On Thursday, Pacira BioSciences (NASDAQ:PCRX) discussed first-quarter financial results during its earnings call. The full transcript is provided below.
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Summary
Pacira BioSciences reported strong first-quarter 2026 results, driven by their 5 by 30 strategy, which focuses on five key goals: patients served, product, revenue, profitability, pipeline, and partnerships.
Exparel, the company's flagship product, showed renewed growth with a 7% volume increase, supported by expanded reimbursement and intellectual property protection.
Zilretta and Iovera also experienced sales growth of 15% and 21%, respectively, due to dedicated sales forces and strategic collaborations.
The company's clinical pipeline is progressing, with key milestones anticipated for PCRX201 and PCRX2002 later this year.
Pacira BioSciences maintains strong financial health, ending the quarter with $202 million in cash and investments, and continues to execute share repurchases under its buyback plan.
The company reiterated its full-year 2026 revenue guidance of $745 to $770 million, with specific product sales targets for its key offerings.
Full Transcript
OPERATOR
Good day and thank you for standing by. Welcome to the Q1 2026 Pacira BioSciences. 2026 Pacira Biosciences Inc. Earnings Conference Call at this time, all participants are in a listen only mode. After the speaker's presentation, there will be a question and answer session. To ask a question during the session, you will need to press star 11 on your telephone. You will then hear an automated message advising that your hand is raised to withdraw your question, please press star 11 again. Please be advised that today's conference is being recorded. I would now like to hand the conference over to your first speaker today, Susan Mesco, Head of Investor Relations. Please go ahead.
Susan Mesco (Head of Investor Relations)
Thank you. Good afternoon everyone. Welcome to today's conference call to discuss our first quarter 2026 financial results. Joining me are Frank Lee, Chief Executive Officer, Brendan Tehan, Chief Commercial Officer, and Sean Cross, Chief Financial Officer. Kristen Williams, Chief Administrative Officer and Secretary, Tony Malloy, Chief Legal Officer, and Jonathan Slonen, Chief Medical Officer are also here for today's question and answer session. Before we begin, let me remind you that this call will include forward looking statements subject to the safe harbor provisions of federal securities laws. Such statements represent our judgment as of today and may involve risks and uncertainties. This may cause our actual results, performance or achievements to differ materially. For information concerning risk factors that could affect the company, please refer to our filings with the SEC or the Pacira website. Lastly, as a reminder, we will be discussing non GAAP financial measures on today's call. A description of these metrics along with our reconciliation to GAAP can be found in the news release issued this afternoon. With that, I will now turn the call over to Frank Lee.
Frank Lee (Chief Executive Officer)
Thank you Susan. And good afternoon to everyone joining today's call. Just over a year ago we introduced our 5 by 30 strategy. This plan was designed to accelerate performance and position the company for sustainable growth and shareholder value creation. To remind you, five by thirty was built to deliver measurable progress around five key patients served Product, revenue, profitability, pipeline and partnerships. Collectively, we believe advancing these five goals will drive shareholder value into and well beyond 2030. Let me start by saying that I'm pleased with our first quarter results. I'd like to recognize our team for their remarkable efforts. Our solid first quarter results reinforce our confidence that I buy 30 is delivering its intended business results and we're on the right strategic path. One year into execution, our progress across all five goals is clear. This is reflected in our commercial performance, financial results and pipeline advancements. I'll start with our flagship product Exparel. Since our founding, Exparel has been the cornerstone of Pacira's leadership in opioids pairing innovation for post surgical pain through the dedicated efforts of our team, Exparel is demonstrating renewed growth more than a decade after its initial launch. This is a rarity in the pharmaceutical industry and a clear testament to the strength of our commercial, medical and market access organizations. The accelerating volume growth we delivered in the second half of 2025 has continued into 2026. This momentum reflects a combination of fundamental improvements that are strengthening the long term durability of our franchise, including expanding coverage outside the surgical bundle for Medicare patients following implementation of the no Pain act at the beginning of 2025 a new product specific J Code enabling streamlined billing and reimbursement Growing commercial payer coverage outside the surgical bundle, which Bran will discuss in more detail shortly Increased awareness and adoption of non opioid stewardship programs as evidenced by encouraging market research results Enhanced intellectual property protection providing greater long term visibility for the franchise. We now have 21 orange book listed patents across two families protecting exparel from generic challengers. This is a dramatic evolution from the single patent previously litigated and supported a favorable volume limited settlement in 2025. This multi year exparel patent infringement litigation began in 2021 and extended through 2024. In addition to Exparel's leadership in post surgical pain control, Zilretta and Iovera's position in early intervention OA pain management are expanding. For Zilretta, the year is off to a strong start with a 15% year over year increase in sales. We believe the growth initiatives we put in place last year are now beginning to deliver results. These include our dedicated Seretta salesforce, expanded patient access programs and extended promotional reach through our Johnson Johnson MedTech collaboration. From a lifecycle management perspective, we're pleased to report enrollment has concluded for a phase 3 registration study in shoulder OA. This place is on track for top line results later this year. The unmet need for shoulder OA is significant. There are approximately 1 million injections for shoulder OA administered annually in the U.S. despite the absence of FDA approved products. If this phase three trial meets its objectives, Zilretta could become the first product with a labeled indication for shoulder OA. Iovera also had a strong start to 2026 with first quarter sales increasing 21% over 2025. We're starting to see the benefits from last year's rollout of a product specific reimbursement code and a dedicated sales force staffed with experienced medical device account managers. From a lifecycle management perspective, our registrational study and spasticity is on track with top line results expected by year end. Here the unmet need remains high. With 6.3 million patients with spasticity seeking treatment each year in the US together we believe our strong commercial performance and advancing life cycle management will support durable top line growth. Importantly, this momentum further strengthens our leadership in post surgical pain control early intervention OA pain management. In tandem with the momentum across our commercial portfolio through our 5 by 30 strategy we are now advancing an innovative clinical stage pipeline. Here we're prioritizing mechanistically de risked assets with the potential to drive shareholder value well beyond 2030. In addition to clinical data readouts for our commercial products, our clinical stage assets are entering a catalyst rich period. Key upcoming milestones include PCRX 201, our locally administered gene therapy for knee OA remains on track for top line data later this year. With approximately 15 million people in the US affected by knee OA and limited durable treatment options, the unmet need remains high. I'll talk in graded sale about PCRX201 shortly. PCRX2002, our novel hydrogel formulation of the non opioid analgesic ropivacaine for post surgical pain PCRX 2002 was designed to deliver rapid onset and long acting analgesia from a single application at the time of surgery. We expect to begin phase two development later this year. This asset has the potential to complement Exparel as an easy to use longer acting therapy with patent protection extending to 2042. Additionally, our gene therapy platform continues to generate promising preclinical candidates to advance our 5x30 pipeline goal. These include PCRX1003 for degenerative disease, PCRX1002 for dry eye disease, PCRX1001 for K9OA, which we believe has significant out licensing potential. Let me briefly highlight PCRX201, our lead HCAD program which represents a potential paradigm shift for the treatment of knee oa. Building on the encouraging durability we observed in our Phase one study. Our two part Phase two Ascent study is on track. Part A is fully enrolled with 49 patients and as previously mentioned, we'll have top line results from this 52 week study later this year. Like most phase two studies, Ascend is not power for efficacy. The primary objective is safety, but we'll also be looking for efficacy trends. Key secondary endpoints include changes in pain and function from baseline as measured by numerical rating scale, Womack and Q scores. In parallel, we're advancing a commercially viable manufacturing process for PCRX201. This work is critical to enabling the initiation of Part B around mid year. We expect Part B to enroll roughly 90 additional patients across three arms, two different doses of PCRX201 and an active steroid comparator. While it's premature to quantify the commercial opportunity, we believe PCRX201 has three key attributes that underscore its market potential. First is durability. We believe that demonstrating a treatment effect lasting one year represent a transformational advance in neoa. This would be significantly longer than currently available knee OA treatments which generally provide durability approximately three to six months. Second is cost of goods. PCRX201 is locally delivered. This differs from systemic approaches requiring much higher dosing to achieve the desired effect. Lower dose levels coupled with efficient manufacturing support a favorable and commercially viable cost of goods profile. This is an important consideration for any therapy intended for chronic high prevalence conditions like osteoarthritis. And third is health economic value. If the durability we're targeting is borne out clinically, we believe PCRS201 could offer attractive value for the healthcare system. As a reminder, PCRF201 is an IL1 receptor antagonist. IL1 is a well validated DE risk target for reducing inflammation. There are currently two FDA approved drugs that block the Iowa pathway and other inflammatory joint conditions. Neither one is practical for early OA intervention because their short half life would require very high systemic doses or daily knee injections. PCRX201 is complementary to Zilretta and Iovera and could expand our leadership early intervention OA pain management Briefly turning to partnerships which remain a key pillar of our 5 by 30 strategy, we're taking a disciplined, targeted approach to business development. We're prioritizing strategically aligned assets that are financially accretive and leverage our commercial infrastructure. In parallel, we're utilizing strategic partnerships to access new sources of revenue by expanding our commercial reach into untapped US and international markets. Our strategic collaboration with market leaders Johnson and Johnson Medtech and LG Chem are both excellent examples of our strategy in motion. These partnerships advance our goal of five partnerships by 2030 and efficiently expand our commercial coverage geographic reach. In summary, we're pleased with our first quarter results and the momentum behind our 5 by 30 strategy. With clear progress across every 5 by 30 goal, we remain confident we'll deliver sustainable growth and value creation into and well beyond 2030. With that I'd like to turn the call over to Bren to share more details on our first quarter commercial performance. Brad thank you Frank, and good afternoon
Brad
to all joining us today. I'm pleased to report that the upward momentum we observed in the second half of 2025 has continued into 2026. Our commercial execution is on point, demand trends are strong across the complete portfolio and we're delivering top line growth consistent with what we previewed in February. I'll start with our flagship product Exparel, where we're outperforming last year's first quarter volume growth while continuing to expand patient and provider access. We continue to see excellent momentum in hospital, outpatient and ASC settings where an increasing number of Exparel assisted procedures are taking place and where our customers are seeing favorable reimbursement. Our focus, beyond sharing excellent clinical outcomes is demonstrating the enhanced economic value of exparel. To support this, we recently presented data from real world studies highlighting Exparel's compelling value proposition, along with several health economics and outcome studies at key congresses that include the Orthopedic Research Society, the American Academy of Orthopedic Surgeons and the Academy of Managed Care Pharmacy. These real world data demonstrate both the clinical and economic value Exparel delivers. We look forward to reporting additional data readouts as the year progresses. Our initiatives include the comprehensive real world Igord Registry, which now has more than 3,500 OA patients enrolled and is providing valuable information for Exparel, Zilretta, Iovera as well as other treatments. These data are helping guide best practice for knee OA patients across their treatment journey. Importantly, commercial payers continue to recognize the Exparel value proposition and implement no pain like policies that reimburse outside the surgical bundle. We have now surpassed 110 million covered lives with separate reimbursement outside of the bundle for Exparel. With a growing critical mass of coverage, we expect accelerating change in the market throughout the remainder of the year. In short, we are extremely encouraged by the progress made in the first quarter. Building on the momentum from 2025, demand is being driven by powerful combination of expanding reimbursement, growing protocol adoption and compelling real world evidence all supporting each other and growing our business. With a strong finish to 2025 and a solid start to 2026, Exparel continues to gain share as institutions commit to best practice opioid sparing care. We remain confident in our ability to deliver durable, sustainable growth for Exparel as access widens and best practices evolve. Turning to Zilretta and Iovera. Both products are off to a strong start to 2026 as valuable commercial investments we made last year begin to bear fruit. As you know, last year we rolled out a dedicated Pacira sales force for Zilretta to ensure a focused promotional impact. In addition, we essentially tripled our US commercial reach for Zilretta through a strategic collaboration with JJ MedTech. For Iovera, we are benefiting similarly from a dedicated sales force we onboarded last year. Looking ahead, we believe both Zilretta and Iovera have significant upside potential to become more meaningful sources of revenue. In summary, we're pleased with the strong start to 2026 across our three commercial products and we believe we are well positioned to deliver a successful year of sustainable top line growth. With that, I will turn the call over to Sean for his financial review.
Sean
Thank you Brad. I'll start with an update on sales and margin trends. First quarter exparel net sales increased to 143.3 million versus 136.5 million in 2025. Volume growth of approximately 7% was partially offset by by a shift in vial mix and discounting from our third GPO going live last year. In addition, first quarter sales were also impacted by winter storms disrupting shipping and triggering returns. As we move forward in 2026, we expect the delta between volume and revenue growth for the second quarter to be similar to the second half of 2025 and the narrow as we anniversary our third GPO agreement mid year for Zilretta, first quarter sales improved by 15% to 26.8 million versus the 23.3 million we reported in 2025. As Bren mentioned, this was largely attributable to the growth initiatives implemented last year including our dedicated Zilretta salesforce. For iovera, sales increased 21% to 6.2 million compared to 5.1 million in the first quarter of 2025. Again, as Bryn mentioned earlier, this was largely attributable to the growth initiatives implemented last year including our dedicated Iovera sales force. Turning to gross margins on a consolidated basis, our first quarter non GAAP gross margin was 80% versus 81% for last year. Gross margins continue to benefit from the improved cost and efficiencies of our enhanced larger scale EXPRO manufacturing process and continuous improvement initiatives at both of our manufacturing facilities. For non GAAP R and D expense, the first quarter increased to 25.4 million from 23.1 million reported last year. This increase relates to our advancing Phase 2 study of PCRX201 as well as our label expansion studies, all of which have anticipated top line readouts later this year. In addition, we're supporting three promising HCAD based preclinical programs. Non GAAP SGNA expense came in at $83.9 million for the first quarter versus $76.2 million last year. You may recall that last year's SGNA expense was positively impacted by a favorable outcome to litigation and subsequent recovery of $5.2 million in legal fees. Taking this into account, we are largely in line with last year. As we discussed last quarter, we're now leveraging our existing commercial infrastructure which is well equipped to support top line growth. All this resulted in another quarter of significant adjusted ebitda of approximately 40.2 million for the first quarter. As for the balance sheet, we continue to be in a position of strength and ended the quarter with 202 million in cash and investments. With a strong balance sheet and a business that is producing significant operating cash flow, we believe we are well equipped to advance our 5 by 30 growth strategy and create shareholder value. With respect to capital deployment, we will continue to maintain a disciplined and strategic approach focusing on three key areas. First, driving top line growth by leveraging our existing commercial infrastructure. Second, advancing an innovative pipeline and becoming the leader in musculoskeletal pain and adjacencies. We are prioritizing accretive in market assets to leverage our established commercial footprint and de risked clinical stage programs and third, opportunistically returning capital to shareholders. During the first quarter we executed another $50 million in share repurchases. As a result, we retired approximately 2.2 million shares of common stock. Since last year's start of the plan, we have decreased our share count by a total of approximately 9 million shares and reduced our outstanding common shares to 39.3 million. To remind you, as of March 31st we had $100 million remaining under our share buyback authorization which runs through the end of this year. Going forward, we remain committed to maintaining favorable operating margins while advancing our 5 by 30 strategy. This brings us to our full year financial guidance for 2026, which we are reiterating today as total revenues of 745 to 770 million. For Exparel net product sales of 600 to 620 million. With respect to quarterly trends, we anticipate the remainder of 2026 will largely follow historical patterns for Zilretta and Iovera. Our guidance assumes 2026 will be largely in line with 2025. While we are encouraged by both products, start to the year we will wait to gain more visibility before updating our assumptions. The final component of our 2026 revenue guidance relates to $7 million in expected revenue from our licensing agreement for the veterinary market. Non GAAP gross margins of 77 to 79%. With respect to quarterly cadence, we expect the next two quarters to continue to benefit from the sale of lower cost EXRAIL inventory. For the fourth quarter we expect margins to be slightly below our full year guidance range due to the sale of higher cost inventory as well as shutdown related costs and other expenses. Non GAAP R and D expense of 105 million to 115 million as we prepare to initiate Part D of our Phase II ascend study of PCRX201 and certain EXPAREL and Zilretta product development efforts, we expect an uptick in R and D expense during the second quarter followed by a slight decline in quarterly spend as compared to the second quarter in the back half of the year. Non GAAP SGNA expense of 320 to 340 million. With respect to the timing of SGA spending, we expect the first half of the year to be higher than the second half as a result of proxy related activities stock based compensation of 54 to 62 million. And lastly for those modeling adjusted EBITDA, we expect our 2026 depreciation expense to be approximately 30 million. And with that I'll turn the call back over to Frank.
Frank Lee (Chief Executive Officer)
Thank you SEAN. In closing, 2026 is off to a strong start. DCERA is operating with momentum, clarity and discipline. Our 5 by 30 strategy is driving strong execution and reinforcing our leadership in post surgical pain and early intervention OA Pain Management. We look forward to building on this momentum and positioning the company for sustainable growth and value creation through and beyond 2030. Thank you again for joining us today and for your continued support and confidence in our mission. With that, we're ready to open up the call for questions.
OPERATOR
Operator As a reminder to ask a question, you will need to press Star 11 on your telephone and wait for your name to be announced. To withdraw your question, please press star 11 again. Please stand by while we compile our Q and A roster. Our first question will come from the line of Douglas Toy of H.C. wainwright. Your line is open.
Douglas Toy
Douglas, hi, good afternoon. Thanks for taking the questions. I have two questions. Maybe, Sean, just as a starting point, if you could help us walk through a little bit about the cadence for R and D spend through the rest of the year. Just to confirm, it sounds like we're going to have a step up in 2Q followed by then sort of a re step down in the third quarter just as we see 201 ramp up just sort of should we think then more spend in 2027.
Douglas Toy
Thank you. And then I have a follow up.
Sean
Hey, Doug, thanks for the question. So let me just turn it over to Sean and he can walk us through that a little bit. Thanks, Frank, and thanks for the question, Doug. Happy to provide a bit more detail on the R and D cadence this year. So as mentioned in our remarks a few minutes ago, we were preparing for initiation of part B of the ascend study for PCRX201, which we're excited about, and then certain Exparel product development efforts. So we do expect an uptick in Q2 from the 25.4 million in Q1 that we spent. So just to provide a little more detail, we expect it to be in the low 30 million range. And then we'll come back down closer to the Q1 levels in Q3 and Q4 and that's how we see it playing out. And we'll obviously provide more updates as we get through the year.
Douglas Toy
Okay, great. That's very helpful with that specificity. And then just at a macro level, you know, one thing that I have been curious about is sort of the expiration of the Obamacare subsidies and we've started to see some decline in terms of enrollments. And you know, I think if we look at results for some of the med tech companies in the first quarter and even some of the hospital names that have not seen anything dramatic. But I'm just curious, you know, what you are hearing, you know, from sort of the hospital channel, you know, in terms of their perspective on how they're thinking about the rest of the year planning. Thank you.
Brad
Thanks, Doug. Listen, we stay close to this, so let me turn this one over to Brad to give his perspective. Doug, thanks so much for the question. Obviously, we're always looking at the broader macro environment and I'm sure that people are taking a look at what those changes will mean to them individually. We will keep a close eye on those procedures where Exparel is favored for addressing and we'll continue to kind of give updates as we see it play out. I think it's just too early to say,
Douglas Toy
okay, great. Thank you very much and I'll jump out for now.
OPERATOR
And our next question will be coming from the line of Dennis Ding Jeffries. Your line is open.
Anthea
Dennis, hi, this is Anthea on for Dentist. Thanks for taking our Question. Earlier this week we saw data from a cell free regenerative therapy for knee OA with a headline efficacy of 93% of patients demonstrating clinically meaningful improvements in mobility and pain reduction. There's not a lot of information on that trial. So I'm curious how you guys are framing that Data and how 201 will differentiate from that product and then any additional color on what promising efficacy trends would look like for PCRX201's readout would be helpful as well. Thank you.
Frank Lee (Chief Executive Officer)
Oh, hey, thanks for the question. And I didn't get the name of the company you mentioned. What was that? I think Creative Medical Technology. Yeah, so, okay, so there are a lot of the different cell and regenerative therapy companies out there. And so let me turn it over to Jonathan to see if he has any perspective on that because of course there are lots of different studies out there with various levels of rigor.
Jonathan Slonen (Chief Medical Officer)
Thanks, Frank. Yeah, not commenting on any specific company. We are confident that the HCAD platform is the right modality for sustained relief of knee osteoarthritis. We have made tremendous progress in scaling up. We are finalizing our commercial scale manufacturing for part B. As we've articulated before and anticipated, enrollment is right on time. To answer your second question, we're expecting the top line data from part A to read out at the end of the year. Just to remind you its primary efficacy is safety. And what we will be looking at is the totality of the data to understand how PCRX201 performs in a randomized clinical control trial with an active comparator. So we are looking at. Safety as our primary efficacy, but we will also be looking at the secondary endpoints around efficacy as well. So we will be address reviewing that data and then we're going to go forward. We'll assess where we are at, but the trends that we're looking for are trends consistent with durability and efficacy from our phase one trial.
Anthea
Okay, thank you.
OPERATOR
And our next question will be coming from Les Zaluski of Truist Securities. Your line is open. Les,
Jeevan
hey, this is Jeevan on four or less. Thanks for taking our questions. How would you characterize elective procedure trends exiting March, any lasting impact from the winter storms? And then separately, how should we think about potential upside from ex US partnerships across the portfolio? Thank you.
Frank Lee (Chief Executive Officer)
Thanks for the question, Jeevan. So I'll ask Bren to comment a little bit about what we saw, what we're seeing now. He mentioned it a little bit earlier. I'll Let him comment on that a little bit and then I'll mention a little bit about what to expect on X US partnerships. So Brent.
Brad
Yeah, thank you so much for the question. If we look at the moving annual total for procedures where Exparel would assist, that's largely flat year over year despite exparel being up over 7%. If we look specifically at the first quarter market procedures are up in the mid single digits, I would say 4 to 5% as opposed to Exparel, if that gives you some sense. And then we'll look to see how that progresses here in the second quarter.
Frank Lee (Chief Executive Officer)
And just to answer your question about Ex-US partnerships, so let me take a step back here a little bit. This is an important part our 5x30 strategy in terms of signing five partnerships both here in the US and XUS. So as you know, ex us we've signed a partnership with LG Chem. They're a leading company in Asia Pacific and we have plans to sign similar types of partnerships in the other major geographies. And it's premature to provide guidance on these kinds of partnerships and top line impact, but I would say it's not insignificant. These will be important partnerships that will drive revenue not only through 2030 but well beyond 2030. So that's where we stand now. And as you know, the first partnership, the intention is to file in the not too distant future. And so we'll be updating you on guidance around that starting in 2017.
OPERATOR
Thank you. And our next question will be coming from the line of Serge Ballinger of Needham. Your line is open.
Serge Ballinger (Analyst at Needham)
Hi, good afternoon. Thanks for taking questions. The first one, kind of a follow up to the previous, previous question around the impact of winter storms. I think you were expecting a potential softer one Q Because of those storms, looks like all three of your products had some pretty solid year over year growth. So just curious if there was any impact or you were able to recapture it over the remainder of the quarter. And then my second question regarding no Pain, if I remember correctly, the no Pain act has kind of a three year term ending in 2027. Just curious if there's any legislation in development here to extend or modify that term. Thanks.
Brad
Thanks for your question, Serge. Regarding the winter storm, we can provide a little bit more color on this. I'll turn to Bren for that. And so Bren, maybe you can talk a little bit about what we saw in the winter storms and I'll speak to no Pain. Yes, sure. Thank you so much for the question, Serge. So the winter storms do have an impact. They impact both the ability to ship, but also, as you would expect, in those geographies where those surgeries might have taken place, those surgeries did not happen, which lead to rescheduling, not necessarily within the quarter. So I think there is some kind of carryover as patients look to be rescheduled for those procedures. Despite that, I think we are very pleased with the performance of exparel volume vis a vis the total available market. So that's what I would say for winter storms. But I believe we are past that and looking forward to the second quarter.
Frank Lee (Chief Executive Officer)
Thanks, Brian and Serge with regard to your question about no pain. Thanks for that. No pain indeed initially is scheduled to expire at the end of 2027. That said, we have been staying very close to CMS and other stakeholders and what we're very encouraged about is not only the uptake of no pain but also the expansion of coverage to commercial lives. And so Bren mentioned earlier that now we have a total of 110 million outside the bundle and growing. And so, as you know, no pain is primarily covering Medicare lives. And so what we can tell you is that we're very encouraged by the discussions we've had about the market research and the uptake of no pain with CMS and other stakeholders. We're going to confirm a lot of what we're seeing through claims analysis. And I would say that no pain is doing what it's intended to do. And commercial payers are also coming on board, which is highly encouraging.
Serge Ballinger (Analyst at Needham)
Thank you.
OPERATOR
And our next question will be coming from the line of Hardik Parikh of JP Morgan. Your line is open.
Hardik Parikh (Analyst at JP Morgan)
Hey everybody, thanks for taking my question. I just wanted to ask you about Sean, I think I heard you say you expect SGNA to be lower in the second half. Can you talk to the magnitude of the step down you're expecting in the second half? And then just SGNA seems to have elevated the past five quarters relative to 2024. I'm just trying to get a sense of what the normalized run rate is going forward. Thank you.
Frank Lee (Chief Executive Officer)
Hey, thanks for that Harnik. Let me turn it to Sean here.
Sean
Yeah, thanks for the question. So we, if you look at the we reported 83.9 million in SGA this quarter. And you can take a look at without providing, you know, super specific detail, but you can take a look at the information we filed in our proxy on Tuesday or Wednesday. I'm losing track of time here. That provides some of the magnitude of what we anticipate spending during proxy season that would be, you know, above and, you know, the typical sort of course of events. And then we anticipate sort of coming back down in Q3 and Q4 to sort of, you know, perhaps a little bit below where we where we even spent in this quarter kind of generally, generally directionally correct.
Hardik Parikh (Analyst at JP Morgan)
Thank you.
Susan Mesco (Head of Investor Relations)
I would now like to turn the conference back to Susan for closing remarks. Thank you, operator, and thanks to all on the call for your questions and time today. We're excited about the opportunities ahead and remain focused on executing our 5 by 30 growth strategy with discipline and purpose. As we look to the remainder of 2026, we are confident in our ability to build on our momentum and position Pacira for long term success. Thank you again for your continued support. Good night.
Disclaimer: This transcript is provided for informational purposes only. While we strive for accuracy, there may be errors or omissions in this automated transcription. For official company statements and financial information, please refer to the company's SEC filings and official press releases. Corporate participants' and analysts' statements reflect their views as of the date of this call and are subject to change without notice.
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