v3.26.3
SEGMENT INFORMATION (Tables)
 9 Months Ended
Sep. 30, 2026
Segment Reporting [Abstract]  
Schedule of Reconciliation of Significant Expense Categories The table below reconciles the significant expense categories provided to the CODM to the Company’s expenses as disclosed under GAAP (in thousands):
Three Months Ended
September 30,		Nine Months Ended
September 30,
2026202520262025
Revenues$176,653 $179,516 $546,428 $529,538 
Less:
Adjusted cost of goods sold (1)
35,489 32,772 112,614 98,025 
Adjusted research and development (1)
23,931 22,489 76,346 70,276 
Adjusted selling and marketing (1)
47,844 58,471 158,128 165,006 
Adjusted general and administrative (1)
25,882 23,180 80,741 70,020 
Stock-based compensation (1)
11,823 13,978 40,320 44,003 
Amortization of acquired intangible assets12,356 14,322 41,000 42,966 
Merger-related expenses (2)
7,384 — 7,384 — 
Divestiture-related and acquisition-related expenses (3)
4,102 871 11,498 4,831 
Changes in the fair value of contingent consideration(14,430)625 (15,044)(2,407)
Restructuring charges and other (4)
— 3,728 — 10,249 
Legal judgment— (23,148)— (23,148)
Legal settlement— — — 7,000 
Impairment of acquired IPR&D— 25,866 — 25,866 
Total operating expenses154,381 173,154 512,987 512,687 
Total other income (loss), net6,542 3,162 2,926 (548)
Income before income taxes28,814 9,524 36,367 16,303 
Income tax expense(293)(4,092)(277)(10,906)
Net income$28,521 $5,432 $36,090 $5,397 
(1) The adjustments are primarily related to stock-based compensation and, to a lesser extent, accrued key employee holdback and divestiture transaction bonus payables that are included within divestiture-related and acquisition-related expenses, which are noted separately as line items.
(2) On October 8, 2026, the Company entered into the Merger Agreement with Viatris and Purchaser. The Company recorded $7.4 million of costs related to the proposed Merger for both of the three and nine months ended September 30, 2026, primarily for associated outside legal and external financial advisory fees.
(3) In June 2026, the Company entered into the Purchase Agreement with Zimmer, in which it agreed to divest (i) all of the issued and outstanding capital stock of Pacira CryoTech and (ii) certain assets and liabilities relating to handheld cryoanalgesia devices and related products—including iovera°. During the three and nine months ended September 30, 2026, the Company recognized $0.7 million and $6.6 million, respectively, of Divestiture-related expenses, primarily related to third-party services and legal fees, which were recorded to other operating expenses, net in the condensed consolidated statement of operations. During both the three and nine months ended September 30, 2026, the Company recognized separation costs of $0.6 million primarily related to redundant third-party services and prepaid assets write-offs after the July 2026 closing of the Divestiture which were also recorded to other operating expenses, net in the condensed consolidated statement of operations.
During the three and nine months ended September 30, 2026, there were transaction bonuses payable charges of $2.2 million to certain employees of Pacira that were hired by Zimmer at the close of the Divestiture. The bonus expense is payable by Zimmer as part of the Divestiture agreement. This charge was recorded across cost of service, selling, general and administrative and research and development in the condensed consolidated statement of operations.
In February 2025, the Company acquired the remaining 81% of GQ Bio that it did not already own. During the nine months ended September 30, 2025, the Company incurred acquisition-related expenses of $2.2 million mainly related to third-party services and legal fees associated with the acquisition of GQ Bio, which were recorded to other operating (gains) expenses, net in the condensed consolidated statement of operations. As part of the purchase agreement, $7.8 million of expense will be recognized and paid over three years pursuant to a key employee holdback agreement in increments of 50%, 30% and 20%, respectively. This resulted in $0.6 million and $2.1 million recognized within research and development in the condensed consolidated statement of operations for the three and nine months ended September 30, 2026, respectively, and $1.2 million and $2.6 million for the three and nine months ended September 30, 2025, respectively.
(4) In July 2025, as a result of improving manufacturing efficiencies for EXPAREL, the Company announced the decommissioning of its 45-liter EXPAREL batch manufacturing suite located at its Science Center Campus in San Diego, California, and reduced its workforce accordingly. During the three and nine months ended September 30, 2025, the Company recognized $3.7 million of charges related to employee termination benefits that were recorded to other operating expenses, net and $6.5 million of accelerated depreciation expense on fixed assets and reserved raw materials associated with this manufacturing suite that was recorded to cost of goods sold in the condensed consolidated statement of operations.