Pacira BioSciences offloaded its cold-therapy pain relief device to medtech orthopedics specialist Zimmer Biomet in a deal valued at up to $140 million.
The FDA-cleared iovera system is a handheld device that uses controlled doses of cold temperatures to a targeted nerve and temporarily interrupts the transmission of pain signals.
Under terms of the deal, which is expected to be completed by the end of September, Zimmer will make an upfront payment of $70 million with an additional $70 million based on hitting milestones up to the end of 2031, the company said in a June 30 press release.
“This transaction advances our transition into an innovative biopharmaceutical company and aligns with our 5x30 strategy,” Frank Lee, Pacira’s chief executive, said in a statement. “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.”
The two will also join forces to advance the spasticity program that targets abnormal muscle tightness, stiffness or spasms—and any related regulatory approvals. The iovera system was originally developed by Myoscience and cleared by the FDA in 2017 before Pacira acquired the company in 2019.
Pacira said it will use the sale funds to bolster its balance sheet and pay down its senior secured revolving credit facility.
RBC Capital Markets was the financial advisor to Pacira, with Perkins Coie serving as legal advisor. Ice Miller was Zimmer’s legal counsel.
Apart from the iovera system, the company produces Exparel, a long-acting local analgesic, and Zilretta, an extended-release, intra-articular injection used to manage osteoarthritis knee pain.
Also in Pacira’s pipeline and currently in Phase 2 clinical trials is PCRX-201 (enekinragene inzadenovec), a locally administered gene therapy that targets osteoarthritis of the knee.