Item 5. Market for Registrant’s Common Equity
Item 5. Market for Registrant’s Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities
Our common stock is listed and traded under the ticker symbol “PCRX” on the Nasdaq Global Select Market. As of February 21, 2021, we had approximately 12 holders of record of our common stock.
Performance Graph
The following graph shows the value of an investment of $100.00 made on December 31, 2015, in each of Pacira BioSciences, Inc. (PCRX), the Nasdaq Composite Index (^IXIC), the Nasdaq Biotechnology Index (^NBI) and the S&P Pharmaceuticals Select Index (^SPSIPH). The three indices included are for comparative purposes only and do not necessarily reflect management’s opinion that such indices are an appropriate measure of the relative performance of our common stock. All results assume the reinvestment of dividends, if any, and are calculated as of December 31 st of each year. The historical stock price performance of our common stock and the indices shown in this performance graph is not necessarily indicative of future stock price performance.
Comparison of Five-Year Cumulative Total Returns
Among Pacira BioSciences, Inc., the Nasdaq Composite Index,
the Nasdaq Biotechnology Index and the S&P Pharmaceuticals Select Index
Cumulative Total Return as of December 31,
2015 2016 2017 2018 2019 2020
Pacira BioSciences, Inc. (PCRX) $ 100.00 $ 42.06 $ 59.45 $ 56.02 $ 58.99 $ 77.93
Nasdaq Composite Index (^IXIC) $ 100.00 $ 107.50 $ 137.86 $ 132.51 $ 179.19 $ 257.38
Nasdaq Biotechnology Index (^NBI) $ 100.00 $ 78.32 $ 94.81 $ 85.97 $ 106.95 $ 134.42
S&P Pharmaceuticals Select Index (^SPSIPH) $ 100.00 $ 76.25 $ 84.87 $ 71.54 $ 89.24 $ 101.37
Dividend Policy
We have never declared or paid any dividends on our common stock. We currently intend to retain our future earnings to finance the future development and expansion of our business, and as such we do not expect to pay any cash dividends on our common stock in the foreseeable future. The payment of future dividends, if any, will be at the discretion of our board of directors and will depend on our financial condition, results of operations, capital requirements, restrictions contained in future financing instruments, provisions of applicable law and any other factors our board of directors deems relevant.
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Item 6. Selected Financial Data
The following tables provide selected historical consolidated financial data. We have prepared this information using our audited consolidated financial statements as of and for the years ended December 31, 2020, 2019, 2018, 2017 and 2016. The following consolidated financial data should be read in conjunction with our consolidated financial statements and related notes and Item 7. “Management’s Discussion and Analysis of Financial Condition and Results of Operations” included in this Annual Report.
Year Ended December 31,
2020 2019 B
2018 2017 2016
Consolidated Statements of Operations Data (In thousands, except per share amounts)
Revenues:
Net product sales $ 426,614 $ 418,926 $ 332,427 $ 284,342 $ 270,073
Collaborative licensing and milestone revenue — — 3,000 387 3,426
Royalty revenue 3,033 2,100 1,850 1,901 2,872
Total revenues 429,647 421,026 337,277 286,630 276,371
Operating expenses:
Cost of goods sold 117,328
106,712
86,845 87,915 110,104 F
Research and development 59,421 72,119 55,688 57,290 45,678
Selling, general and administrative 193,516 200,782 177,265 161,494 152,613 G
Amortization of acquired intangible assets 7,866 5,703 — — —
Acquisition-related charges, product
discontinuation and other 5,166 A
25,230 C
1,564 D
4,868 E
—
Total operating expenses 383,297 410,546 321,362 311,567 308,395
Income (loss) from operations 46,350 10,480 15,915 (24,937) (32,024)
Other (expense) income:
Interest income 4,629 7,376 6,497 4,078 1,323
Interest expense (25,671) (23,628) (21,949) (18,047) (7,061)
Loss on early extinguishment of debt (8,071) — — (3,732) —
Other, net 2,852 (4,976) (888) 167 (82)
Total other expense, net (26,261) (21,228) (16,340) (17,534) (5,820)
Income (loss) before income taxes 20,089 (10,748) (425) (42,471) (37,844)
Income tax benefit (expense) 125,434 (268) (46) (140) (105)
Net income (loss) $ 145,523 $ (11,016) $ (471) $ (42,611) $ (37,949)
Net income (loss) per share:
Basic net income (loss) per common share $ 3.41 $ (0.27) $ (0.01) $ (1.07) $ (1.02)
Diluted net income (loss) per common share $ 3.33 $ (0.27) $ (0.01) $ (1.07) $ (1.02)
Weighted average common shares outstanding:
Basic 42,671 41,513 40,911 39,806 37,236
Diluted 43,682 41,513 40,911 39,806 37,236
A - Includes charges of $5.4 million related to the MyoScience Acquisition. Of this total, $ 5.2 million represents the net change in the fair value of contingent consideration resulting from the achievement of regulatory milestones and revised commercial forecasts (which are tied to potential future milestone payments). For further discussion of these charges, see Note 5, MyoScience Acquisition and Note 18, Acquisition-Related Charges and Product Discontinuation, Net , to our consolidated financial statements included herein.
B - We completed the MyoScience Acquisition on April 9, 2019. The acquisition was accounted for using the acquisition method of accounting and, accordingly, the assets acquired, liabilities assumed and results of operations of the acquired business are included in our consolidated financial statements from the date of acquisition.
C - Includes charges of $21.6 million related to the MyoScience Acquisition. Of this total, $16.7 million represents increases in the fair value of contingent consideration resulting from the achievement of regulatory milestones and revised commercial forecasts (which are tied to potential future milestone payments), $4.2 million represents advisory costs, including legal, financial, accounting and tax services. The remaining $0.7 million represents separation costs, asset write-downs and other restructuring charges. Charges of $0.2 million were recorded related to the discontinuation of
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our DepoCyt(e) manufacturing activities for lease costs, asset retirement obligations and other estimated exit costs. Additionally, this includes a charge of $3.5 million related to the U.S. Department of Justice settlement agreement. For further discussion of these charges, see Note 5, MyoScience Acquisition , Note 18, Acquisition-Related Charges and Product Discontinuation, Net and Note 21, Commitments and Contingencies , respectively, to our consolidated financial statements included herein.
D - Represents non-recurring charges of $1.6 million related to the discontinuation of our DepoCyt(e) manufacturing activities for lease costs, asset retirement obligations and other estimated exit costs. These charges primarily represent additional lease and facility costs due to the fact that we were not able to sub-lease the property where DepoCyt(e) was manufactured considering the short period of time that remained on our existing lease. For further discussion of these charges, see Note 18, Acquisition-Related Charges and Product Discontinuation, Net , to our consolidated financial statements included herein.
E - Represents non-recurring charges of $5.4 million related to the discontinuation of our DepoCyt(e) manufacturing activities, including $0.5 million for DepoCyt(e) related inventory, which is recorded in cost of goods sold, and $4.9 million for the remaining lease costs less an estimate of potential sublease income for the facility where DepoCyt(e) was manufactured, the write-off of property, plant and equipment, employee severance, asset retirement obligations and other estimated exit costs. For further discussion of these charges, see Note 18, Acquisition-Related Charges and Product Discontinuation, Net , to our consolidated financial statements included herein.
F - Includes a $20.7 million charge for inventory and related reserves for the cost of EXPAREL batches impacted by a routine stability test that did not meet required specifications.
G - Includes a $7.1 million contract termination charge to CrossLink Bioscience, LLC.
December 31,
2020 2019 B
2018 2017 2016
Consolidated Balance Sheet Data (In thousands)
Cash and cash equivalents,
short-term and long-term investments $ 617,121 $ 356,748 $ 409,325 $ 371,394 $ 172,597
Working capital 398,295 300,884 417,308 334,893 198,251
Total assets 1,274,513 A 831,065 689,353 628,371 391,466
Long-term liabilities 401,497 368,448 307,466 292,671 127,652
Accumulated deficit (253,875) (399,398) (388,226) (389,136) (346,238)
Total stockholders’ equity 619,688 354,944 321,226 279,483 218,976
A - Includes the release of a $126.6 million domestic valuation allowance on our deferred tax assets. For further discussion, see Note 16, Income Taxes , to our consolidated financial statements included herein.
B - We completed the MyoScience Acquisition on April 9, 2019. The acquisition was accounted for using the acquisition method of accounting and, accordingly, the assets acquired, liabilities assumed and results of operations of the acquired business are included in our consolidated financial statements from the date of acquisition.
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Text extracted from the filing as submitted to EDGAR. Formatting, tables and exhibits are simplified for reading; the original document is authoritative for anything you rely on.