Zimmer Biomet has signed an agreement to acquire US-based Pacira BioSciences’ iovera drug-free medical device for up to $140m.
The deal includes an upfront payment of $70m to Pacira, with the potential for up to $70m more in future revenue-based milestone payments.
The milestone payments may be achieved up to and through 31 December 2031.
Pacira’s iovera system, which is cleared by the US Food and Drug Administration (FDA), alleviates pain by applying focused cold therapy to targeted nerves, temporarily preventing them from transmitting pain signals.
As part of the agreement, Pacira and Zimmer Biomet will collaborate on progressing a spasticity programme.
Pacira could receive further compensation if this programme’s registrational study is successfully completed and receives subsequent regulatory approval.
Zimmer Biomet will acquire all rights, titles and interests relating to iovera, allowing it to develop, manufacture, and commercialise the device.
Pacira BioSciences CEO Frank Lee said: “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 commercialising medical devices and commitment to significantly expanding access can unlock the full potential of iovera to benefit more patients and providers globally.”
Pacira intends to use the upfront net proceeds from the sale to bolster its balance sheet, including repayment of its senior secured revolving credit facility.
A transition services agreement is planned to facilitate a smooth handover of iovera operations to Zimmer Biomet after closing.
Completion of the transaction is contingent on satisfaction or waiver of customary closing conditions. The companies expect the deal to conclude in the third quarter of 2026.
Financial advice to Pacira is being provided by RBC Capital Markets with legal support from Perkins Coie. Ice Miller is acting as legal counsel to Zimmer Biomet.
In December 2025, Zimmer Biomet entered an exclusive partnership with OneStep, a digital fall prevention and mobility intelligence platform, to deliver a comprehensive set of digital mobility analytics in orthopaedics.
