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The information provided on EL7.AI is for educational and informational purposes only and does not constitute financial advice.
Amid ongoing restructuring in the healthcare sector, Pacira BioSciences has agreed to sell its iovera° business to Zimmer Biomet in a deal worth up to $140 million, according to media reports. Pacira will receive $70 million upfront and up to an additional $70 million in future revenue-based milestone payments. The two companies will also collaborate on advancing a spasticity program, though further terms of the collaboration were not disclosed.
The divestiture comes as Pacira focuses on its core business, with iovera° considered a non-strategic asset. Zimmer Biomet, a leader in orthopedic medical devices, could leverage iovera° to expand into the pain management market. Neither company has provided additional details on the exact deal value or revenue projections, but the milestone payments could enhance total returns.
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Sign InThe transaction is expected to close in the coming months, subject to customary regulatory approvals. Pacira may use the proceeds to strengthen its balance sheet or fund R&D programs, including the spasticity initiative. Attention remains on how this move will impact the stock performance post-closure, especially with limited details on the timeline for future milestone payments.