Zimmer Biomet agreed to pay $70 million upfront, with potential future revenue-based milestone payments totaling up to an additional $70 million up to and through Dec. 31, 2031, bringing the deal’s total value to up to $140 million.
The companies expect the transaction to close in the third quarter of 2026.
Both companies plan to collaborate on advancing a spasticity program, with potential incremental compensation for Pacira. That compensation is tied to the successful completion of a registrational study and subsequent regulatory approval. Meanwhile, Zimmer Biomet obtains all of Pacira’s rights, titles and interests for the development, manufacture and commercialization of Iovera.
Iovera, an FDA-cleared, drug-free medical device, relieves pain through cryoneurolysis. It utilizes cold therapy, applying it to a targeted nerve to temporarily interrupt its ability to transmit pain signals. The technology came to Pacira through its $220 million acquisition of Myoscience in 2019.
Using the freezing cold technology, Iovera can destroy tissue during surgical procedures. It can also produce lesions in peripheral nervous tissue by the application of cold to the selected site for the blocking of pain. Iovera’s indications include the relief of pain and symptoms associated with osteoarthritis of the knee for up to 90 days.
Pacira also says patients treated with Iovera after total knee replacement experienced more than 1.5 times improvement in knee symptoms and function versus controls at 6 and 12 weeks (KOOS symptom score), significant reductions in both pain severity and the extent to which pain interfered with daily activities at early follow-up (PROMIS pain intensity and pain interference scores), and a 45% reduction in opioid consumption over 12 weeks post-surgery. This could be of interest to Zimmer Biomet, an orthopedic giant that offers leading knee replacement technology.
“This transaction advances our transition into an innovative biopharmaceutical company and aligns with our 5×30 strategy,” said Frank D. Lee, CEO of Pacira BioSciences. “We believe Zimmer Biomet’s global scale, established expertise commercializing medical devices and commitment to significantly expanding access can unlock the full potential of Iovera to benefit more patients and providers globally.”
