Company: PCRX
Filing Date: 2025-11-06
Form Type: 10-Q
Source: 0001628280-25-050176
Chunk: 75

Company: Pacira BioSciences, Inc.
Filing Date: 2025-11-06
Form: 10-Q
Item: Part I, Item 1
Chunk 75
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 that were issued to Flexion shareholders and certain equity award holders which could aggregate up to a total of $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. During the three months ended September 30, 2025, the Company recognized contingent consideration charges of $0.6 million due to revisions to the latest discount rates, partially offset by a reduction in the sales forecast through the milestone expiration date. During the nine months ended September 30, 2025, the Company recognized contingent consideration gains of $2.4 million due to revisions to the latest discount rates. During the three and nine months ended September 30, 2024, the Company recognized contingent consideration gains of $3.2 million and $5.5 million, respectively, due to adjustments reflecting the probability of achieving the remaining Flexion regulatory milestone by the milestone expiration date, partially offset by revisions to the latest discount rates. These adjustments were recorded within contingent consideration charges (gains), acquisition-related expenses, restructuring and other in the condensed consolidated statements of operations. At September 30, 2025, the weighted average discount rate was 7.5%. 

Pacira BioSciences, Inc.  |  Q3 2025 Form 10-Q  |  23

The following table includes the key assumptions used in the valuation of the Company’s contingent consideration:AssumptionRanges Utilized as ofSeptember 30, 2025Discount rates7.2% to 7.8%Probability of payment for remaining regulatory milestone0%The change in the Company’s contingent consideration recorded at fair value using Level 3 measurements is as follows (in thousands):Contingent ConsiderationFair ValueBalance at December 31, 2023$24,698 Fair value adjustments and accretion(4,457)Balance at December 31, 202420,241    Fair value adjustments and accretion(2,407)Balance at September 30, 2025$17,834 Available-for-Sale InvestmentsShort-term investments consist of asset-backed securities collateralized by credit