Pacira BioSciences has announced plans to close a long-operating manufacturing facility and reduce its workforce, following advancements in its production capabilities. The California-based pharmaceutical company will lay off 71 employees, approximately 8% of its total staff, at its Science Center location in San Diego. According to the company, this move is expected to result in an annual operating cost reduction of roughly $13 million.
The facility being shut down is a 45-liter manufacturing site that has been producing commercial batches of Exparel since 2014. Exparel, a non-opioid medication for postsurgical pain, received FDA approval in 2011 and generated $549 million in sales in 2024, accounting for 78% of the company’s revenue that year.
Pacira CEO Frank Lee informed employees of the decision in a letter dated July 10, which was also included in a securities filing. He explained that the closure is part of the company’s shift to more advanced manufacturing systems. “This decision reflects the progress we’ve made in recent years in bringing our enhanced, large-scale 200-liter manufacturing process online in both San Diego and Swindon, (U.K.),” Lee stated.
The company commenced commercial production at the two newer 200-liter facilities in 2024 and 2021, respectively. These systems are capable of producing bulk Exparel at approximately four times the volume of the 45-liter site. In the securities filing, Pacira indicated that the larger manufacturing suites allow for improved efficiency, cost structure, and production yields compared to the smaller-scale process.
Pacira noted that the new manufacturing infrastructure provides sufficient capacity to meet increasing demand for Exparel while also helping to improve gross margins. The transition is part of a broader strategy that the company began implementing in January. This five-year plan aims to position Pacira as a leader in the treatment of musculoskeletal pain and related areas. One of the key targets includes achieving double-digit compounded annual revenue growth, compared to the 4% growth seen in 2024 over the previous year. The company also seeks to raise its gross margin by five percentage points from the 2024 baseline.
Beyond Exparel, Pacira’s commercial portfolio includes Zilretta, an osteoarthritis knee pain therapy acquired through a $450 million deal with Flexion Therapeutics, and iovera°, a handheld device that uses controlled cold therapy for pain management. Lee expressed continued support for the company’s workforce at both the San Diego and Swindon facilities, noting that they will remain responsible for delivering the company’s pain management products.
Pacira is also advancing its development pipeline. Its current clinical candidate is PCRX-201, also known as enekinragene inzadenovec, an interleukin-1 receptor antagonist gene therapy in phase 1 testing for osteoarthritis of the knee. The company acquired full ownership of this therapy in February by purchasing the remaining 81% of Germany’s GQ Bio Therapeutics for approximately $32 million.
As part of its 2030 goals, Pacira intends to have at least five programs in clinical development and establish five R&D or commercial collaborations. The company also anticipates that the recent NOPAIN Act will support the growth of its non-opioid products, including Exparel and iovera°.
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