Pacira to Receive $70M Upfront in $140M iovera Divestiture to Zimmer Biomet
PCRX•Pacira BioSciences will divest its iovera medical device business to Zimmer Biomet for up to $140 million, including a $70 million upfront payment and $70 million in potential milestone payments. The deal supports Pacira's 5x30 strategy, advances a spasticity collaboration and strengthens its balance sheet through debt paydown.
1. Divestiture Terms
Pacira will transfer all rights, titles and interests in the iovera system to Zimmer Biomet for development, manufacture and commercialization. Under the agreement, Pacira receives a $70 million upfront payment and is eligible for up to $70 million in revenue-based milestone payments through December 2031.
2. Strategic Rationale
The transaction aligns with Pacira's 5x30 strategy and furthers its shift into an innovative biopharmaceutical company. Both companies will collaborate on advancing a spasticity program, offering potential incremental value.
3. Financial Impact
Upfront proceeds will strengthen Pacira's balance sheet, including paying down its senior secured revolving credit facility. Future milestone payments could provide additional revenue contingent on product performance and regulatory approvals.
4. Closing Timeline and Transition
The divestiture, subject to customary closing conditions, is expected to close in the third quarter of 2026. A transition services agreement will ensure a smooth handover of iovera operations to Zimmer Biomet.
