PCRX - Earnings call transcript Q1 2018 | Pacira BioSciences, Inc.

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Operator

Good day, ladies and gentlemen and welcome to the Q1 2018 Pacira Pharmaceuticals, Inc. Conference Call. Currently at this time all participants are in a listen-only mode. Later we will conduct a question and answer session and instructions will follow at that time. (00:00:17-00:00:26) I would like to turn the call over to your host, to Susan Mesco, Head of Investor Relations. ahead. go Please

Susan Mesco

(XX:XX:XX-XX:XX:XX). Dylan Thank you,

Joining me Chief Officer; Stack, and are Charlie today's Officer, Dr. call Executive Officer. Scientific Chief Dave Rich Reinhart, Chairman Financial on Scranton, and Chief

factors that we uncertainties. to today's based Before Please our Such of information refer judgment expectations. that from our represent current available me affect filings involve with Stack. concerning today SEC our let that the website remind and which on call include risk may turn forward-looking over With start the company. will the for now statements the could or the our are as statements will you risks to SEC, and I call Dave

David Stack

terrific is start. historically reported approval sales Good for revenue note first of upper growth in top-line morning to the We X% and that growth launch March. XX% to extremity January Susan. EXPAREL surgeries as X% is of with increasing joining. We It from quarter. plexus everyone volumes an interscalene a and QX monthly XXXX block over underway. brachial annual in sales quarter for for important secured strong weakest Thanks, to is thanks our is FDA off

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reducing multi-modal pain, for gateway role the platform of uniquely unintended operating dominant has infiltration as only as and component opioid-free the room the long-acting As management pain and become for in abuse. primary analgesic critical approved a EXPAREL opioid durable a positioned to is the and misuse block nerve post-surgical local for

three on remarks previously we calls, strategic on investor had I'll our today we've focus outlined prior done for priorities As community. my the which

through use surgery protocols new the expanding settings after and key from data surgical medical ERAS clinical First, influential academic centers. enhanced of recovery EXPAREL in or

awareness the within and the commitment share in third, collaborations solutions education partnerships with outside to need opioids around for who organizations some and driving And room. reducing in our Second, and eliminating operating cases post-surgical the or of setting. opioid-sparing

total based Let's significant Last month were analgesia. thrilled while begin block from into regional study of results X rotator block. announce statistically significantly patients our repair. XX% repeat, To improved with EXPAREL placebo-controlled supplemental in opioids. XX% nerve a control pain was produce who p-value a reduction with for undergoing to experiencing in of FDA expansion highly pain. a of the drug new Phase to fewer consumed EXPAREL nerve opioids cuff on EXPAREL shoulder Patients less arthroplasty received our application approval as approval This or we

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mL In nerve XX% extremity is upper of blocks already market the just XX% seen few EXPAREL and than first the in make palpable block our launch, two total enthusiasm the years. nerve more number team our sales up increase EXPAREL of secure many XX we've engaged weeks next procedures compared a anesthesiologists of with their blocks to days expect Within within nerve part We meaningful of a the and the to an to quickly clinical benchmark. information vial, our integral of are approval, daily of routine. XX-week using as historical

alternative inbound both are EXPAREL from new EXPAREL many reduced as when Each the or patients we our examples as worked the dramatically approach. to plexus also opioids been to have an of achieve to opportunity environments We of ambulatory and multi-modal, with success to regional stories possible. are provide part day, hospital receiving many customers analgesia expand in blocks administered brachial have eliminated even opiate across mission country a care as where

a brachial feedback manage two pain most pain and to from strategies, avoid of as control market show we use only the the using Society expressed patient the an our tremendous XX,XXX EXPAREL Analgesia, of a administered is to we to or site. prominent program. able the cumbersome at Regional in and patients highlight providing this regional video Recently, enthusiasm. most (sic) plexus to decades, pain analgesia NYSORA TYLENOL. have at be key the global ongoing Society rotator Dr. which delivery the School simplifying the and Anesthesia data experienced New of the in and desire interscalene pain as repair, Hadzic, their NYSORA the underlying surgical a (XX:XX:XX) societies. interest two opioids to what an the Regional technologies view in block management in clinical for of in At a approval saw Regional for over York part long-acting with and American block. forums. academy's video anesthesia and replace [New their off is strong in X healthcare EXPAREL turn single-shot will leader eliminate approach EXPAREL plexus gatekeepers cuff the And, (XX:XX:XX), of of pumps Medicine, Pain overwhelming for to for and painful their replacing we York catheters, surgical of X like in engagement technologies Importantly, procedure nerve and Anesthesiologists, with antiquated Anesthesia] a block members are [ph] these NYSORA of single, meeting of medical relief Admir featured level educational what pain use the had of leader for days prominent opportunity reviewed benefits we the brachial education the

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policymakers an to to national We to continue with in address health be EXPAREL and to as expand emergency. payers option the opioid-sparing opioid access active discussions

to to practices fixed with centers. CMS surgical around to outpatient payment drive our and reimbursement leadership working are within EXPAREL ambulatory fund change welcome We their

sense before, during it EXPAREL the is we is I've to simply bundle this administered classification. not an As highlighted surgery. make believe because does inappropriate It

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Let me to partnerships. final pillar, third and strategic on the now move

strong any its with all with sales programs sports collaboration leading JNJ systems which with to continues reconstruction, track spine, and continues he trauma previously where our on point doors Johnson you, joint in with not medicine. results. this XXXX expectations, have our been Johnson & are Johnson we hospital important Alliance of access. these and collaboration Dennis on remind VP involves McLoughlin, To since Management, partnership Our four of did our & launch verticals, to Johnson exceed regularly new opening spearhead has to

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Johnson are excited and roll for this Importantly, out indication. brachial plexus approval actively & block training working as together teams about are the Johnson new we for our at colleagues the

As inpatient highlighted earlier, the opportunity many procedures block setting. outpatient to we the move enhances the nerve to indication

EXPAREL on form for EXPAREL. We DPS are (XX:XX:XX) and also Johnson with a ambulatory agent powerful of Johnson strategy care. to overall use and the & & Johnson improve are how in change confident patient We our closely Johnson collaborating

Tennessee direct happy University surgeon that opioid procedure Similarly, extending partnerships starting tissue multi-pronged Surgical College American that System, Cancer in opportunities program approach important the the worldwide of our the of business events and such healthcare with Illinois Medical vomiting, minimization constipation, opioid partnerships Pacira avoiding our in initiatives. more to addressing a patient and Improvement the reconstruction. and to given America initiatives which retention and Health, collaborations allowing Surgeons sizable global opportunities Centers WellStar our and of other interest ventral Collaborative epidemic a urinary opioid We recent Aetna, leading prospects provider clinical to focus nausea Trinity and TELA's repair, are to as partnership commercial as and patient continue experts, positioned we identify in bariatrics. explore that support for the well-known our surgical like to breast delirium. Quality at relationship these the patients today payers supporting additional their portfolio the active EXPAREL relationship In we continue adverse to forward color in and with Treatment our broadest the with soft announce We traditional These Bio collaborative Ethicon, about excited replace quarters. highly colorectal and clinical involve space, time. our pilot Center, report our and will Health to a provide growth represent tandem to to access of Bariatrics well Rich? portfolio. we the I'd remain as complementary Furthermore, we possible mesh. are are market through educational of look provide soft education, to an expertise. development to as We also and providing to is with platform, We populations aimed hernia programs some field tissue therapeutic emerge and expect differentiated broaden more we surgery, audience over to external of next within as on one access over couple EXPAREL, will investment transitioning believe the to highly our a serve is With in Dr. OviTex call with TELA turn to very our Rich to very to such regulatory and continue Scranton activities. all a believe a partnerships bioscaffold to that, portfolio. procedures, our

Richard E. Scranton

patients successfully a we recently joining good to new pediatric for After regulatory approval pediatrics, We and plexus and progress. the aged made pathway start Dave, all options. who EXPAREL are to teams had the Thanks, morning shifting with population managing FDA over there of anesthetic severe six this clinical like for by priorities. other this about our particularly the any several who our call. options We're developing now exciting urgently block, local brachial as met is securing This and with I'd to considerable for today's options label. been solidified EXPAREL as where use need for are for XX have for aged children limited vulnerable and into to have approved excited opioid-free that post-surgical pain true years X do FDA. not program

that XX to surgery. children block who undergoing include study to via support XX years use corrective extended are rapidly safety field of pain we children And provide already We long-lasting reduce in X from manage age for study painful the the recommendations for FDA pharmacokinetic of to years will initiated PK or and who spine safety age EXPAREL These ideal spine implementing the undergoing need and analgesia the have surgeries. are are EXPAREL for of procedures cardiovascular XX a to and a an are opioids. to

age. an submission procedures the and Our years include Premier surgical package Cleveland also several real-world will patients for evidence database under from XX the of in Clinic extensive of

study. Next, caesarian let's section Phase X move to our

designing program Also, this reduce track after we and positive benefits babies We on rolling an follow-on the will key continue while EXPAREL this for is in forward our study providers need feedback for common their C-section, C-section, reporting procedure. for a a look investigators to need opioids to measure interest based The alternative this patients the non-opioid are use via both healthcare later use and patient-reported a of administered on great the reducing from using of about there the from where see to opioids that year. new we to and top-line in study surgical need is data epidural. mothers following outcomes

studies in for studies hip finalized We track spine inputs incorporate our and plans launch also year. colleagues have from and this our clinical JNJ remain These on fracture at to surgeries. later

to to procedures protocols EXPAREL established to for outcomes on provide an colorectal of to required in timelines care ERAS. and breast our studies We on-label of as ERAS is excellence. these part cost ERAS important and centers data controlled technique, compared invest conducting positive randomized, appropriate see around drive this indications. associated the with without of to and an reconstruction that best-practice believe comparative real-world in in the data continue without EXPAREL these with We at EXPAREL-based prospectively protocols us EXPAREL will and lengthy training not are adoption With strategy collect the standard necessary

seeking via analgesia via EXPAREL block. nerve field Marketing regional and preparing Application analgesia Authorization block Turning a the is for file peripheral approval a to team mentioned, Dave Europe, as to local

experience We is study into study Health National the local stage by at in now touching being by that a Research. funded on briefly finish early filing Cambridge. also will from University Institute I'll our UK the is the incorporate This underway of pipeline. of TKA

pain severe study non-opioid, preparing moderate Phase X long-acting, regimen. designed to launch non-steroidal multi-modal to as are to treat We a of of DepoMeloxicam, a a part

from end this to X this study a decision We Phase will use year. this data go/no-go by a of make for the

we opportunities. also the DepoFoam-based in while are several same have at in-licensing development, evaluating products time We preclinical

customer to focus through call walk I'll over complementary base. focus Charlie? EXPAREL results. our are With turn that Charlie stage our to clinical is to Our financial and the assets commercial that

Charles A. Reinhart III

good Rich, Thank you, morning, and everyone.

you million our of through release insights non-GAAP by includes we into of aspects XXXX. morning financial like a a we quarter in quarter. discussing to walk and release these first this financial I'd financial of $XX.X these Net I for Overall, of also will quarter the to morning. product we increased great the measures had $XX to Before results measures. compared the remind additional million sales provide we issued they to press for a description GAAP first why The X% includes reconciliation XXXX EXPAREL that be business. press metrics believe this The

continue an existing first both and driven During strategy accounts new three-part we in increase described. accounts. EXPAREL our the quarter, execution believe to just in see that is this successful the Dave growth demand We by of EXPAREL

XX% XXXX XX% for the of margin gross non-GAAP versus first Our of quarter quarter was the last first year. for

the lots Our discarded unfavorably first several quarter DepoCyt(e). margin of XXXX was of by impacted gross cost

Non-GAAP manufacture decreased the block. in DepoCyt(e) our largely nerve the expenses recall, may year. X for quarter $XX XXXX. completion June versus million and by the driven last in first of was quarter discontinued first of you The R&D of studies million As XXXX development of decrease $XX.X the research to for we Phase in

non-GAAP flat, the $XX.X Our of expenses of were general the selling, compared coming quarter in and XXXX, at in for $XX.X first quarter year. first last million relatively with million administrative

share resulted All basic $X.XX share or or and in first of income quarter of $X.X of per of $X.XX quarter diluted million the this a loss year. net of per the $XXX,XXX diluted non-GAAP last non-GAAP for basic first and XXXX, compared for net with

equivalents, cash $XXX.X and with and remains ended investments. and million we short- quarter the strong Lastly, cash, position our approximately long-term cash in

deliver quarter Looking financial remain call the pleased we on we fourth ahead, February. on in on guidance I provided that track am to to our report

pleased confident to the will are XXXX. very we trends sales we highly that As remain sales continue Dave throughout and with accelerate discussed, are now seeing

positive block, of practices, the drivers key use in setting. shifts launch expanded for include and EXPAREL growth ambulatory the nerve in our plexus the brachial JNJ for EXPAREL partnership, the Specifically, of reimbursement

indication, XXXX, excited far drivers the trends impacts Consequently, sales million, our we specific to we $XXX the million $XXX the financial strong following through volumes gross in of include non-GAAP of which represents While nerve April, million that, we are nerve the million expanded impact to expense for the awaiting not guidance. Dave. XX%; seeing block the to $XX compensation million. of monthly to are to and around opportunity; which in by the remind of before momentum over yet commercial sales to believe XX% feel growth visibility changes does more are launch $XXX financial non-GAAP expense thus turn block $XX will with we and a now other I making you, timing magnitude $XX comfortable guidance: margins million; R&D of significant EXPAREL we With call reiterating stock-based and back non-GAAP product SG&A $XXX million; expense $XX million we of net of key any very to

David Stack

forming spine, post-surgical payers, management non-opioid both our through including In and around national successful XXXX launching and Matter closing, for Thanks, and achieving for achieving new alternatives brachial for many launch Choices pain for analgesia, to private continued plexus sales share education start studies of fracture achieving EXPAREL on-label to and additional and reimbursement a C-section look EXPAREL turn highly the and our great payers to Q&A to year-end, results, as guidance, our with to and broadening nerve clinical regional providers well-positioned like full-year over believe session. reporting securing EXPAREL Charlie. study, our patient value-creating begin who I'd the we a By separate milestones, Dylan? is care success. important Pacira through collaborations opioid with is Dylan we forward campaign, in for public passion that, minimization top-line strategies. call a for improving block And hip healthcare completing awareness off

Operator

sir. you, Thank

Markets. Our Capital Randall first question from of RBC comes Stanicky

question, Your please.

Ashley Ryu

I a you raised you've morning. think talked good it's haven't nerve bit for Ashley seen block during Is sNDA raise, lines early upon of kind there along Or around more why far month for the kind to what of This think nerve about little stay anything I something that about said for early and around given less tuned know be and that Ryu guidance block? thus But ago? was touched you like maybe just you've said is the Dave wouldn't XQ call, conservative. you enthusiasm update Charlie, makes why Hi, I guidance. a Randall. you confident of

Charles A. Reinhart III

important really that the we think of to indicators financial of don't be. at that Well, gives The do and a put figure guidance. early how would us all contrary, on that are and the know guidance right product I at in and us anything it there's to But that, so into do confidence know I a dollar point actual that enough this gives Frankly, we're And of point, couple when this quite our seen question we've pause. an that. into confident positive. we'll weeks timing when change around know are the think don't to once I we results more is launch

Ashley Ryu

both both up bill of well. and Got it. J you an code a a on outcome What regulatory guys the expectations House of working for coming the just code are following are guys positive of shaking the kind you And provide can CMS kind the draft you have through updates you how side, lot see your the update more obviously with J likelihood out? as if on up and of just around update for

David Stack

was and CMS, Means. and I HHS we're most the in the a think and all well of relationship. improving matter at to as mean, well, providing both as legislative real first, on we Ashley, policymakers alternative of interest where a I engaged Commerce with the day non-opioid the constituents, I with There possibly side, D.C., Energy good as as as have question. and we with very care we're a be of could for is their and appropriate both Ways patient with yesterday. think fact, highly thanks I are we And the – in well-positioned there people

– done happen, think well. I a of you parts everything positioned a it me down what it's just tell can I to make moving – I going to think and lot do. and there think for we we've doesn't so There's think, lot it actually I of And what is I we're think

D.C. or that they've of believe solve number in there's a appetite will all of of We and think great those. I take. a in this be problem part any could one we another got they to that way different or alternatives

from good in we're a so perspective. And our spot

Ashley Ryu

much. Thank it. Got you so

David Stack

Ashley. you, Thank

Operator

Thank you.

Our from Amsellem next Jaffray. question comes David of Piper

please. question Your

David A. Amsellem

Thanks.

in whether oriented competitive your wanted other areas. specifically you Heron's on will carving marketplace a wanted the shake you HTX-XXX. areas landscape how the how other see modalities, the long-term Dave, your on view. niche see Heron's respective Thanks. carving role Heron me ask versus and to certain general get out sense shaking to and your out out So your I question or get competitive specifically the to dynamics non-opioid just thoughts EXPAREL I dynamic And competitive niche sense, on longer wanted not term give in long-acting and your in terms out of of just

David Stack

as Thanks, aware. David. That's a very broad I'm question, sure you're

think for broad healthcare make they start saying by comment a the point that a EXPAREL settings. if when Let being phrase read I surgical and ASRA interesting very across they appropriate papers you physiologically me a that a use provider's just is view clinicians of out range as from of

EXPAREL all and very as that to and distinctive toxicity, that cetera. it be we muscle can community of is kinds can used toxicity You product intrathecally, used the nerve by it ways relates can different much to be see this physician in believe that et

are block to others. cetera TAP not There a a might nerve might doing what the surgery, are think with plastic got that really on surgical appropriate on are mean appropriate focus a we're block. physiologically that thing seconds Same by number us procedures and back spot. surgery, are for be going available that my surgery, think orthopedic We've be to most anesthesiologists spine that of and I XX (XX:XX:XX) technology. comment ago, et driven label, for folks a great delivery in we

if we've top of the I Surgeons work healthcare these got of all our providers. American of that partnerships different all of and the on and think layer with that you ability College to strategic

who ambulatory for has care in on that commercial strong the number which out. Aetna, environment EXPAREL publicly a very to from patients disclosed of based paying payers are We with moving in additional whole been are

David, think the care maybe that's answer if sure I don't So opportunity technologies. there's and question, the delivery restrictions can technology used you by mean, the clinicians competitive look and adverse available any your profile, at you not I an simplest at me is event to to look to if for at the patient EXPAREL that's be on all I'm where improve that way

David A. Amsellem

Okay. That's helpful. you. Thank

David Stack

Thanks.

Operator

you. Thank

Our Flanders comes Goldman ahead. next Please question go of Sachs. Dana from

Dana Flanders

then Hi. J code Thank where follow-up. sense to or current you you are And over how are a then, very a first the think what currently that quick a and I ambulatory just just surgical And in impact overall procedures do for targeting us of can go about My try have you potential the here, outpatient just you much of as time? remind can we for of that have questions. the just setting? many the EXPAREL's split is outpatient change, inpatient versus

David Stack

the we you data can't same hospital-related, making Dana, And can surgeries about look purchases. of bunch physical separate receive of tell physicians we the way What a Yeah. departments if hospitals said outpatient that XX% our hospital is is is times, as I've the or business. imperfect. at pharmacy not because data, The purely from of it's ambulatory we owned you by

I to bit little direction question and go be a a information. answer able may slightly different better me in with your Let

about for less and of lack fact our Few is our because of you business and of of ambulatory – procedure patients business, XX% CMS of reimbursement those then than for payment not If are is treated XX% the or are so that outpatient on basis Medicare, about an procedure. and they're who inpatient the XX, an for at today the it payers patients, over commercial an is look example.

financial so skinnier for DRG, if a it's outside hospital difficult the to will, you And somebody perspective in products these a in. more from actually use than

cc is brachial I'll that there a four it patients a – So dose the that treating WAC, the will outpatient of code: to payer really two not environment, XX would get opportunity or that for up One a for pain of get the us save but for plexus, use for only open a of of patient and $XXX care it's to an J ramifications is in the would cost the government expense control days with XX% $XXX.

been terrific so until of of for you you to to our opportunity that from don't understand EXPAREL, many the meetings what bill stop perspective, that us when is using a you they yet, right? believe on appropriate care you no is, population the ambulatory one yesterday budget information local cover the a because this the opioids was hasn't because don't centers And government population improve stop payers of really J in to have patient the while focuses there that And code. can non-CMS EXPAREL D.C. for is opioids. created the do that patient care using CMS opportunity Interesting

the we use we follow J fill is commercial for appropriate and don't a well based to that's the art and one, really code how created the out aspects have gap on as because So for codes the of as payers. paperwork the which CMS technical have they same been to the payers,

answers of code J EXPAREL that couple different a confuse ambulatory the and didn't on levels. more. getting provides of in environment from for relief question hope cost a so the I us And really your I you

Dana Flanders

most that the how frame call before. just And you just know That's just of you're No, help think I Thank that just does. a magnitude regions you you could and for the about you Can that? timing there make any And on in something there European mentioned the how on? global very helpful. target? EXPAREL. just it's no, sense follow-up mentioned when you. as that should come Thank Are as filing. preparing my opportunity it well to thinking think I quick we you. are about this

David Stack

the with Yeah. and making two so Thanks, couple in cetera. rest And Japan, We've sheets next some we will interested there world, over is again, in of be of markets Latin confidence the for There's example. Canadian Europe why territories for Dana. that's protecting your are you'd a One borders, some be and and then China have the term announcements that some the aspects. relationship, of et in discussions so there statement a the America got and number is in quarters. big

us we specifically to least is application we that do, make we're out doing approval, we're to territories, we file wanted ourselves application the discussions European going could pan-European also because question would with and regulators, for the they asked we whether frankly. Europe carve are the that And the your think in you If and the are current had at best these so specific block, position people a about to the block at both nerve is until which us. nerve to infiltration that time, what wait have

but we our and we partner discussions – still an about that is I the I Europe rapporteur opportunity there And the here to do but approval a (XX:XX:XX). interest be we're some to is is are this we discriminate all territories, our better the in in strategy a end big late-stage think have expertise the shape should our commercial of as intend think think started with up going China on do back who opioid-sparing the process we wars some regulators with unless way with the And we have launched once where is big much partner. M&A – not in that period. in terms us ourselves But So regulatory to going maybe intention, provides approval. product we that to goal China's don't just where then in great here on will just opioid the that is there with there have dependent not

of there's of in there a great there's our and as product well. generation so lot so opioids Chinese a interest a And who have aversion folks whole to

Dana Flanders

you. Thank

David Stack

you. Thank

Operator

Thank you.

comes Chris next question Schott of Our JPMorgan. from

please. Your question,

Unknown Speaker

you Thank Caterina my taking actually for Hi. for Chris. question. is This on (XX:XX:XX)

So your updated terms priorities you're I and and the the R&D thinking in has what how I studies approval, And guess broadly you light about about? can that about changed? most guess more timelines more your infiltration in are talk of really block Thanks. nerve you of excited

David Stack

say block (XX:XX:XX). – we've There's is forward now you, the with different. in and here, especially ask if Thank I approval, really nerve to anything Caterina I'll Rich jump as here, that moved more are on as use of what and it around clinical training than and is the EXPAREL, on really data. for education more it ERAS asking is our especially protocols to relates customers more

with into know then do hip and what epidural And an like that asking of EXPAREL get have thinking where determine turned and use a folks us And spine, the for of experience is, range highly minimize catheter some to go relationship for or fracture then and improve with married been they're we're opioids greatest it patient they fascia block, has we is how how an important. to competent field then I procedures JNJ demanding which a to As EXPAREL? technically procedures EXPAREL, replace study the with provides example, of procedures the we'll technically the and so more broad opportunity why opportunity that's which iliaca with care.

with our then are me you'll are ERAS the can an them I protocols if because these data my of what develop and better to days different their this work with understanding procedures going would than to for my continue take much So developing couple to can EXPAREL. home for ERAS centers and how clinical saying, it hospital be so to you is time I to go see go experiential customers forward for all and way these that I it of over a that know use (XX:XX:XX) here academic and patients is

aspects protocols. sophisticated to need I Now the these ERAS of understand

it's are focus it's because It's Johnson it's & us. thing the a and about, that fracture just those excited now say C-section spine most used of area mind doing. operated to exciting the before that's partnership to to so about? to the which us. think most huge. people. ones We spine real the the exciting really is global for then perspective really Hip payers we is hematoma to you The if so changed we our that. most important about, most government wait excited what to From swelling hip are do Johnson, down a be completely that and on We've fracture, and go excited We our for on how are is wrong is authorities problem. exactly the And what Chinese

those takes protocols with the as the hours et their in aggressively, we place cetera., XX And immediate so control discharged can in emergency losing intercept several back are or back possible very pain presurgical their so providing without environment patients all to of et their at them how EXPAREL room that as so go and do cetera. home beds surgery on these treat and the days focused home patients situation (XX:XX:XX), nursing that to go those be rapidly

are really they different diligently So but all our slightly spending important, we're very for now. reasons, all money

we about here EXPAREL what our clinical opportunities. question is clinical from months XX a of development of and over move next think development pipeline see broad XX our R&D, you'll to months away products M&A the to Your

a And likely but what same flat expertise, know on people, we same today, additional budget about at on will so, based They least, not EXPAREL-based. relatively be based assets.

Unknown Speaker

much. so you Thank Great.

David Stack

Okay. Thank you.

Operator

And you. comes C. Livnat Wainwright. H. Thank question our Oren of last from

Ms. please? question, Wainwright Your (sic) Livnat] (XX:XX:XX)? [Mr.

David Stack

mute? Oren, on are you

Oren Livnat

me? hear you Can No.

David Stack

hear Okay. now. you can Yeah, we

Oren Livnat

mute. on Strange. wasn't It Okay. Thanks.

questions. couple a Just

us both you this this? be agenda I your page. maybe lot legislative, mentioned or just some of if eyes multiple broader the approaching little think on we're refreshing CMS are on talk landscape. what people perspective reimbursement? mechanisms a agenda, meeting? improved wondering let's all code or it's you'll then Why get all a Thanks. up some in I competitive to are have your this Firstly, could what I just say, may May I'm potentially if And still reimbursement Because, options confidence obviously just have Q-code. give legislative, you you a people do this need And about on are think, front, you know you've don't J for mechanisms the on think you in general, show follow-up Can CMS parallel other that have nothing

David Stack

real on could a payment. question the us still table, a is Oren, do the we achieve be good J bundled, code, any unbundling, were wouldn't We there if No, still but Yeah. the wouldn't right? discreet it because

this and that you the ways widely legislative think for the the be a I as and of a the sides Q-code. once of liposomal of J of HHS topic could for unbundle, that four scheme. different a that's the milligram well by to of then are way, great But payment again, provide non-opioid unbundled the CXXXX opportunities doesn't So you both have way then to unbundling could as a achieve They CMS C-code of CMS is a treatments for it X could unwinds that us understood for number in unbundling It aisle whole There's world. discussion there of achieve the to only a code, number yesterday, EXPAREL. and a key discreet bupivacaine. payment reinstate a it's be is at an

Oren Livnat

don't that have reimbursement and So see we on for an there, not – if meeting, the potentially going we agenda that if posts improved foreseeable future? tomorrow to not shouldn't you're means this you're dramatically in think

David Stack

unbundling here. the other two the is is There's correct. One J exactly That's and strategies code. the No.

is it not legislative through an sure. and timing of release the opportunity but is for on people following strategy there or on that the we're (XX:XX:XX), nothing educated all those based a are So code to J so interact people with

opportunities us. is a currently two the of it in front As lesser are matter fact, that of of the

Oren Livnat

again, that's allocate maybe different years given for much incumbency major realistic of all swapping? and set, be different profiles kind kind for it's have release products a there earlier Or is landscape relatively all the touched indication, how these But advantage internally. that hospitals see And guess really important. you learned, I potential one this of product. more of Also to in mean, use the extended it's one profiles of procedure, work, there. given or similar you product I a that or the about spent do to you've bigger two Great. the hospitals do nothing? bupivacaine on going think committees And what these the place just picture, is learning competitive P&T how Thanks. resources on you you realistically

David Stack

on on. one we believe me have to product the I sensitivity don't profiles let something if difficult the don't answer will relatively you There think that high be your I I it more taking P&T. you put separate than products Well, to the off are questions of mind. similar. question else that think is will before very the two something that

I regard. in a incumbency And and that value think so great there is

going be mL We your $XXX. WAC to quadrant upper also the vials, is XX vast for are example, majority believe that of the where procedures, cost

So There could be at But XX% the incumbency there. carry the just leave decision reasons to of me day, is And be no-brainer. you safety important I end is a in the I'll I number a here. really just think going there's it products no-brainer. that's why of no the of cases. which on a to think that's based around –

Oren Livnat

Thanks. Appreciate it.

David Stack

Thanks.

Operator

Thank you.

Steinberg of next ahead. go question David from Jefferies. Please comes Our

David Michael Steinberg

Two questions. Yeah. much. Thanks very

First for the talked enthused opportunity, about on reference Europe, know you XX,XXX-foot you opportunity of downplayed involve discussed plate. and us from could and community problem entering. know And give lot the of Thanks. that countries of is about it reinvigoration particularly if how sort of curious sort you might sense the some had And give your maxillary Asia? part the other note I particularly just community? be mentioned it been and you And be because you're I haven't view you just at that secondly, a that bupivacaine filing a oral color and into to I going? on and sales oral surgery the pricing, on to given really of area, into introductions has Curious, of much you generic is, But ex-U.S. you're that both going sales looking to us, could then just U.S. peak investment expand things higher the I force would would and your you some of strategy, in that was was level a quite while? what sort in a follow-up

David Stack

I me if Yeah. No. can, I best I'll come don't questions. but order David. as back to Thanks, in your answer it take

audiences the quarters great opportunity you (XX:XX:XX) been are plastic our with team would the last purpose significant of we (XX:XX:XX) JNJ two of Because So tell also audiences opportunity retail surgery partnership very exactly very nerve opportunities and with outlined. the as the it I outside all and we you the represent a accentuated well. a block, here the working the hospital, with small by we increased has success. is as in over now as but oromaxillofacial have have the hospital, with surgery telesales organization

And is about And but appropriate that to many go is those you payment code, an us want going it reason the it is for pay its to believe to which way, cetera. with the bill cetera, to the people, the with accentuate payers. with are because center also payers and for, so have that ambulatory some the payers as those the they is for time the sure in et make we invest what appropriate EXPAREL, a et care, to use talked there information to promotion to ambulatory have we what connecting need, code, real by by how cases, and procedures with all work live the people to going their ambulatory care the into knowledge gap EXPAREL, but how care of centers to around

activities, think there's believe just – these no there we either. there revenue these do the timing Charlie and for that but alluded activities is expense yes, is for line yet this, in but So, no to right, we

So we'll two come together with those things.

So me. question, please if that to doesn't answer your come first back

Europe in what to are will, partners procedures, to do where used. the product partner going and be and patients, chooses, around the the things we In and world, terms we've we introductory the of have very our to that of is that don't impact talk the their procedures you but if market sensitivity opportunity is price of what a one price research folks of is cost to been the we on is into rest cognizant those direct to And most important backdoor, is. be the to going China around the can which

threshold For example, use the pretty you're product David, hernia, if cost in going a the to high. somebody is thinks

going ambulatory the to use it to you If and are very are you you spine, it's use if in low cost care, it you non-existent. going actually is think threshold think in

looks on like. we're So like is insert X Phase highly how looks the and program dependent what what it package really developing the the product,

a wanted some that's with work announce to why because so lot these some get little we And slow bit we additional of to this been before we've had do to have a a price in price for be partnership We're can't the the raise price. We whatever the to China. sure or the that that going you is pretty in exactly is, outlined. Europe of reason

we'd do rather price so fast right don't do a and we with end than it And and up wait it like.

David Michael Steinberg

you. Thank

David Stack

Right.

Operator

time, Officer call closing remarks. I'd go At this for back session. to ahead. Executive turn Stack, Q&A our Chief to like Please concludes Dave Chairman This and the

David Stack

Vegas. you us updates the you next thank by Thanks We Thank in forward Bank Conference to morning. We and future. to you, look followed providing Deutsche Las in time the Dylan. the And for seeing again. Boston, forward America Conference additional up your this look in of soon. questions And is for

Operator

ladies you, and This concludes Thank the for gentlemen, program. conference. today's attending

may all Good You disconnect. day.

Pacira BioSciences (PCRX) 3 May 182018 Q1 Earnings call transcript