Pacira BioSciences Inc will sell its iovera° business to Zimmer Biomet Holdings Inc for a total consideration of up to $140 million, the companies said. Pacira is slated to receive $70 million at closing and may be eligible for as much as $70 million more in revenue-based milestone payments through December 31, 2031.
The iovera° system is an FDA-cleared, drug-free device that treats pain by means of cryoneurolysis, employing focused cold therapy to temporarily interrupt a nerve's ability to transmit pain signals. Under the agreement, Zimmer Biomet will acquire Pacira's full rights to develop, manufacture and commercialize iovera°.
Beyond the transfer of commercial and development rights, the two firms will collaborate on a spasticity program. Pacira stands to receive additional compensation contingent on successful completion of a registrational study and subsequent regulatory approval for that program.
Pacira plans to apply the upfront net proceeds to strengthen its balance sheet. The company specifically cited paying down its senior secured revolving credit facility as one use of proceeds, indicating an intent to reduce leverage or improve liquidity metrics with the immediate cash inflow.
Company leadership framed the deal as consistent with Pacira's strategic objectives. According to chief executive officer Frank D. Lee, the transaction supports the company's 5x30 strategy and its transition into an innovative biopharmaceutical company.
The agreement remains subject to customary closing conditions and is currently expected to close in the third quarter of 2026. RBC Capital Markets is acting as Pacira's financial advisor on the transaction, while Perkins Coie serves as legal advisor.
Market reaction was evident in early trading: Pacira shares rose 3.8% in premarket trading on the announcement. The deal shifts ownership and future development responsibilities for an FDA-cleared device from a biopharmaceutical-focused company to a larger medical device and orthopedics firm, while creating potential downstream payments tied to commercial performance and regulatory milestones.
This transaction moves iovera° into Zimmer Biomet's portfolio and positions Pacira to concentrate on its biopharmaceutical priorities while addressing near-term balance sheet needs. The structure of the deal combines an upfront cash component with contingent future payments indexed to revenue and development progress, preserving upside for Pacira if commercial or clinical outcomes meet specified thresholds.