Company: PCRX
Filing Date: 2025-07-10
Form Type: 8-K
Source: 0001396814-25-000093
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Company: Pacira BioSciences, Inc.
Filing Date: 2025-07-10
Form: 8-K
Item: Item 2.05
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Item 2.05 Costs Associated with Exit or Disposal Activities.

On July 9, 2025, Pacira BioSciences, Inc. (the “ Company”) instituted a reduction in force at the Company’s Science Center Campus in San Diego, California as a result of improving manufacturing efficiencies for EXPAREL®(bupivacaine liposome injectable suspension). The Company’s enhanced efficiencies are the result of its multi-year investment in two large-scale 200+ liter batch manufacturing suites located in San Diego and Swindon, United Kingdom, which commenced commercial production in 2024 and 2021, respectively.

The Company’s two large-scale manufacturing suites are capable of producing bulk EXPAREL volumes that are approximately four-fold greater than the Company’s first-generation 45-liter batch manufacturing process. The Company believes these larger manufacturing suites provide ample capacity for meeting the growing demand and improving gross margins for EXPAREL through a meaningfully more favorable cost structure and manufacturing yields versus the 45-liter process. As a result, and after careful consideration, the Company decided to decommission its 45-liter suite located in San Diego and reduce its workforce accordingly.

The reduction impacts 71 employees or approximately 8% of the Company’s total workforce. The Company currently estimates that it will recognize pre-tax charges to its third quarter 2025 financial results of approximately $2.4 million to $2.8 million related to employee termination benefits, consisting of garden leave and severance, healthcare benefits, and, to a lesser extent, other one-time termination benefits and other costs. These charges are all cash based. In addition, the Company expects to recognize $5.4 million in accelerated depreciation expense.

This reduction in the workforce is subject to local regulatory requirements and the Company expects to recognize the majority of these charges in the third quarter of 2025. The reduction in the workforce is anticipated to lead to an annual reduction in operating expenses of approximately $13 million, which does not reflect the expenses associated with implementing the workforce reduction. In addition, the Company may incur other charges or cash expenditures not currently contemplated due to unanticipated events that may occur in connection with the workforce reduction.

Item 7.01 Regulation FD Disclosure.