Pacira BioSciences has entered into a strategic collaboration with LG Chem to commercialize its long-acting local analgesic, Exparel, across key markets in the Asia-Pacific region. Under the agreement, LG Chem will secure exclusive distribution rights in territories including China, South Korea, Australia, New Zealand and ASEAN countries, with the exception of Japan. The deal provides Pacira with tiered royalty payments starting at mid-single digits on net sales, rising to low double digits if performance thresholds are met. Initial forecasts from management suggest incremental annual revenues of $30 million to $50 million by year three of the partnership, driven by growing surgical volumes and rising adoption of opioid-sparing pain management protocols in the region.

Pacira’s preliminary fourth-quarter revenue of $196.9 million fell short of consensus forecasts around $205 million, leading to a near 10% decline in its share price on the Nasdaq. The company reported Exparel sales of $160 million, which marginally exceeded the $155 million analysts had expected, but was offset by softer performance in its contract manufacturing and royalties businesses. Pacira cited delays in hospital purchasing cycles and broader supply chain pressures as contributing factors. Management reaffirmed full-year guidance for low- to mid-single-digit top-line growth, while highlighting cost-control initiatives that are expected to improve operating margins by 200 basis points in fiscal 2025.