On May 2, 2019 Pacira BioSciences, Inc. (Nasdaq: PCRX) reported financial results for the first quarter of 2019 (Press release, Pacira Pharmaceuticals, MAY 2, 2019, View Source;p=RssLanding&cat=news&id=2396834 [SID1234535554]).

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"During the quarter, Pacira achieved significant sales growth while executing several key strategic initiatives, contributing to strong momentum we expect to continue for the rest of 2019," said Dave Stack, chairman and chief executive officer of Pacira BioSciences. "We continue to drive our focused strategy and expect to deliver another year of record EXPAREL sales. We are seeing accelerated penetration in soft tissue procedures, driven by the strong and growing body of evidence around regional pain management approaches that utilize field blocks and nerve blocks as the core of a multimodal non-opioid strategy. In addition, our significant partnership with Johnson & Johnson in orthopedic procedures continues to solidify the role of EXPAREL as the foundation of non-opioid solutions for rotator cuff, spine, joint reconstruction, and hip fracture procedures. Our active customer base is steadily expanding with ambulatory and oral surgery centers both remaining key drivers of new EXPAREL patients."

Mr. Stack continued: "Finally, through our recent MyoScience acquisition, we were pleased to add the iovera° system to our non-opioid franchise as we broaden our strategic reach in this critical area of pain management."

First Quarter 2019 Financial Results

Total revenues were $91.3 million in the first quarter of 2019, a 22.4 percent increase over the $74.6 million reported for the first quarter of 2018.

EXPAREL net product sales were $90.6 million in the first quarter of 2019, a 22.4 percent increase over the $74.0 million reported for the first quarter of 2018 with one less selling day in the first quarter of 2019.

Total operating expenses were $90.2 million in the first quarter of 2019, compared to $81.5 million in the first quarter of 2018.

GAAP net loss was $2.8 million, or $0.07 per diluted share, in the first quarter of 2019, compared to a GAAP net loss of $10.7 million, or $0.26 per diluted share, in the first quarter of 2018.

Non-GAAP net income of $9.3 million, or $0.22 per diluted share, in the first quarter of 2019, compared to non-GAAP net income of $0.9 million, or $0.02 per diluted share, in the first quarter of 2018.

Cash provided by operations was $3.5 million in the first quarter of 2019, compared to cash used in operations of $2.7 million in the first quarter of 2018. Pacira ended the first quarter of 2019 with cash, cash equivalents and short-term investments ("cash") of $412.4 million. On April 9, 2019, we completed our acquisition of MyoScience for $120.0 million in cash.
Recent and Upcoming Business Highlights

MyoScience acquisition advances leadership in non-opioid pain management with FDA-approved iovera° system. In April 2019, Pacira completed its acquisition of MyoScience, Inc., a privately held medical technology company, adding the innovative iovera° system to the Pacira commercial offering. The iovera° system is a novel, non-opioid treatment that alleviates pain through a cryoanalgesia mechanism, which applies intensely focused cold therapy to a specific nerve to interrupt its ability to transmit a pain signal. Upon completion of the acquisition, Pacira changed its corporate name to Pacira BioSciences, Inc.
Results from Phase 4 study of EXPAREL in patients undergoing Cesarean section accepted for oral presentation at Society for Obstetric Anesthesia and Perinatology Annual Meeting. The podium presentation, entitled "Liposomal Bupivacaine Transversus Abdominis Plane Block for Pain after Cesarean Delivery: Results from a Multicenter, Randomized, Double-Blind, Controlled Trial" will be delivered on May 4 in Phoenix, Arizona.
New study of EXPAREL for third molar extractions shows significantly reduced opioid use; data accepted for presentation at International Association of Dental Research Meeting. The poster presentation, "Postsurgical Pain Management after Third-Molar Extraction" will be delivered on June 20, 2019 in Vancouver, BC, Canada.
New analysis shows enhanced recovery pathway that includes EXPAREL facilitates rapid discharge, high satisfaction and limited opioid use in Medicare patients undergoing total joint replacement. In March 2019, Pacira announced new data showing that a patient-optimizing, opioid-sparing enhanced recovery after surgery pathway that includes intraoperative infiltration with EXPAREL results in high rates of early discharge and patient satisfaction among Medicare-insured patients undergoing total knee or hip arthroplasty. Findings also demonstrate that the vast majority of patients do not require more than a 7-day opioid prescription following discharge.
2019 Financial Guidance

Pacira updated its 2019 financial guidance to include net product sales of iovera° (from the April 9, 2019 acquisition date onward) and reiterated all remaining 2019 financial guidance as follows:

EXPAREL net product sales of $400 million to $410 million.

iovera° net product sales of $8 million to $10 million.

Non-GAAP gross margins of 75% to 76%.

Non-GAAP research and development (R&D) expense of $60 million to $70 million.

Non-GAAP selling, general and administrative (SG&A) expense of $165 million to $175 million.

Stock-based compensation of $30 million to $35 million.
See "Non-GAAP Financial Information" and "Reconciliations of GAAP to Non-GAAP 2019 Financial Guidance" below.