Pacira BioSciences announced an agreement to divest its iovera° business to Zimmer Biomet. Under the terms of the transaction, Pacira will receive up to $140 million, including $70 million upfront and up to an additional $70 million in potential future revenue-based milestone payments.
The iovera° system is an FDA-cleared, drug-free medical device that relieves pain through cryoneurolysis. This process applies focused cold therapy to a targeted nerve, temporarily interrupting its ability to transmit pain signals.
Pacira said the divestiture supports its 5×30 strategy and advances its transition into an innovative biopharmaceutical company. The company believes Zimmer Biomet’s global scale and medical device commercialization expertise can help expand access to iovera° for more patients and providers.
Zimmer Biomet will obtain all of Pacira’s rights, titles, and interests for the development, manufacture, and commercialization of iovera°. Pacira plans to use the upfront net proceeds to strengthen its balance sheet, including paying down its senior secured revolving credit facility.
The two companies will also collaborate on advancing the spasticity program. Pacira may receive incremental compensation if the registrational study is successfully completed and the program receives subsequent regulatory approval.
To support a smooth transition, Pacira and Zimmer Biomet plan to enter into a customary transition services agreement in connection with closing. The transaction is expected to close in the third quarter of 2026, subject to customary closing conditions.
Pacira is focused on innovative non-opioid pain therapies. Its commercial-stage non-opioid treatments include EXPAREL, ZILRETTA, and iovera°, and its pipeline includes PCRX-201, a locally administered gene therapy in Phase 2 clinical development for osteoarthritis of the knee.
Support: RBC Capital Markets is serving as exclusive financial advisor to Pacira, and Perkins Coie is serving as Pacira’s legal advisor. Ice Miller is serving as legal counsel to Zimmer Biomet.
KEY QUOTE:
“This transaction advances our transition into an innovative biopharmaceutical company and aligns with our 5×30 strategy. We believe Zimmer Biomet’s global scale, established expertise commercializing medical devices and commitment to significantly expanding access can unlock the full potential of iovera° to benefit more patients and providers globally.”
Frank D. Lee, CEO of Pacira BioSciences
