Service Contract , which aligns the requirements for capitalizing implementation costs incurred in a hosting arrangement that is a service contract with the requirements for capitalizing implementation costs incurred to develop or obtain internal-use software. The update provides guidance to determine which implementation costs to capitalize as they relate to the service contract and which costs to expense. Any expense related to the capitalized implementation costs should be recorded in the same financial statement line item in the consolidated statements of operations as the fees associated with the hosting element of the arrangement, and the payments for capitalized implementation costs should be classified in the same manner as payments made for fees associated with the hosting element in the consolidated statements of cash flows. This standard became effective for the Company beginning January 1, 2020. The amendments are to be applied prospectively to all implementation costs incurred after the date of adoption. The Company did not incur any implementation costs in a hosting arrangement during the three and six months ended June 30, 2020. Recent Accounting Pronouncements Not Adopted as of June 30, 2020 In December 2019, the FASB issued ASU 2019-12, Income Taxes (Topic 740), Simplifying the Accounting for Income Taxes , which amends the approaches and methodologies in accounting for income taxes during interim periods and makes changes to certain income tax classifications. The new standard allows certain exceptions, including an exception to the use of the incremental approach for intra-period tax allocation, when there is a loss from continuing operations and income or a gain from other items, and to the general methodology for calculating income taxes in an interim period, when a year-to-date loss exceeds the anticipated loss for the year. The standard also requires franchise or similar taxes partially based on income to be reported as income tax and to reflect the effects of enacted changes in tax laws or rates in the annual effective tax rate computation from the date of enactment. Lastly, in any future acquisition, the Company would be required to evaluate when the step-up in the tax basis of goodwill is part of the business combination and when it should be considered a separate transaction. The standard will be effective for the Company beginning January 1, 2021, with early adoption of the amendments permitted. The Company is evaluating the impact from the adoption of ASU 2019-12 on its consolidated financial statements.

REVENUE

REVENUE	6 Months Ended
	Jun. 30, 2020
Revenue from Contract with Customer [Abstract]
REVENUE	REVENUE Revenue from Contracts with Customers The Company’s sources of revenue include (i) sales of EXPAREL in the U.S.; (ii) sales of iovera° in the U.S.; (iii) sales of, and royalties on, its bupivacaine liposome injectable suspension for veterinary use in the U.S. and (iv) license fees and milestone payments. The Company does not consider revenue from sources other than sales of EXPAREL to be material sources of its consolidated revenue. As such, the following disclosure only relates to revenue associated with net EXPAREL product sales. Net Product Sales The Company sells EXPAREL through a drop-ship program under which orders are processed through wholesalers based on orders of the product placed by end-users, namely hospitals, ambulatory surgery centers and healthcare provider offices. EXPAREL is delivered directly to the end-user without the wholesaler ever taking physical possession of the product. Product revenue is recognized when control of the promised goods are transferred to the customers, in an amount that reflects the consideration the Company expects to be entitled to in exchange for transferring those goods. EXPAREL revenue is recorded at the time the product is delivered to the end-user. Revenues from sales of products are recorded net of returns allowances, prompt payment discounts, wholesaler service fees, volume rebates and chargebacks. These reserves are based on estimates of the amounts earned or to be claimed on the related sales. These amounts are treated as variable consideration, estimated and recognized as a reduction of the transaction price at the time of the sale, using the most likely amount method for the gross to net adjustments, except for returns, which is based on the expected value method. The Company includes these estimated amounts in the transaction price to the extent it is probable that a significant reversal of cumulative revenue recognized for such transaction will not occur, or when the uncertainty associated with the variable consideration is resolved. The calculation of some of these items requires management to make estimates based on sales data, historical return data, contracts and other related information that may become known in the future. The adequacy of these provisions is reviewed on a quarterly basis. Accounts Receivable The majority of accounts receivable arise from product sales and represent amounts due from wholesalers, hospitals, ambulatory surgery centers and doctors. Payment terms generally range from zero Performance Obligations A performance obligation is a promise in a contract to transfer a distinct good or service to the customer and is the unit of account in Accounting Standards Codification (ASC) 606. A contract’s transaction price is allocated to each distinct performance obligation and recognized as revenue when, or as, the performance obligation is satisfied. At contract inception, the Company assesses the goods promised in its contracts with customers and identifies a performance obligation for each promise to transfer to the customer a good that is distinct. When identifying individual performance obligations, the Company considers all goods promised in the contract regardless of whether explicitly stated in the customer contract or implied by customary business practices. The Company’s contracts with customers require it to transfer an individual distinct product, which represents a single performance obligation. The Company’s performance obligation with respect to its product sales is satisfied at a point in time, which transfers control upon delivery of EXPAREL to its customers. The Company considers control to have transferred upon delivery because the customer has legal title to the asset, physical possession of the asset has been transferred, the customer has significant risks and rewards of ownership of the asset and the Company has a present right to payment at that time. Disaggregated Revenue The following table represents disaggregated net product sales in the periods presented as follows (in thousands): Three Months Ended Six Months Ended 2020 2019 2020 2019 Net product sales: EXPAREL / bupivacaine liposome injectable suspension $ 73,821 $ 99,789 $ 176,296 $ 190,695 iovera° 1,395 2,035 3,665 2,035 Total net product sales $ 75,216 $ 101,824 $ 179,961 $ 192,730

MYOSCIENCE ACQUISITION

MYOSCIENCE ACQUISITION	6 Months Ended
	Jun. 30, 2020
Business Combinations [Abstract]
MYOSCIENCE ACQUISITION	MYOSCIENCE ACQUISITION On April 9, 2019, the Company acquired MyoScience (the “MyoScience Acquisition”), a privately-held medical device company, pursuant to the terms of an Agreement and Plan of Merger, under which MyoScience became a wholly-owned subsidiary of the Company and was renamed Pacira CryoTech, Inc. The total consideration was $147.5 million, which included a net cash payment of $119.0 million and the fair value of contingent consideration in the amount of $28.5 million. The contingent consideration consisted of contingent milestone payments up to an aggregate of $100.0 million upon the achievement of certain regulatory and commercial milestones, of which $58.0 million are available as of June 30, 2020. The Company’s obligation to make milestone payments is limited to those milestones achieved through December 31, 2023, and are to be paid within 60 days of the end of the fiscal quarter of achievement. During the six months ended June 30, 2020, the Company made $15.0 million of cash payments for the achievement of two regulatory milestones. See Note 10, Financial Instruments , for information on the measurement and amounts recognized on the Company’s condensed consolidated balance sheets for contingent consideration. Unaudited Pro Forma Summary of Operations The following table shows the unaudited pro forma summary of operations for the three and six months ended June 30, 2019 as if the MyoScience Acquisition had occurred on January 1, 2019. This pro forma information does not purport to represent what the Company’s actual results would have been and is not indicative of what such results would be expected for any future period (in thousands, except per share amounts): Three Months Ended June 30, 2019 Six Months Ended Total revenues $ 102,913 $ 196,366 Net income (loss) $ 4,234 $ (4,742) Pro forma basic and diluted net income (loss) loss per share $ 0.10 $ (0.11) The unaudited pro forma financial information was prepared using the acquisition method of accounting and was based on the historical financial information of the Company and MyoScience. The summary pro forma financial information primarily reflects the following pro forma adjustments: • Removal of the acquisition-related transaction fees and costs, including certain stock-based compensation and other compensation expenses related to the acquisition; • Removal of the income tax benefit resulting from the Company decreasing its existing valuation allowance; • Removal of MyoScience's loss on extinguishment of debt and warrant expense; • Removal of MyoScience’s interest expense; • Adjustments to the Company’s interest income for the cash used to acquire MyoScience; and • The addition of amortization expense on the acquired developed technology and customer relationship intangible assets.

INVENTORIES

INVENTORIES	6 Months Ended
	Jun. 30, 2020
Inventory Disclosure [Abstract]
INVENTORIES	INVENTORIES The components of inventories, net are as follows (in thousands): June 30, December 31, 2020 2019 Raw materials $ 23,894 $ 20,019 Work-in-process 9,699 14,407 Finished goods 33,097 23,870 Total $ 66,690 $ 58,296 In December 2019, the Company’s contract manufacturer experienced a media fill failure, which is part of the routine aseptic manufacturing requalification program, and an investigation was completed in April 2020. Based on the results of the investigation, the Company determined that no inventory reserves are required related to the media fill failure, and that all inventory in question has been determined to be sellable. The Company resumed production on this manufacturing line in May 2020.

FIXED ASSETS

FIXED ASSETS	6 Months Ended
	Jun. 30, 2020
Property, Plant and Equipment [Abstract]
FIXED ASSETS	FIXED ASSETS Fixed assets, net, summarized by major category, consist of the following (in thousands): June 30, December 31, 2020 2019 Machinery and equipment $ 74,436 $ 70,078 Leasehold improvements 60,856 60,441 Computer equipment and software 10,608 8,942 Office furniture and equipment 2,003 1,882 Construction in progress 46,611 38,778 Total 194,514 180,121 Less: accumulated depreciation (81,217) (75,440) Fixed assets, net $ 113,297 $ 104,681 For the three months ended June 30, 2020 and 2019, depreciation expense was $3.0 million and $3.5 million, respectively. For the three months ended June 30, 2020 and 2019, there was $0.7 million and no capitalized interest on the construction of manufacturing sites, respectively. For the six months ended June 30, 2020 and 2019, depreciation expense was $5.9 million and $7.1 million, respectively. For the six months ended June 30, 2020 and 2019, there was $0.8 million and no capitalized interest on the construction of manufacturing sites, respectively. At June 30, 2020 and December 31, 2019, total fixed assets, net, includes leasehold improvements and manufacturing process equipment located in Europe in the amount of $65.4 million and $64.8 million, respectively.

LEASES

LEASES	6 Months Ended
	Jun. 30, 2020
Leases [Abstract]
LEASES	LEASES The Company leases all of its facilities, including its EXPAREL manufacturing facility in San Diego, California and its iovera° manufacturing facility in Fremont, California. These leases have remaining terms up to 10.2 years, some of which provide renewal options at the then-current market value. The Company also has a lease with Thermo Fisher Scientific Pharma Services, or Thermo Fisher (formerly Patheon UK Limited), for the use of their manufacturing facility in Swindon, England, which is embedded in agreements the Company has with Thermo Fisher. A portion of the associated monthly base fees has been allocated to the lease component based on a relative fair value basis. The operating lease costs for the facilities include lease and non-lease components, such as common area maintenance and other common operating expenses, along with executory costs such as insurance and real estate taxes. Total operating lease costs are as follows (in thousands): Three Months Ended Six Months Ended June 30, June 30, Operating Lease Costs 2020 2019 2020 2019 Fixed lease costs $ 2,422 $ 1,516 $ 3,986 $ 2,959 Variable lease costs 601 449 1,049 829 Total $ 3,023 $ 1,965 $ 5,035 $ 3,788 Supplemental cash flow information related to operating leases is as follows (in thousands): Six Months Ended June 30, 2020 2019 Cash paid for operating lease liabilities $ 8,503 $ 3,121 Right-of-use assets recorded in exchange for lease obligations $ 42,101 $ 38,419 The Company has elected to net the amortization of the ROU asset and the reduction of the lease liability principal in accrued expenses in the condensed consolidated statement of cash flows. The Company has measured its operating lease liabilities at an estimated discount rate in which it could borrow on a collateralized basis over the remaining term for each operating lease. The weighted average remaining lease term and the weighted average discount rate are summarized as follows: June 30, 2020 Weighted average remaining lease term 9.55 years Weighted average discount rate 6.88% Maturities of the Company’s operating lease liabilities are as follows (in thousands): Year Aggregate Minimum Payments Due 2020 (remaining six months) $ 7,497 2021 10,745 2022 10,423 2023 10,697 2024 10,980 2025 through 2030 62,072 Total lease payments 112,414 Less: imputed interest (30,906) Total operating lease liabilities $ 81,508

GOODWILL AND INTANGIBLE ASSETS

GOODWILL AND INTANGIBLE ASSETS	6 Months Ended
	Jun. 30, 2020
Goodwill and Intangible Assets Disclosure [Abstract]
Goodwill and Intangible Assets	GOODWILL AND INTANGIBLE ASSETS Goodwill There was no change in the carrying value of the Company’s goodwill during the three and six months ended June 30, 2020. The balance at both December 31, 2019 and June 30, 2020 was $99.5 million. Skyepharma Acquisition In March 2007, the Company acquired from SkyePharma Holding, Inc. (now a subsidiary of Vectura Group plc), or Skyepharma, its California operating subsidiary named Pacira Pharmaceuticals, Inc. (the “Skyepharma Acquisition”). The Skyepharma Acquisition was accounted for under Statement of Financial Accounting Standards 141, Accounting for Business Combinations , which was the effective GAAP standard at the Skyepharma Acquisition date. As of June 30, 2020 the Company has recorded $62.0 million of goodwill related to the Skyepharma Acquisition. In connection with the Skyepharma Acquisition, the Company agreed to percentage and milestone payments for DepoBupivacaine products, including EXPAREL. The milestone payments are as follows: (i) $10.0 million upon the first commercial sale in the United States (met April 2012); (ii) $4.0 million upon the first commercial sale in the United Kingdom, France, Germany, Italy or Spain; (iii) $8.0 million when annual net sales collected reach $100.0 million (met September 2014); (iv) $8.0 million when annual net sales collected reach $250.0 million (met June 2016); and (v) $32.0 million when annual net sales collected reach $500.0 million. The two unmet milestone payments totaling $36.0 million are the only remaining obligations to Skyepharma. Any remaining milestone payments will be treated as additional costs of the Skyepharma Acquisition and, therefore, recorded as goodwill if and when each contingency is resolved. For purposes of meeting future potential milestone payments, annual net sales are measured on a rolling quarterly basis. MyoScience Acquisition In connection with the MyoScience Acquisition, the Company recorded goodwill totaling $37.5 million. The Company subsequently made a tax election that allows the acquired goodwill and intangible assets to be tax deductible. Intangible Assets MyoScience Acquisition Intangible assets, net, consist of the developed technology and customer relationships that were acquired in the MyoScience Acquisition and are summarized as follows (in thousands): June 30, 2020 Gross Carrying Value Accumulated Intangible Estimated Developed technology $ 110,000 $ (9,625) $ 100,375 14 years Customer relationships 90 (11) 79 10 years Total intangible assets $ 110,090 $ (9,636) $ 100,454 December 31, 2019 Gross Carrying Value Accumulated Intangible Estimated Developed technology $ 110,000 $ (5,696) $ 104,304 14 years Customer relationships 90 (7) 83 10 years Total intangible assets $ 110,090 $ (5,703) $ 104,387 Amortization expense on intangible assets for the three and six months ended June 30, 2020 was $2.0 million and $3.9 million, respectively. There was $1.8 million of amortization expense on intangible assets for both the three and six months ended June 30, 2019. Assuming no changes in the gross carrying amount of these intangible assets, amortization expense on intangible assets will be $3.9 million for the remaining six months of 2020 and the future amortization expense on intangible assets will be $7.9 million annually through 2032 and $2.2 million in 2033.

DEBT

DEBT	6 Months Ended
	Jun. 30, 2020
Debt Disclosure [Abstract]
DEBT	DEBT Convertible Senior Notes Due 2025 On July 10, 2020, the Company completed a private placement of $402.5 million in aggregate principal amount of 0.75% convertible senior notes due 2025, or 2025 Notes, and entered into an indenture, or 2025 Indenture, with respect to the 2025 Notes. The 2025 Notes accrue interest at a fixed rate of 0.75% per year, payable semiannually in arrears on February 1 st and August 1 st of each year, beginning on February 1, 2021. The 2025 Notes mature on August 1, 2025. The Company used part of the net proceeds from the issuance of the 2025 Notes to repurchase $185.0 million aggregate principal of the 2022 Notes in privately-negotiated transactions for an aggregate of approximately $211.1 million in cash (including accrued interest). For more information on the 2025 Notes, see Note 17, Subsequent Events . Convertible Senior Notes Due 2022 On March 13, 2017, the Company completed a private placement of $345.0 million in aggregate principal amount of 2.375% convertible senior notes due 2022, or 2022 Notes, and entered into an indenture, or 2022 Indenture, with respect to the 2022 Notes. The 2022 Notes accrue interest at a fixed rate of 2.375% per year, payable semiannually in arrears on April 1 st and October 1 st of each year. The 2022 Notes mature on April 1, 2022. The total debt composition of the 2022 Notes is as follows (in thousands): June 30, December 31, 2020 2019 2.375% convertible senior notes due 2022 $ 345,000 $ 345,000 Deferred financing costs (3,260) (4,143) Discount on debt (27,558) (34,812) Total debt, net of debt discount and deferred financing costs $ 314,182 $ 306,045 Holders may convert their 2022 Notes prior to October 1, 2021 only if certain circumstances are met, including if during the previous calendar quarter, the last reported sales price of the Company’s common stock was greater than or equal to 130% of the conversion price then applicable for at least 20 out of the last 30 consecutive trading days of the quarter. During the quarter ended June 30, 2020, this condition for conversion was not met. On or after October 1, 2021, until the close of business on the second scheduled trading day immediately preceding April 1, 2022, holders may convert their 2022 Notes at any time. Upon conversion, holders will receive the principal amount of their 2022 Notes and any excess conversion value, calculated based on the per share volume-weighted average price for each of the 40 consecutive trading days during the observation period (as more fully described in the 2022 Indenture). For both the principal and excess conversion value, holders may receive cash, shares of the Company’s common stock or a combination of cash and shares of the Company’s common stock, at the Company’s option. The initial conversion rate for the 2022 Notes is 14.9491 shares of common stock per $1,000 principal amount, which is equivalent to an initial conversion price of $66.89 per share of the Company’s common stock. The conversion rate will be subject to adjustment in some events but will not be adjusted for any accrued and unpaid interest. The initial conversion price of the 2022 Notes represents a premium of approximately 37.5% to the closing sale price of $48.65 per share of the Company’s common stock on the Nasdaq Global Select Market on March 7, 2017, the date that the Company priced the private offering of the 2022 Notes. As of June 30, 2020, the 2022 Notes had a market price of $1,096 per $1,000 principal amount. In the event of conversion, holders would forgo all future interest payments, any unpaid accrued interest and the possibility of stock price appreciation. Upon the receipt of conversion requests, the settlement of the 2022 Notes will be paid pursuant to the terms of the 2022 Indenture. In the event that all of the 2022 Notes are settled, the Company would be required to repay the $345.0 million in principal value ($160.0 million following the July 2020 repurchase of $185.0 million aggregate principal of 2022 Notes discussed above and in Note 17, Subsequent Events ) and any conversion premium in any combination of cash and shares of its common stock (at the Company’s option). As of April 1, 2020, the Company may redeem for cash, shares of the Company’s common stock or a combination of cash and shares of the Company’s common stock, at the Company’s option, all or part of the 2022 Notes if the last reported sale price (as defined in the 2022 Indenture) of the Company’s common stock has been at least 130% of the conversion price then in effect for at least 20 trading days (whether or not consecutive) during any 30 consecutive trading-day period ending within five While the 2022 Notes are currently classified on the Company’s consolidated balance sheet at June 30, 2020 as long-term debt, the future convertibility and resulting balance sheet classification of this liability is monitored at each quarterly reporting date and is analyzed dependent upon market prices of the Company’s common stock during the prescribed measurement periods. In the event that the holders of the 2022 Notes have the right to convert the 2022 Notes at any time during the prescribed measurement period, the 2022 Notes would then be considered a current obligation and classified as such. Interest Expense The following table sets forth the total interest expense recognized in the periods presented (dollar amounts in thousands): Three Months Ended Six Months Ended 2020 2019 2020 2019 Contractual interest expense $ 2,048 $ 2,049 $ 4,097 $ 4,098 Amortization of debt issuance costs 444 424 883 844 Amortization of debt discount 3,660 3,405 7,254 6,749 Capitalized interest and other (Note 6) (696) — (757) — Total $ 5,456 $ 5,878 $ 11,477 $ 11,691 Effective interest rate on convertible senior notes 7.81 % 7.81 % 7.81 % 7.81 %

FINANCIAL INSTRUMENTS

FINANCIAL INSTRUMENTS	6 Months Ended
	Jun. 30, 2020
Fair Value Disclosures [Abstract]
FINANCIAL INSTRUMENTS	FINANCIAL INSTRUMENTS Fair Value Measurements Fair value is defined as the price that would be received to sell an asset or be paid to transfer a liability in the principal or most advantageous market in an orderly transaction. To increase consistency and comparability in fair value measurements, the FASB established a three-level hierarchy which requires an entity to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. The three levels of fair value measurements are: • Level 1—Quoted prices (unadjusted) in active markets that are accessible at the measurement date for assets or liabilities. The fair value hierarchy gives the highest priority to Level 1 inputs. • Level 2—Observable prices that are based on inputs not quoted on active markets, but corroborated by market data. • Level 3—Unobservable inputs that are used when little or no market data is available. The fair value hierarchy gives the lowest priority to Level 3 inputs. The carrying value of financial instruments including cash and cash equivalents, accounts receivable and accounts payable approximate their respective fair values due to the short-term nature of these items. The fair value of the Company’s equity investment is calculated utilizing market quotations from a major American stock exchange (Level 1). The fair value of the Company’s convertible senior notes are calculated utilizing market quotations from an over-the-counter trading market for these notes (Level 2). The fair value of the Company’s acquisition-related contingent consideration is reported at fair value on a recurring basis (Level 3). The carrying values and fair values of the Company’s financial assets and liabilities at June 30, 2020 are as follows (in thousands): Carrying Value Fair Value Measurements Using Level 1 Level 2 Level 3 Financial Assets: Equity investment (3) $ 10,032 $ 10,032 $ — $ — Financial Liabilities: 2.375% convertible senior notes due 2022 (1) $ 314,182 (2) $ — $ 378,206 $ — Acquisition-related contingent consideration (3) $ 20,830 $ — $ — $ 20,830 (1) The closing price of the Company’s common stock as reported on the Nasdaq Global Select Market was $52.47 per share on June 30, 2020 compared to a conversion price of $66.89 per share. Therefore, at June 30, 2020, the conversion price was above the stock price. The maximum conversion premium that could have been due on the 2022 Notes at June 30, 2020 was approximately 5.2 million shares of the Company’s common stock, which subsequently became 2.4 million shares after the July 2020 redemption of $185 million of aggregate principal 2022 Notes (see Note 17, Subsequent Events , for more information). These figures assume no increases in the conversion rate for certain corporate events. (2) Reported at historical cost. (3) Reported at fair value on a recurring basis. Certain assets and liabilities are measured at fair value on a non-recurring basis, including assets and liabilities acquired in a business combination and long-lived assets, which would be recognized at fair value if deemed impaired or if reclassified as assets held for sale. The fair value in these instances would be determined using Level 3 inputs. Financial Liabilities Measured at Fair Value on a Recurring Basis The Company has recognized contingent consideration related to the MyoScience Acquisition in the amount of $20.8 million as of June 30, 2020. Refer to Note 4, MyoScience Acquisition and Note 15, Acquisition-Related (Gains) Charges and Product Discontinuation, Net , for more information. The Company’s contingent consideration obligations are recorded at their estimated fair values and are revalued each reporting period if and until the related contingencies are resolved. The Company has, as a result of revisions to its forecasted revenues (principally due to the impact of the COVID-19 pandemic), for the three and six month periods ended June 30, 2020, recognized $1.6 million of charges and $2.3 million of gains related to contingent consideration, respectively, which have been included in acquisition-related charges (gains) in the condensed consolidated statements of operations. The Company has measured the fair value of its contingent consideration using a probability-weighted discounted cash flow approach that is based on unobservable inputs and a Monte Carlo simulation. These inputs include, as applicable, estimated probabilities and the timing of achieving specified commercial and regulatory milestones, estimated forecasts of revenue and costs and discount rates used to calculate the present value of estimated future payments. Significant changes may increase or decrease the probabilities of achieving the related commercial and regulatory events, shorten or lengthen the time required to achieve such events, or increase or decrease estimated forecasts. At June 30, 2020, the weighted average discount rate was 5.96% and the weighted average probability of success for regulatory milestones was 22.4%. There were no changes in the fair value of contingent consideration in the three and six months ended June 30, 2019. The following table includes the key assumptions used in the valuation of the Company’s contingent consideration: Assumption Ranges Utilized as of June 30, 2020 Discount rates 5.94% to 6.03% Probabilities of payment for regulatory milestones 3% to 100% Projected years of payment for regulatory and commercial milestones 2020 to 2023 The maximum remaining potential payments related to the contingent consideration from the MyoScience Acquisition are $58.0 million. The change in the Company’s contingent consideration recorded at fair value using Level 3 measurements is as follows (in thousands): Contingent Consideration Balance at December 31, 2019 $ 38,142 Fair value adjustments and accretion (2,312) Payments made (15,000) Balance at June 30, 2020 $ 20,830 Investments Short-term investments consist of asset-backed securities collateralized by credit card receivables, investment grade commercial paper and corporate bonds with maturities greater than three months, but less than one year. Long-term investments consist of asset-backed securities collateralized by credit card receivables and corporate bonds with maturities greater than one year but less than two years. Net unrealized gains and losses (excluding credit losses, if any) from the Company’s short-term and long-term investments are reported in other comprehensive income (loss). At June 30, 2020, all of the Company’s short-term and long-term investments are classified as available for sale investments and are determined to be Level 2 instruments, which are measured at fair value using standard industry models with observable inputs. The fair value of the commercial paper is measured based on a standard industry model that uses the three-month U.S. Treasury bill rate as an observable input. The fair value of the asset-backed securities and corporate bonds is principally measured or corroborated by trade data for identical issues in which related trading activity is not sufficiently frequent to be considered a Level 1 input or that of comparable securities. At the time of purchase, all short-term and long-term investments had an “A” or better rating by Standard & Poor’s. The following summarizes the Company’s investments at June 30, 2020 and December 31, 2019 (in thousands): June 30, 2020 Investments Cost Gross Gross Fair Value Short-term: Asset-backed securities $ 61,567 $ 471 $ — $ 62,038 Commercial paper 15,472 22 — 15,494 Corporate bonds 169,767 941 — 170,708 Subtotal 246,806 1,434 — 248,240 Long-term: Corporate bonds 8,205 56 — 8,261 Subtotal 8,205 56 — 8,261 Total $ 255,011 $ 1,490 $ — $ 256,501 December 31, 2019 Investments Cost Gross Gross Fair Value Short-term: Asset-backed securities $ 43,166 $ 54 $ — $ 43,220 Commercial paper 32,250 20 — 32,270 Corporate bonds 138,012 225 (5) 138,232 Subtotal 213,428 299 (5) 213,722 Long-term: Asset-backed securities 28,064 10 (15) 28,059 Corporate bonds 36,706 37 (4) 36,739 Subtotal 64,770 47 (19) 64,798 Total $ 278,198 $ 346 $ (24) $ 278,520 At June 30, 2020, there were no investments held for sale that were less than their amortized cost. The Company elects to recognize its interest receivable separate from its available for sale investments. At June 30, 2020 and December 31, 2019, the interest receivable recognized in prepaid expenses and other current assets was $1.7 million and $1.4 million, respectively. Equity Investment At both June 30, 2020 and December 31, 2019, the Company held an equity investment in TELA Bio, Inc., or TELA Bio, in its condensed consolidated balance sheets in the amount of $10.0 million. The Company records its investment in TELA Bio at fair value based on a quoted market price, which resulted in an unrealized gain in the amount of $4.0 million during the three months ended June 30, 2020 and an unrealized gain of less than $0.1 million in the six months ended June 30, 2020. The fair values at both June 30, 2020 and December 31, 2019 were based on Level 1 inputs. Credit Risk Financial instruments that potentially subject the Company to concentrations of credit risk consist primarily of cash and cash equivalents, short-term investments, long-term investments and accounts receivable. The Company maintains its cash and cash equivalents with high-credit quality financial institutions. Such amounts may exceed federally-insured limits. As of June 30, 2020, three wholesalers each accounted for over 10% of the Company’s accounts receivable, at 33%, 30% and 26%. At December 31, 2019, three wholesalers each accounted for over 10% of the Company’s accounts receivable, at 37%, 29% and 26%. For additional information regarding the Company’s wholesalers, see Note 2 , Summary of Significant Accounting Policies . EXPAREL revenues are primarily derived from major wholesalers and pharmaceutical companies that generally have significant cash resources. The Company performs ongoing credit evaluations of its customers as warranted and generally does not require collateral. Allowances for credit losses on the Company’s accounts receivable are maintained based on historical payment patterns, current and estimated future economic conditions, aging of accounts receivable and its write-off history. As of June 30, 2020 and December 31, 2019, the Company did not deem any allowances for credit losses on its accounts receivable necessary.

STOCK PLANS

STOCK PLANS	6 Months Ended
	Jun. 30, 2020
Stockholders' Equity Note [Abstract]
STOCK PLANS	STOCK PLANS Stock-Based Compensation The Company recognized stock-based compensation expense in the periods presented as follows (in thousands): Three Months Ended Six Months Ended 2020 2019 2020 2019 Cost of goods sold $ 1,284 $ 1,156 $ 2,503 $ 2,247 Research and development 1,357 1,257 2,544 2,475 Selling, general and administrative 6,581 5,370 13,023 10,495 Total $ 9,222 $ 7,783 $ 18,070 $ 15,217 Stock-based compensation from: Stock options $ 6,388 $ 5,378 $ 12,614 $ 10,499 Restricted stock units 2,636 2,204 5,037 4,311 Employee stock purchase plan 198 201 419 407 Total $ 9,222 $ 7,783 $ 18,070 $ 15,217 Equity Awards The following tables contain information about the Company’s stock option and restricted stock unit, or RSU, activity for the six months ended June 30, 2020: Stock Options Number of Options Weighted Average Exercise Price (Per Share) Outstanding at December 31, 2019 6,706,378 $ 42.80 Granted 1,346,703 46.72 Exercised (427,606) 27.26 Forfeited (150,954) 41.93 Expired (31,982) 61.24 Outstanding at June 30, 2020 7,442,539 44.34 Restricted Stock Units Number of Units Weighted Average Grant Date Fair Value (Per Share) Unvested at December 31, 2019 631,141 $ 41.87 Granted 564,326 47.35 Vested (235,835) 41.91 Forfeited (32,059) 42.72 Unvested at June 30, 2020 927,573 45.16 The weighted average fair value of stock options granted during the six months ended June 30, 2020 was $22.05 per share. The fair values of stock options granted were estimated using the Black-Scholes option valuation model with the following weighted average assumptions: Black-Scholes Weighted Average Assumption Six Months Ended June 30, 2020 Expected dividend yield None Risk-free interest rate 0.57% Expected volatility 53.48% Expected term of options 5.36 years Employee Stock Purchase Plan The Company’s 2014 Employee Stock Purchase Plan, or ESPP, features two six-month offering periods per year, running from January 1 to June 30 and July 1 to December 31. Under the ESPP, employees may elect to contribute after-tax earnings to purchase shares at 85% of the closing fair market value of the Company’s common stock on either the offering date or the purchase date, whichever is less. During the six months ended June 30, 2020, 36,668 shares were purchased and issued through the ESPP.

STOCKHOLDERS' EQUITY

STOCKHOLDERS' EQUITY	6 Months Ended
	Jun. 30, 2020
Stockholders' Equity Note [Abstract]
Stockholders' Equity	STOCKHOLDERS’ EQUITY Accumulated Other Comprehensive Income (Loss) The following table illustrates the changes in the balances of the Company’s accumulated other comprehensive income (loss) for the periods presented (in thousands): Six Months Ended Net unrealized gains (losses) from available for sale investments: 2020 2019 Balance at beginning of period $ 322 $ (280) Other comprehensive income before reclassifications 1,168 780 Amounts reclassified from accumulated other comprehensive income (loss) — — Balance at end of period $ 1,490 $ 500

NET INCOME (LOSS) PER SHARE

NET INCOME (LOSS) PER SHARE	6 Months Ended
	Jun. 30, 2020
Earnings Per Share [Abstract]
NET INCOME (LOSS) PER SHARE	NET INCOME (LOSS) PER SHARE Basic net income (loss) per share is calculated by dividing the net income (loss) attributable to common shares by the weighted average number of common shares outstanding during the period. Diluted net income (loss) per common share is calculated by dividing the net income (loss) attributable to common shares by the weighted average number of common shares outstanding plus dilutive potential common shares outstanding during the period. Potential common shares include the shares of common stock issuable upon the exercise of outstanding stock options, the vesting of RSUs, the purchase of shares from the ESPP (using the treasury stock method) and the conversion of the excess conversion value on the 2022 Notes. As discussed in Note 9, Debt, the Company has the option to pay cash for the aggregate principal amount due upon the conversion of its 2022 Notes. Since it is the Company’s intent to settle the principal amount of its 2022 Notes in cash, the potentially dilutive effect of such notes on net income (loss) per share is computed under the treasury stock method. Potential common shares are excluded from the diluted net income (loss) per share computation to the extent they would be antidilutive. Because the Company reported a net loss for the three months ended June 30, 2020 and the six months ended June 30, 2019, no potentially dilutive securities have been included in the computation of diluted net loss per share for those periods. The following table sets forth the computation of basic and diluted net loss per share for the three and six months ended June 30, 2020 and 2019 (in thousands, except per share amounts): Three Months Ended Six Months Ended 2020 2019 2020 2019 Numerator: Net income (loss) $ (7,269) $ 2,730 $ 889 $ (41) Denominator: Weighted average common shares outstanding—basic 42,221 41,384 42,126 41,312 Computation of diluted securities: Dilutive effect of stock options — 810 567 — Dilutive effect of RSUs — 148 168 — Dilutive effect of ESPP purchase options — 3 — — Weighted average common shares outstanding—diluted 42,221 42,345 42,861 41,312 Net income (loss) per share: Basic net income (loss) per common share $ (0.17) $ 0.07 $ 0.02 $ (0.00) Diluted net income (loss) per common share $ (0.17) $ 0.06 $ 0.02 $ (0.00) The following outstanding stock options, RSUs and ESPP purchase options are antidilutive in the periods presented (in thousands): Three Months Ended Six Months Ended 2020 2019 2020 2019 Weighted average number of stock options 6,804 4,426 5,327 5,932 Weighted average number of RSUs 681 190 186 570 Weighted average ESPP purchase options 37 — 20 36 Total 7,522 4,616 5,533 6,538

INCOME TAXES

INCOME TAXES	6 Months Ended
	Jun. 30, 2020
Income Tax Disclosure [Abstract]
TAXES	INCOME TAXES Income (loss) before income taxes is as follows (in thousands): Three Months Ended Six Months Ended 2020 2019 2020 2019 Income (loss) before income taxes: Domestic $ (6,645) $ 3,760 $ 6,400 $ 5,580 Foreign (666) (2,633) (5,155) (6,970) Total income (loss) before income taxes $ (7,311) $ 1,127 $ 1,245 $ (1,390) For the three months ended June 30, 2020 and 2019, the Company recorded an income tax benefit of less than $0.1 million and $1.6 million, respectively. For the six months ended June 30, 2020 and 2019, the Company recorded income tax expense of $0.4 million and an income tax benefit of $1.3 million, respectively. The tax provisions recorded for 2020 and 2019 reflect current state income taxes. The income tax benefit for the three and six months ended June 30, 2019 is primarily related to the MyoScience Acquisition and a $1.8 million reduction in the Company’s valuation allowance on its deferred tax assets due to the acquisition. Due to net operating losses, or NOLs, carried forward, and the repeal of the corporate minimum tax, no current federal income tax expense was recorded for 2020 or 2019. The utilization of the Company’s NOLs has not resulted in any deferred federal tax expense because there was a full valuation allowance recorded with respect to the NOLs. However, if the Company’s results of operations continue to improve, the Company may be required to reverse some or all of the valuation allowance on its deferred tax assets in the second half of 2020.

ACQUISITION_RELATED (GAINS) CHA

ACQUISITION–RELATED (GAINS) CHARGES AND PRODUCT DISCONTINUATION, NET	6 Months Ended
	Jun. 30, 2020
Organization, Consolidation and Presentation of Financial Statements [Abstract]
ACQUISITION–RELATED (GAINS) CHARGES AND PRODUCT DISCONTINUATION, NET	ACQUISITION–RELATED (GAINS) CHARGES AND PRODUCT DISCONTINUATION, NET MyoScience Acquisition The Company recognized acquisition-related charges related to the MyoScience Acquisition in the amount of $1.6 million and acquisition-related gains of $2.2 million in the three and six months ended June 30, 2020, respectively. The majority of these charges and gains represented changes in the fair value of contingent consideration. In these three and six month periods, there were also charges of less than $0.1 million and $0.1 million, respectively, for legal, accounting and other related costs. The Company recognized acquisition-related charges of $3.4 million and $4.6 million in the three and six months ended June 30, 2019, respectively, related to separation costs, asset write-downs and other restructuring charges. There were no changes in the value of contingent consideration in the three and six months ended June 30, 2019. See Note 10, Financial Instruments , for information regarding the methods and key assumptions used in the fair value measurements of contingent consideration. DepoCyt(e) Discontinuation The Company recorded gains related to its DepoCyt(e) discontinuation activities of $0.2 million and $0.1 million in the three and six month periods ended June 30, 2020, respectively. The Company recorded costs for its DepoCyt(e) discontinuation activities of $0.1 million in both the three and six month periods ended June 30, 2019. The Company ceased all production of DepoCyt(e) as of June 30, 2017. Cash payments for the DepoCyt(e) manufacturing facility are expected to be finalized in the third quarter of 2020. Summary of Acquisition-Related Restructuring Activities and DepoCyt(e) Discontinuation Costs The Company’s acquisition-related restructuring and DepoCyt(e) discontinuation costs as of June 30, 2020 are summarized below (in thousands): Severance and Related Costs Asset Retirement Obligations, Other Restructuring and Discontinuation Costs Total Balance at December 31, 2019 $ 81 $ 558 $ 639 Charges incurred — 21 21 Cash payments made (81) (449) (530) Balance at June 30, 2020 $ — $ 130 $ 130

COMMITMENTS AND CONTINGENCIES

COMMITMENTS AND CONTINGENCIES	6 Months Ended
	Jun. 30, 2020
Commitments and Contingencies Disclosure [Abstract]
COMMITMENTS AND CONTINGENCIES	COMMITMENTS AND CONTINGENCIES From time to time, the Company has been and may again become involved in legal proceedings arising in the ordinary course of its business, including those related to patents, product liability and government investigations. The Company is not presently a party to any legal proceedings that it believes to be material, and is not aware of any pending or threatened litigation against the Company which it believes could have a material adverse effect on its business, operating results, financial condition or cash flows. Department of Justice Inquiry Settlement In April 2015, the Company received a subpoena from the U.S. Department of Justice, U.S. Attorney’s Office for the District of New Jersey pertaining to marketing and promotional practices related to EXPAREL. In July 2020, the Company formally entered into settlement agreements that resolved all outstanding investigations and claims by the United States Department of Justice, the United States Department of Health and Human Services, various States Attorneys’ General and a private plaintiff. This agreement concludes a five-year investigation related to the sale and marketing of EXPAREL. Under the various settlement agreements, the Company paid a global settlement of $3.5 million, which was previously recorded in acquisition-related charges, product discontinuation and other in the consolidated financial statements for the year ended December 31, 2019. The Company expressly denies all allegations and contentions and has admitted no wrongdoing in connection with the settlement agreements. The Company has been given assurances that this concludes the investigation that originated from the U.S. Department of Justice subpoena in April 2015.

Subsequent Events

Subsequent Events	6 Months Ended
	Jun. 30, 2020
Subsequent Events [Abstract]
Subsequent Events	SUBSEQUENT EVENTS Convertible Senior Notes Due 2025 On July 10, 2020, the Company completed a private placement of $402.5 million in aggregate principal amount of its 2025 Notes and entered into the 2025 Indenture with respect to the 2025 Notes. The 2025 Notes accrue interest at a fixed rate of 0.75% per year, payable semiannually in arrears on February 1 st and August 1 st of each year, beginning on February 1, 2021. The 2025 Notes mature on August 1, 2025. The net proceeds from the issuance of the 2025 Notes were approximately $389.9 million, after deducting commissions and the estimated offering expenses payable by the Company. A portion of the net proceeds from the 2025 Notes were used by the Company to repurchase $185.0 million of its then-outstanding 2022 Notes in privately-negotiated transactions for a total of $211.1 million of cash (including accrued interest). For more information, see Note 9, Debt . Holders may convert the 2025 Notes at any time prior to the close of business on the business day immediately preceding February 3, 2025, only under the following circumstances: (i) during any calendar quarter commencing after the calendar quarter ending on September 30, 2020 (and only during such calendar quarter), if the last reported sale price of our common stock for at least 20 trading days (whether or not consecutive) during a period of 30 consecutive trading days ending on the last trading day of the immediately preceding calendar quarter is greater than or equal to 130% of the conversion price on each applicable trading day; (ii) during the five five (iii) upon the occurrence of specified corporate events, including a merger or a sale of all or substantially all of the Company’s assets; or (iv) if the Company calls the 2025 Notes for redemption, until the close of business on the business day immediately preceding the redemption date. On or after February 3, 2025, until the close of business on the second scheduled trading day immediately preceding August 1, 2025, holders may convert their 2025 Notes at any time. Upon conversion, holders will receive the principal amount of their 2025 Notes and any excess conversion value, calculated based on the per share volume-weighted average price for each of the 40 consecutive trading days during the observation period (as more fully described in the 2025 Indenture). For both the principal and excess conversion value, holders may receive cash, shares of the Company’s common stock or a combination of cash and shares of the Company’s common stock, at the Company’s option. The initial conversion rate for the 2025 Notes is 13.9324 shares of common stock per $1,000 principal amount, which is equivalent to an initial conversion price of $71.78 per share of the Company’s common stock. The conversion rate will be subject to adjustment in some events but will not be adjusted for any accrued and unpaid interest. The initial conversion price of the 2025 Notes represents a premium of approximately 32.5% to the closing sale price of $54.17 per share of the Company’s common stock on the Nasdaq Global Select Market on July 7, 2020, the date that the Company priced the private offering of the 2025 Notes. Prior to August 1, 2023, the Company may not redeem the 2025 Notes. On or after August 1, 2023 (but, in the case of a redemption of less than all of the outstanding 2025 Notes, no later than the 40 th scheduled trading day immediately before the maturity date), the Company may redeem for cash all or part of the 2025 Notes if the last reported sale price (as defined in the 2025 Indenture) of the Company’s common stock has been at least 130% of the conversion price then in effect for (i) each of at least 20 trading days (whether or not consecutive) during any 30 consecutive trading days ending on, and including, the trading day immediately before the date the Company sends the related notice of redemption and (ii) the trading day immediately before the date the Company sends such notice. The redemption price will equal the sum of (i) 100% of the principal amount of the 2025 Notes being redeemed, plus (ii) accrued and unpaid interest, including additional interest, if any, to, but excluding, the redemption date. In addition, calling the 2025 Notes for redemption will constitute a “make-whole fundamental change ” (as defined in the 2025 Indenture) and will, in certain circumstances, increase the conversion rate applicable to the conversion of such notes if it is converted in connection with the redemption. No sinking fund is provided for the 2025 Notes. If the Company undergoes a fundamental change, as defined in the 2025 Indenture, subject to certain conditions, holders of the 2025 Notes may require the Company to repurchase for cash all or part of their 2025 Notes at a repurchase price equal to 100% of the principal amount of the 2025 Notes to be repurchased, plus accrued and unpaid interest to, but excluding, the fundamental change repurchase date. In addition, if a ‘‘make-whole fundamental change’’ (as defined in the 2025 Indenture) occurs prior to August 1, 2025, the Company will, in certain circumstances, increase the conversion rate for a holder who elects to convert its notes in connection with the make-whole fundamental change. The 2025 Notes are the Company’s general unsecured obligations that rank senior in right of payment to all of its indebtedness that is expressly subordinated in right of payment to the 2025 Notes, and equal in right of payment to the Company’s unsecured indebtedness. The 2025 Notes are also effectively junior in right of payment to any of the Company’s secured indebtedness to the extent of the value of the assets securing such indebtedness, and are structurally subordinated to any debt or other liabilities (including trade payables) of the Company’s subsidiaries. The 2025 Notes do not contain any financial or operating covenants or any restrictions on the payment of dividends, the issuance of other indebtedness or the issuance or repurchase of securities by the Company. The 2025 Indenture contains customary events of default with respect to the 2025 Notes, including that upon certain events of default, 100% of the principal and accrued and unpaid interest on the 2025 Notes will automatically become due and payable. Termination of Agreement with DePuy Synthes Sales, Inc. In July 2020, the Company announced the termination of the Co-Promotion Agreement, dated January 24, 2017 between the Company and DePuy Synthes Sales Inc. to jointly market and promote the use of EXPAREL for orthopedic procedures in the United States. The Company currently estimates termination-related costs or payments to be up to $12.0 million, which will be recorded in selling, general and administrative expenses.

SUMMARY OF SIGNIFICANT ACCOUN_2

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies)	6 Months Ended
	Jun. 30, 2020
Accounting Policies [Abstract]
Basis of Presentation and Principles of Consolidation	Basis of Presentation and Principles of Consolidation These interim condensed consolidated financial statements have been prepared in accordance with generally accepted accounting principles in the United States of America, or GAAP, and in accordance with the rules and regulations of the United States Securities and Exchange Commission (SEC), for interim reporting. Pursuant to these rules and regulations, certain information and footnote disclosures normally included in complete annual financial statements have been condensed or omitted. Therefore, these interim condensed consolidated financial statements should be read in conjunction with the audited annual consolidated financial statements and notes thereto included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2019 . The condensed consolidated financial statements at June 30, 2020, and for the three and six-month periods ended June 30, 2020 and 2019, are unaudited, but include all adjustments (consisting of only normal recurring adjustments) which, in the opinion of management, are necessary to present fairly the financial information set forth herein in accordance with GAAP. The condensed consolidated balance sheet at December 31, 2019 is derived from the audited consolidated financial statements included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2019. The condensed consolidated financial statements as presented reflect certain reclassifications from previously issued financial statements to conform to the current year presentation. The accounts of wholly-owned subsidiaries are included in the condensed consolidated financial statements. Intercompany accounts and transactions have been eliminated in consolidation. The results of operations for these interim periods are not necessarily indicative of results that may be expected for any other interim periods or for the full year.
Concentration of Major Customers	Concentration of Major Customers The Company sells EXPAREL through a drop-ship program under which orders are processed through wholesalers (including AmerisourceBergen Health Corporation, Cardinal Health, Inc. and McKesson Drug Company), but shipments of the product are sent directly to individual accounts, such as hospitals, ambulatory surgery centers and individual doctors. The Company also sells EXPAREL directly to ambulatory surgery centers and physicians. The Company sells its bupivacaine liposome injectable suspension for veterinary use to a third-party licensee and sells iovera° directly to end users. The table below includes the percentage of revenues comprised by the Company’s three largest wholesalers in each period presented: Three Months Ended Six Months Ended 2020 2019 2020 2019 Largest wholesaler 32% 32% 31% 34% Second largest wholesaler 30% 29% 31% 29% Third largest wholesaler 24% 26% 25% 26% Total 86% 87% 87% 89%
Recent Accounting Pronouncements	Recently Adopted Accounting Pronouncements In February 2016, the Financial Accounting Standards Board, or FASB, issued Accounting Standards Update, or ASU, 2016-02, Leases (Topic 842) , which was adopted by the Company on January 1, 2019 using the effective date method. At adoption, the Company recorded $36.5 million of lease liabilities and $27.6 million of right-of-use, or ROU, assets as of January 1, 2019, the difference representing previously recorded lease-related assets and liabilities. There was a cumulative-effect adjustment to retained earnings of $0.2 million upon adoption. In June 2016, the FASB issued ASU 2016-13, Financial Instruments—Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments , which requires entities to measure all expected credit losses for financial assets held at the reporting date based on historical experience, current conditions and reasonable and supportable forecasts. The Company now includes forward-looking information to better form its credit loss estimates. This update also required enhanced disclosures to help financial statement users better understand significant estimates and judgments used in estimating credit losses, as well as the credit quality and underwriting standards of an entity’s portfolio. This standard became effective for the Company beginning January 1, 2020. There were no credit losses recognized upon adoption at January 1, 2020. In August 2018, the FASB issued ASU 2018-13, Fair Value Measurement (Topic 820): Disclosure Framework . The update added the following disclosures: (i) changes in unrealized gains and losses for the period included in other comprehensive income (loss) for recurring Level 3 fair value measurements held at the end of the reporting period and (ii) the range and weighted average of significant unobservable inputs used to develop Level 3 fair value measurements. The standard became effective for the Company beginning January 1, 2020 and the Company has applied these new disclosure requirements in its condensed consolidated financial statements as of and for the three and six months ended June 30, 2020. In August 2018, the FASB issued ASU 2018-15, Intangibles—Goodwill and Other Internal-Use Software (Subtopic 350-40): Customer’s Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement That is a Service Contract , which aligns the requirements for capitalizing implementation costs incurred in a hosting arrangement that is a service contract with the requirements for capitalizing implementation costs incurred to develop or obtain internal-use software. The update provides guidance to determine which implementation costs to capitalize as they relate to the service contract and which costs to expense. Any expense related to the capitalized implementation costs should be recorded in the same financial statement line item in the consolidated statements of operations as the fees associated with the hosting element of the arrangement, and the payments for capitalized implementation costs should be classified in the same manner as payments made for fees associated with the hosting element in the consolidated statements of cash flows. This standard became effective for the Company beginning January 1, 2020. The amendments are to be applied prospectively to all implementation costs incurred after the date of adoption. The Company did not incur any implementation costs in a hosting arrangement during the three and six months ended June 30, 2020. Recent Accounting Pronouncements Not Adopted as of June 30, 2020 In December 2019, the FASB issued ASU 2019-12, Income Taxes (Topic 740), Simplifying the Accounting for Income Taxes , which amends the approaches and methodologies in accounting for income taxes during interim periods and makes changes to certain income tax classifications. The new standard allows certain exceptions, including an exception to the use of the incremental approach for intra-period tax allocation, when there is a loss from continuing operations and income or a gain from other items, and to the general methodology for calculating income taxes in an interim period, when a year-to-date loss exceeds the anticipated loss for the year. The standard also requires franchise or similar taxes partially based on income to be reported as income tax and to reflect the effects of enacted changes in tax laws or rates in the annual effective tax rate computation from the date of enactment. Lastly, in any future acquisition, the Company would be required to evaluate when the step-up in the tax basis of goodwill is part of the business combination and when it should be considered a separate transaction. The standard will be effective for the Company beginning January 1, 2021, with early adoption of the amendments permitted. The Company is evaluating the impact from the adoption of ASU 2019-12 on its consolidated financial statements.

SUMMARY OF SIGNIFICANT ACCOUN_3

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Tables)	6 Months Ended
	Jun. 30, 2020
Accounting Policies [Abstract]
Schedule of percentage of revenue comprised by the three largest customers (i.e. wholesalers or commercial partners)	The table below includes the percentage of revenues comprised by the Company’s three largest wholesalers in each period presented: Three Months Ended Six Months Ended 2020 2019 2020 2019 Largest wholesaler 32% 32% 31% 34% Second largest wholesaler 30% 29% 31% 29% Third largest wholesaler 24% 26% 25% 26% Total 86% 87% 87% 89%

REVENUE (Tables)

REVENUE (Tables)	6 Months Ended
	Jun. 30, 2020
Revenue from Contract with Customer [Abstract]
Disaggregated Revenue	The following table represents disaggregated net product sales in the periods presented as follows (in thousands): Three Months Ended Six Months Ended 2020 2019 2020 2019 Net product sales: EXPAREL / bupivacaine liposome injectable suspension $ 73,821 $ 99,789 $ 176,296 $ 190,695 iovera° 1,395 2,035 3,665 2,035 Total net product sales $ 75,216 $ 101,824 $ 179,961 $ 192,730

MYOSCIENCE ACQUISITION (Tables)

MYOSCIENCE ACQUISITION (Tables)	6 Months Ended
	Jun. 30, 2020
Business Combinations [Abstract]
Unaudited Pro Forma Summary of Operations	The following table shows the unaudited pro forma summary of operations for the three and six months ended June 30, 2019 as if the MyoScience Acquisition had occurred on January 1, 2019. This pro forma information does not purport to represent what the Company’s actual results would have been and is not indicative of what such results would be expected for any future period (in thousands, except per share amounts): Three Months Ended June 30, 2019 Six Months Ended Total revenues $ 102,913 $ 196,366 Net income (loss) $ 4,234 $ (4,742) Pro forma basic and diluted net income (loss) loss per share $ 0.10 $ (0.11)

INVENTORIES (Tables)

INVENTORIES (Tables)	6 Months Ended
	Jun. 30, 2020
Inventory Disclosure [Abstract]
Schedule of components of inventories	The components of inventories, net are as follows (in thousands): June 30, December 31, 2020 2019 Raw materials $ 23,894 $ 20,019 Work-in-process 9,699 14,407 Finished goods 33,097 23,870 Total $ 66,690 $ 58,296

FIXED ASSETS (Tables)

FIXED ASSETS (Tables)	6 Months Ended
	Jun. 30, 2020
Property, Plant and Equipment [Abstract]
Schedule of fixed assets summarized by major category	Fixed assets, net, summarized by major category, consist of the following (in thousands): June 30, December 31, 2020 2019 Machinery and equipment $ 74,436 $ 70,078 Leasehold improvements 60,856 60,441 Computer equipment and software 10,608 8,942 Office furniture and equipment 2,003 1,882 Construction in progress 46,611 38,778 Total 194,514 180,121 Less: accumulated depreciation (81,217) (75,440) Fixed assets, net $ 113,297 $ 104,681

LEASES (Tables)

LEASES (Tables)	6 Months Ended
	Jun. 30, 2020
Leases [Abstract]
Summary of operating lease cost and other operating lease information	The operating lease costs for the facilities include lease and non-lease components, such as common area maintenance and other common operating expenses, along with executory costs such as insurance and real estate taxes. Total operating lease costs are as follows (in thousands): Three Months Ended Six Months Ended June 30, June 30, Operating Lease Costs 2020 2019 2020 2019 Fixed lease costs $ 2,422 $ 1,516 $ 3,986 $ 2,959 Variable lease costs 601 449 1,049 829 Total $ 3,023 $ 1,965 $ 5,035 $ 3,788 Supplemental cash flow information related to operating leases is as follows (in thousands): Six Months Ended June 30, 2020 2019 Cash paid for operating lease liabilities $ 8,503 $ 3,121 Right-of-use assets recorded in exchange for lease obligations $ 42,101 $ 38,419 The Company has measured its operating lease liabilities at an estimated discount rate in which it could borrow on a collateralized basis over the remaining term for each operating lease. The weighted average remaining lease term and the weighted average discount rate are summarized as follows: June 30, 2020 Weighted average remaining lease term 9.55 years Weighted average discount rate 6.88%
Schedule of maturities of operating lease liabilities	Maturities of the Company’s operating lease liabilities are as follows (in thousands): Year Aggregate Minimum Payments Due 2020 (remaining six months) $ 7,497 2021 10,745 2022 10,423 2023 10,697 2024 10,980 2025 through 2030 62,072 Total lease payments 112,414 Less: imputed interest (30,906) Total operating lease liabilities $ 81,508

Intangible Assets, Goodwill and

Intangible Assets, Goodwill and Other (Tables)	6 Months Ended
	Jun. 30, 2020
Goodwill and Intangible Assets Disclosure [Abstract]
Schedule of Finite-Lived Intangible Assets Acquired as Part of Business Combination	Intangible assets, net, consist of the developed technology and customer relationships that were acquired in the MyoScience Acquisition and are summarized as follows (in thousands): June 30, 2020 Gross Carrying Value Accumulated Intangible Estimated Developed technology $ 110,000 $ (9,625) $ 100,375 14 years Customer relationships 90 (11) 79 10 years Total intangible assets $ 110,090 $ (9,636) $ 100,454 December 31, 2019 Gross Carrying Value Accumulated Intangible Estimated Developed technology $ 110,000 $ (5,696) $ 104,304 14 years Customer relationships 90 (7) 83 10 years Total intangible assets $ 110,090 $ (5,703) $ 104,387

DEBT (Tables)

DEBT (Tables)	6 Months Ended
	Jun. 30, 2020
Debt Disclosure [Abstract]
Schedule of composition of the Company's debt and financing obligations	The total debt composition of the 2022 Notes is as follows (in thousands): June 30, December 31, 2020 2019 2.375% convertible senior notes due 2022 $ 345,000 $ 345,000 Deferred financing costs (3,260) (4,143) Discount on debt (27,558) (34,812) Total debt, net of debt discount and deferred financing costs $ 314,182 $ 306,045
Schedule of total interest expense recognized related to the Notes	The following table sets forth the total interest expense recognized in the periods presented (dollar amounts in thousands): Three Months Ended Six Months Ended 2020 2019 2020 2019 Contractual interest expense $ 2,048 $ 2,049 $ 4,097 $ 4,098 Amortization of debt issuance costs 444 424 883 844 Amortization of debt discount 3,660 3,405 7,254 6,749 Capitalized interest and other (Note 6) (696) — (757) — Total $ 5,456 $ 5,878 $ 11,477 $ 11,691 Effective interest rate on convertible senior notes 7.81 % 7.81 % 7.81 % 7.81 %

FINANCIAL INSTRUMENTS (Tables)

FINANCIAL INSTRUMENTS (Tables)	6 Months Ended
	Jun. 30, 2020
Fair Value Disclosures [Abstract]
Schedule of carrying amount and fair value of the long-term debt	The carrying values and fair values of the Company’s financial assets and liabilities at June 30, 2020 are as follows (in thousands): Carrying Value Fair Value Measurements Using Level 1 Level 2 Level 3 Financial Assets: Equity investment (3) $ 10,032 $ 10,032 $ — $ — Financial Liabilities: 2.375% convertible senior notes due 2022 (1) $ 314,182 (2) $ — $ 378,206 $ — Acquisition-related contingent consideration (3) $ 20,830 $ — $ — $ 20,830 (1) The closing price of the Company’s common stock as reported on the Nasdaq Global Select Market was $52.47 per share on June 30, 2020 compared to a conversion price of $66.89 per share. Therefore, at June 30, 2020, the conversion price was above the stock price. The maximum conversion premium that could have been due on the 2022 Notes at June 30, 2020 was approximately 5.2 million shares of the Company’s common stock, which subsequently became 2.4 million shares after the July 2020 redemption of $185 million of aggregate principal 2022 Notes (see Note 17, Subsequent Events , for more information). These figures assume no increases in the conversion rate for certain corporate events. (2) Reported at historical cost. (3) Reported at fair value on a recurring basis.
Schedule of key assumptions used in the valuation of contingent consideration	The following table includes the key assumptions used in the valuation of the Company’s contingent consideration: Assumption Ranges Utilized as of June 30, 2020 Discount rates 5.94% to 6.03% Probabilities of payment for regulatory milestones 3% to 100% Projected years of payment for regulatory and commercial milestones 2020 to 2023
Schedule of change in contingent consideration recorded at fair value using Level 3 measurements	The change in the Company’s contingent consideration recorded at fair value using Level 3 measurements is as follows (in thousands): Contingent Consideration Balance at December 31, 2019 $ 38,142 Fair value adjustments and accretion (2,312) Payments made (15,000) Balance at June 30, 2020 $ 20,830
Schedule of short-term investments	The following summarizes the Company’s investments at June 30, 2020 and December 31, 2019 (in thousands): June 30, 2020 Investments Cost Gross Gross Fair Value Short-term: Asset-backed securities $ 61,567 $ 471 $ — $ 62,038 Commercial paper 15,472 22 — 15,494 Corporate bonds 169,767 941 — 170,708 Subtotal 246,806 1,434 — 248,240 Long-term: Corporate bonds 8,205 56 — 8,261 Subtotal 8,205 56 — 8,261 Total $ 255,011 $ 1,490 $ — $ 256,501 December 31, 2019 Investments Cost Gross Gross Fair Value Short-term: Asset-backed securities $ 43,166 $ 54 $ — $ 43,220 Commercial paper 32,250 20 — 32,270 Corporate bonds 138,012 225 (5) 138,232 Subtotal 213,428 299 (5) 213,722 Long-term: Asset-backed securities 28,064 10 (15) 28,059 Corporate bonds 36,706 37 (4) 36,739 Subtotal 64,770 47 (19) 64,798 Total $ 278,198 $ 346 $ (24) $ 278,520

STOCK PLANS (Tables)

STOCK PLANS (Tables)	6 Months Ended
	Jun. 30, 2020
Stockholders' Equity Note [Abstract]
Schedule of recognized stock-based compensation in consolidated statements of operations	The Company recognized stock-based compensation expense in the periods presented as follows (in thousands): Three Months Ended Six Months Ended 2020 2019 2020 2019 Cost of goods sold $ 1,284 $ 1,156 $ 2,503 $ 2,247 Research and development 1,357 1,257 2,544 2,475 Selling, general and administrative 6,581 5,370 13,023 10,495 Total $ 9,222 $ 7,783 $ 18,070 $ 15,217 Stock-based compensation from: Stock options $ 6,388 $ 5,378 $ 12,614 $ 10,499 Restricted stock units 2,636 2,204 5,037 4,311 Employee stock purchase plan 198 201 419 407 Total $ 9,222 $ 7,783 $ 18,070 $ 15,217
Schedule of the Company's stock option activity and related information	The following tables contain information about the Company’s stock option and restricted stock unit, or RSU, activity for the six months ended June 30, 2020: Stock Options Number of Options Weighted Average Exercise Price (Per Share) Outstanding at December 31, 2019 6,706,378 $ 42.80 Granted 1,346,703 46.72 Exercised (427,606) 27.26 Forfeited (150,954) 41.93 Expired (31,982) 61.24 Outstanding at June 30, 2020 7,442,539 44.34 Restricted Stock Units Number of Units Weighted Average Grant Date Fair Value (Per Share) Unvested at December 31, 2019 631,141 $ 41.87 Granted 564,326 47.35 Vested (235,835) 41.91 Forfeited (32,059) 42.72 Unvested at June 30, 2020 927,573 45.16
Schedule of Share-based Payment Award, Stock Options, Valuation Assumptions	The fair values of stock options granted were estimated using the Black-Scholes option valuation model with the following weighted average assumptions: Black-Scholes Weighted Average Assumption Six Months Ended June 30, 2020 Expected dividend yield None Risk-free interest rate 0.57% Expected volatility 53.48% Expected term of options 5.36 years

STOCKHOLDERS' EQUITY (Tables)

STOCKHOLDERS' EQUITY (Tables)	6 Months Ended
	Jun. 30, 2020
Stockholders' Equity Note [Abstract]
Schedule of accumulated other comprehensive income (loss)	The following table illustrates the changes in the balances of the Company’s accumulated other comprehensive income (loss) for the periods presented (in thousands): Six Months Ended Net unrealized gains (losses) from available for sale investments: 2020 2019 Balance at beginning of period $ 322 $ (280) Other comprehensive income before reclassifications 1,168 780 Amounts reclassified from accumulated other comprehensive income (loss) — — Balance at end of period $ 1,490 $ 500

NET INCOME (LOSS) PER SHARE (Ta

NET INCOME (LOSS) PER SHARE (Tables)	6 Months Ended
	Jun. 30, 2020
Earnings Per Share [Abstract]
Schedule of computation of basic and diluted loss per share	The following table sets forth the computation of basic and diluted net loss per share for the three and six months ended June 30, 2020 and 2019 (in thousands, except per share amounts): Three Months Ended Six Months Ended 2020 2019 2020 2019 Numerator: Net income (loss) $ (7,269) $ 2,730 $ 889 $ (41) Denominator: Weighted average common shares outstanding—basic 42,221 41,384 42,126 41,312 Computation of diluted securities: Dilutive effect of stock options — 810 567 — Dilutive effect of RSUs — 148 168 — Dilutive effect of ESPP purchase options — 3 — — Weighted average common shares outstanding—diluted 42,221 42,345 42,861 41,312 Net income (loss) per share: Basic net income (loss) per common share $ (0.17) $ 0.07 $ 0.02 $ (0.00) Diluted net income (loss) per common share $ (0.17) $ 0.06 $ 0.02 $ (0.00)
Schedule of potential dilutive effect of the securities excluded from the calculation of diluted loss per share	The following outstanding stock options, RSUs and ESPP purchase options are antidilutive in the periods presented (in thousands): Three Months Ended Six Months Ended 2020 2019 2020 2019 Weighted average number of stock options 6,804 4,426 5,327 5,932 Weighted average number of RSUs 681 190 186 570 Weighted average ESPP purchase options 37 — 20 36 Total 7,522 4,616 5,533 6,538

INCOME TAXES (Tables)

INCOME TAXES (Tables)	6 Months Ended
	Jun. 30, 2020
Income Tax Disclosure [Abstract]
Schedule of Income before Income Tax, Domestic and Foreign	Income (loss) before income taxes is as follows (in thousands): Three Months Ended Six Months Ended 2020 2019 2020 2019 Income (loss) before income taxes: Domestic $ (6,645) $ 3,760 $ 6,400 $ 5,580 Foreign (666) (2,633) (5,155) (6,970) Total income (loss) before income taxes $ (7,311) $ 1,127 $ 1,245 $ (1,390)

ACQUISITION_RELATED (GAINS) C_2

ACQUISITION–RELATED (GAINS) CHARGES AND PRODUCT DISCONTINUATION, NET (Tables)	6 Months Ended
	Jun. 30, 2020
Organization, Consolidation and Presentation of Financial Statements [Abstract]
ACQUISITION-RELATED CHARGES AND PRODUCT DISCONTINUATION, NET	The Company’s acquisition-related restructuring and DepoCyt(e) discontinuation costs as of June 30, 2020 are summarized below (in thousands): Severance and Related Costs Asset Retirement Obligations, Other Restructuring and Discontinuation Costs Total Balance at December 31, 2019 $ 81 $ 558 $ 639 Charges incurred — 21 21 Cash payments made (81) (449) (530) Balance at June 30, 2020 $ — $ 130 $ 130

DESCRIPTION OF BUSINESS (Detail

DESCRIPTION OF BUSINESS (Details)	6 Months Ended
	Jun. 30, 2020productLinesegment
Concentration Risk [Line Items]
Number of reportable segments | segment	1
Sales Revenue, Net | Product Concentration Risk
Concentration Risk [Line Items]
Concentration of products (in products) | productLine	2

SUMMARY OF SIGNIFICANT ACCOUN_4

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details) - Concentration risk by major customer - customer	3 Months Ended		6 Months Ended
	Jun. 30, 2020	Jun. 30, 2019	Jun. 30, 2020	Jun. 30, 2019
Concentration of Major Customers
Number of major customers			3
Sales Revenue, Net
Concentration of Major Customers
Percentage of revenue from customers to total revenue	86.00%	87.00%	87.00%	89.00%
Sales Revenue, Net | Largest wholesaler
Concentration of Major Customers
Percentage of revenue from customers to total revenue	32.00%	32.00%	31.00%	34.00%
Sales Revenue, Net | Second largest wholesaler
Concentration of Major Customers
Percentage of revenue from customers to total revenue	30.00%	29.00%	31.00%	29.00%
Sales Revenue, Net | Third largest wholesaler
Concentration of Major Customers
Percentage of revenue from customers to total revenue	24.00%	26.00%	25.00%	26.00%

SUMMARY OF SIGNIFICANT ACCOUN_5

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - New Accounting Pronouncements (Details) - USD ($) $ in Thousands	Jun. 30, 2020	Dec. 31, 2019	Jan. 01, 2019
Revenue, Initial Application Period Cumulative Effect Transition [Line Items]
Total operating lease liabilities	$ 81,508
ROU asset	77,799	$ 38,124
Accumulated deficit	(398,509)	$ (399,398)
Accounts receivable, allowance for credit loss	$ 0
Accounting Standards Update 2016-02
Revenue, Initial Application Period Cumulative Effect Transition [Line Items]
Total operating lease liabilities			$ 36,500
ROU asset			27,600
Accounting Standards Update 2016-02 | Cumulative Effect, Period of Adoption, Adjustment
Revenue, Initial Application Period Cumulative Effect Transition [Line Items]
Accumulated deficit			$ 200

REVENUE (Details)

REVENUE (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2020	Jun. 30, 2019	Jun. 30, 2020	Jun. 30, 2019
Disaggregation of Revenue [Line Items]
Total net product sales	$ 75,216	$ 101,824	$ 179,961	$ 192,730
EXPAREL / bupivacaine liposome injectable suspension
Disaggregation of Revenue [Line Items]
Total net product sales	73,821	99,789	176,296	190,695
iovera°
Disaggregation of Revenue [Line Items]
Total net product sales	$ 1,395	$ 2,035	$ 3,665	$ 2,035
Minimum
Disaggregation of Revenue [Line Items]
Accounts receivable, payment terms			0 days
Maximum
Disaggregation of Revenue [Line Items]
Accounts receivable, payment terms			37 days

MYOSCIENCE ACQUISITION (Details

MYOSCIENCE ACQUISITION (Details) - USD ($) $ in Thousands	Apr. 09, 2019	Jun. 30, 2020	Dec. 31, 2019
Business Acquisition [Line Items]
Contingent consideration, current		$ 4,504	$ 18,179
Achievement of Regulatory Milestone
Business Acquisition [Line Items]
Acquisition-related contingent consideration		15,000
Myoscience Acquisition
Business Acquisition [Line Items]
Total consideration transferred	$ 147,500
Initial cash payment	119,000
Fair value of contingent consideration	28,500
Contingent consideration	$ 100,000
Contingent consideration, current		58,000
Payment term	60 days
Acquisition-related contingent consideration		$ 20,800

MYOSCIENCE ACQUISITION - Unaudi

MYOSCIENCE ACQUISITION - Unaudited Pro Forma Summary of Operations (Details) - Myoscience Acquisition - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended	6 Months Ended
	Jun. 30, 2019	Jun. 30, 2019
Business Acquisition [Line Items]
Total revenues	$ 102,913	$ 196,366
Net income (loss)	$ 4,234	$ (4,742)
Pro forma basic and diluted net loss per share (usd per share)	$ 0.10	$ (0.11)

INVENTORIES (Details)

INVENTORIES (Details) - USD ($) $ in Thousands	Jun. 30, 2020	Dec. 31, 2019
Inventory Disclosure [Abstract]
Raw materials	$ 23,894	$ 20,019
Work-in-process	9,699	14,407
Finished goods	33,097	23,870
Total	$ 66,690	$ 58,296

FIXED ASSETS (Details)

FIXED ASSETS (Details) - USD ($)	3 Months Ended		6 Months Ended
	Jun. 30, 2020	Jun. 30, 2019	Jun. 30, 2020	Jun. 30, 2019	Dec. 31, 2019
FIXED ASSETS
Total	$ 194,514,000		$ 194,514,000		$ 180,121,000
Less: accumulated depreciation	(81,217,000)		(81,217,000)		(75,440,000)
Fixed assets, net	113,297,000		113,297,000		104,681,000
Depreciation expense	3,000,000	$ 3,500,000	5,900,000	$ 7,100,000
Foreign property, plant and equipment, net	65,400,000		65,400,000		64,800,000
Asset retirement obligation	200,000		200,000
Machinery and equipment
FIXED ASSETS
Total	74,436,000		74,436,000		70,078,000
Leasehold improvements
FIXED ASSETS
Total	60,856,000		60,856,000		60,441,000
Computer equipment and software
FIXED ASSETS
Total	10,608,000		10,608,000		8,942,000
Office furniture and equipment
FIXED ASSETS
Total	2,003,000		2,003,000		1,882,000
Construction in progress
FIXED ASSETS
Total	46,611,000		46,611,000		$ 38,778,000
Capitalized interest	$ 700,000	$ 0	$ 800,000	$ 0

LEASES - Narrative (Details)

LEASES - Narrative (Details)	Jun. 30, 2020
Leases [Abstract]
Term of contract	10 years 2 months 12 days

LEASES - Summary of operating l

LEASES - Summary of operating lease cost and other operating lease information (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2020	Jun. 30, 2019	Jun. 30, 2020	Jun. 30, 2019
Operating lease costs:
Fixed lease costs	$ 2,422	$ 1,516	$ 3,986	$ 2,959
Variable lease costs	601	449	1,049	829
Total	3,023	1,965	$ 5,035	$ 3,788
Cash Flow, Operating Activities, Lessee [Abstract]
Cash paid for operating lease liabilities	8,503	3,121
Right-of-use assets recorded in exchange for lease obligations	$ 42,101	$ 38,419
Weighted average remaining lease term	9 years 6 months 18 days		9 years 6 months 18 days
Weighted average discount rate	6.88%		6.88%

LEASES - Schedule of maturities

LEASES - Schedule of maturities of operating lease liabilities (Details) $ in Thousands	Jun. 30, 2020USD ($)
Leases [Abstract]
2020 (remaining six months)	$ 7,497
2021	10,745
2022	10,423
2023	10,697
2024	10,980
2025 through 2030	62,072
Total lease payments	112,414
Less: imputed interest	(30,906)
Total operating lease liabilities	$ 81,508

GOODWILL AND INTANGIBLE ASSETS

GOODWILL AND INTANGIBLE ASSETS (Details) - USD ($)	3 Months Ended		6 Months Ended
	Jun. 30, 2020	Jun. 30, 2019	Jun. 30, 2020	Jun. 30, 2019	Dec. 31, 2019	Apr. 09, 2019
Goodwill
Goodwill	$ 99,547,000		$ 99,547,000		$ 99,547,000
Goodwill recorded in connection with the acquisition	99,547,000		99,547,000		99,547,000
Amortization of acquired intangible assets	1,967,000	$ 1,770,000	3,933,000	$ 1,770,000
Amortization expense, remainder of fiscal year	3,900,000		3,900,000
Amortization expense, 2020-2032	7,900,000		7,900,000
Amortization expense, 2033	2,200,000		2,200,000
Myoscience Acquisition
Goodwill
Goodwill						$ 37,500,000
Goodwill recorded in connection with the acquisition						$ 37,500,000
Skye Pharma Holding Inc.
Goodwill
Goodwill	62,000,000		62,000,000
Goodwill recorded in connection with the acquisition	62,000,000		62,000,000
Skye Pharma Holding Inc.
Goodwill
Total milestone payments yet to be paid for sale of product in connection with acquisition					$ 36,000,000
Upon first commercial sale in the United States
Goodwill
Milestone payments for EXPAREL agreed in connection with acquisition	10,000,000		10,000,000
Upon first commercial sale in a major EU country (United Kingdom, France, Germany, Italy and Spain)
Goodwill
Milestone payments for EXPAREL agreed in connection with acquisition	4,000,000		4,000,000
When annual net sales collected reach $100.0 million
Goodwill
Milestone payments for EXPAREL agreed in connection with acquisition	8,000,000		8,000,000
Annual net sales threshold	100,000,000		100,000,000
When annual net sales collected reach $250.0 million
Goodwill
Milestone payments for EXPAREL agreed in connection with acquisition	8,000,000		8,000,000
Annual net sales threshold	250,000,000		250,000,000
When annual net sales collected reach $500.0 million
Goodwill
Milestone payments for EXPAREL agreed in connection with acquisition	32,000,000		32,000,000
Annual net sales threshold	$ 500,000,000		$ 500,000,000

GOODWILL AND INTANGIBLE ASSET_2

GOODWILL AND INTANGIBLE ASSETS (Details) - USD ($) $ in Thousands	6 Months Ended	12 Months Ended
	Jun. 30, 2020	Dec. 31, 2019
Acquired Finite-Lived Intangible Assets [Line Items]
Gross Carrying Value	$ 110,090	$ 110,090
Accumulated Amortization	(9,636)	(5,703)
Intangible Assets, Net	100,454	104,387
Developed technology
Acquired Finite-Lived Intangible Assets [Line Items]
Gross Carrying Value	110,000	110,000
Accumulated Amortization	(9,625)	(5,696)
Intangible Assets, Net	$ 100,375	$ 104,304
Estimated Useful Life	14 years	14 years
Customer relationships
Acquired Finite-Lived Intangible Assets [Line Items]
Gross Carrying Value	$ 90	$ 90
Accumulated Amortization	(11)	(7)
Intangible Assets, Net	$ 79	$ 83
Estimated Useful Life	10 years	10 years

DEBT - Narrative (Details)

DEBT - Narrative (Details)	Jul. 10, 2020USD ($)days	Jul. 07, 2020$ / shares	Mar. 13, 2017USD ($)segment$ / shares	Jun. 30, 2020USD ($)$ / shares	Jun. 30, 2019USD ($)	Mar. 07, 2017$ / shares
DEBT AND FINANCING OBLIGATIONS
Repayments of debt				$ 0	$ 338,000
Settlement period - convertible debt conversion request				40 days
Closing sale price (in dollars per share) | $ / shares				$ 52.47
Convertible Senior Notes Due 2022
DEBT AND FINANCING OBLIGATIONS
Initial conversion rate of common stock per $1,000 of principal amount of Notes			0.0149491
Initial conversion price of notes into common stock (in dollars per share) | $ / shares			$ 66.89
Convertible debt, premium on common stock			37.50%
Closing sale price (in dollars per share) | $ / shares						$ 48.65
Convertible Senior Notes Due 2022 | Subsequent Event
DEBT AND FINANCING OBLIGATIONS
Repayments of debt	$ 160,000,000
Convertible Senior Notes Due 2022 | Conversion terms prior to close of business on business day immediately proceeding October 1, 2021
DEBT AND FINANCING OBLIGATIONS
Threshold percentage stock price trigger			130.00%
Threshold trading days | segment			20
Threshold consecutive trading days | segment			30
Market price per $1000 of principal amount of notes				$ 1,096
Convertible Senior Notes Due 2022 | Debt Redemption Terms on or after April 1, 2020
DEBT AND FINANCING OBLIGATIONS
Threshold percentage stock price trigger			130.00%
Threshold trading days | segment			20
Threshold consecutive trading days | segment			30
Conversion obligation, number of trading days prior to date of notice of redemption			5 days
Debt instrument, percentage of principal amount for computation of redemption price			100.00%
Convertible Senior Notes Due 2025 | Subsequent Event
DEBT AND FINANCING OBLIGATIONS
Threshold consecutive trading days | days	40
Unsecured Debt | Convertible Senior Notes Due 2022
DEBT AND FINANCING OBLIGATIONS
Debt issued in private placement			$ 345,000,000
Stated interest rate (as a percent)			2.375%	2.375%
Unsecured Debt | Convertible Senior Notes Due 2022 | Subsequent Event
DEBT AND FINANCING OBLIGATIONS
Debt instrument, repurchased face amount	$ 185,000,000
Repayments of debt	211,100,000
Debt instrument, face amount	345,000,000
Unsecured Debt | Convertible Senior Notes Due 2025 | Subsequent Event
DEBT AND FINANCING OBLIGATIONS
Debt issued in private placement	$ 402,500,000
Stated interest rate (as a percent)	0.75%
Threshold percentage stock price trigger	130.00%
Threshold trading days | days	20
Threshold consecutive trading days | days	30
Initial conversion rate of common stock per $1,000 of principal amount of Notes		0.0139324
Initial conversion price of notes into common stock (in dollars per share) | $ / shares		$ 71.78
Closing sale price (in dollars per share) | $ / shares		$ 54.17
Debt instrument, face amount	$ 402,500,000

DEBT - Schedule of Debt (Detail

DEBT - Schedule of Debt (Details) - Unsecured Debt - Convertible Senior Notes Due 2022 - USD ($) $ in Thousands	Jun. 30, 2020	Dec. 31, 2019	Mar. 13, 2017
Debt Instrument [Line Items]
Stated interest rate (as a percent)	2.375%		2.375%
Convertible senior notes, gross	$ 345,000	$ 345,000
Deferred financing costs	(3,260)	(4,143)
Discount on debt	(27,558)	(34,812)
Total debt, net of debt discount and deferred financing costs	$ 314,182	$ 306,045

DEBT - Schedule of Interest Exp

DEBT - Schedule of Interest Expense (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2020	Jun. 30, 2019	Jun. 30, 2020	Jun. 30, 2019
Debt Instrument [Line Items]
Amortization of debt discount			$ 7,254	$ 6,749
Convertible Senior Notes Due 2019
Debt Instrument [Line Items]
Contractual interest expense	$ 2,048	$ 2,049	4,097	4,098
Amortization of debt issuance costs	444	424	883	844
Amortization of debt discount	3,660	3,405	7,254	6,749
Capitalized interest and other (Note 6)	(696)	0	(757)	0
Total	$ 5,456	$ 5,878	$ 11,477	$ 11,691
Effective interest rate on convertible senior notes	7.81%	7.81%	7.81%	7.81%

FINANCIAL INSTRUMENTS - Narrati

FINANCIAL INSTRUMENTS - Narrative (Details)	3 Months Ended		6 Months Ended		12 Months Ended
	Jun. 30, 2020USD ($)	Jun. 30, 2019USD ($)	Jun. 30, 2020USD ($)	Jun. 30, 2019USD ($)	Dec. 31, 2019USD ($)
Concentration Risk [Line Items]
Changes in contingent consideration		$ 0	$ (2,312,000)	$ 0
Interest receivable	$ 1,700,000		1,700,000		$ 1,400,000
Investment in TELA Bio, Inc	10,000,000		10,000,000		10,000,000
Unrealized gain on equity method investment	4,000,000		100,000
Amount of allowance for doubtful accounts	0		$ 0		$ 0
Accounts receivable | Credit risk | Major customer one
Concentration Risk [Line Items]
Concentration risk (as a percent)			33.00%		37.00%
Accounts receivable | Credit risk | Major customer two
Concentration Risk [Line Items]
Concentration risk (as a percent)			30.00%		29.00%
Accounts receivable | Credit risk | Major customer three
Concentration Risk [Line Items]
Concentration risk (as a percent)			26.00%		26.00%
Myoscience Acquisition
Concentration Risk [Line Items]
Acquisition-related contingent consideration	20,800,000		$ 20,800,000
Change in fair value of the contingent consideration since acquisition	1,600,000		2,300,000
Myoscience Acquisition | Level 3
Concentration Risk [Line Items]
Acquisition-related contingent consideration	$ 20,830,000		$ 20,830,000
Contingent Consideration | Myoscience Acquisition | Measurement Input, Discount Rate | Level 3
Concentration Risk [Line Items]
Measurement input, contingent consideration	0.0596		0.0596
Contingent Consideration | Myoscience Acquisition | Measurement Input, Expected Milestone Payment | Level 3
Concentration Risk [Line Items]
Measurement input, contingent consideration	0.224		0.224

FINANCIAL INSTRUMENTS - Fair Va

FINANCIAL INSTRUMENTS - Fair Value of Liabilities Measured on a Recurring Basis (Details) - USD ($) $ / shares in Units, $ in Thousands, shares in Millions	Jul. 10, 2020	Mar. 13, 2017	Jun. 30, 2020	Mar. 07, 2017
Fair Value Measurements
Closing sale price (in dollars per share)			$ 52.47
Myoscience Acquisition
Fair Value Measurements
Acquisition-related contingent consideration			$ 20,800
Convertible Senior Notes Due 2022
Fair Value Measurements
Closing sale price (in dollars per share)				$ 48.65
Initial conversion price of notes into common stock (in dollars per share)		$ 66.89
Convertible Senior Notes Due 2022 | Maximum
Fair Value Measurements
Debt instrument, convertible, conversion premium (in shares)		5.2
Convertible Senior Notes Due 2022 | Maximum | Subsequent Event
Fair Value Measurements
Debt instrument, convertible, conversion premium (in shares)	2.4
Level 1
Fair Value Measurements
Equity Investments			10,032
Level 1 | Myoscience Acquisition
Fair Value Measurements
Acquisition-related contingent consideration			0
Level 1 | Convertible Senior Notes Due 2022
Fair Value Measurements
Convertible senior notes			0
Level 2
Fair Value Measurements
Equity Investments			0
Level 2 | Myoscience Acquisition
Fair Value Measurements
Acquisition-related contingent consideration			0
Level 2 | Convertible Senior Notes Due 2022
Fair Value Measurements
Convertible senior notes			378,206
Level 3
Fair Value Measurements
Equity Investments			0
Level 3 | Myoscience Acquisition
Fair Value Measurements
Acquisition-related contingent consideration			20,830
Level 3 | Convertible Senior Notes Due 2022
Fair Value Measurements
Convertible senior notes			0
Reported Value Measurement
Fair Value Measurements
Equity Investments			10,032
Reported Value Measurement | Myoscience Acquisition
Fair Value Measurements
Acquisition-related contingent consideration			20,830
Reported Value Measurement | Convertible Senior Notes Due 2022
Fair Value Measurements
Convertible senior notes			$ 314,182
Unsecured Debt | Convertible Senior Notes Due 2022
Fair Value Measurements
Stated interest rate (as a percent)		2.375%	2.375%

FINANICIAL INSTRUMENTS - Fair V

FINANICIAL INSTRUMENTS - Fair Value Measurement Inputs and Valuation (Details) $ in Thousands	Jun. 30, 2020USD ($)
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Total milestone payments yet to be paid in connection with MyoScience acquisition	$ 58,000
Myoscience Acquisition
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Acquisition-related contingent consideration	20,800
Myoscience Acquisition | Fair Value, Inputs, Level 3
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Acquisition-related contingent consideration	$ 20,830
Myoscience Acquisition | Contingent Consideration | Fair Value, Inputs, Level 3 | Measurement Input, Discount Rate
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Measurement input, contingent consideration	0.0596
Myoscience Acquisition | Contingent Consideration | Fair Value, Inputs, Level 3 | Measurement Input, Expected Milestone Payment
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Measurement input, contingent consideration	0.224
Myoscience Acquisition | Contingent Consideration | Minimum | Fair Value, Inputs, Level 3 | Measurement Input, Discount Rate
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Measurement input, contingent consideration	0.0594
Myoscience Acquisition | Contingent Consideration | Minimum | Fair Value, Inputs, Level 3 | Measurement Input, Expected Milestone Payment
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Measurement input, contingent consideration	0.03
Myoscience Acquisition | Contingent Consideration | Maximum | Fair Value, Inputs, Level 3 | Measurement Input, Discount Rate
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Measurement input, contingent consideration	0.0603
Myoscience Acquisition | Contingent Consideration | Maximum | Fair Value, Inputs, Level 3 | Measurement Input, Expected Milestone Payment
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Measurement input, contingent consideration	1

FINANCIAL INSTRUMENTS - Fair _2

FINANCIAL INSTRUMENTS - Fair Value of Contingent Consideration Rollforward (Details) - Contingent Consideration $ in Thousands	6 Months Ended
	Jun. 30, 2020USD ($)
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward]
Balance at December 31, 2019	$ 38,142
Fair value adjustments and accretion	(2,312)
Payments made	(15,000)
Balance at June 30, 2020	$ 20,830

FINANCIAL INSTRUMENTS - Schedul

FINANCIAL INSTRUMENTS - Schedule of Available For Sale Securities (Details) - USD ($) $ in Thousands	Jun. 30, 2020	Dec. 31, 2019
Fair Value Measurements
Cost	$ 255,011	$ 278,198
Gross Unrealized Gains	1,490	346
Gross Unrealized Losses	0	(24)
Fair Value	256,501	278,520
Short-term Investments
Fair Value Measurements
Cost	246,806	213,428
Gross Unrealized Gains	1,434	299
Gross Unrealized Losses	0	(5)
Fair Value	248,240	213,722
Long-Term Investments
Fair Value Measurements
Cost	8,205	64,770
Gross Unrealized Gains	56	47
Gross Unrealized Losses	0	(19)
Fair Value	8,261	64,798
Asset-backed securities | Short-term Investments
Fair Value Measurements
Cost	61,567	43,166
Gross Unrealized Gains	471	54
Gross Unrealized Losses	0	0
Fair Value	62,038	43,220
Asset-backed securities | Long-Term Investments
Fair Value Measurements
Cost		28,064
Gross Unrealized Gains		10
Gross Unrealized Losses		(15)
Fair Value		28,059
Commercial paper | Short-term Investments
Fair Value Measurements
Cost	15,472	32,250
Gross Unrealized Gains	22	20
Gross Unrealized Losses	0	0
Fair Value	15,494	32,270
Corporate bonds | Short-term Investments
Fair Value Measurements
Cost	169,767	138,012
Gross Unrealized Gains	941	225
Gross Unrealized Losses	0	(5)
Fair Value	170,708	138,232
Corporate bonds | Long-Term Investments
Fair Value Measurements
Cost	8,205	36,706
Gross Unrealized Gains	56	37
Gross Unrealized Losses	0	(4)
Fair Value	$ 8,261	$ 36,739

STOCK PLANS - Schedule of Stock

STOCK PLANS - Schedule of Stock Based Compensation Expenses (Details) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2020USD ($)	Jun. 30, 2019USD ($)	Jun. 30, 2020USD ($)offeringPeriodshares	Jun. 30, 2019USD ($)
Share-Based Compensation
Stock-based compensation expense	$ 9,222	$ 7,783	$ 18,070	$ 15,217
Stock options	6,388	5,378	12,614	10,499
Restricted stock units	2,636	2,204	5,037	4,311
Employee stock purchase plan	198	201	419	407
Stock-based compensation	9,222	7,783	$ 18,070	15,217
Purchase price of common stock, ESPP (as a percent)			85.00%
Shares issued under employee stock purchase plan (shares) | shares			36,668
Employee Stock
Share-Based Compensation
Number of offering periods for ESPP | offeringPeriod			2
ESPP purchasing period			6 months
Cost of goods sold
Share-Based Compensation
Stock-based compensation expense	1,284	1,156	$ 2,503	2,247
Research and development
Share-Based Compensation
Stock-based compensation expense	1,357	1,257	2,544	2,475
Selling, general and administrative
Share-Based Compensation
Stock-based compensation expense	$ 6,581	$ 5,370	$ 13,023	$ 10,495

STOCK PLANS - Schedule of Sto_2

STOCK PLANS - Schedule of Stock Based Compensation Activity (Details)	6 Months Ended
	Jun. 30, 2020$ / sharesshares
Number of Options
Outstanding beginning of period (in shares) | shares	6,706,378
Granted (in shares) | shares	1,346,703
Exercised (in shares) | shares	(427,606)
Forfeited (in shares) | shares	(150,954)
Expired (in shares) | shares	(31,982)
Outstanding end of period (in shares) | shares	7,442,539
Weighted Average Exercise Price
Outstanding beginning of period (in dollars per share)	$ 42.80
Granted (in dollars per share)	46.72
Exercised (in dollars per share)	27.26
Forfeited (in dollars per share)	41.93
Expired (in dollars per share)	61.24
Outstanding at end of period (in dollars per share)	44.34
Weighted average fair value (in dollars per share)	$ 22.05

STOCK PLANS - Schedule of Valua

STOCK PLANS - Schedule of Valuation Assumptions (Details)	6 Months Ended
	Jun. 30, 2020$ / sharesshares
Weighted Average Grant Date Fair Value
Expected dividend rate (as a percent)	0.00%
Restricted Stock Units (RSUs)
Number of Units
Unvested at beginning of period (shares) | shares	631,141
Granted (shares) | shares	564,326
Vested (shares) | shares	(235,835)
Forfeited (shares) | shares	(32,059)
Unvested at end of period (shares) | shares	927,573
Weighted Average Grant Date Fair Value
Unvested at beginning of period (usd per share) | $ / shares	$ 41.87
Granted (usd per share) | $ / shares	47.35
Vested (usd per share) | $ / shares	41.91
Forfeited (usd per share) | $ / shares	42.72
Unvested at end of period (usd per share) | $ / shares	$ 45.16
Employee Stock Option
Weighted Average Grant Date Fair Value
Risk free interest rate (as a percent)	0.57%
Expected volatility (as a percent)	53.48%
Expected term of options (in years)	5 years 4 months 9 days

STOCKHOLDERS' EQUITY (Details)

STOCKHOLDERS' EQUITY (Details) - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2020	Jun. 30, 2019
AOCI Attributable to Parent, Net of Tax [Roll Forward]
Balance at beginning of period	$ 354,944	$ 321,226
Balance at end of period	388,148	341,650
Accumulated Net Unrealized Investment Gain (Loss)
AOCI Attributable to Parent, Net of Tax [Roll Forward]
Balance at beginning of period	322	(280)
Other comprehensive income before reclassifications	1,168	780
Amounts reclassified from accumulated other comprehensive income (loss)	0	0
Balance at end of period	$ 1,490	$ 500

NET INCOME (LOSS) PER SHARE - S

NET INCOME (LOSS) PER SHARE - Schedule of Computation of EPS (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2020	Jun. 30, 2019	Jun. 30, 2020	Jun. 30, 2019
Numerator:
Net income (loss)	$ (7,269)	$ 2,730	$ 889	$ (41)
Denominator:
Weighted average common shares outstanding - basic (in shares)	42,221	41,384	42,126	41,312
Computation of diluted securities:
Weighted average number of shares outstanding - diluted (in shares)	42,221	42,345	42,861	41,312
Net income (loss) per share:
Basic net income (loss) per common share (in USD per share)	$ (0.17)	$ 0.07	$ 0.02	$ 0
Diluted net income (loss) per common share (in USD per share)	$ (0.17)	$ 0.06	$ 0.02	$ 0
Employee Stock Option
Computation of diluted securities:
Dilutive effect of share based compensation arrangements (in shares)	0	810	567	0
Restricted Stock Units (RSUs)
Computation of diluted securities:
Dilutive effect of share based compensation arrangements (in shares)	0	148	168	0
Employee Stock
Computation of diluted securities:
Dilutive effect of share based compensation arrangements (in shares)	0	3	0	0

NET INCOME (LOSS) PER SHARE -_2

NET INCOME (LOSS) PER SHARE - Schedule of Antidulitive Securities (Details) - shares shares in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2020	Jun. 30, 2019	Jun. 30, 2020	Jun. 30, 2019
EARNINGS PER SHARE
Total	7,522	4,616	5,533	6,538
Employee Stock Option
EARNINGS PER SHARE
Total	6,804	4,426	5,327	5,932
Restricted Stock Units (RSUs)
EARNINGS PER SHARE
Total	681	190	186	570
Employee Stock
EARNINGS PER SHARE
Total	37	0	20	36

INCOME TAXES (Details)

INCOME TAXES (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2020	Jun. 30, 2019	Jun. 30, 2020	Jun. 30, 2019
Income Tax Disclosure [Abstract]
Domestic	$ (6,645)	$ 3,760	$ 6,400	$ 5,580
Foreign	(666)	(2,633)	(5,155)	(6,970)
Income (loss) before income taxes	(7,311)	1,127	1,245	(1,390)
Income tax expense (benefit)	$ (42)	(1,603)	$ 356	(1,349)
Reduction of valuation allowance, deferred tax assets		$ 1,800		$ 1,800

ACQUISITION_RELATED (GAINS) C_3

ACQUISITION–RELATED (GAINS) CHARGES AND PRODUCT DISCONTINUATION, NET (Details) - USD ($)	3 Months Ended		6 Months Ended
	Jun. 30, 2020	Jun. 30, 2019	Jun. 30, 2020	Jun. 30, 2019
Business Acquisition [Line Items]
Changes in contingent consideration		$ 0	$ (2,312,000)	$ 0
Non-recurring charge related to discontinuation (less than)	$ 200,000	100,000	100,000	100,000
Contingent Consideration
Business Acquisition [Line Items]
Fair value adjustments and accretion			(2,312,000)
Myoscience Acquisition
Business Acquisition [Line Items]
Acquisition-related costs	$ 1,600,000	$ 3,400,000	$ 2,200,000	$ 4,600,000

ACQUISITION_RELATED (GAINS) C_4

ACQUISITION–RELATED (GAINS) CHARGES AND PRODUCT DISCONTINUATION, NET- DepoCyte Product Discontinuance (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2020	Jun. 30, 2019	Jun. 30, 2020	Jun. 30, 2019
DepoCyte Discontinuation [Roll Forward]
Total, Charges Incurred	$ 1,418	$ 3,405	$ (2,290)	$ 4,647
DepoCyte
DepoCyte Discontinuation [Roll Forward]
Acquisition-Related Separation Costs, Beginning Balance			81
Acquisition-Related Separation Costs, Charges Incurred			0
Acquisition-Related Separation Costs, Cash Payments Made			(81)
Acquisition-Related Separation Costs, Ending Balance	0		0
Asset Retirement Obligations, Other Restructuring and Discontinuation Costs, Beginning Balance			558
Asset Retirement Obligations, Other Restructuring and Discontinuation Costs, Charges Incurred			21
Asset Retirement Obligations, Other Restructuring and Discontinuation Costs, Cash Payments Made			(449)
Asset Retirement Obligations, Other Restructuring and Discontinuation Costs, Ending Balance	130		130
Total, Beginning Balance			639
Total, Charges Incurred			21
Total, Cash Payments Made			(530)
Total, Ending Balance	$ 130		$ 130

COMMITMENTS AND CONTINGENCIES (

COMMITMENTS AND CONTINGENCIES (Details) $ in Millions	1 Months Ended
	Dec. 31, 2019USD ($)
Commitments and Contingencies Disclosure [Abstract]
Litigation settlement, amount awarded to other party	$ 3.5

Subsequent Events (Details)

Subsequent Events (Details)	Jul. 10, 2020USD ($)days	Jul. 07, 2020$ / shares	Mar. 13, 2017$ / shares	Jun. 30, 2020USD ($)$ / shares	Jun. 30, 2019USD ($)	Jul. 31, 2020USD ($)	Mar. 07, 2017$ / shares
Subsequent Event [Line Items]
Repayments of debt				$ 0	$ 338,000
Closing sale price (in dollars per share) | $ / shares				$ 52.47
Convertible Senior Notes Due 2022
Subsequent Event [Line Items]
Closing sale price (in dollars per share) | $ / shares							$ 48.65
Initial conversion rate of common stock per $1,000 of principal amount of Notes			0.0149491
Initial conversion price of notes into common stock (in dollars per share) | $ / shares			$ 66.89
Convertible Senior Notes Due 2022 | Unsecured Debt
Subsequent Event [Line Items]
Stated interest rate (as a percent)			2.375%	2.375%
Subsequent Event | DePuy Synthes Sales Inc | Co-Promotion Agreement | Maximum
Subsequent Event [Line Items]
Early contract termination fee expected						$ 12,000,000
Subsequent Event | Convertible Senior Notes Due 2022
Subsequent Event [Line Items]
Repayments of debt	$ 160,000,000
Subsequent Event | Convertible Senior Notes Due 2022 | Unsecured Debt
Subsequent Event [Line Items]
Debt instrument, face amount	345,000,000
Debt instrument, repurchased face amount	185,000,000
Repayments of debt	$ 211,100,000
Subsequent Event | Convertible Senior Notes Due 2025
Subsequent Event [Line Items]
Threshold consecutive trading days | days	40
Subsequent Event | Convertible Senior Notes Due 2025 | Unsecured Debt
Subsequent Event [Line Items]
Debt instrument, face amount	$ 402,500,000
Stated interest rate (as a percent)	0.75%
Proceeds from debt, net of issuance costs	$ 389,900,000
Threshold trading days | days	20
Threshold consecutive trading days | days	30
Threshold percentage stock price trigger	130.00%
Closing sale price (in dollars per share) | $ / shares		$ 54.17
Initial conversion rate of common stock per $1,000 of principal amount of Notes		0.0139324
Initial conversion price of notes into common stock (in dollars per share) | $ / shares		$ 71.78
Premium on initial conversion price		32.50%
Percentage of debt, redemption value	100.00%
Subsequent Event | Convertible Senior Notes Due 2025 | Unsecured Debt | Debt Instrument Conversion, Scenario 1
Subsequent Event [Line Items]
Threshold trading days | days	20
Threshold consecutive trading days | days	30
Threshold percentage stock price trigger	130.00%
Subsequent Event | Convertible Senior Notes Due 2025 | Unsecured Debt | Debt Instrument Conversion, Scenario 2
Subsequent Event [Line Items]
Threshold percentage stock price trigger	98.00%
Business days after measurement period	5 days
Measurement period	5 days