Pacira BioSciences, Inc.

Good day, and thank you for standing by. Welcome to the Q1 2026 Pacira, excuse me, 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 1-1 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 Mesko, Head of Investor Relations. Please go ahead.

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 Molloy, Chief Legal Officer, and Jonathan Slonin, 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.

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, 5 by 30 was built to deliver measurable progress around five key goals, patient 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 the remarkable efforts. Our solid first quarter results reinforce our confidence that 5x30 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, Expiril. Since our founding, Expiril has been the cornerstone of Passero's leadership in opioids-pairing innovation for post-surgical pain. Through the dedicated efforts of our team, Expiril 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 Bren 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 XBRL 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 XBRL patent infringement litigation began in 2021 and extended through 2024. In addition to XBRL leadership and post-surgical pain control, Zorreta and Ivera's position in early intervention OA pain management are expanding. For Zorreta, 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 Zorreta Salesforce, expanded patient access programs, and extended promotional reach through our Johnson & Johnson MedTech collaboration. From a life cycle management perspective, we're pleased to report enrollment has concluded for a phase three registration study in SHLDR-OA. This place is on track for top line results later this year. The unmet need for SHLDR-OA is significant. There are approximately one million injections for SHLDR-OA administered annually in the US, despite the absence of FDA approved products. If this phase three trial meets its objectives, Zaretta could become the first product with a labeled indication for shoulder OA. IAVERA 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 U.S. Together, we believe our strong commercial performance and advancing lifecycle management will support durable top-line growth. Importantly, this momentum further strengthens our leadership in post-surgical pain control and early intervention OA pain management. In tandem with the momentum across our commercial portfolio through our five by 30 strategy, we're now advancing an innovative clinical stage pipeline. Here we're prioritizing mechanistically de-risk 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 PCRX201, our locally administered gene therapy for NeoA, remains on track for top-line data later this year. With approximately 15 million people in the U.S. affected by NeoA and limited durable treatment options, the unmet need remains high. I'll talk in greater detail about PCRX201 shortly. PCRX2002, our novel hydrogel formulation of the non-opioid analgesic ropivacaine for post-surgical pain. PCR-X2002 was designed to deliver rapid onset and long-acting analgesia from a single application at the time of surgery. We expect to begin Phase II development later this year. This asset has the potential to complement Expirel 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 5 by 30 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 NeoA. Building on the encouraging durability we observed in our phase one study, our two-part phase two ASCEND 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 powered 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, WOMAC, and COOS 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 EOA. This would be significantly longer than currently available in EOA treatments, which generally provide durability of 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 PSERF 201 could offer attractive value for the healthcare system. As a reminder, PCRX201 is an IL-1 receptor antagonist. IL-1 is a well-validated de-risk target for reducing inflammation. There are currently two FDA-approved drugs that block the IL-1 pathway in 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. PCR-X201 is complementary to Xilretta and Iovera and could expand our leadership in 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 U.S. and international markets. Our strategic collaboration with market leaders Johnson & 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 and 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.