Pacira first quarter total revenues increase to $7.8 million

Pacira Pharmaceuticals, Inc.May 9 2012

Pacira Pharmaceuticals, Inc. (NASDAQ: PCRX) today announced consolidated financial results for the quarter ended March 31, 2012 and reviewed recent accomplishments, including the commercial launch in the United States of EXPAREL® (bupivacaine liposome injectable suspension) for postsurgical pain and the successful completion of an equity financing.

"The commercial launch of EXPAREL in April is a transformational event for Pacira," said Dave Stack, president and chief executive officer of Pacira. "Our efforts in the first quarter of the year focused on building a solid foundation for, and gaining physician access to, EXPAREL in preparation for the commercial launch. Now that EXPAREL is commercially available, our team is focused on increasing access, securing formulary approvals and working with our customers to provide a new tool for the management of postsurgical pain."

Recent Highlights and Upcoming Events:

• EXPAREL Launch: On April 9, 2012, EXPAREL became commercially available in the United States. Commercial efforts are supported by a 63-person sales team and a comprehensive, targeted commercial strategy.
• Successful Financing: Following the EXPAREL launch, in April 2012 Pacira completed a secondary public offering of common stock that generated net proceeds of approximately $63 million.
• Debt Refinancing: On May 3, 2012, Pacira announced the refinancing of $27.5 million in debt under terms that defer the first principal repayment until December 2013 and lock in a lower, fixed interest rate.
• Medical Education: A recent publication details data comparing EXPAREL to bupivacaine in hemorrhoidectomy trials. In addition, the first in a series of health outcomes data was presented at the Society for Ambulatory Anesthesia (SAMBA) meeting last week, where costs associated with opioid-related adverse events in total abdominal hysterectomy from a Premier database were highlighted. Further health outcomes data presentations and symposia are scheduled for upcoming medical meetings including: American Society of Colon and Rectal Surgeons (ASCRS), International Society for Pharmacoeconomics and Outcomes Research (ISPOR), International Anesthesia Research Society (IARS) and Disease Digestive Week (DDW).
• Investor Meetings: Pacira management will present at the Bank of America Merrill Lynch Health Care Conference on Thursday, May 17, 2012 at 10:40 a.m. PT in Las Vegas, and at the Jefferies Global Healthcare Conference on Monday, June 4, 2012 at 10:00 a.m. ET in New York City.

First Quarter 2012 Financial Results

• Net loss for the quarter ended March 31, 2012 was $11.9 million, or $0.47 per share (based on 25.4 million weighted average shares outstanding). As of May 2, 2012, including the shares issued in the April 2012 secondary public offering of common stock, 32.3 million shares were outstanding.
• Total revenues for the quarter ended March 31, 2012 were $7.8 million compared with $3.9 million for the quarter ended March 31, 2011. The increase was primarily due to the recognition of $5.8 million of collaborative licensing and development revenue in connection with the termination by EKR Therapeutics, Inc. of the licensing, distribution and marketing agreement for DepoDur.
• Total operating expenses for the quarter ended March 31, 2012 were $18.9 million compared with $11.0 million for the quarter ended March 31, 2011. The increase was primarily driven by increased manufacturing costs in two cGMP facilities operated by Pacira and the cost of the sales force and promotional costs in preparation for the commercial launch of EXPAREL in April 2012.
• Pacira ended the first quarter of 2012 with cash and cash equivalents, restricted cash and short-term investments of $54.8 million. Pro forma cash as of March 31, 2012, including approximately $63 million in net cash proceeds from the April 2012 secondary common stock offering, was approximately $118 million. In April 2012, the Company had its first commercial sale of EXPAREL, triggering a $10.0 million contingent payment obligation to SkyePharma PLC.