Company: PCRX
Filing Date: 2025-02-27
Form Type: 10-K
Source: 0001396814-25-000041
Chunk: 56

Company: Pacira BioSciences, Inc.
Filing Date: 2025-02-27
Form: 10-K
Item: Item 16
Chunk 56
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372.3 million if certain regulatory and commercial milestones are met. The aggregate amount was initially $425.5 million prior to the Company’s September 2022 decision to formally discontinue further development of Flexion’s investigational product candidate, PCRX-301. The Company’s obligation to make milestone payments is limited to those milestones achieved through December 31, 2030, and are to be paid within 60 days of the end of the fiscal quarter of achievement. For the year ended December 31, 2024, the Company recorded gains of $4.5 million due to adjustments reflecting the probability of achieving the remaining Flexion regulatory milestone by December 31, 2030—the milestone expiration date, partially offset by revisions to the Company’s weighted average cost of capital and the latest discount rates. For the year ended December 31, 2023, the Company recorded gains of $3.4 million due to a decrease in the fair value of the Flexion contingent consideration. The decrease was primarily due to adjustments in the assumption for the long-term forecasts which reduced the probability of meeting the sales-based contingent consideration milestones by December 31, 2030—the expiration date for achieving the milestones. The impact of this assumption on the fair value was partially offset by a decrease to the assumed discount rate based on a significant improvement in the Company’s incremental borrowing rate resulting from the TLA Credit Agreement entered into in March 2023. These gains were recorded as contingent consideration gains, restructuring charges and other in the consolidated statements of operations. At December 31, 2024, the weighted average discount rate was 7.9%.The following table includes the key assumptions used in the valuation of the Company’s contingent consideration:AssumptionRangesUtilized as of December 31, 2024Discount rates7.8% to 8.1%Probability of payment for remaining regulatory milestones0%The change in the Company’s contingent consideration recorded at fair value using Level 3 measurements is as follows (in thousands):ContingentConsiderationFair ValueBalance at December 31, 2022$28,122 Fair value adjustments and accretion(3,424)Balance at December 31, 202324,698 Fair value adjustments and accretion(4,457)Balance at December 31, 2024$20,241 Available-for-Sale InvestmentsShort-term investments consist of asset-backed securities collateralized by credit card receivables, investment grade commercial paper and corporate, federal