Pacira BioSciences to sell iovera° unit to Zimmer Biomet for up to $140M

Pacira BioSciences, Inc. (Nasdaq: PCRX) has agreed to divest its iovera° business to Zimmer Biomet Holdings, Inc. (NYSE and SIX: ZBH) for up to $140 million, according to a company statement.

Under the terms of the deal, Pacira will receive an upfront payment of $70 million, with up to an additional $70 million in potential revenue-based milestone payments through December 31, 2031. Zimmer Biomet will acquire all rights, titles, and interests for the development, manufacture, and commercialization of iovera°.

The iovera° system is an FDA-cleared medical device that uses cryoneurolysis — the application of focused cold therapy to a targeted nerve — to temporarily interrupt pain signal transmission.

The two companies also plan to collaborate on advancing an iovera°-based spasticity program, with Pacira eligible to receive additional compensation upon successful completion of a registrational study and subsequent regulatory approval.

Pacira said it intends to use the upfront net proceeds to pay down its senior secured revolving credit facility. The transaction is expected to close in the third quarter of 2026, subject to customary closing conditions. A transition services agreement is also planned to support the handover.

"This transaction advances our transition into an innovative biopharmaceutical company and aligns with our 5x30 strategy," said Frank D. Lee, chief executive officer of Pacira BioSciences.

RBC Capital Markets is serving as financial advisor to Pacira, with Perkins Coie LLP acting as legal counsel. Ice Miller LLP is serving as legal counsel to Zimmer Biomet.

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