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Pacira Pharmaceuticals Inc. (PCRX)
Q4 2012 Earnings Call
March 7, 20123 9:00 am ET
Dave Stack – President, Chief Executive Officer
Jim Scibetta – Chief Financial Officer
Jessica Cho – Investor Relations
David Amsellem – Piper Jaffray
Richard Lau- Wedbush Securities
Corey Davis – Jefferies
Douglas Tsao – Barclays
Cliff Murray – Empire Asset Management
Patti Banks – Discern Securities
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At this time, I would like to introduce Jessica Cho of Pacira Pharmaceuticals. Please go ahead.
Thank you and good morning everyone. Welcome to Pacira’s fourth quarter 2012 financial results conference call. Joining me on the call today from Pacira are David Stack, President and Chief Executive Officer, and Jim Scibetta, Chief Financial Officer.
Before I turn the call over to the management team for their prepared remarks, I would like to remind you that certain remarks made by management during this call about the company’s future expectations, plans and prospects constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These statements about the company’s future expectations, plans and prospects include statements regarding the company’s plans to develop and commercialize Exparel, the success of commercialization of Exparel, the rate and degree of market acceptance of Exparel, the size and growth of the potential markets for Exparel and the company’s ability to serve those markets, Pacira’s commercialization and marketing capabilities and other statements containing the words believes, anticipates, plans, expects, and similar expressions. Any such forward-looking statements are based on assumptions the the company believes are reasonable but are subject to a wide range of risks and uncertainties. Actual results may differ materially from those expressed or implied by such forward-looking statements. Many of these and other risks and uncertainties are described in the risk factor section of Pacira’s most recent annual report on Form 10-K for the fiscal year ended December 31, 2012 and in other filings with the SEC, which are available through the investor section of the Pacira website at www.pacira.com or on the SEC website at www.sec.gov.
All of the information in this conference call is as of today, March 7, 2013 and should not be relied upon as representing the company’s views as of any subsequent date. While the company may elect to update these forward-looking statements at some point in the future, the company specifically disclaims any obligation to do so; therefore, you should not rely on these forward-looking statements as representing company views as of any date subsequent to today.
I will now turn the call over to Dave Stack. Dave?
Thanks, Jessica. Good morning everyone and thank you for joining us for this review of our fourth quarter 2012 results. On the call today I will review our commercialization success to date with Exparel followed by an update on our manufacturing capabilities and also our continued Exparel label and commercial expansion efforts, then Jim will provide a summary of our fourth quarter 2012 financials and discuss general updates. We will then open up the call for questions.
On the call today, we will be primarily talking about Exparel, our novel treatment for post-surgical pain management which we launched commercially in the United States in April 2012. The first and only multivesicular liposome local anesthetic for use in the peri- or post-surgical setting, Exparel utilizes our proprietary DepoFoam technology to provide local analgesia for up to 72 hours with a reduced need for opioids. Approved for single dose administration into the surgical site to produce post-surgical analgesia, Exparel uses the same infiltration technique as currently marketed local anesthetics such as bupivacaine. Of the 75 million surgical procedures performed annually in the United States, we believe this indication provides a target market of 40 million surgeries appropriate for Exparel, 10% of which equals a revenue opportunity of approximately $1 billion.
With three full quarters of Exparel sales under our belt, we continue to be pleased with the launch of Exparel and our ability to expand its use within a wide range of surgical specialties. The new marketing initiatives we launched in the fall have continued to drive accelerated sales growth. For the months of September through December, we saw month-over-month outgrowth of average daily box sales totaling 13%, 23%, 26% and 39% respectively. We reported net sales of $7.8 million for Exparel in the fourth quarter, up 70% from the 4.6 million in the previous quarter and year-end net sales of $14.6 million for Exparel. As of December 31, 2012, 819 customers have ordered Exparel. Of this total, 191 customers ordered six times or more while 110 customers ordered 10 times or more. As of the end of the fourth quarter, we averaged 22 new customers per week.
This progress derived largely from access in orders in 75% of the top 100 target hospital accounts and 53% of the top 500 target hospital accounts. We expect that first quarter sales trends will remain positive as we continue with major formulary approval and experience expanded use with surgery and anesthesia customers in accounts where these clinicians have had access and gained experience with Exparel.