Zimmer Biomet to Buy Pacira's iovera Cryoneurolysis Business for Up to $140 Million

Pacira BioSciences has agreed to sell its iovera pain relief business to Zimmer Biomet for up to $140 million, Pacira said in a June 30 release filed with the Securities and Exchange Commission. The deal consists of a $70 million upfront payment and up to $70 million in potential revenue-based milestone payments through December 31, 2031.

Zimmer Biomet will obtain all of Pacira's rights to develop, manufacture and commercialize iovera, according to the release. Pacira said it intends to use the upfront net proceeds to strengthen its balance sheet, including paying down its senior secured revolving credit facility. The transaction is expected to close in the third quarter of 2026.

A drug-free device for nerve pain

Pacira describes iovera as an FDA-cleared, drug-free device that relieves pain through cryoneurolysis, in which focused cold is applied to a targeted nerve to temporarily interrupt its ability to transmit pain signals. Among its labeled uses, the system is indicated for the relief of pain and symptoms associated with osteoarthritis of the knee for up to 90 days, the company said.

The device can also be used for pain in the hip, shoulder, foot and spine, among other indications, MedTech Dive reported. Under Pacira, the iovera business grew 6% last year to $24.2 million in sales, the publication said, citing BTIG analyst Ryan Zimmerman.

Zimmerman wrote that the acquisition complements Zimmer's existing product portfolio and that iovera is supported by legislation that took effect last year to expand access to non-opioid pain treatments, according to MedTech Dive.

Spasticity program and Pacira's strategy

The two companies will collaborate on advancing iovera's spasticity program. Pacira said it has the opportunity to receive incremental compensation if the registrational study is successfully completed and the program later receives regulatory approval. MedTech Dive reported that Pacira is recruiting 132 people with upper extremity spasticity for a randomized, controlled trial estimated to be completed by August 2026.

"This transaction advances our transition into an innovative biopharmaceutical company and aligns with our 5x30 strategy," said Frank D. Lee, Pacira's chief executive officer. "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."

After the sale, Pacira's commercial products will be EXPAREL, a long-acting local analgesic, and ZILRETTA, an extended-release injection for osteoarthritis knee pain. The company's most advanced pipeline candidate is PCRX-201, a locally administered gene therapy in Phase 2 development for knee osteoarthritis, according to the release.

RBC Capital Markets is Pacira's exclusive financial adviser and Perkins Coie its legal adviser; Ice Miller is legal counsel to Zimmer Biomet. The parties plan to enter a transition services agreement at closing.