Pacira BioSciences, Inc. (NASDAQ:PCRX) Q2 2023 Earnings Conference Call August 2, 2023 8:30 AM ET

Company Participants

Susan Mesco - Head of IR

David Stack - Chairman & CEO

Charles Reinhart - CFO

Conference Call Participants

David Amsellem - Piper Sandler

Gregory Renza - RBC Capital Markets

Glen Santangelo - Jefferies

Rohit Bhasin - Needham & Company

Boris Peaker - TD Cowen

Operator

Good day and thank you for standing by. Welcome to the Q2, 2023 Pacira BioSciences Inc. Earnings Conference Call. At this time, all participants are in listen-only mode. After the speakers' presentation, there will be a question-and-answer session. [Operator Instructions] Please be advised that today's conference is being recorded.

I would now like to hand the conference over to your speaker today, Susan Mesco, Head of Investor Relations. Please go ahead.

Susan Mesco

Thank you, Gerald. And good morning, everyone. Welcome to today's conference call to discuss our second quarter 2023 financial results. Joining me on today's call, are David Stack, Chairman and Chief Executive Officer and Charlie Reinhart, Chief Financial Officer; Ron Ellis, Chief Strategy Officer and Roy Winston, 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 statement based on current expectations. Such statements represent our judgment as of today, and may involve risks and uncertainties. For information concerning risk factors that could affect the company, please refer to the company's filings with the SEC which are available from the SEC or our website.

With that, I will now turn the call over to Dave Stack.

David Stack

Thank you, Susan. Good morning, everyone. And thank you for joining us. We are entering the second half of the year with positive momentum after seeing a meaningfully -- a meaningful uptick in year-over-year EXPAREL growth in June and July. In addition, recent data indicate in improving elective surgery market that we believe will continue through the remainder of the year.

As the economy moderates and soft tissue elective surgeries come back, we are well positioned to get back to more robust top-line growth rates.

While we are encouraged by improving trends, today, we are adjusting the full year sales and gross margin guidance to reflect an updated view of market conditions and procedural cadence for the year. Charlie will discuss guidance in greater detail later in the call.

In the second half of the year, we will continue to focus on three priorities: growing revenue, improving gross margins and expanding market access. Second quarter revenues of $169 million include EXPAREL sales of $135 million, driven by solid volume growth in a slowly recovering market. In addition, we continue to build awareness around ZILRETTA and iovera with our field-based team now promoting all three of our products. Second quarter ZILRETTA sales exceeded $29 million, and iovera sales grew to more than $4 million.