PACIRA PHARMACEUTICALS, INC. (NASDAQ:PCRX) Files An 8-K Costs Associated with Exit or Disposal ActivitiesItem 2.05. Costs Associated with Exit or Disposal Activities
PACIRA PHARMACEUTICALS, INC. (NASDAQ:PCRX) Files An 8-K Costs Associated with Exit or Disposal Activities
On June 29, 2017, Pacira Pharmaceuticals, Inc. (the “Company”) determined to discontinue all future production of DepoCyt®>(U.S. and Canada) and DepoCyte®>(European Union) due to persistent technical issues specific to the DepoCyt(e) manufacturing process. This decision does not affect any product that has already been distributed to customers or administered to patients. In the second quarter of 2017, the Company expects to record a charge of approximately $5.0 million related to the discontinuation of its DepoCyt(e) manufacturing activities, of which approximately $2.5 million relates to the write-off of certain assets, $2.0 million relates to the remaining lease costs less an estimate of potential sub-lease income for the facility where DepoCyt(e) is manufactured, and $0.5 million relates to employee severance and other exit costs. The Company expects that $3.3 million of the total charge will be paid in cash. DepoCyt(e) accounted for approximately 2.5% of the Company’s total revenues in 2016.
Item 2.06. Material Impairments
The information set forth in Item 2.05 above is incorporated herein by reference.
About PACIRA PHARMACEUTICALS, INC. (NASDAQ:PCRX)
Pacira Pharmaceuticals, Inc. is a specialty pharmaceutical company. The Company is focused on the development, commercialization and manufacture of pharmaceutical products, based on its DepoFoam drug delivery technology, for use in hospitals and ambulatory surgery centers. Its primary focus lies in the development of non-opioid products for postsurgical pain control. The Company’s lead product candidate, EXPAREL (bupivacaine liposome injectable suspension), which consists of bupivacaine encapsulated in DepoFoam, and is an amide-type local anesthetic indicated for single-dose infiltration into the surgical site to produce postsurgical analgesia. In addition to EXPAREL, DepoFoam is also the basis for its other commercial product, DepoCyt(e), which the Company manufactures for its commercial partners, as well as its other product candidates. The Company’s other product candidates include DepoMeloxicam (DepoMLX) and DepoTranexamic Acid (DepoTXA).
Pacira Pharmaceuticals, Inc. is a specialty pharmaceutical company. The Company is focused on the development, commercialization and manufacture of pharmaceutical products, based on its DepoFoam drug delivery technology, for use in hospitals and ambulatory surgery centers. Its primary focus lies in the development of non-opioid products for postsurgical pain control. The Company’s lead product candidate, EXPAREL (bupivacaine liposome injectable suspension), which consists of bupivacaine encapsulated in DepoFoam, and is an amide-type local anesthetic indicated for single-dose infiltration into the surgical site to produce postsurgical analgesia. In addition to EXPAREL, DepoFoam is also the basis for its other commercial product, DepoCyt(e), which the Company manufactures for its commercial partners, as well as its other product candidates. The Company’s other product candidates include DepoMeloxicam (DepoMLX) and DepoTranexamic Acid (DepoTXA).