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Pacira BioSciences, Inc. (NASDAQ:PCRX) disclosed Wednesday that it has implemented a workforce reduction at its Science Center Campus in San Diego, California. The decision follows the company’s move to improve manufacturing efficiencies for EXPAREL, its bupivacaine liposome injectable suspension product.
According to a statement in the SEC filing, Pacira has invested in two large-scale manufacturing suites in San Diego and Swindon, United Kingdom (TADAWUL:4280), which began commercial production in 2024 and 2021, respectively. These facilities are capable of producing bulk EXPAREL volumes approximately four times greater than the company’s earlier 45-liter batch manufacturing process.
As a result of these upgrades, Pacira has decided to decommission its 45-liter suite in San Diego and reduce its workforce. The reduction impacts 71 employees, or about 8% of the company’s total workforce.
Pacira estimates it will incur pre-tax charges of approximately $2.4 million to $2.8 million in the third quarter of 2025 related to employee termination benefits, including garden leave, severance, healthcare, and other one-time costs. All of these charges are expected to be cash-based. The company also expects to recognize $5.4 million in accelerated depreciation expense.
The company anticipates that most of these charges will be recognized in the third quarter of 2025. Pacira projects that the workforce reduction will lead to an annual decrease in operating expenses of about $13 million, not including expenses associated with the reduction itself. The filing notes that additional charges or cash expenditures may occur if unanticipated events arise in connection with the workforce reduction. With a strong free cash flow yield and analysts expecting net income growth this year, these efficiency measures could further strengthen the company’s financial position. For detailed financial analysis and additional insights, including 7 more exclusive ProTips, visit InvestingPro.
This information is based on a statement included in Pacira BioSciences’ SEC filing.
In other recent news, Pacira BioSciences reported its Q1 2025 earnings, revealing a revenue shortfall of $164.9 million against an expected $175.6 million. This shortfall was largely attributed to declining sales of ZILRETTA, despite a rise in sales for its flagship product, EXPAREL. Pacira maintains a strong non-GAAP gross margin of 81% and has set a total revenue guidance for 2025 between $725 million and $765 million. Meanwhile, PharmaCorp announced an agreement to acquire a PharmaChoice Canada bannered pharmacy in Western Canada for $2.4 million, with the transaction expected to close by the end of July 2025. This acquisition is part of PharmaCorp’s strategic alliance with PharmaChoice Canada. Additionally, Pacira BioSciences presented promising clinical data for its gene therapy candidate, PCRX-201, showing effectiveness in managing knee osteoarthritis despite the presence of certain antibodies. The therapy has been granted Regenerative Medicine Advanced Therapy designation by the U.S. FDA and the European Medicines Agency. Truist Securities provided insights into a forthcoming White House executive order on drug pricing, indicating potential negotiation pressures on companies with significant sales outside the U.S., including Pacira BioSciences.
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