Company: PCRX
Filing Date: 2025-11-06
Form Type: 10-Q
Source: 0001628280-25-050176
Chunk: 172

Company: Pacira BioSciences, Inc.
Filing Date: 2025-11-06
Form: 10-Q
Item: Part I, Item 8
Chunk 172
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 a key employee holdback agreement in increments of 50%, 30% and 20% at each year’s respective anniversary. During the three and nine months ended September 30, 2025, the Company accrued key employee 

Pacira BioSciences, Inc.  |  Q3 2025 Form 10-Q  |  10

holdback expenses of $1.2 million and $2.6 million, respectively. The key employee holdback is subject to continued employment, and therefore the accrued payments are recognized as research and development expense within the condensed consolidated statements of operations.GQ Bio was a privately-held biopharmaceutical company with a novel, high-capacity, local-delivery platform that makes genetic medicines more efficient and enables the use of large and multiple gene constructs. PCRX-201 is the lead program from this platform. By acquiring GQ Bio, the Company benefits from further developing PCRX-201 and the cost savings associated with no longer being obligated to make milestone and royalty payments, as well as establishing a research and development engine with a dedicated workforce focused on this next-generation of genetic medicine and acquiring a portfolio of preclinical assets.The following table reconciles the purchase price for the remaining 81% ownership to the total fair value of the GQ Bio Acquisition (in thousands): Fair Value of Purchase Price ConsiderationAmountCash consideration paid at closing$17,604 Indemnification holdback5,676 Cash payment of GQ Bio Acquisition transaction expenses919 Settlement of previously invested note receivable5,322 Settlement of pre-existing receivable1,055 Purchase price consideration of 81% of GQ Bio30,576 Prior 19% equity investment ownership of GQ Bio realized upon business combination8,315 Total fair value of the GQ Bio Acquisition$38,891 The Company has accounted for the GQ Bio Acquisition using the acquisition method of accounting and, accordingly, has included the assets acquired, liabilities assumed and results of operations in its condensed consolidated financial statements from the acquisition date of February 27, 2025. A $5.7 million indemnification holdback established for potential unidentified liabilities will be settled within 18 months from the acquisition date. In conjunction with the GQ Bio Acquisition, the settlement of the Company’s prior equity investment and notes receivable in GQ Bio were part of the fair value of consideration exchanged. See Note 10, Financial Instruments, for additional information.The preliminary purchase price allocation is based