0001396814-21-000031 | 10-Q | XBRL Viewer

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Cover Page - shares	3 Months Ended
Cover Page - shares	Mar. 31, 2021	May 02, 2021
Cover [Abstract]
Document Type	10-Q
Document Quarterly Report	true
Document Period End Date	Mar. 31, 2021
Document Transition Report	false
Entity File Number	001-35060
Entity Registrant Name	PACIRA BIOSCIENCES, INC.
Entity Incorporation, State or Country Code	DE
Entity Tax Identification Number	51-0619477
Entity Address, Address Line One	5 Sylvan Way, Suite 300
Entity Address, City or Town	Parsippany
Entity Address, State or Province	NJ
Entity Address, Postal Zip Code	07054
City Area Code	973
Local Phone Number	254-3560
Title of 12(b) Security	Common Stock, par value $0.001 per share
Trading Symbol	PCRX
Security Exchange Name	NASDAQ
Entity Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Entity Filer Category	Large Accelerated Filer
Entity Small Business	false
Entity Emerging Growth Company	false
Entity Shell Company	false
Entity Common Stock, Shares Outstanding		44,025,456
Entity Central Index Key	0001396814
Current Fiscal Year End Date	--12-31
Document Fiscal Year Focus	2021
Document Fiscal Period Focus	Q1
Amendment Flag	false

CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands	Mar. 31, 2021	Dec. 31, 2020
Current assets:
Cash and cash equivalents	$ 66,699	$ 99,957
Short-term investments	523,364	421,705
Accounts receivable, net	52,583	53,046
Inventories, net	64,606	64,650
Prepaid expenses and other current assets	12,995	12,265
Total current assets	720,247	651,623
Long-term investments	34,971	95,459
Fixed assets, net	144,822	136,688
Right-of-use assets, net	72,888	74,492
Goodwill	99,547	99,547
Intangible assets, net	94,554	96,521
Deferred tax assets	104,467	106,164
Equity investments and other assets	16,053	14,019
Total assets	1,287,549	1,274,513
Current liabilities:
Accounts payable	9,110	10,431
Accrued expenses	50,239	70,974
Lease liabilities	5,503	7,425
Convertible senior notes	151,647	149,648
Contingent consideration	14,864	14,736
Income taxes payable	721	114
Total current liabilities	232,084	253,328
Convertible senior notes	317,338	313,030
Lease liabilities	69,666	71,025
Contingent consideration	12,355	13,610
Other liabilities	5,288	3,832
Total liabilities	636,731	654,825
Commitments and contingencies (Note 15)
Stockholders’ equity:
Preferred stock, par value $0.001; 5,000,000 shares authorized; none issued and outstanding at March 31, 2021 and December 31, 2020	0	0
Common stock, par value $0.001; 250,000,000 shares authorized; 43,957,510 shares issued and outstanding at March 31, 2021; 43,636,929 shares issued and outstanding at December 31, 2020	44	44
Additional paid-in capital	894,108	873,201
Accumulated deficit	(243,506)	(253,875)
Accumulated other comprehensive income	172	318
Total stockholders’ equity	650,818	619,688
Total liabilities and stockholders’ equity	$ 1,287,549	$ 1,274,513

CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) - $ / shares	Mar. 31, 2021	Dec. 31, 2020
Statement of Financial Position [Abstract]
Preferred stock, par value (in dollars per share)	$ 0.001	$ 0.001
Preferred stock, shares authorized (in shares)	5,000,000	5,000,000
Preferred stock, shares issued (in shares)	0	0
Preferred stock, shares outstanding (in shares)	0	0
Common stock, par value (in dollars per share)	$ 0.001	$ 0.001
Common stock, shares authorized (in shares)	250,000,000	250,000,000
Common stock, shares issued (in shares)	43,957,510	43,636,929
Common stock, shares outstanding (in shares)	43,957,510	43,636,929

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) shares in Thousands, $ in Thousands	3 Months Ended
	Mar. 31, 2021	Mar. 31, 2020
Revenues:
Total net product sales	$ 119,027	$ 105,684
Operating expenses:
Cost of goods sold	31,349	29,732
Research and development	15,879	15,819
Selling, general and administrative	48,522	44,780
Amortization of acquired intangible assets	1,967	1,967
Acquisition-related loss (gains), product discontinuation and other	(1,873)	3,708
Total operating expenses	99,590	88,590
Income from operations	19,437	17,094
Other (expense) income:
Interest income	415	1,589
Interest expense	(6,971)	(6,022)
Other, net	(157)	(4,104)
Total other expense, net	(6,713)	(8,537)
Income before income taxes	12,724	8,557
Income tax expense	(2,355)	(398)
Net income	$ 10,369	$ 8,159
Net income per share:
Basic net income per common share (in USD per share)	$ 0.24	$ 0.19
Diluted net income per common share (in USD per share)	$ 0.23	$ 0.19
Weighted average common shares outstanding:
Basic (in shares)	43,833	42,032
Diluted (in shares)	45,966	42,785
Product
Revenues:
Total net product sales	$ 118,738	$ 104,745
Royalty
Revenues:
Total net product sales	$ 289	$ 939

CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2021	Mar. 31, 2020
Statement of Comprehensive Income [Abstract]
Net income	$ 10,369	$ 8,159
Other comprehensive income (loss):
Net unrealized loss on investments, net of tax	(150)	(1,368)
Foreign currency translation adjustments	4	0
Total other comprehensive loss	(146)	(1,368)
Comprehensive income	$ 10,223	$ 6,791

- Definition

The portion of profit or loss for the period, net of income taxes, which is attributable to the parent.

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+ Details

CONDENSED CONSOLIDATED STATEMENT OF STOCKHOLDERS' EQUITY - USD ($) $ in Thousands	Total	Common Stock	Additional Paid-In Capital	Accumulated Deficit	Accumulated Other Comprehensive Income (Loss)
Balances (in shares) at Dec. 31, 2019		41,908,000
Balance at beginning of period at Dec. 31, 2019	$ 354,944	$ 42	$ 753,978	$ (399,398)	$ 322
Increase (Decrease) in Stockholders' Equity
Exercise of stock options (in shares)		208,000
Exercise of stock options	3,455		3,455
Vested restricted stock units (in shares)		1,000
Stock-based compensation	8,847		8,847
Other comprehensive loss (Note 11)	(1,368)				(1,368)
Net income	8,159			8,159
Balances (in shares) at Mar. 31, 2020		42,117,000
Balance at end of period at Mar. 31, 2020	374,037	$ 42	766,280	(391,239)	(1,046)
Balances (in shares) at Dec. 31, 2020		43,637,000
Balance at beginning of period at Dec. 31, 2020	$ 619,688	$ 44	873,201	(253,875)	318
Increase (Decrease) in Stockholders' Equity
Exercise of stock options (in shares)	317,259	317,000
Exercise of stock options	$ 10,797		10,797
Vested restricted stock units (in shares)		4,000
Stock-based compensation	10,110		10,110
Other comprehensive loss (Note 11)	(146)				(146)
Net income	10,369			10,369
Balances (in shares) at Mar. 31, 2021		43,958,000
Balance at end of period at Mar. 31, 2021	$ 650,818	$ 44	$ 894,108	$ (243,506)	$ 172

- Definition

The portion of profit or loss for the period, net of income taxes, which is attributable to the parent.

+ References

+ Details

- Definition

Total of all stockholders' equity (deficit) items, net of receivables from officers, directors, owners, and affiliates of the entity which are attributable to the parent. The amount of the economic entity's stockholders' equity attributable to the parent excludes the amount of stockholders' equity which is allocable to that ownership interest in subsidiary equity which is not attributable to the parent (noncontrolling interest, minority interest). This excludes temporary equity and is sometimes called permanent equity.

+ References + Details

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2021	Mar. 31, 2020
Operating activities:
Net income	$ 10,369	$ 8,159
Adjustments to reconcile net income to net cash provided by operating activities:
Deferred taxes	1,746	0
Depreciation of fixed assets and amortization of intangible assets	4,851	4,821
Amortization of debt issuance costs	651	439
Amortization of debt discount	5,657	3,594
(Gain) loss on disposal and impairment of fixed assets	(11)	22
Stock-based compensation	10,110	8,847
Changes in contingent consideration	(1,127)	(3,874)
Loss on investment and other non-operating income, net	155	3,971
Changes in operating assets and liabilities:
Accounts receivable, net	462	8,542
Inventories, net	43	(1,370)
Prepaid expenses and other assets	254	(3,674)
Accounts payable	(1,351)	2,868
Accrued expenses and income taxes payable	(18,027)	(24,700)
Other liabilities	(1,701)	(1,173)
Payment of contingent consideration to MyoScience, Inc. securityholders	0	(264)
Net cash provided by operating activities	12,081	6,208
Investing activities:
Purchases of fixed assets	(13,073)	(6,724)
Purchases of available for sale investments	(186,653)	(72,610)
Sales of available for sale investments	145,282	50,768
Debt investments	(1,220)	0
Net cash used in investing activities	(55,664)	(28,566)
Financing activities:
Proceeds from exercises of stock options	10,325	3,455
Payment of contingent consideration to MyoScience, Inc. securityholders	0	(4,736)
Net cash provided by (used in) financing activities	10,325	(1,281)
Net decrease in cash and cash equivalents	(33,258)	(23,639)
Cash and cash equivalents, beginning of period	99,957	78,228
Cash and cash equivalents, end of period	66,699	54,589
Supplemental cash flow information:
Cash paid for interest	1,686	0
Cash paid for income taxes, net of refunds	1	0
Non-cash investing and financing activities:
Fixed assets included in accounts payable and accrued liabilities	$ 7,033	$ 2,595

CONDENSED CONSOLIDATED STATEMENT OF STOCKHOLDERS' EQUITY (Parenthetical) $ in Millions	3 Months Ended
	Mar. 31, 2021 USD ($)
Statement of Stockholders' Equity [Abstract]
Deferred tax associated with equity component of convertible debt	$ 20.5

DESCRIPTION OF BUSINESS	3 Months Ended
DESCRIPTION OF BUSINESS	Mar. 31, 2021
Organization, Consolidation and Presentation of Financial Statements [Abstract]
DESCRIPTION OF BUSINESS	DESCRIPTION OF BUSINESS Pacira BioSciences, Inc. and its subsidiaries (collectively, the “Company” or “Pacira”) is the industry leader in its commitment to non-opioid pain management and regenerative health solutions to improve patients’ journeys along the neural pain pathway. The Company’s long-acting, local analgesic, EXPAREL® (bupivacaine liposome injectable suspension), was commercially launched in the United States in April 2012 and approved by the European Commission in November 2020. EXPAREL utilizes DepoFoam®, a unique and proprietary delivery technology that encapsulates drugs without altering their molecular structure, and releases them over a desired period of time. In April 2019, the Company added iovera°® to its commercial offering with the acquisition of MyoScience, Inc., or MyoScience. The iovera° system is a handheld cryoanalgesia device used to deliver a precise, controlled application of cold temperature to only targeted nerves. Pacira is subject to risks common to companies in similar industries and stages, including, but not limited to, competition from larger companies, reliance on revenue from two products, reliance on a limited number of manufacturing sites, new technological innovations, dependence on key personnel, reliance on third-party service providers and sole source suppliers, protection of proprietary technology, compliance with government regulations and risks related to cybersecurity. The Company is managed and operated as a single business focused on the development, manufacture, marketing, distribution and sale of non-opioid pain management and regenerative health solutions. The Company is managed by a single management team, and consistent with its organizational structure, the Chief Executive Officer and Chairman manages and allocates resources at a consolidated level. Accordingly, the Company views its business as one reportable segment to evaluate performance, allocate resources, set operational targets and forecast its future financial results. Novel Coronavirus (COVID-19) Pandemic During 2020 and thus far in 2021, the Company’s net product sales were negatively impacted by the global pandemic caused by a novel strain of coronavirus (COVID-19), which mandated significant postponement or suspension in the scheduling of elective surgical procedures resulting from public health guidance and government directives. Elective surgical restrictions began to lift on a state-by-state basis in April 2020; however, while many restrictions have since eased as COVID-19 vaccines become more widely available and administered to the general public, the Company still does not know how long it will take the elective surgical market to normalize, or if restrictions on elective surgical procedures will recur. The Company’s manufacturing sites are operational and have implemented new safety protocols and guidelines as recommended by federal, state and local governments. To date, there have been no material impacts to the Company’s supply chain. The situation remains dynamic and subject to rapid and possibly material changes. Additional negative impacts may also arise from the COVID-19 pandemic that the Company is unable to foresee. The nature and extent of such impacts will depend on future developments, which are highly uncertain and cannot be predicted.

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

3 Months Ended

Mar. 31, 2021

Accounting Policies [Abstract]

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

Basis of Presentation and Principles of Consolidation

These interim condensed consolidated financial statements have been prepared in accordance with generally accepted accounting principles in the United States of America, or GAAP, and in accordance with the rules and regulations of the United States Securities and Exchange Commission (SEC), for interim reporting. Pursuant to these rules and regulations, certain information and footnote disclosures normally included in complete annual financial statements have been condensed or omitted. Therefore, these interim condensed consolidated financial statements should be read in conjunction with the audited annual consolidated financial statements and notes thereto included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2020.

The condensed consolidated financial statements at March 31, 2021, and for the three-month periods ended March 31, 2021 and 2020, are unaudited, but include all adjustments (consisting of only normal recurring adjustments) which, in the opinion of management, are necessary to present fairly the financial information set forth herein in accordance with GAAP. The condensed consolidated balance sheet at December 31, 2020 is derived from the audited consolidated financial statements included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2020. The condensed consolidated financial statements as presented reflect certain reclassifications from previously issued financial statements to conform to the

current year presentation. The accounts of wholly-owned subsidiaries are included in the condensed consolidated financial statements. Intercompany accounts and transactions have been eliminated in consolidation.

The results of operations for these interim periods are not necessarily indicative of results that may be expected for any other interim periods or for the full year.

Concentration of Major Customers

The Company sells EXPAREL through a drop-ship program under which orders are processed through wholesalers (including AmerisourceBergen Health Corporation, Cardinal Health, Inc. and McKesson Drug Company), but shipments of the product are sent directly to individual accounts, such as hospitals, ambulatory surgery centers and individual doctors. The Company also sells EXPAREL directly to ambulatory surgery centers and physicians. The Company sells its bupivacaine liposome injectable suspension for veterinary use to a third-party licensee and sells iovera° directly to end users. The table below includes the percentage of revenues comprised by the Company’s three largest wholesalers in each period presented:


	Three Months Ended March 31,
	2021	2020
Largest wholesaler	32%	32%
Second largest wholesaler	29%	31%
Third largest wholesaler	27%	26%
Total	88%	89%

Recently Adopted Accounting Pronouncements

In December 2019, the Financial Accounting Standards Board, or FASB, issued Accounting Standards Update, or ASU, 2019-12, Income Taxes (Topic 740), Simplifying the Accounting for Income Taxes, which amended the approaches and methodologies in accounting for income taxes during interim periods and makes changes to certain income tax classifications. The new standard now allows for certain exceptions, including an exception to the use of the incremental approach for intra-period tax allocations, when there is a loss from continuing operations and income or a gain from other items, and to the general methodology for calculating income taxes in an interim period, when a year-to-date loss exceeds the anticipated loss for the year. The standard also requires franchise or similar taxes partially based on income to be reported as income tax and to reflect the effects of enacted changes in tax laws or rates in the annual effective tax rate computation from the date of enactment. Lastly, in any future acquisition, the Company would be required to evaluate when the step-up in the tax basis of goodwill is part of the business combination and when it should be considered a separate transaction. The standard became effective for the Company beginning January 1, 2021, and there were no material impacts to the consolidated financial statements upon adoption.

Recent Accounting Pronouncements Not Adopted as of March 31, 2021

In August 2020, the FASB issued ASU 2020-06, Debt—Debt with Conversion and Other Options (Subtopic 470-20) and Derivatives and Hedging—Contracts in Entity’s Own Equity (Subtopic 815-40), which limits the number of convertible instruments that require separate accounting to (i) those with embedded conversion features that are not clearly and closely related to the debt, that meet the definition of a derivative, and that do not qualify for the scope exception from derivative accounting and (ii) convertible debt instruments issued with substantial premiums for which the premiums are recorded as paid-in capital. In addition, the new guidance requires diluted earnings per share calculations to be prepared using the if-converted method, instead of the treasury stock method. The guidance must be applied in fiscal years beginning after December 15, 2021, including interim periods within those fiscal years. The Company has the option to adopt the new guidance using a modified retrospective method of transition, which would then be applied to transactions outstanding at the time of adoption, or the full retrospective method. The Company is evaluating the impact from the adoption of ASU 2020-06 on its consolidated financial statements.

REVENUE

3 Months Ended

Mar. 31, 2021

Revenue from Contract with Customer [Abstract]

REVENUE

Revenue from Contracts with Customers

The Company’s sources of revenue include (i) sales of EXPAREL in the United States, or U.S.; (ii) sales of iovera° in the U.S.; (iii) sales of, and royalties on, its bupivacaine liposome injectable suspension for veterinary use in the U.S. and (iv) license fees and milestone payments. To date, there has been no revenue from sales of EXPAREL or iovera° in the European Union, or E.U. The Company does not consider revenue from sources other than sales of EXPAREL to be material to its consolidated revenue. As such, the following disclosure only relates to revenue associated with net EXPAREL product sales.

Net Product Sales

The Company sells EXPAREL through a drop-ship program under which orders are processed through wholesalers based on orders of the product placed by end-users, namely hospitals, ambulatory surgery centers and healthcare provider offices. EXPAREL is delivered directly to the end-user without the wholesaler ever taking physical possession of the product. Product revenue is recognized when control of the promised goods are transferred to the customers, in an amount that reflects the consideration the Company expects to be entitled to in exchange for transferring those goods. EXPAREL revenue is recorded at the time the product is delivered to the end-user.

Revenues from sales of products are recorded net of returns allowances, prompt payment discounts, wholesaler service fees, volume rebates and chargebacks. These reserves are based on estimates of the amounts earned or to be claimed on the related sales. These amounts are treated as variable consideration, estimated and recognized as a reduction of the transaction price at the time of the sale, using the most likely amount method, except for returns, which is based on the expected value method. The Company includes these estimated amounts in the transaction price to the extent it is probable that a significant reversal of cumulative revenue recognized for such transaction will not occur, or when the uncertainty associated with the variable consideration is resolved. The calculation of some of these items requires management to make estimates based on sales data, historical return data, contracts and other related information that may become known in the future. The adequacy of these provisions is reviewed on a quarterly basis.

Accounts Receivable

The majority of accounts receivable arise from product sales and represent amounts due from wholesalers, hospitals, ambulatory surgery centers and doctors. Payment terms generally range from zero to 37 days from the date of the transaction, and accordingly, there is no significant financing component.

Performance Obligations

A performance obligation is a promise in a contract to transfer a distinct good or service to the customer and is the unit of account in Accounting Standards Codification, or ASC, 606. A contract’s transaction price is allocated to each distinct performance obligation and recognized as revenue when, or as, the performance obligation is satisfied.

At contract inception, the Company assesses the goods promised in its contracts with customers and identifies a performance obligation for each promise to transfer to the customer a good that is distinct. When identifying individual performance obligations, the Company considers all goods promised in the contract regardless of whether explicitly stated in the customer contract or implied by customary business practices. The Company’s contracts with customers require it to transfer an individual distinct product, which represents a single performance obligation. The Company’s performance obligation with respect to its product sales is satisfied at a point in time, which transfers control upon delivery of EXPAREL to its customers. The Company considers control to have transferred upon delivery because the customer has legal title to the asset, physical possession of the asset has been transferred, the customer has significant risks and rewards of ownership of the asset, and the Company has a present right to payment at that time.

Disaggregated Revenue

The following table represents disaggregated net product sales in the periods presented as follows (in thousands):


	Three Months Ended March 31,
	2021		2020
Net product sales:
EXPAREL / bupivacaine liposome injectable suspension	$	115,470	$	102,475
iovera°	3,268		2,270
Total net product sales	$	118,738	$	104,745

- Definition

The entire disclosure of revenue from contract with customer to transfer good or service and to transfer nonfinancial asset. Includes, but is not limited to, disaggregation of revenue, credit loss recognized from contract with customer, judgment and change in judgment related to contract with customer, and asset recognized from cost incurred to obtain or fulfill contract with customer. Excludes insurance and lease contracts.

+ References

Reference 1: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 606
-URI http://asc.fasb.org/topic&trid=49130388

Reference 2: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 606
-SubTopic 10
-Section 50
-Paragraph 10
-URI http://asc.fasb.org/extlink&oid=121604090&loc=SL49130551-203045

Reference 3: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 606
-SubTopic 10
-Section 50
-Paragraph 13
-Subparagraph (b)(2)
-URI http://asc.fasb.org/extlink&oid=121604090&loc=SL49130556-203045

Reference 4: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 606
-SubTopic 10
-Section 50
-Paragraph 12
-Subparagraph (b)
-URI http://asc.fasb.org/extlink&oid=121604090&loc=SL49130554-203045

Reference 5: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 606
-SubTopic 10
-Section 50
-Paragraph 9
-URI http://asc.fasb.org/extlink&oid=121604090&loc=SL49130550-203045

Reference 6: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 606
-SubTopic 10
-Section 50
-Paragraph 12
-Subparagraph (e)
-URI http://asc.fasb.org/extlink&oid=121604090&loc=SL49130554-203045

Reference 7: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 606
-SubTopic 10
-Section 50
-Paragraph 12
-Subparagraph (a)
-URI http://asc.fasb.org/extlink&oid=121604090&loc=SL49130554-203045

Reference 8: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 606
-SubTopic 10
-Section 50
-Paragraph 12
-Subparagraph (d)
-URI http://asc.fasb.org/extlink&oid=121604090&loc=SL49130554-203045

Reference 9: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 606
-SubTopic 10
-Section 50
-Paragraph 15
-URI http://asc.fasb.org/extlink&oid=121604090&loc=SL49130558-203045

Reference 10: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 606
-SubTopic 10
-Section 50
-Paragraph 12
-Subparagraph (c)
-URI http://asc.fasb.org/extlink&oid=121604090&loc=SL49130554-203045

+ Details

INVENTORIES

3 Months Ended

Mar. 31, 2021

Inventory Disclosure [Abstract]

INVENTORIES

The components of inventories, net are as follows (in thousands):


	March 31,		December 31,
	2021		2020
Raw materials	$	31,697	$	26,886
Work-in-process	10,035		16,266
Finished goods	22,874		21,498
Total	$	64,606	$	64,650

FIXED ASSETS

3 Months Ended

Mar. 31, 2021

Property, Plant and Equipment [Abstract]

FIXED ASSETS

Fixed assets, net, summarized by major category, consist of the following (in thousands):


	March 31,		December 31,
	2021		2020
Machinery and equipment	$	76,732	$	74,966
Leasehold improvements	54,567		54,434
Computer equipment and software	12,312		12,170
Office furniture and equipment	2,477		2,387
Construction in progress	79,951		71,091
Total	226,039		215,048
Less: accumulated depreciation	(81,217)		(78,360)
Fixed assets, net	$	144,822	$	136,688

For both the three months ended March 31, 2021 and 2020, depreciation expense was $2.9 million. For the three months ended March 31, 2021 and 2020, there was $1.0 million and less than $0.1 million of capitalized interest on the construction of manufacturing sites, respectively.

At March 31, 2021 and December 31, 2020, total fixed assets, net includes leasehold improvements and manufacturing process equipment located in Europe in the amount of $67.8 million and $67.5 million, respectively.

As of both March 31, 2021 and December 31, 2020, the Company had asset retirement obligations of $2.0 million, which are included in accrued expenses and other liabilities on its condensed consolidated balance sheet, for costs associated with returning leased spaces to their original condition upon the termination of certain lease agreements.

LEASES

3 Months Ended

Mar. 31, 2021

Leases [Abstract]

LEASES

LEASESThe Company leases all of its facilities, including its EXPAREL manufacturing facility in San Diego, California and its iovera° manufacturing facility in Fremont, California. These leases have remaining terms up to 9.4 years, some of which provide renewal options at the then-current market value. The Company also has an embedded lease with Thermo Fisher Scientific Pharma Services, for the use of their manufacturing facility in Swindon, England. A portion of the associated monthly base fees has been allocated to the lease component based on a relative fair value basis.

The operating lease costs for the facilities include lease and non-lease components, such as common area maintenance and other common operating expenses, along with executory costs such as insurance and real estate taxes. Total operating lease costs are as follows (in thousands):


	Three Months Ended
	March 31,
	2021		2020
Fixed lease costs	$	2,922	$	1,564
Variable lease costs	478		448
Total	$	3,400	$	2,012

Supplemental cash flow information related to operating leases is as follows (in thousands):


	Three Months Ended
	March 31,
	2021		2020
Cash paid for operating lease liabilities, net of lease incentive	$	4,600	$	2,759
Right-of-use assets recorded in exchange for lease obligations	$	—	$	174

The Company has elected to net the amortization of the right-of-use asset and the reduction of the lease liability principal in other liabilities in the condensed consolidated statement of cash flows.

The Company has measured its operating lease liabilities at an estimated discount rate at which it could borrow on a collateralized basis over the remaining term for each operating lease. The weighted average remaining lease term and the weighted average discount rate are summarized as follows:


	March 31,
	2021		2020
Weighted average remaining lease term	8.95 years		9.23 years
Weighted average discount rate	6.89	%	7.55	%

Maturities of the Company’s operating lease liabilities are as follows (in thousands):


Year	Aggregate Minimum Payments Due
2021 (remaining nine months)	$	8,059
2022	10,423
2023	10,697
2024	10,980
2025	11,271
2026 through 2031	50,802
Total lease payments	102,232

Less: imputed interest	(27,063)
Total operating lease liabilities	$	75,169

GOODWILL AND INTANGIBLE ASSETS

3 Months Ended

Mar. 31, 2021

Goodwill and Intangible Assets Disclosure [Abstract]

Goodwill and Intangible Assets

GOODWILL AND INTANGIBLE ASSETS

Goodwill

The Company’s goodwill results from the acquisition of Pacira Pharmaceuticals, Inc. (the Company’s California operating subsidiary) from SkyePharma Holding, Inc. (now a subsidiary of Vectura Group plc), or Skyepharma in March 2007 (the “Skyepharma Acquisition”), and the acquisition of MyoScience, Inc. (the “MyoScience Acquisition”) in April 2019.

There was no change in the carrying value of the Company’s goodwill during the three months ended March 31, 2021. The balance at both March 31, 2021 and December 31, 2020 was $99.5 million.

The Skyepharma Acquisition occurred in March 2007, prior to the requirements to record contingent consideration at fair value under ASC 805-30. In connection with the Skyepharma Acquisition, the Company agreed to certain milestone payments for DepoBupivacaine products, including EXPAREL. As of March 31, 2021, the remaining milestone payments include: $4.0 million upon the first commercial sale in the United Kingdom, France, Germany, Italy or Spain; and $32.0 million when annual net sales collected reach $500.0 million (measured on a rolling quarterly basis). Any remaining milestone payments will be treated as additional costs of the Skyepharma Acquisition and, therefore, recorded as goodwill if and when each contingency is resolved.

In connection with the MyoScience Acquisition, the Company recorded goodwill totaling $37.5 million. The Company made a tax election that allows the acquired goodwill and intangible assets associated with the MyoScience Acquisition to be tax deductible.

Intangible Assets

Intangible assets, net, consist of the developed technology and customer relationships that were acquired in the MyoScience Acquisition and are summarized as follows (in thousands):


	Estimated Useful Life	March 31,		December 31,
		2021		2020
Developed technology	14 years	$	110,000	$	110,000
Customer relationships	10 years	90		90
Total intangible assets		110,090		110,090
Less: accumulated amortization		(15,536)		(13,569)
Intangible assets, net		$	94,554	$	96,521

Amortization expense on intangible assets for both the three months ended March 31, 2021 and 2020 was $2.0 million.

Assuming no changes in the gross carrying amount of these intangible assets, amortization expense will be $5.9 million for the remaining nine months of 2021, $7.9 million annually through 2032 and $2.2 million in 2033.

DEBT

3 Months Ended

Mar. 31, 2021

Debt Disclosure [Abstract]

DEBT

Convertible Senior Notes Due 2025

In July 2020, the Company completed a private placement of $402.5 million in aggregate principal amount of its 0.750% convertible senior notes due 2025, or 2025 Notes, and entered into an indenture, or 2025 Indenture, with respect to the 2025 Notes. The 2025 Notes accrue interest at a fixed rate of 0.750% per year, payable semiannually in arrears on February 1st and August 1st of each year. The 2025 Notes mature on August 1, 2025.

The total debt composition of the 2025 Notes is as follows (in thousands):


	March 31,		December 31,
	2021		2020
0.750% convertible senior notes due 2025	$	402,500	$	402,500
Deferred financing costs	(8,502)		(8,940)
Discount on debt	(76,660)		(80,530)
Total debt, net of debt discount and deferred financing costs	$	317,338	$	313,030

The net proceeds from the issuance of the 2025 Notes were approximately $390.0 million, after deducting commissions and the offering expenses paid by the Company. A portion of the net proceeds from the 2025 Notes was used by the Company to repurchase $185.0 million in aggregate principal amount of its outstanding 2.375% convertible senior notes due 2022 in privately-negotiated transactions for a total of $211.1 million of cash (including accrued interest).

Holders may convert the 2025 Notes at any time prior to the close of business on the business day immediately preceding February 3, 2025, only under the following circumstances:

(i) during any calendar quarter (and only during such calendar quarter), if the last reported sale price of the Company’s common stock for at least 20 trading days (whether or not consecutive) during a period of 30 consecutive trading days ending on the last trading day of the immediately preceding calendar quarter is greater than or equal to 130% of the conversion price on each applicable trading day;

(ii) during the five business day period immediately after any five consecutive trading day period (the “measurement period”) in which the trading price (as defined in the 2025 Indenture) per $1,000 principal amount of notes for each trading day of the measurement period was less than 98% of the product of the last reported sale price of the Company’s common stock and the conversion rate on each such trading day;

(iii) upon the occurrence of specified corporate events, including a merger or a sale of all or substantially all of the Company’s assets; or

(iv) if the Company calls the 2025 Notes for redemption, until the close of business on the business day immediately preceding the redemption date.

During the quarter ended March 31, 2021, none of these conditions for conversion were met.

On or after February 3, 2025, until the close of business on the second scheduled trading day immediately preceding August 1, 2025, holders may convert their 2025 Notes at any time.

Upon conversion, holders will receive the principal amount of their 2025 Notes and any excess conversion value, calculated based on the per share volume-weighted average price for each of the 40 consecutive trading days during the observation period (as more fully described in the 2025 Indenture). For both the principal and excess conversion value, holders may receive cash, shares of the Company’s common stock or a combination of cash and shares of the Company’s common stock, at the Company’s option. The initial conversion rate for the 2025 Notes is 13.9324 shares of common stock per $1,000 principal amount, which is equivalent to an initial conversion price of $71.78 per share of the Company’s common stock. The conversion rate will be subject to adjustment in some events but will not be adjusted for any accrued and unpaid interest. The initial conversion price of the 2025 Notes represents a premium of approximately 32.5% to the closing sale price of $54.17 per share of the Company’s common stock on the Nasdaq Global Select Market on July 7, 2020, the date that the Company priced the private offering of the 2025 Notes.

As of March 31, 2021, the 2025 Notes had a market price of $1,200 per $1,000 principal amount. In the event of conversion, holders would forgo all future interest payments, any unpaid accrued interest and the possibility of further stock price appreciation. Upon the receipt of conversion requests, the settlement of the 2025 Notes will be paid pursuant to the terms of the 2025 Indenture. In the event that all of the 2025 Notes are converted, the Company would be required to repay the $402.5 million in principal value and any conversion premium in any combination of cash and shares of its common stock (at the Company’s option).

Prior to August 1, 2023, the Company may not redeem the 2025 Notes. On or after August 1, 2023 (but, in the case of a redemption of less than all of the outstanding 2025 Notes, no later than the 40th scheduled trading day immediately before the maturity date), the Company may redeem for cash all or part of the 2025 Notes if the last reported sale price (as defined in the 2025 Indenture) of the Company’s common stock has been at least 130% of the conversion price then in effect for (i) each of at least 20 trading days (whether or not consecutive) during any 30 consecutive trading days ending on, and including, the trading day immediately before the date the Company sends the related notice of redemption and (ii) the trading day immediately before the date the Company sends such notice. The redemption price will equal the sum of (i) 100% of the principal amount of the 2025 Notes being redeemed, plus (ii) accrued and unpaid interest, including additional interest, if any, to, but excluding, the redemption date. In addition, calling the 2025 Notes for redemption will constitute a “make-whole fundamental change” (as defined in the 2025 Indenture) and will, in certain circumstances, increase the conversion rate applicable to the conversion of such notes if it is converted in connection with the redemption. No sinking fund is provided for the 2025 Notes.

If the Company undergoes a fundamental change, as defined in the 2025 Indenture, subject to certain conditions, holders of the 2025 Notes may require the Company to repurchase for cash all or part of their 2025 Notes at a repurchase price equal to 100% of the principal amount of the 2025 Notes to be repurchased, plus accrued and unpaid interest to, but excluding, the fundamental change repurchase date. In addition, if a “make-whole fundamental change” (as defined in the 2025 Indenture) occurs prior to August 1, 2025, the Company will, in certain circumstances, increase the conversion rate for a holder who elects to convert its notes in connection with the make-whole fundamental change.

The 2025 Notes are the Company’s general unsecured obligations that rank senior in right of payment to all of its indebtedness that is expressly subordinated in right of payment to the 2025 Notes, and equal in right of payment to the Company’s unsecured indebtedness. The 2025 Notes are also effectively junior in right of payment to any of the Company’s secured indebtedness to the extent of the value of the assets securing such indebtedness, and are structurally subordinated to any debt or other liabilities (including trade payables) of the Company’s subsidiaries.

While the 2025 Notes are currently classified on the Company’s consolidated balance sheet at March 31, 2021 as long-term debt, the future convertibility and resulting balance sheet classification of this liability is monitored at each quarterly reporting date and is analyzed dependent upon market prices of the Company’s common stock during the prescribed measurement periods. In the event that the holders of the 2025 Notes have the election to convert the 2025 Notes at any time during the prescribed measurement period, the 2025 Notes would then be considered a current obligation and classified as such.

Under ASC 470-20, Debt with Conversion and Other Options, an entity must separately account for the liability and equity components of convertible debt instruments (such as the 2025 Notes) that may be settled entirely or partially in cash upon conversion in a manner that reflects the issuer’s economic interest cost. The liability component of the instrument is valued in a manner that reflects the market interest rate for a similar nonconvertible instrument at the date of issuance. The initial carrying value of the liability component of $314.7 million was calculated using a 5.78% assumed borrowing rate. The equity component of $87.8 million, representing the conversion option, was determined by deducting the fair value of the liability component from the par value of the 2025 Notes and is recorded in additional paid-in capital on the consolidated balance sheet at the issuance date. The equity component is treated as a discount on the liability component of the 2025 Notes, which is amortized over the five-year term of the 2025 Notes using the effective interest rate method. The equity component is not re-measured as long as it continues to meet the conditions for equity classification. A deferred tax liability was recognized in the amount of $20.5 million, with the offsetting amount recorded in additional paid-in capital.

The Company allocated the total transaction costs of approximately $12.5 million related to the issuance of the 2025 Notes to the liability and equity components of the 2025 Notes based on their relative values. Transaction costs attributable to the liability component are amortized to interest expense over the five-year term of the 2025 Notes, and transaction costs attributable to the equity component totaling $2.7 million are netted with the equity component in stockholders’ equity.

The 2025 Notes do not contain any financial or operating covenants or any restrictions on the payment of dividends, the issuance of other indebtedness or the issuance or repurchase of securities by the Company. The 2025 Indenture contains customary events of default with respect to the 2025 Notes, including that upon certain events of default, 100% of the principal and accrued and unpaid interest on the 2025 Notes will automatically become due and payable.

Convertible Senior Notes Due 2022

In March 2017, the Company completed a private placement of $345.0 million in aggregate principal amount of 2.375% convertible senior notes due 2022, or 2022 Notes, and entered into an indenture, or 2022 Indenture, with respect to the 2022 Notes. The 2022 Notes accrue interest at a fixed rate of 2.375% per year, payable semiannually in arrears on April 1st and October 1st of each year. The 2022 Notes mature on April 1, 2022. As discussed above, in July 2020, the Company used part of the net proceeds from the issuance of the 2025 Notes to repurchase $185.0 million aggregate principal amount of the 2022 Notes in privately-negotiated transactions for an aggregate of $211.1 million in cash (including accrued interest). The partial repurchase of the 2022 Notes resulted in an $8.1 million loss on early extinguishment of debt.

The total debt composition of the 2022 Notes is as follows (in thousands):


	March 31,		December 31,
	2021		2020
2.375% convertible senior notes due 2022	$	160,000	$	160,000
Deferred financing costs	(876)		(1,089)
Discount on debt	(7,477)		(9,263)
Total debt, net of debt discount and deferred financing costs	$	151,647	$	149,648

Holders may convert their 2022 Notes prior to October 1, 2021 only if certain circumstances are met, including if during the previous calendar quarter, the last reported sales price of the Company’s common stock was greater than or equal to 130% of the conversion price then applicable for at least 20 out of the last 30 consecutive trading days of the quarter. During the quarter ended March 31, 2021, this condition for conversion was not met.

On or after October 1, 2021, until the close of business on the second scheduled trading day immediately preceding April 1, 2022, holders may convert their 2022 Notes at any time.

Upon conversion, holders will receive the principal amount of their 2022 Notes and any excess conversion value, calculated based on the per share volume-weighted average price for each of the 40 consecutive trading days during the observation period (as more fully described in the 2022 Indenture). For both the principal and excess conversion value, holders may receive cash, shares of the Company’s common stock or a combination of cash and shares of the Company’s common stock, at the Company’s option. The initial conversion rate for the 2022 Notes is 14.9491 shares of common stock per $1,000 principal amount, which is equivalent to an initial conversion price of $66.89 per share of the Company’s common stock. The conversion rate will be subject to adjustment in some events but will not be adjusted for any accrued and unpaid interest. The initial conversion price of the 2022 Notes represents a premium of approximately 37.5% to the closing sale price of $48.65 per share of the Company’s common stock on the Nasdaq Global Select Market on March 7, 2017, the date that the Company priced the private offering of the 2022 Notes.

As of March 31, 2021, the 2022 Notes had a market price of $1,216 per $1,000 principal amount. In the event of conversion, holders would forgo all future interest payments, any unpaid accrued interest and the possibility of stock price appreciation. Upon the receipt of conversion requests, the settlement of the 2022 Notes will be paid pursuant to the terms of the 2022 Indenture. In the event that all of the 2022 Notes are settled, the Company would be required to repay the remaining $160.0 million in principal value and any conversion premium in any combination of cash and shares of its common stock (at the Company’s option).

As of April 1, 2020, the Company may redeem for cash, shares of the Company’s common stock or a combination of cash and shares of the Company’s common stock, at the Company’s option, all or part of the 2022 Notes if the last reported sale price (as defined in the 2022 Indenture) of the Company’s common stock has been at least 130% of the conversion price then in effect for at least 20 trading days (whether or not consecutive) during any 30 consecutive trading-day period ending within five trading days prior to the date on which the Company provides notice of redemption. This condition was not met during the quarter ended March 31, 2021. The redemption price will equal the sum of (i) 100% of the principal amount of the 2022 Notes being redeemed, plus (ii) accrued and unpaid interest, including additional interest, if any, to, but excluding, the redemption date. In addition, calling the 2022 Notes for redemption will constitute a “make-whole fundamental change” (as defined in the 2022 Indenture) and will, in certain circumstances, increase the conversion rate applicable to the conversion of such notes if it is converted in connection with the redemption. No sinking fund is provided for the 2022 Notes.

Interest Expense

The following table sets forth the total interest expense recognized in the periods presented (dollar amounts in thousands):


	Three Months Ended March 31,
	2021			2020
Contractual interest expense	$	1,705		$	2,049
Amortization of debt issuance costs	651			439
Amortization of debt discount	5,657			3,594
Capitalized interest and other (Note 5)	(1,042)			(60)
Total	$	6,971		$	6,022

Effective interest rate on convertible senior notes	6.70		%	7.81		%

FINANCIAL INSTRUMENTS

3 Months Ended

Mar. 31, 2021

Fair Value Disclosures [Abstract]

FINANCIAL INSTRUMENTS

Fair Value Measurements

Fair value is defined as the price that would be received to sell an asset or be paid to transfer a liability in the principal or most advantageous market in an orderly transaction. To increase consistency and comparability in fair value measurements, the FASB established a three-level hierarchy which requires an entity to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. The three levels of fair value measurements are:

•Level 1: Quoted prices (unadjusted) in active markets that are accessible at the measurement date for assets or liabilities. The fair value hierarchy gives the highest priority to Level 1 inputs.

•Level 2: Observable prices that are based on inputs not quoted on active markets, but corroborated by market data.

•Level 3: Unobservable inputs that are used when little or no market data is available. The fair value hierarchy gives the lowest priority to Level 3 inputs.

The carrying value of financial instruments including cash and cash equivalents, accounts receivable and accounts payable approximate their respective fair values due to the short-term nature of these items. The fair value of the Company’s equity investment with a readily determinable fair value is calculated utilizing market quotations from a major American stock exchange (Level 1). The fair value of the Company’s convertible senior notes are calculated utilizing market quotations from an over-the-counter trading market for these notes (Level 2). The fair value of the Company’s acquisition-related contingent consideration is reported at fair value on a recurring basis (Level 3). The carrying amount of the investment without a readily determinable fair value has not been adjusted for either an impairment or upward or downward adjustments based on observable transactions. Certain assets and liabilities are measured at fair value on a non-recurring basis, including assets and liabilities acquired in a business combination and long-lived assets, which would be recognized at fair value if deemed impaired or if reclassified as assets held for sale. The fair value in these instances would be determined using Level 3 inputs.

At March 31, 2021, the carrying values and fair values of the following financial assets and liabilities was as follows (in thousands):


	Carrying Value		Fair Value Measurements Using
			Level 1		Level 2		Level 3
Financial Assets and Financial Liabilities Measured at Fair Value on a Recurring Basis:
Financial Assets:
Equity investment with readily determinable fair value	$	11,533	$	11,533	$	—	$	—
Note receivable	$	1,174	$	—	$	—	$	1,174
Financial Liabilities:
Acquisition-related contingent consideration	$	27,219	$	—	$	—	$	27,219

Financial Liabilities Measured at Amortized Cost:
2.375% convertible senior notes due 2022 (1)	$	151,647	$	—	$	194,500	$	—
0.750% convertible senior notes due 2025 (1)	$	317,338	$	—	$	483,000	$	—

(1) The closing price of the Company’s common stock as reported on the Nasdaq Global Select Market was $70.09 per share on March 31, 2021, compared to a conversion price of $66.89 per share for the 2022 Notes and $71.78 per share for the 2025 Notes. The maximum conversion premium that could have been due on the 2022 Notes and 2025 Notes at March 31, 2021 was approximately 2.4 million and 5.6 million shares of the Company’s common stock, respectively. These figures assume no increases in the conversion rate for certain corporate events.

Equity and Debt Investments

At March 31, 2021 and December 31, 2020, the Company held an equity investment in TELA Bio, Inc., or TELA Bio, in its condensed consolidated balance sheets in the amounts of $11.5 million and $11.6 million, respectively. For the three months ended March 31, 2021 and 2020, the fair value of this publicly traded investment decreased by $0.1 million and $4.0 million, respectively, which was recorded in other, net in the condensed consolidated statement of operations. The fair values of TELA Bio at March 31, 2021 and December 31, 2020 were based on Level 1 inputs.

At March 31, 2021 and December 31, 2020, the Company held an equity investment of $1.2 million in GeneQuine Biotherapeutics GmbH, or GeneQuine, a privately held biopharmaceutical company headquartered in Hamburg, Germany. This investment has no readily determinable fair value and is recorded at cost minus impairment, if any, plus or minus observable price changes of identical or similar investments. In January 2021 the Company purchased a convertible note from GeneQuine in the amount of $1.2 million. There were no adjustments recognized in the GeneQuine investments during the three months ended March 31, 2021.The Company has the right to make additional investments in both equity and debt securities of $4.7 million predicated upon GeneQuine achieving certain prespecified near-term milestones.

Acquisition-related Contingent Consideration

In April 2019, the Company completed the MyoScience Acquisition pursuant to the terms of an Agreement and Plan of Merger, which provided for contingent milestone payments of up to an aggregate of $100.0 million upon the achievement of certain regulatory and commercial milestones. The Company’s obligation to make milestone payments is limited to those milestones achieved through December 31, 2023, and are to be paid within 60 days of the end of the fiscal quarter of achievement. As of March 31, 2021, the maximum potential remaining milestone payments are $58.0 million. The Company made no milestone payments during the three months ended March 31, 2021. In the three months ended March 31, 2020, the Company made a $5.0 million cash payment for the achievement of one regulatory milestone. A regulatory milestone in the amount of $10.0 million is payable during the second quarter of 2021. As of March 31, 2021 and December 31, 2020, the Company has recognized contingent consideration related to the MyoScience Acquisition in the amounts of $27.2 million and $28.3 million, respectively.

The Company’s contingent consideration obligations are recorded at their estimated fair values and are revalued each reporting period if and until the related contingencies are resolved. In the three month periods ended March 31, 2021 and 2020, the Company recognized $1.1 million and $3.9 million of gains, respectively, which have been included in acquisition-related gains in the condensed consolidated statements of operations. The Company has measured the fair value of its contingent consideration using a probability-weighted discounted cash flow approach that is based on unobservable inputs and a Monte Carlo simulation. These inputs include, as applicable, estimated probabilities and the timing of achieving specified commercial and regulatory milestones, estimated forecasts of revenue and costs and the discount rate used to calculate the present value of estimated future payments. Significant changes may increase or decrease the probabilities of achieving the related commercial and regulatory events, shorten or lengthen the time required to achieve such events, or increase or decrease estimated forecasts. At March 31, 2021, the weighted average discount rate was 3.66% and the weighted average probability of success for regulatory milestones that have not yet been met was 34.7%.

The following table includes the key assumptions used in the valuation of the Company’s contingent consideration:


Assumption						Ranges Utilized as of March 31, 2021
Discount rates						3.50% to 3.82%
Probabilities of payment for regulatory milestones						2% to 100%
Projected years of payment for regulatory and commercial milestones						2021 to 2023

The change in the Company’s contingent consideration recorded at fair value using Level 3 measurements is as follows (in thousands):


	Contingent Consideration Fair Value
Balance at December 31, 2020	$	28,346

Fair value adjustments and accretion	(1,127)
Payments made	—
Balance at March 31, 2021	$	27,219

Investments

Short-term investments consist of asset-backed securities collateralized by credit card receivables, investment grade commercial paper and corporate and government bonds with maturities greater than three months, but less than one year. Long-term investments consist of asset-backed securities collateralized by credit card receivables and government bonds with maturities greater than one year but less than three years. Net unrealized gains and losses (excluding credit losses, if any) from the Company’s short-term and long-term investments are reported in other comprehensive income (loss). At March 31, 2021, all of the Company’s short-term and long-term investments are classified as available-for-sale investments and are determined to be Level 2 instruments, which are measured at fair value using standard industry models with observable inputs. The fair value of the commercial paper is measured based on a standard industry model that uses the three-month U.S. Treasury bill rate as an observable input. The fair value of the asset-backed securities and corporate bonds is principally measured or corroborated by trade data for identical issues in which related trading activity is not sufficiently frequent to be considered a Level 1 input or that of comparable securities. At the time of purchase, all short-term and long-term investments had an “A” or better rating by Standard & Poor’s.

The following summarizes the Company’s investments at March 31, 2021 and December 31, 2020 (in thousands):


March 31, 2021 Investments	Cost		Gross Unrealized Gains		Gross Unrealized Losses		Fair Value (Level 2)
Short-term:
Asset-backed securities	$	7,147	$	5	$	(1)	$	7,151
Commercial paper	325,912		45		(9)		325,948
Corporate bonds	89,350		52		(23)		89,379
U.S. Government bonds	100,851		35		—		100,886
Subtotal	523,260		137		(33)		523,364
Long-term:
Asset-backed securities	3,469		—		(2)		3,467

U.S. Government bonds	31,486		18		—		31,504
Subtotal	34,955		18		(2)		34,971
Total	$	558,215	$	155	$	(35)	$	558,335


December 31, 2020 Investments	Cost		Gross Unrealized Gains		Gross Unrealized Losses		Fair Value (Level 2)
Short-term:
Asset-backed securities	$	34,918	$	98	$	—	$	35,016
Commercial paper	221,494		36		(18)		221,512
Corporate bonds	120,375		179		(11)		120,543
U.S. Government bonds	44,629		7		(2)		44,634
Subtotal	421,416		320		(31)		421,705
Long-term:


U.S. Government bonds	95,429		30		—		95,459
Subtotal	95,429		30		—		95,459
Total	$	516,845	$	350	$	(31)	$	517,164

At March 31, 2021, there were no investments available for sale that were materially less than their amortized cost.

The Company elects to recognize its interest receivable separate from its available-for-sale investments. At March 31, 2021 and December 31, 2020, the interest receivable recognized in prepaid expenses and other current assets was $0.8 million and $1.6 million, respectively.

Credit Risk

Financial instruments that potentially subject the Company to concentrations of credit risk consist primarily of cash and cash equivalents, short-term and long-term investments and accounts receivable. The Company maintains its cash and cash equivalents with high-credit quality financial institutions. Such amounts may exceed federally-insured limits.

As of March 31, 2021, three wholesalers each accounted for over 10% of the Company’s accounts receivable, at 35%, 27% and 26%. At December 31, 2020, three wholesalers each accounted for over 10% of the Company’s accounts receivable, at 36%, 28% and 23%. For additional information regarding the Company’s wholesalers, see Note 2, Summary of Significant Accounting Policies. EXPAREL revenues are primarily derived from major wholesalers that generally have significant cash resources. The Company performs ongoing credit evaluations of its customers as warranted and generally does not require collateral. Allowances for credit losses on the Company’s accounts receivable are maintained based on historical payment patterns, current and estimated future economic conditions, aging of accounts receivable and its write-off history. As of March 31, 2021 and December 31, 2020, the Company did not deem any allowances for credit losses on its accounts receivable necessary.

STOCK PLANS

3 Months Ended

Mar. 31, 2021

Stockholders' Equity Note [Abstract]

STOCK PLANS

Stock-Based Compensation

The Company recognized stock-based compensation expense in the periods presented as follows (in thousands):


	Three Months Ended March 31,
	2021		2020
Cost of goods sold	$	1,452	$	1,219
Research and development	1,106		1,186
Selling, general and administrative	7,552		6,442
Total	$	10,110	$	8,847

Stock-based compensation from:
Stock options	$	6,496	$	6,225
Restricted stock units	3,392		2,402
Employee stock purchase plan	222		220
Total	$	10,110	$	8,847

Equity Awards

The following tables contain information about the Company’s stock option and restricted stock unit, or RSU, activity for the three months ended March 31, 2021:


Stock Options	Number of Options	Weighted Average Exercise Price (Per Share)
Outstanding at December 31, 2020	6,235,118	$	45.98
Granted	43,500	65.49
Exercised	(317,259)	34.03
Forfeited	(96,265)	45.29
Expired	(6,616)	71.11
Outstanding at March 31, 2021	5,858,478	46.76


Restricted Stock Units	Number of Units	Weighted Average Grant Date Fair Value (Per Share)
Unvested at December 31, 2020	957,453	$	46.34
Granted	22,500	69.35
Vested	(3,322)	42.01
Forfeited	(35,767)	47.89
Unvested at March 31, 2021	940,864	46.85

The weighted average fair value of stock options granted during the three months ended March 31, 2021 was $30.86 per share. The fair values of stock options granted were estimated using the Black-Scholes option valuation model with the following weighted average assumptions:


Black-Scholes Weighted Average Assumption						Three Months Ended March 31, 2021
Expected dividend yield						None
Risk-free interest rate						0.49%
Expected volatility						53.41%
Expected term of options						5.38 years

Employee Stock Purchase Plan

The Company’s 2014 Employee Stock Purchase Plan, or ESPP, features two six-month offering periods per year, running from January 1 to June 30 and July 1 to December 31. Under the ESPP, employees may elect to contribute after-tax earnings to purchase shares at 85% of the closing fair market value of the Company’s common stock on either the offering date or the purchase date, whichever is less. During the three months ended March 31, 2021, no shares were purchased and issued through the ESPP.

STOCKHOLDERS' EQUITY

3 Months Ended

Mar. 31, 2021

Stockholders' Equity Note [Abstract]

Stockholders' Equity

STOCKHOLDERS’ EQUITY

Accumulated Other Comprehensive Income (Loss)

The following table illustrates the changes in the balances of the Company’s accumulated other comprehensive income (loss) for the periods presented (in thousands):


	Three Months Ended March 31,
Net unrealized gains (losses) from available-for-sale investments:	2021		2020
Balance at beginning of period	$	318	$	322
Net unrealized loss on investments, net of tax	(150)		(1,368)
Foreign currency translation adjustments	4		—
Amounts reclassified from accumulated other comprehensive income (loss)	—		—
Balance at end of period	$	172	$	(1,046)

NET INCOME (LOSS) PER SHARE

3 Months Ended

Mar. 31, 2021

Earnings Per Share [Abstract]

NET INCOME (LOSS) PER SHARE

Basic net income (loss) per share is calculated by dividing the net income (loss) attributable to common shares by the weighted average number of common shares outstanding during the period. Diluted net income (loss) per common share is calculated by dividing the net income (loss) attributable to common shares by the weighted average number of common shares outstanding plus dilutive potential common shares outstanding during the period.

Potential common shares include the shares of common stock issuable upon the exercise of outstanding stock options, the vesting of RSUs, the purchase of shares from the ESPP (using the treasury stock method) and the conversion of the excess conversion value on the 2022 Notes and 2025 Notes. As discussed in Note 8, Debt, the Company has the option to pay cash for the aggregate principal amount due upon the conversion of its 2022 Notes and 2025 Notes. Since it is the Company’s intent to settle the principal amount of its 2022 Notes and 2025 Notes in cash, the potentially dilutive effect of such notes on net income (loss) per share is computed under the treasury stock method. ASU 2020-06 will require the Company to use the if-converted method upon adoption; this new accounting pronouncement has not been adopted as of March 31, 2021.

Potential common shares are excluded from the diluted net income (loss) per share computation to the extent they would be antidilutive.

The following table sets forth the computation of basic and diluted net income per share for the three months ended March 31, 2021 and 2020 (in thousands, except per share amounts):


	Three Months Ended March 31,
	2021		2020
Numerator:
Net income	$	10,369	$	8,159







Denominator:
Weighted average common shares outstanding—basic	43,833		42,032
Computation of diluted securities:
Dilutive effect of stock options	1,507		585
Dilutive effect of RSUs	470		168
Dilutive effect of conversion premium on the 2022 Notes	152		—
Dilutive effect of ESPP purchase options	4		—

Weighted average common shares outstanding—diluted	45,966		42,785
Net income per share:
Basic net income per common share	$	0.24	$	0.19
Diluted net income per common share	$	0.23	$	0.19

The following outstanding stock options, RSUs and ESPP purchase options are antidilutive in the periods presented (in thousands):


	Three Months Ended March 31,
	2021	2020
Weighted average number of stock options	890	5,343
Weighted average number of RSUs	2	2

Weighted average ESPP purchase options	—	40

Total	892	5,385

INCOME TAXES

3 Months Ended

Mar. 31, 2021

Income Tax Disclosure [Abstract]

INCOME TAXES

Income (loss) before income taxes is as follows (in thousands):


	Three Months Ended March 31,
	2021		2020
Income (loss) before income taxes:
Domestic	$	15,933	$	9,821
Foreign	(3,209)		(1,264)
Total income before income taxes	$	12,724	$	8,557

For the three months ended March 31, 2021 and 2020, the Company had income tax expense of $2.4 million and $0.4 million, respectively. The income tax expense for the three months ended March 31, 2021 represents the estimated annual effective tax rate applied to the year-to-date domestic operating results adjusted for certain discrete tax benefits related to equity compensation. The income tax expense for the three months ended March 31, 2020 consisted primarily of state income taxes in jurisdictions where the availability of carryforward losses were either limited or fully utilized.

During the year ended December 31, 2020, the Company determined that there was sufficient positive evidence to conclude that it was more likely than not that domestic deferred taxes were realizable and, therefore, released the valuation allowance. The Company continues to maintain a full valuation allowance on its foreign net deferred tax balances.

- Definition

The entire disclosure for income taxes. Disclosures may include net deferred tax liability or asset recognized in an enterprise's statement of financial position, net change during the year in the total valuation allowance, approximate tax effect of each type of temporary difference and carryforward that gives rise to a significant portion of deferred tax liabilities and deferred tax assets, utilization of a tax carryback, and tax uncertainties information.

+ References + Details

COMMERCIAL PARTNERS	3 Months Ended
COMMERCIAL PARTNERS	Mar. 31, 2021
Reorganizations [Abstract]
COMMERCIAL PARTNERS	COMMERCIAL PARTNERS Nuance Biotech Co. Ltd. In June 2018, the Company entered an agreement with Nuance Biotech Co. Ltd., or Nuance, a China-based specialty pharmaceutical company, to advance the development and commercialization of EXPAREL in China. Under the terms of the agreement, the Company had granted Nuance the exclusive rights to develop and commercialize EXPAREL. In April 2021, Pacira and Nuance agreed to a mutual termination of the agreement due to the lack of a viable regulatory pathway that adequately safeguards the Company’s intellectual property against the risk of a generic product. Estimated dissolution costs of $3.0 million have been included in other operating expenses in the condensed consolidated statements of operations for the three months ended March 31, 2021.

COMMITMENTS AND CONTINGENCIES	3 Months Ended
COMMITMENTS AND CONTINGENCIES	Mar. 31, 2021
Commitments and Contingencies Disclosure [Abstract]
COMMITMENTS AND CONTINGENCIES	COMMITMENTS AND CONTINGENCIES From time to time, the Company has been and may again become involved in legal proceedings arising in the ordinary course of its business, including those related to patents, product liability and government investigations. Except as described below, the Company is not presently a party to any legal proceedings that it believes to be material, and is not aware of any pending or threatened litigation against the Company which it believes could have a material adverse effect on its business, operating results, financial condition or cash flows. MyoScience Milestone Litigation In August 2020, the Company and its subsidiary, Pacira CryoTech, Inc. (“Pacira CryoTech”), filed a lawsuit in the Court of Chancery of the State of Delaware against Fortis Advisors LLC (“Fortis”), solely in its capacity as representative for the former securityholders of MyoScience, and certain other defendants, seeking declaratory judgment with respect to certain terms of the merger agreement for the MyoScience Acquisition (the “Merger Agreement”), specifically related to the achievement of certain milestone payments under the Merger Agreement. In addition, the Company and Pacira CryoTech sought general, special and compensatory damages against the other defendants related to breach of fiduciary duties in connection with the purported achievement of milestone payments under the Merger Agreement, and breach of the Merger Agreement and certain other agreements with the defendants. In October 2020, Fortis filed an answer and counterclaim against the Company and Pacira CryoTech seeking to recover certain milestone payments under the Merger Agreement totaling $40.0 million, and attorneys’ fees. The Company believes that the counterclaim from Fortis is without merit and intends to vigorously defend against all claims. The Company is unable to predict the outcome of this action at this time. Other Commitments and Contingencies The United States Food and Drug Administration, or FDA, as a condition of EXPAREL approval, has required the Company to study EXPAREL in pediatric patients. The Company was granted a deferral for the required pediatric trials in all age groups for EXPAREL in the setting of wound infiltration and is conducting these pediatric trials as post-marketing requirements, as stated in the New Drug Application (NDA) approval letter for EXPAREL. Similarly, in Europe, the Company agreed with the European Medicines Agency, or EMA, on a Pediatric Investigation Plan, or PIP, as a prerequisite for submitting a Marketing Authorization Application (MAA) in the E.U. Despite the United Kingdom’s withdrawal from the E.U. (“Brexit”), the PIP will be applicable in the United Kingdom as well. In December 2019, the Company announced positive results for its extended pharmacokinetic and safety study for local analgesia in children aged 6 to 17 undergoing cardiovascular or spine surgeries. Those positive results provided the foundation for a supplemental New Drug Application, or sNDA, and in March 2021, the Company announced that the FDA approved the submission of the sNDA seeking expansion of the EXPAREL label to include use in patients 6 years of age and older for single-dose infiltration to produce postsurgical local analgesia. The Company is working with both the FDA and EMA to harmonize its pediatric clinical studies as much as possible between the two regions.

SUBSEQUENT EVENTS	3 Months Ended
SUBSEQUENT EVENTS	Mar. 31, 2021
Subsequent Events [Abstract]
SUBSEQUENT EVENTS	SUBSEQUENT EVENTS In April 2021, the Company made cash investments of $13.0 million in debt and equity securities of two separate pre-clinical stage biopharmaceutical companies. The Company intends to make an additional $7.0 million investment if and when certain events occur.

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies)	3 Months Ended
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies)	Mar. 31, 2021
Accounting Policies [Abstract]
Basis of Presentation and Principles of Consolidation	Basis of Presentation and Principles of Consolidation These interim condensed consolidated financial statements have been prepared in accordance with generally accepted accounting principles in the United States of America, or GAAP, and in accordance with the rules and regulations of the United States Securities and Exchange Commission (SEC), for interim reporting. Pursuant to these rules and regulations, certain information and footnote disclosures normally included in complete annual financial statements have been condensed or omitted. Therefore, these interim condensed consolidated financial statements should be read in conjunction with the audited annual consolidated financial statements and notes thereto included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2020. The condensed consolidated financial statements at March 31, 2021, and for the three-month periods ended March 31, 2021 and 2020, are unaudited, but include all adjustments (consisting of only normal recurring adjustments) which, in the opinion of management, are necessary to present fairly the financial information set forth herein in accordance with GAAP. The condensed consolidated balance sheet at December 31, 2020 is derived from the audited consolidated financial statements included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2020. The condensed consolidated financial statements as presented reflect certain reclassifications from previously issued financial statements to conform to the current year presentation. The accounts of wholly-owned subsidiaries are included in the condensed consolidated financial statements. Intercompany accounts and transactions have been eliminated in consolidation. The results of operations for these interim periods are not necessarily indicative of results that may be expected for any other interim periods or for the full year.
Concentration of Major Customers	Concentration of Major Customers The Company sells EXPAREL through a drop-ship program under which orders are processed through wholesalers (including AmerisourceBergen Health Corporation, Cardinal Health, Inc. and McKesson Drug Company), but shipments of the product are sent directly to individual accounts, such as hospitals, ambulatory surgery centers and individual doctors. The Company also sells EXPAREL directly to ambulatory surgery centers and physicians. The Company sells its bupivacaine liposome injectable suspension for veterinary use to a third-party licensee and sells iovera° directly to end users.
Recent Accounting Pronouncements	Recently Adopted Accounting Pronouncements In December 2019, the Financial Accounting Standards Board, or FASB, issued Accounting Standards Update, or ASU, 2019-12, Income Taxes (Topic 740), Simplifying the Accounting for Income Taxes, which amended the approaches and methodologies in accounting for income taxes during interim periods and makes changes to certain income tax classifications. The new standard now allows for certain exceptions, including an exception to the use of the incremental approach for intra-period tax allocations, when there is a loss from continuing operations and income or a gain from other items, and to the general methodology for calculating income taxes in an interim period, when a year-to-date loss exceeds the anticipated loss for the year. The standard also requires franchise or similar taxes partially based on income to be reported as income tax and to reflect the effects of enacted changes in tax laws or rates in the annual effective tax rate computation from the date of enactment. Lastly, in any future acquisition, the Company would be required to evaluate when the step-up in the tax basis of goodwill is part of the business combination and when it should be considered a separate transaction. The standard became effective for the Company beginning January 1, 2021, and there were no material impacts to the consolidated financial statements upon adoption. Recent Accounting Pronouncements Not Adopted as of March 31, 2021 In August 2020, the FASB issued ASU 2020-06, Debt—Debt with Conversion and Other Options (Subtopic 470-20) and Derivatives and Hedging—Contracts in Entity’s Own Equity (Subtopic 815-40), which limits the number of convertible instruments that require separate accounting to (i) those with embedded conversion features that are not clearly and closely related to the debt, that meet the definition of a derivative, and that do not qualify for the scope exception from derivative accounting and (ii) convertible debt instruments issued with substantial premiums for which the premiums are recorded as paid-in capital. In addition, the new guidance requires diluted earnings per share calculations to be prepared using the if-converted method, instead of the treasury stock method. The guidance must be applied in fiscal years beginning after December 15, 2021, including interim periods within those fiscal years. The Company has the option to adopt the new guidance using a modified retrospective method of transition, which would then be applied to transactions outstanding at the time of adoption, or the full retrospective method. The Company is evaluating the impact from the adoption of ASU 2020-06 on its consolidated financial statements.

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Tables)

3 Months Ended

Mar. 31, 2021

Accounting Policies [Abstract]

Schedule of percentage of revenue comprised by the three largest customers (i.e. wholesalers or commercial partners)

The table below includes the percentage of revenues comprised by the Company’s three largest wholesalers in each period presented:


	Three Months Ended March 31,
	2021	2020
Largest wholesaler	32%	32%
Second largest wholesaler	29%	31%
Third largest wholesaler	27%	26%
Total	88%	89%

REVENUE (Tables)

3 Months Ended

Mar. 31, 2021

Revenue from Contract with Customer [Abstract]

Disaggregated Revenue

The following table represents disaggregated net product sales in the periods presented as follows (in thousands):


	Three Months Ended March 31,
	2021		2020
Net product sales:
EXPAREL / bupivacaine liposome injectable suspension	$	115,470	$	102,475
iovera°	3,268		2,270
Total net product sales	$	118,738	$	104,745

INVENTORIES (Tables)

3 Months Ended

Mar. 31, 2021

Inventory Disclosure [Abstract]

Schedule of components of inventories

The components of inventories, net are as follows (in thousands):


	March 31,		December 31,
	2021		2020
Raw materials	$	31,697	$	26,886
Work-in-process	10,035		16,266
Finished goods	22,874		21,498
Total	$	64,606	$	64,650

FIXED ASSETS (Tables)

3 Months Ended

Mar. 31, 2021

Property, Plant and Equipment [Abstract]

Schedule of fixed assets summarized by major category

Fixed assets, net, summarized by major category, consist of the following (in thousands):


	March 31,		December 31,
	2021		2020
Machinery and equipment	$	76,732	$	74,966
Leasehold improvements	54,567		54,434
Computer equipment and software	12,312		12,170
Office furniture and equipment	2,477		2,387
Construction in progress	79,951		71,091
Total	226,039		215,048
Less: accumulated depreciation	(81,217)		(78,360)
Fixed assets, net	$	144,822	$	136,688

LEASES (Tables)

3 Months Ended

Mar. 31, 2021

Leases [Abstract]

Summary of operating lease cost and other operating lease information


	Three Months Ended
	March 31,
	2021		2020
Fixed lease costs	$	2,922	$	1,564
Variable lease costs	478		448
Total	$	3,400	$	2,012

Supplemental cash flow information related to operating leases is as follows (in thousands):


	Three Months Ended
	March 31,
	2021		2020
Cash paid for operating lease liabilities, net of lease incentive	$	4,600	$	2,759
Right-of-use assets recorded in exchange for lease obligations	$	—	$	174


	March 31,
	2021		2020
Weighted average remaining lease term	8.95 years		9.23 years
Weighted average discount rate	6.89	%	7.55	%

Schedule of maturities of operating lease liabilities

Maturities of the Company’s operating lease liabilities are as follows (in thousands):


Year	Aggregate Minimum Payments Due
2021 (remaining nine months)	$	8,059
2022	10,423
2023	10,697
2024	10,980
2025	11,271
2026 through 2031	50,802
Total lease payments	102,232

Less: imputed interest	(27,063)
Total operating lease liabilities	$	75,169

GOODWILL AND INTANGIBLE ASSETS (Tables)

3 Months Ended

Mar. 31, 2021

Goodwill and Intangible Assets Disclosure [Abstract]

Schedule of Finite-Lived Intangible Assets Acquired as Part of Business Combination

Intangible assets, net, consist of the developed technology and customer relationships that were acquired in the MyoScience Acquisition and are summarized as follows (in thousands):


	Estimated Useful Life	March 31,		December 31,
		2021		2020
Developed technology	14 years	$	110,000	$	110,000
Customer relationships	10 years	90		90
Total intangible assets		110,090		110,090
Less: accumulated amortization		(15,536)		(13,569)
Intangible assets, net		$	94,554	$	96,521

DEBT (Tables)

3 Months Ended

Mar. 31, 2021

Debt Disclosure [Abstract]

Schedule of composition of the Company's debt and financing obligations

The total debt composition of the 2025 Notes is as follows (in thousands):


	March 31,		December 31,
	2021		2020
0.750% convertible senior notes due 2025	$	402,500	$	402,500
Deferred financing costs	(8,502)		(8,940)
Discount on debt	(76,660)		(80,530)
Total debt, net of debt discount and deferred financing costs	$	317,338	$	313,030

The total debt composition of the 2022 Notes is as follows (in thousands):


	March 31,		December 31,
	2021		2020
2.375% convertible senior notes due 2022	$	160,000	$	160,000
Deferred financing costs	(876)		(1,089)
Discount on debt	(7,477)		(9,263)
Total debt, net of debt discount and deferred financing costs	$	151,647	$	149,648

Schedule of total interest expense recognized related to the Notes

The following table sets forth the total interest expense recognized in the periods presented (dollar amounts in thousands):


	Three Months Ended March 31,
	2021			2020
Contractual interest expense	$	1,705		$	2,049
Amortization of debt issuance costs	651			439
Amortization of debt discount	5,657			3,594
Capitalized interest and other (Note 5)	(1,042)			(60)
Total	$	6,971		$	6,022

Effective interest rate on convertible senior notes	6.70		%	7.81		%

FINANCIAL INSTRUMENTS (Tables)

3 Months Ended

Mar. 31, 2021

Fair Value Disclosures [Abstract]

Schedule of carrying amount and fair value of the long-term debt


	Carrying Value		Fair Value Measurements Using
			Level 1		Level 2		Level 3
Financial Assets and Financial Liabilities Measured at Fair Value on a Recurring Basis:
Financial Assets:
Equity investment with readily determinable fair value	$	11,533	$	11,533	$	—	$	—
Note receivable	$	1,174	$	—	$	—	$	1,174
Financial Liabilities:
Acquisition-related contingent consideration	$	27,219	$	—	$	—	$	27,219

Financial Liabilities Measured at Amortized Cost:
2.375% convertible senior notes due 2022 (1)	$	151,647	$	—	$	194,500	$	—
0.750% convertible senior notes due 2025 (1)	$	317,338	$	—	$	483,000	$	—

Schedule of key assumptions used in the valuation of contingent consideration

The following table includes the key assumptions used in the valuation of the Company’s contingent consideration:


Assumption						Ranges Utilized as of March 31, 2021
Discount rates						3.50% to 3.82%
Probabilities of payment for regulatory milestones						2% to 100%
Projected years of payment for regulatory and commercial milestones						2021 to 2023

Schedule of change in contingent consideration recorded at fair value using Level 3 measurements

The change in the Company’s contingent consideration recorded at fair value using Level 3 measurements is as follows (in thousands):


	Contingent Consideration Fair Value
Balance at December 31, 2020	$	28,346

Fair value adjustments and accretion	(1,127)
Payments made	—
Balance at March 31, 2021	$	27,219

Schedule of short-term investments

The following summarizes the Company’s investments at March 31, 2021 and December 31, 2020 (in thousands):


March 31, 2021 Investments	Cost		Gross Unrealized Gains		Gross Unrealized Losses		Fair Value (Level 2)
Short-term:
Asset-backed securities	$	7,147	$	5	$	(1)	$	7,151
Commercial paper	325,912		45		(9)		325,948
Corporate bonds	89,350		52		(23)		89,379
U.S. Government bonds	100,851		35		—		100,886
Subtotal	523,260		137		(33)		523,364
Long-term:
Asset-backed securities	3,469		—		(2)		3,467

U.S. Government bonds	31,486		18		—		31,504
Subtotal	34,955		18		(2)		34,971
Total	$	558,215	$	155	$	(35)	$	558,335


December 31, 2020 Investments	Cost		Gross Unrealized Gains		Gross Unrealized Losses		Fair Value (Level 2)
Short-term:
Asset-backed securities	$	34,918	$	98	$	—	$	35,016
Commercial paper	221,494		36		(18)		221,512
Corporate bonds	120,375		179		(11)		120,543
U.S. Government bonds	44,629		7		(2)		44,634
Subtotal	421,416		320		(31)		421,705
Long-term:


U.S. Government bonds	95,429		30		—		95,459
Subtotal	95,429		30		—		95,459
Total	$	516,845	$	350	$	(31)	$	517,164

STOCK PLANS (Tables)

3 Months Ended

Mar. 31, 2021

Stockholders' Equity Note [Abstract]

Schedule of recognized stock-based compensation in consolidated statements of operations

The Company recognized stock-based compensation expense in the periods presented as follows (in thousands):


	Three Months Ended March 31,
	2021		2020
Cost of goods sold	$	1,452	$	1,219
Research and development	1,106		1,186
Selling, general and administrative	7,552		6,442
Total	$	10,110	$	8,847

Stock-based compensation from:
Stock options	$	6,496	$	6,225
Restricted stock units	3,392		2,402
Employee stock purchase plan	222		220
Total	$	10,110	$	8,847

Schedule of the Company's stock option activity and related information

The following tables contain information about the Company’s stock option and restricted stock unit, or RSU, activity for the three months ended March 31, 2021:


Stock Options	Number of Options	Weighted Average Exercise Price (Per Share)
Outstanding at December 31, 2020	6,235,118	$	45.98
Granted	43,500	65.49
Exercised	(317,259)	34.03
Forfeited	(96,265)	45.29
Expired	(6,616)	71.11
Outstanding at March 31, 2021	5,858,478	46.76


Restricted Stock Units	Number of Units	Weighted Average Grant Date Fair Value (Per Share)
Unvested at December 31, 2020	957,453	$	46.34
Granted	22,500	69.35
Vested	(3,322)	42.01
Forfeited	(35,767)	47.89
Unvested at March 31, 2021	940,864	46.85

Schedule of Share-based Payment Award, Stock Options, Valuation Assumptions

The fair values of stock options granted were estimated using the Black-Scholes option valuation model with the following weighted average assumptions:


Black-Scholes Weighted Average Assumption						Three Months Ended March 31, 2021
Expected dividend yield						None
Risk-free interest rate						0.49%
Expected volatility						53.41%
Expected term of options						5.38 years

STOCKHOLDERS' EQUITY (Tables)

3 Months Ended

Mar. 31, 2021

Stockholders' Equity Note [Abstract]

Schedule of accumulated other comprehensive income (loss)

The following table illustrates the changes in the balances of the Company’s accumulated other comprehensive income (loss) for the periods presented (in thousands):


	Three Months Ended March 31,
Net unrealized gains (losses) from available-for-sale investments:	2021		2020
Balance at beginning of period	$	318	$	322
Net unrealized loss on investments, net of tax	(150)		(1,368)
Foreign currency translation adjustments	4		—
Amounts reclassified from accumulated other comprehensive income (loss)	—		—
Balance at end of period	$	172	$	(1,046)

NET INCOME (LOSS) PER SHARE (Tables)

3 Months Ended

Mar. 31, 2021

Earnings Per Share [Abstract]

Schedule of computation of basic and diluted loss per share

The following table sets forth the computation of basic and diluted net income per share for the three months ended March 31, 2021 and 2020 (in thousands, except per share amounts):


	Three Months Ended March 31,
	2021		2020
Numerator:
Net income	$	10,369	$	8,159







Denominator:
Weighted average common shares outstanding—basic	43,833		42,032
Computation of diluted securities:
Dilutive effect of stock options	1,507		585
Dilutive effect of RSUs	470		168
Dilutive effect of conversion premium on the 2022 Notes	152		—
Dilutive effect of ESPP purchase options	4		—

Weighted average common shares outstanding—diluted	45,966		42,785
Net income per share:
Basic net income per common share	$	0.24	$	0.19
Diluted net income per common share	$	0.23	$	0.19

Schedule of potential dilutive effect of the securities excluded from the calculation of diluted loss per share

The following outstanding stock options, RSUs and ESPP purchase options are antidilutive in the periods presented (in thousands):


	Three Months Ended March 31,
	2021	2020
Weighted average number of stock options	890	5,343
Weighted average number of RSUs	2	2

Weighted average ESPP purchase options	—	40

Total	892	5,385

INCOME TAXES (Tables)

3 Months Ended

Mar. 31, 2021

Income Tax Disclosure [Abstract]

Schedule of Income before Income Tax, Domestic and Foreign

Income (loss) before income taxes is as follows (in thousands):


	Three Months Ended March 31,
	2021		2020
Income (loss) before income taxes:
Domestic	$	15,933	$	9,821
Foreign	(3,209)		(1,264)
Total income before income taxes	$	12,724	$	8,557

DESCRIPTION OF BUSINESS (Details)	3 Months Ended
DESCRIPTION OF BUSINESS (Details)	Mar. 31, 2021 productLine segment
Concentration Risk [Line Items]
Number of reportable segments \| segment	1
Sales Revenue, Net \| Product Concentration Risk
Concentration Risk [Line Items]
Concentration of products (in products) \| productLine	2

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details) - Concentration risk by major customer - Sales Revenue, Net	3 Months Ended
	Mar. 31, 2021	Mar. 31, 2020
Concentration of Major Customers
Percentage of revenue from customers to total revenue	88.00%	89.00%
Largest wholesaler
Concentration of Major Customers
Percentage of revenue from customers to total revenue	32.00%	32.00%
Second largest wholesaler
Concentration of Major Customers
Percentage of revenue from customers to total revenue	29.00%	31.00%
Third largest wholesaler
Concentration of Major Customers
Percentage of revenue from customers to total revenue	27.00%	26.00%

REVENUE (Details) - USD ($) $ in Thousands	3 Months Ended
REVENUE (Details) - USD ($) $ in Thousands	Mar. 31, 2021	Mar. 31, 2020
Disaggregation of Revenue [Line Items]
Total net product sales	$ 119,027	$ 105,684
Product
Disaggregation of Revenue [Line Items]
Total net product sales	118,738	104,745
EXPAREL / bupivacaine liposome injectable suspension
Disaggregation of Revenue [Line Items]
Total net product sales	115,470	102,475
iovera°
Disaggregation of Revenue [Line Items]
Total net product sales	$ 3,268	$ 2,270
Minimum
Disaggregation of Revenue [Line Items]
Accounts receivable, payment terms	0 days
Maximum
Disaggregation of Revenue [Line Items]
Accounts receivable, payment terms	37 days

- Definition

Amount, excluding tax collected from customer, of revenue from satisfaction of performance obligation by transferring promised good or service to customer. Tax collected from customer is tax assessed by governmental authority that is both imposed on and concurrent with specific revenue-producing transaction, including, but not limited to, sales, use, value added and excise.

+ References

Reference 1: http://www.xbrl.org/2003/role/disclosureRef
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Reference 2: http://www.xbrl.org/2003/role/disclosureRef
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Reference 3: http://www.xbrl.org/2003/role/disclosureRef
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Reference 4: http://www.xbrl.org/2003/role/disclosureRef
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Reference 5: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
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Reference 6: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 606
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-Paragraph 4
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Reference 7: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
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Reference 8: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
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Reference 9: http://www.xbrl.org/2003/role/disclosureRef
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-Name Accounting Standards Codification
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Reference 10: http://www.xbrl.org/2003/role/disclosureRef
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-Name Accounting Standards Codification
-Topic 606
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-URI http://asc.fasb.org/extlink&oid=121604090&loc=SL49130545-203045

Reference 11: http://www.xbrl.org/2003/role/disclosureRef
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-Name Accounting Standards Codification
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-Paragraph 1
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+ Details

INVENTORIES (Details) - USD ($) $ in Thousands	Mar. 31, 2021	Dec. 31, 2020
Inventory Disclosure [Abstract]
Raw materials	$ 31,697	$ 26,886
Work-in-process	10,035	16,266
Finished goods	22,874	21,498
Total	$ 64,606	$ 64,650

FIXED ASSETS (Details) - USD ($) $ in Thousands	3 Months Ended
FIXED ASSETS (Details) - USD ($) $ in Thousands	Mar. 31, 2021	Mar. 31, 2020	Dec. 31, 2020
FIXED ASSETS
Total	$ 226,039		$ 215,048
Less: accumulated depreciation	(81,217)		(78,360)
Fixed assets, net	144,822		136,688
Depreciation expense	2,900	$ 2,900
Capitalized interest	1,042	60
Foreign property, plant and equipment, net	67,800		67,500
Asset retirement obligation	2,000		2,000
Machinery and equipment
FIXED ASSETS
Total	76,732		74,966
Leasehold improvements
FIXED ASSETS
Total	54,567		54,434
Computer equipment and software
FIXED ASSETS
Total	12,312		12,170
Office furniture and equipment
FIXED ASSETS
Total	2,477		2,387
Construction in progress
FIXED ASSETS
Total	79,951		$ 71,091
Capitalized interest	$ 1,000	$ 100

LEASES - Narrative (Details)	Mar. 31, 2021
Leases [Abstract]
Term of contract	9 years 4 months 24 days

LEASES - Summary of operating lease cost and other operating lease information (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2021	Mar. 31, 2020
Lease, Cost [Abstract]
Fixed lease costs	$ 2,922	$ 1,564
Variable lease costs	478	448
Total	3,400	2,012
Cash Flow, Operating Activities, Lessee [Abstract]
Cash paid for operating lease liabilities, net of lease incentive	4,600	2,759
Right-of-use assets recorded in exchange for lease obligations	$ 0	$ 174
Weighted average remaining lease term	8 years 11 months 12 days	9 years 2 months 23 days
Weighted average discount rate	6.89%	7.55%

LEASES - Schedule of maturities of operating lease liabilities (Details) $ in Thousands	Mar. 31, 2021 USD ($)
Leases [Abstract]
2021 (remaining nine months)	$ 8,059
2022	10,423
2023	10,697
2024	10,980
2025	11,271
2026 through 2031	50,802
Total lease payments	102,232
Less: imputed interest	(27,063)
Total operating lease liabilities	$ 75,169

GOODWILL AND INTANGIBLE ASSETS (Details) - USD ($)		3 Months Ended
GOODWILL AND INTANGIBLE ASSETS (Details) - USD ($)	Apr. 09, 2019	Mar. 31, 2021	Mar. 31, 2020	Dec. 31, 2020
Goodwill
Change in carrying value of goodwill during period		$ 0
Goodwill recorded in connection with the acquisition		99,547,000		$ 99,547,000
Amortization of acquired intangible assets		1,967,000	$ 1,967,000
Amortization expense, remainder of fiscal year		5,900,000
Amortization expense, first period		7,900,000
Amortization expense, second period		$ 2,200,000
Myoscience Acquisition
Goodwill
Goodwill acquired during period	$ 37,500,000
Upon first commercial sale in a major EU country (United Kingdom, France, Germany, Italy and Spain) \| Skye Pharma Holding Inc.
Goodwill
Milestone payments for EXPAREL agreed in connection with acquisition			4,000,000.0
When annual net sales collected reach $500.0 million \| Skye Pharma Holding Inc.
Goodwill
Milestone payments for EXPAREL agreed in connection with acquisition			32,000,000.0
Annual net sales threshold			$ 500,000,000.0

GOODWILL AND INTANGIBLE ASSETS - Schedule of Finite-Lived Intangible Assets Acquired During Period (Details) - Myoscience Acquisition - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2021	Dec. 31, 2020
Acquired Finite-Lived Intangible Assets [Line Items]
Total intangible assets	$ 110,090	$ 110,090
Less: accumulated amortization	(15,536)	(13,569)
Intangible assets, net	94,554	96,521
Developed technology
Acquired Finite-Lived Intangible Assets [Line Items]
Total intangible assets	$ 110,000	110,000
Estimated Useful Life	14 years
Customer relationships
Acquired Finite-Lived Intangible Assets [Line Items]
Total intangible assets	$ 90	$ 90
Estimated Useful Life	10 years

DEBT - Narrative (Details)			1 Months Ended	3 Months Ended
DEBT - Narrative (Details)	Jul. 10, 2020 USD ($)	Mar. 13, 2017 USD ($) segment $ / shares	Mar. 31, 2017 USD ($)	Mar. 31, 2021 USD ($) segment $ / shares	Jul. 07, 2020 $ / shares	Mar. 07, 2017 $ / shares
DEBT AND FINANCING OBLIGATIONS
Settlement period - convertible debt conversion request				40 days
Closing sale price (in dollars per share) \| $ / shares				$ 70.09
Deferred tax associated with equity component of convertible debt				$ 20,500,000
Amortization period of transaction costs attributable to liability component of convertible debt				5 years
Transaction costs attributable to equity component of convertible debt				$ 2,700,000
Convertible Senior Notes Due 2022
DEBT AND FINANCING OBLIGATIONS
Settlement period - convertible debt conversion request				40 days
Initial conversion rate of common stock per $1,000 of principal amount of Notes				0.0149491
Initial conversion price of notes into common stock (in dollars per share) \| $ / shares		$ 66.89
Convertible debt, premium on common stock		37.50%
Closing sale price (in dollars per share) \| $ / shares						$ 48.65
Convertible Senior Notes Due 2022 \| Conversion terms prior to close of business on business day immediately proceeding October 1, 2021
DEBT AND FINANCING OBLIGATIONS
Threshold trading days \| segment		20
Threshold consecutive trading days \| segment		30
Threshold percentage stock price trigger		130.00%
Market price of principal amount of notes				1.216
Convertible Senior Notes Due 2022 \| Debt Redemption Terms on or after April 1, 2020
DEBT AND FINANCING OBLIGATIONS
Threshold trading days \| segment		20
Threshold consecutive trading days \| segment		30
Threshold percentage stock price trigger		130.00%
Debt instrument, percentage of principal amount for computation of redemption price		100.00%
Conversion obligation, number of trading days prior to date of notice of redemption		5 days
Convertible Senior Notes Due 2025
DEBT AND FINANCING OBLIGATIONS
Percentage of last sale price of common stock				98.00%
Initial conversion rate of common stock per $1,000 of principal amount of Notes				0.0139324
Initial conversion price of notes into common stock (in dollars per share) \| $ / shares		$ 71.78			$ 71.78
Convertible debt, premium on common stock					32.50%
Closing sale price (in dollars per share) \| $ / shares					$ 54.17
Market price of principal amount of notes				1.200
Debt instrument, percentage of principal amount for computation of redemption price				100.00%
Convertible Senior Notes Due 2025 \| Debt Conversion Terms Business Day Immediately Preceding February 3, 2020
DEBT AND FINANCING OBLIGATIONS
Threshold trading days \| segment				20
Threshold consecutive trading days \| segment				30
Threshold percentage stock price trigger				130.00%
Convertible Senior Notes Due 2025 \| Debt Redemption Terms on or after August 1, 2023
DEBT AND FINANCING OBLIGATIONS
Threshold trading days \| segment				20
Threshold consecutive trading days \| segment				30
Threshold percentage stock price trigger				130.00%
Debt instrument, percentage of principal amount for computation of redemption price				100.00%
Unsecured Debt \| Convertible Senior Notes Due 2022
DEBT AND FINANCING OBLIGATIONS
Debt instrument, face amount	$ 160,000,000.0
Stated interest rate (as a percent)	2.375%		2.375%	2.375%
Debt issued in private placement			$ 345,000,000.0
Debt instrument, repurchased face amount	$ 185,000,000.0
Repayments of debt	211,100,000
Loss on early extinguishment of debt	8,100,000
Unsecured Debt \| Convertible Senior Notes Due 2025
DEBT AND FINANCING OBLIGATIONS
Debt instrument, face amount	$ 402,500,000
Stated interest rate (as a percent)	0.75%			0.75%
Debt issued in private placement		$ 390,000,000.0		$ 402,500,000
Convertible Debt \| Convertible Senior Notes Due 2025
DEBT AND FINANCING OBLIGATIONS
Convertible debt, carrying amount of liability component				$ 314,700,000
Assumed borrowing rate				5.78%
Convertible debt, carrying amount of equity component				$ 87,800,000
Amortization period of equity component of convertible debt				5 years
Total transaction costs				$ 12,500,000

DEBT - Schedule of Debt (Details) - Unsecured Debt - USD ($) $ in Thousands	Jul. 10, 2020	Mar. 31, 2021	Dec. 31, 2020	Mar. 31, 2017
Convertible Senior Notes Due 2022
Debt Instrument [Line Items]
Stated interest rate (as a percent)	2.375%	2.375%		2.375%
Convertible senior notes, gross		$ 160,000	$ 160,000
Deferred financing costs		(876)	(1,089)
Discount on debt		(7,477)	(9,263)
Total debt, net of debt discount and deferred financing costs		$ 151,647	149,648
Repayments of debt	$ 211,100
Convertible Senior Notes Due 2025
Debt Instrument [Line Items]
Stated interest rate (as a percent)	0.75%	0.75%
Convertible senior notes, gross		$ 402,500	402,500
Deferred financing costs		(8,502)	(8,940)
Discount on debt		(76,660)	(80,530)
Total debt, net of debt discount and deferred financing costs		$ 317,338	$ 313,030

DEBT - Schedule of Interest Expense (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2021	Mar. 31, 2020
Debt Disclosure [Abstract]
Contractual interest expense	$ 1,705	$ 2,049
Amortization of debt issuance costs	651	439
Amortization of debt discount	5,657	3,594
Capitalized interest and other (Note 5)	(1,042)	(60)
Total	$ 6,971	$ 6,022
Effective interest rate on convertible senior notes	6.70%	7.81%

FINANCIAL INSTRUMENTS - Narrative (Details)	1 Months Ended	3 Months Ended			12 Months Ended
FINANCIAL INSTRUMENTS - Narrative (Details)	Apr. 30, 2019 USD ($)	Jun. 30, 2021 USD ($)	Mar. 31, 2021 USD ($)	Mar. 31, 2020 USD ($)	Dec. 31, 2020 USD ($)	Jan. 01, 2021 USD ($)
Concentration Risk [Line Items]
Contingent consideration, current			$ 14,864,000		$ 14,736,000
Payment for contingent consideration			0	$ 4,736,000
Payment for achievement of regulatory milestone			0	264,000
Interest receivable			800,000		1,600,000
Amount of allowance for doubtful accounts			0		0
Contingent Consideration
Concentration Risk [Line Items]
Contingent consideration gains during period			1,127,000	3,900,000
TELA Bio
Concentration Risk [Line Items]
Equity investment			11,500,000		11,600,000
Equity securities, gain (loss)			(100,000)	(4,000,000.0)
Gene Quine
Concentration Risk [Line Items]
Equity investment			$ 1,200,000		$ 1,200,000
Convertible note						$ 1,200,000
Predicated investment						$ 4,700,000
Accounts receivable \| Concentration risk by major customer \| Major customer one
Concentration Risk [Line Items]
Concentration risk (as a percent)			35.00%		36.00%
Accounts receivable \| Concentration risk by major customer \| Major customer two
Concentration Risk [Line Items]
Concentration risk (as a percent)			27.00%		28.00%
Accounts receivable \| Concentration risk by major customer \| Major customer three
Concentration Risk [Line Items]
Concentration risk (as a percent)			26.00%		23.00%
Myoscience Acquisition
Concentration Risk [Line Items]
Contingent consideration	$ 100,000,000.0
Contingent consideration, current			$ 58,000,000.0
Payment term	60 days
Acquisition-related contingent consideration			$ 27,200,000		$ 28,300,000
Myoscience Acquisition \| Achievement of Regulatory Milestone
Concentration Risk [Line Items]
Payment for contingent consideration				$ 5,000,000.0
Myoscience Acquisition \| Achievement of Regulatory Milestone \| Scenario, Forecast
Concentration Risk [Line Items]
Payment for achievement of regulatory milestone		$ 10,000,000.0
Contingent Consideration \| Myoscience Acquisition \| Measurement Input, Discount Rate \| Level 3
Concentration Risk [Line Items]
Measurement input, contingent consideration			0.0366
Contingent Consideration \| Myoscience Acquisition \| Measurement Input, Expected Milestone Payment \| Level 3
Concentration Risk [Line Items]
Measurement input, contingent consideration			0.347

FINANCIAL INSTRUMENTS - Fair Value of Liabilities Measured on a Recurring Basis (Details) - USD ($) $ / shares in Units, $ in Thousands, shares in Millions	Mar. 13, 2017	Mar. 31, 2021	Jul. 10, 2020	Jul. 07, 2020	Mar. 31, 2017	Mar. 07, 2017
Fair Value Measurements
Closing sale price (in dollars per share)		$ 70.09
Convertible Senior Notes Due 2022
Fair Value Measurements
Closing sale price (in dollars per share)						$ 48.65
Initial conversion price of notes into common stock (in dollars per share)	$ 66.89
Convertible Senior Notes Due 2022 \| Unsecured Debt
Fair Value Measurements
Stated interest rate (as a percent)		2.375%	2.375%		2.375%
Convertible Senior Notes Due 2022 \| Maximum
Fair Value Measurements
Debt instrument, convertible, conversion premium (in shares)	2.4
Convertible Senior Notes Due 2025
Fair Value Measurements
Closing sale price (in dollars per share)				$ 54.17
Initial conversion price of notes into common stock (in dollars per share)	$ 71.78			$ 71.78
Convertible Senior Notes Due 2025 \| Unsecured Debt
Fair Value Measurements
Stated interest rate (as a percent)		0.75%	0.75%
Convertible Senior Notes Due 2025 \| Maximum
Fair Value Measurements
Debt instrument, convertible, conversion premium (in shares)	5.6
Estimate of Fair Value Measurement \| Level 1
Fair Value Measurements
Equity investment with readily determinable fair value		$ 11,533
Note receivable		0
Estimate of Fair Value Measurement \| Level 1 \| Convertible Senior Notes Due 2022
Fair Value Measurements
Convertible senior notes		0
Estimate of Fair Value Measurement \| Level 1 \| Convertible Senior Notes Due 2025
Fair Value Measurements
Convertible senior notes		0
Estimate of Fair Value Measurement \| Level 2
Fair Value Measurements
Equity investment with readily determinable fair value		0
Note receivable		0
Estimate of Fair Value Measurement \| Level 2 \| Convertible Senior Notes Due 2022
Fair Value Measurements
Convertible senior notes		194,500
Estimate of Fair Value Measurement \| Level 2 \| Convertible Senior Notes Due 2025
Fair Value Measurements
Convertible senior notes		483,000
Estimate of Fair Value Measurement \| Level 3
Fair Value Measurements
Equity investment with readily determinable fair value		0
Note receivable		1,174
Acquisition-related contingent consideration		27,219
Estimate of Fair Value Measurement \| Level 3 \| Convertible Senior Notes Due 2022
Fair Value Measurements
Convertible senior notes		0
Estimate of Fair Value Measurement \| Level 3 \| Convertible Senior Notes Due 2025
Fair Value Measurements
Convertible senior notes		0
Reported Value Measurement
Fair Value Measurements
Equity investment with readily determinable fair value		11,533
Note receivable		1,174
Acquisition-related contingent consideration		27,219
Reported Value Measurement \| Convertible Senior Notes Due 2022
Fair Value Measurements
Convertible senior notes		151,647
Reported Value Measurement \| Convertible Senior Notes Due 2025
Fair Value Measurements
Convertible senior notes		$ 317,338

FINANICIAL INSTRUMENTS - Fair Value Measurement Inputs and Valuation (Details) - Myoscience Acquisition - Contingent Consideration - Fair Value, Inputs, Level 3	Mar. 31, 2021
Measurement Input, Discount Rate
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Measurement input, contingent consideration	0.0366
Measurement Input, Expected Milestone Payment
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Measurement input, contingent consideration	0.347
Minimum \| Measurement Input, Discount Rate
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Measurement input, contingent consideration	0.0350
Minimum \| Measurement Input, Expected Milestone Payment
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Measurement input, contingent consideration	0.02
Maximum \| Measurement Input, Discount Rate
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Measurement input, contingent consideration	0.0382
Maximum \| Measurement Input, Expected Milestone Payment
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Measurement input, contingent consideration	1

FINANCIAL INSTRUMENTS - Fair Value of Contingent Consideration Rollforward (Details) - Contingent Consideration - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2021	Mar. 31, 2020
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward]
Balance at December 31, 2020	$ 28,346
Fair value adjustments and accretion	(1,127)	$ (3,900)
Payments made	0
Balance at March 31, 2021	$ 27,219

FINANCIAL INSTRUMENTS - Schedule of Available For Sale Securities (Details) - USD ($) $ in Thousands	Mar. 31, 2021	Dec. 31, 2020
Fair Value Measurements
Cost	$ 558,215	$ 516,845
Gross Unrealized Gains	155	350
Gross Unrealized Losses	(35)	(31)
Fair Value	558,335	517,164
Short-term Investments
Fair Value Measurements
Cost	523,260	421,416
Gross Unrealized Gains	137	320
Gross Unrealized Losses	(33)	(31)
Fair Value	523,364	421,705
Long-Term Investments
Fair Value Measurements
Cost	34,955	95,429
Gross Unrealized Gains	18	30
Gross Unrealized Losses	(2)	0
Fair Value	34,971	95,459
Asset-backed securities \| Short-term Investments
Fair Value Measurements
Cost	7,147	34,918
Gross Unrealized Gains	5	98
Gross Unrealized Losses	(1)	0
Fair Value	7,151	35,016
Asset-backed securities \| Long-Term Investments
Fair Value Measurements
Cost	3,469
Gross Unrealized Gains	0
Gross Unrealized Losses	(2)
Fair Value	3,467
Commercial paper \| Short-term Investments
Fair Value Measurements
Cost	325,912	221,494
Gross Unrealized Gains	45	36
Gross Unrealized Losses	(9)	(18)
Fair Value	325,948	221,512
Corporate bonds \| Short-term Investments
Fair Value Measurements
Cost	89,350	120,375
Gross Unrealized Gains	52	179
Gross Unrealized Losses	(23)	(11)
Fair Value	89,379	120,543
U.S. Government bonds \| Short-term Investments
Fair Value Measurements
Cost	100,851	44,629
Gross Unrealized Gains	35	7
Gross Unrealized Losses	0	(2)
Fair Value	100,886	44,634
U.S. Government bonds \| Long-Term Investments
Fair Value Measurements
Cost	31,486	95,429
Gross Unrealized Gains	18	30
Gross Unrealized Losses	0	0
Fair Value	$ 31,504	$ 95,459

STOCK PLANS - Schedule of Stock Based Compensation Expenses (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2021	Mar. 31, 2020
Share-Based Compensation
Stock-based compensation expense	$ 10,110	$ 8,847
Total	10,110	8,847
ESPP
Share-Based Compensation
Stock options	6,496	6,225
Restricted stock units	3,392	2,402
Employee stock purchase plan	222	220
Cost of goods sold
Share-Based Compensation
Stock-based compensation expense	1,452	1,219
Research and development
Share-Based Compensation
Stock-based compensation expense	1,106	1,186
Selling, general and administrative
Share-Based Compensation
Stock-based compensation expense	$ 7,552	$ 6,442

STOCK PLANS - Schedule of Stock Based Compensation Activity (Details)	3 Months Ended
	Mar. 31, 2021 $ / shares shares
Number of Options
Outstanding beginning of period (in shares) \| shares	6,235,118
Granted (in shares) \| shares	43,500
Exercised (in shares) \| shares	(317,259)
Forfeited (in shares) \| shares	(96,265)
Expired (in shares) \| shares	(6,616)
Outstanding end of period (in shares) \| shares	5,858,478
Weighted Average Exercise Price
Outstanding beginning of period (in dollars per share) \| $ / shares	$ 45.98
Granted (in dollars per share) \| $ / shares	65.49
Exercised (in dollars per share) \| $ / shares	34.03
Forfeited (in dollars per share) \| $ / shares	45.29
Expired (in dollars per share) \| $ / shares	71.11
Outstanding at end of period (in dollars per share) \| $ / shares	$ 46.76
Restricted Stock Units (RSUs)
Number of Units
Unvested at beginning of period (shares) \| shares	957,453
Granted (shares) \| shares	22,500
Vested (shares) \| shares	(3,322)
Forfeited (shares) \| shares	(35,767)
Unvested at end of period (shares) \| shares	940,864
Weighted Average Grant Date Fair Value
Unvested at beginning of period (usd per share) \| $ / shares	$ 46.34
Granted (usd per share) \| $ / shares	69.35
Vested (usd per share) \| $ / shares	42.01
Forfeited (usd per share) \| $ / shares	47.89
Unvested at end of period (usd per share) \| $ / shares	$ 46.85

STOCK PLANS - Narrative (Details)	3 Months Ended
STOCK PLANS - Narrative (Details)	Mar. 31, 2021 offeringPeriod $ / shares shares
Stock Incentive Plans
Weighted average fair value (in dollars per share) \| $ / shares	$ 30.86
Purchase price of common stock, ESPP (as a percent)	85.00%
Shares issued under employee stock purchase plan (shares) \| shares	0
ESPP
Stock Incentive Plans
Number of offering periods for ESPP \| offeringPeriod	2
ESPP purchasing period	6 months

STOCK PLANS - Schedule of Valuation Assumptions (Details)	3 Months Ended
	Mar. 31, 2021
Stock Incentive Plans
Expected dividend rate (as a percent)	0.00%
Employee Stock Option
Stock Incentive Plans
Risk free interest rate (as a percent)	0.49%
Expected volatility (as a percent)	53.41%
Expected term of options (in years)	5 years 4 months 17 days

STOCKHOLDERS' EQUITY (Details) - USD ($) $ in Thousands	3 Months Ended
STOCKHOLDERS' EQUITY (Details) - USD ($) $ in Thousands	Mar. 31, 2021	Mar. 31, 2020
AOCI Attributable to Parent, Net of Tax [Roll Forward]
Balance at beginning of period	$ 619,688	$ 354,944
Net unrealized loss on investments, net of tax	(150)	(1,368)
Balance at end of period	650,818	374,037
Accumulated Net Unrealized Investment Gain (Loss)
AOCI Attributable to Parent, Net of Tax [Roll Forward]
Balance at beginning of period	318	322
Net unrealized loss on investments, net of tax	(150)	(1,368)
Foreign currency translation adjustments	4	0
Amounts reclassified from accumulated other comprehensive income (loss)	0	0
Balance at end of period	$ 172	$ (1,046)

- Definition

+ References + Details

NET INCOME (LOSS) PER SHARE - Schedule of Computation of EPS (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands	3 Months Ended
	Mar. 31, 2021	Mar. 31, 2020
Numerator:
Net income	$ 10,369	$ 8,159
Denominator:
Weighted average common shares outstanding - basic (in shares)	43,833	42,032
Computation of diluted securities:
Dilutive effect of conversion premium on the 2022 Notes (in shares)	152	0
Weighted average number of shares outstanding - diluted (in shares)	45,966	42,785
Net income per share:
Basic net income per common share (in USD per share)	$ 0.24	$ 0.19
Diluted net income per common share (in USD per share)	$ 0.23	$ 0.19
Employee Stock Option
Computation of diluted securities:
Dilutive effect of share based compensation arrangements (in shares)	1,507	585
Restricted Stock Units (RSUs)
Computation of diluted securities:
Dilutive effect of share based compensation arrangements (in shares)	470	168
ESPP
Computation of diluted securities:
Dilutive effect of share based compensation arrangements (in shares)	4	0

NET INCOME (LOSS) PER SHARE - Schedule of Antidilutive Securities (Details) - shares shares in Thousands	3 Months Ended
	Mar. 31, 2021	Mar. 31, 2020
EARNINGS PER SHARE
Total	892	5,385
Employee Stock Option
EARNINGS PER SHARE
Total	890	5,343
Restricted Stock Units (RSUs)
EARNINGS PER SHARE
Total	2	2
ESPP
EARNINGS PER SHARE
Total	0	40

INCOME TAXES - Schedule of Federal, State and Local, and Foreign Income Taxes (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2021	Mar. 31, 2020
Income (loss) before income taxes:
Domestic	$ 15,933	$ 9,821
Foreign	(3,209)	(1,264)
Income before income taxes	$ 12,724	$ 8,557

- Definition

Amount of income (loss) from continuing operations, including income (loss) from equity method investments, before deduction of income tax expense (benefit), and income (loss) attributable to noncontrolling interest.

+ References

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+ Details

INCOME TAXES - Narrative (Details) - USD ($) $ in Thousands	3 Months Ended
INCOME TAXES - Narrative (Details) - USD ($) $ in Thousands	Mar. 31, 2021	Mar. 31, 2020
Income Tax Disclosure [Abstract]
Income tax expense	$ (2,355)	$ (398)

- Definition

Amount of current income tax expense (benefit) and deferred income tax expense (benefit) pertaining to continuing operations.

+ References + Details

COMMERCIAL PARTNERS (Details) $ in Millions	3 Months Ended
COMMERCIAL PARTNERS (Details) $ in Millions	Mar. 31, 2021 USD ($)
Nuance Biotech Co. Ltd.
Fresh-Start Adjustment [Line Items]
Estimated settlement fees	$ 3.0

COMMITMENTS AND CONTINGENCIES (Details) $ in Millions	1 Months Ended
COMMITMENTS AND CONTINGENCIES (Details) $ in Millions	Oct. 31, 2020 USD ($)
Fortis
Loss Contingencies [Line Items]
Loss contingency, damages sought	$ 40.0

SUBSEQUENT EVENTS (Details) - Subsequent Event $ in Millions	1 Months Ended
	Apr. 30, 2021 USD ($)
Subsequent Event [Line Items]
Payments to acquire investments	$ 13.0
Intended additional payments to acquire marketable securities	$ 7.0