Pacira Divests iovera degrees to Zimmer Biomet for Up to $140M

Pacira (PCRX) announced the divestiture of iovera degrees to Zimmer Biomet (ZBH). The iovera degrees system is a FDA-cleared, drug-free medical device that relieves pain via cryoneurolysis-a process whereby focused cold therapy is applied to a targeted nerve, temporarily interrupting its ability to transmit pain signals. Under the terms of the transaction, Pacira will receive up to $140M with an upfront payment of $70M and potential future revenue-based milestone payments totaling up to an additional $70M during the period up to and through December 31, 2031. The parties will collaborate on advancing the spasticity program with an opportunity for Pacira to receive incremental compensation assuming successful completion of the registrational study and subsequent regulatory approval. Zimmer Biomet will obtain all of Pacira's rights, titles and interests for the development, manufacture and commercialization of iovera degrees. Upon closing, the company intends to use the upfront net proceeds to strengthen its balance sheet including the pay down of its senior secured revolving credit facility. To support a smooth transition of iovera degrees into Zimmer Biomet, the parties intend to enter into a customary transition services agreement in connection with the closing. The closing of the transaction is subject to the satisfaction or waiver of customary closing conditions. The transaction is expected to close in the third quarter of 2026.