Pacira BioSciences, Inc.

Good day and thank you for standing by. Welcome to Pacera BioSciences' second quarter 2026 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'll need to press star 1-1 on your telephone. You'll hear an automated message advising your hand is raised. To withdraw your question, please press star 1-1 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 Mesco, Head of Investor Relations. Please go ahead.

Thank you. Good afternoon, everyone. Welcome to today's conference call to discuss our second quarter of 2026 financial results. Joining me are Frank Lee, Chief Executive Officer, Brendan Teehan, Chief Commercial Officer, and Shawn 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 state partner 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 at the SEC or the PACERO 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. On behalf of the remarkable team here at Acera, I'm pleased to share our continued progress in executing our 5x30 strategy and transitioning into a more innovation-driven pharmaceutical company. Our second quarter performance reflects disciplined execution of our 5x30 strategy, translating into commercial momentum, strong cash generation, pipeline advancement, and High Caliber Partnerships. Furthermore, our five by 30 progress was clearly recognized with a decisive shareholder vote for both our strategy and director nominees at our annual meeting in June. Notable second quarter accomplishments include revenues of more than $109 million, even as macroeconomic pressures weighed on certain elective procedures in the hospital setting. adjusted EBITDA of nearly $50 million, establishing a scalable, commercially viable, U.S.-based manufacturing process for PCRx201, a testament to our team's clinical development and manufacturing capabilities. Opening enrollment in Part B of our Phase II Ascent Study for PCRx201, completing enrollment in IAVERA Registrational Study in spasticity, completing the Iovera divestiture on July 31st and forming a partnership in spasticity with Zimmer Biomet. You know, I'd like to thank the Becerra and Zimmer Biomet teams for working so collaboratively and efficiently over the past 30 days to close this transaction. I look forward to continued partnership with our Zimmer Biomet colleagues going forward. I'll begin with a high-level overview of Expiril and then Brim will cover additional commercial details shortly. Expiril continues to increase penetration share across all segments, despite softness and certain deferrable soft tissue procedures, which historically wax and wane with macroeconomic conditions. This is particularly notable in inpatient settings where separate reimbursement outside the bundle is not available. Looking ahead, we believe we're well positioned to continue to outperform the elective surgery market by advancing three key priorities. First, expanding patient access by broadening commercial payer coverage. We recently secured a major win with UnitedHealthcare, now providing separate reimbursement for experts outside of the surgical bundle. This milestone brings our total covered lives to $150 million at mid-year and well within reach of our full-year goal of 160 million covered lives. Separately on Zolretta, Brent has some great news to share about Zolretta coverage on UnitedHealthcare. Second, generating disseminating compelling health economic data to strengthen the expert value proposition. Here we're also seeing strong momentum with many commercial plans reimbursing significantly higher than CMS. And third, increasing penetration in existing and new accounts. while driving expansion within macroeconomic resilient procedures in outpatient sites of care. Turning to life cycle management, we remain on track to report top-line results from our Phase III study of Zolretta and Shoulder OA later this year. If approved, Zolretta would become the first drug with an FDA-approved indication specifically for Shoulder OA. We also recently completed enrollment in our Registrational Iovera Spasticity Study and remain on track to report top-line results before year-end. As a reminder, we will collaborate with Zimmer Biomed on advancing the spasticity program. The transaction structure provides us with the opportunity to receive additional compensation, assuming clinical and regulatory success. Beyond our commercial products, our pipeline is entering what we believe will be a catalyst-rich period. Expect top-line data from PCRx201 later this year and continue to advance PCRx2002 with Phase II development scheduled to begin later this year. PCRx2002 is a novel hydrogel formulation of ropivacaine designed to provide both rapid onset and long-acting analgesia from a single, simple installation into the surgical field. If successful, we believe it has the potential to complement Expiril and further strengthen our leadership position in post-surgical pain management. Let me spend a moment on PCRX201, which we believe has the potential to represent a paradigm shift in the treatment of NeoA. Our scalable commercial manufacturing process is now up and running, and enrollment in Part B of our Phase II study is underway. As a reminder, top-line results for Part A are expected later this year. Part A randomized 49 patients to one of three treatment groups, PCRX201 dose A, PCRX201 dose B, or saline control. All patients received an intra-articular corticosteroid before treatment, allowing the durability of PCRX201 to be evaluated against the standard of care. The primary objective is safety, with secondary efficacy endpoints evaluated at weeks 38 and 52. We recently received some exciting news for our PCRx201 program with the acceptance of a Phase 1 manuscript for the publication in the Annals of Rheumatic Diseases, the leading journal in rheumatology. The paper highlights encouraging results from the 72-patient Phase 1 study over 104 weeks. We're also advancing HCaT-based preclinical candidates in degenerative disc disease, dry eye disease, and K9OA. We recently completed a pilot safety study in K9OA, and our pilot efficacy study is now initiating. Finally, the last item I'd like to cover is the important progress we've made executing new partnerships, an important pillar of our strategy. I'll begin with the recently completed divestiture of Iovera to Zimmer Biomat. For Pacera, the transaction sharpens our focus as an innovation driven biopharmaceutical company while improving our margin profile. Further, it allows us to redirect capital and resources toward higher return growth opportunities aligned with our long-term strategic priorities. We're also excited about this transaction means for patients. Zimmer is uniquely positioned to maximize Iovera's global potential for patients through its scale, orthopedic leadership, and Strong Presence in Total Neat. On the financial front, Visceral will receive up to $140 million with $70 million up front and an additional $70 million linked to revenue-based milestones. The structure preserves our participation in IOVAIR's future success in both existing indications and spasticity. We're also pleased to share important progress with LG Chem's recent regulatory filing for Expiril and South Korea. This places revenues on track to beginning 2027. As we move forward in the second half of the year, we plan to provide visibility into additional commercial partnerships outside of the U.S. Importantly, we expect XQH revenues to extend through the life of our patents, which provide exclusivity into the 2040s. Taken together, these transactions show how the partnership pillar of 5x30 strategy can extend our reach, improve capital efficiency, and allow us to concentrate resources on our highest priority growth opportunities. Our experience has shown that partnerships with top tier organizations can generate value beyond the initial agreement by mutually leveraging our scale, expertise, customer relationships, and unlocking commercial value for our partnered assets. In parallel, these partnerships create pathways for potential future collaborations across our portfolios. In summary, this era exits the second quarter with strong execution of our 5x30 strategy, with commercial momentum, a broader market access position, meaningful upcoming pipeline catalysts, and a growing roster of top-tier partners. With that, I'd like to turn the call over to Bren to share more details on our second quarter commercial performance. Bren.