Pacira Pivots from Devices
Pacira Divests iovera Device Business to Zimmer Biomet for Up to $140M, Shifts Focus.
Key Points
Iovera is an FDA-cleared, drug-free cryoneurolysis device. In addition to relieving knee osteoarthritis pain for up to 90 days, Pacira cited post-total knee replacement data showing more than 1.5x improvement in KOOS symptoms and function, along with significant reductions in pain and a 45% drop in opioid use over 12 weeks.
The iovera technology was acquired by Pacira as part of its 2019 $220 million purchase of Myoscience, which brought cryoneurolysis capabilities into Pacira’s portfolio before its divestiture to Zimmer Biomet.
Market commentary on Pacira’s stock treatment of the deal comes from TipRanks’ Spark AI Analyst, which rates PCRX Neutral, citing stronger balance-sheet resilience and steady cash generation but noting a high valuation and only neutral-to-soft technical momentum.
Pacira BioSciences agreed to sell its iovera° cryoanalgesia business to Zimmer Biomet for up to $140 million, the company announced June 30, 2026. The deal includes $70 million in cash upfront and up to $70 million more in performance milestones through 2031, according to Business Insider.
The sale marks a sharp strategic turn for Pacira. The company is shedding its only medical device to focus entirely on injectable pain drugs. About 66 employees — roughly 8% of Pacira's workforce — will move to Zimmer Biomet when the deal closes, expected in the third quarter of 2026, TipRanks reported.
What iovera° Does and Why Zimmer Wants It
The iovera° system is a handheld device that uses extreme cold — a technique called cryoneurolysis — to block pain signals in nerves. It is FDA-cleared and drug-free. Clinical data shows it can relieve knee pain for up to 90 days. In patients recovering from total knee replacement, it cut opioid use by 45% over 12 weeks, according to MarketWatch.
For Zimmer Biomet, the appeal is straightforward. The company already sells implants, robotics, and surgical tools used by orthopedic surgeons. Adding iovera° lets it offer pain relief before and after surgery — a complete package. CEO Ivan Tornos has focused Zimmer on building out exactly these kinds of comprehensive orthopedic portfolios since taking over in August 2023.
Pacira Bought High in 2019, Now Selling Lower
Pacira acquired iovera° in 2019 when it bought Myoscience, Inc. for up to $220 million. That deal was meant to pair the device with Pacira's injectable pain drugs, EXPAREL and ZILRETTA, for a full non-opioid pain toolkit. Seven years later, Pacira is exiting at a headline price of $140 million — a significant step down from what it paid, Seeking Alpha noted.
The gap looks even sharper when you strip out the milestones. The guaranteed cash is just $70 million upfront — less than one-third of the original purchase price. Pacira's leadership frames it differently. CEO Frank D. Lee said the transaction "advances our transition into an innovative biopharmaceutical company" and that Zimmer's global scale can "unlock the full potential of iovera°."
Milestone Payments Hinge on Revenue Targets
The $70 million in future payments is not guaranteed. It comes in tranches tied to how much revenue iovera° generates annually between 2027 and 2031. Zimmer must hit $50 million in iovera° sales to trigger an $18.5 million payment, $60 million to earn $23.5 million, or $70 million in sales to unlock the full $28 million tranche, according to Nasdaq.
Pacira also keeps a stake in the technology's future through a spasticity collaboration. The two companies will jointly advance a spasticity treatment program. If that program wins regulatory approval, Pacira receives additional compensation — getting the upside without having to run the device business itself.
Pacira's Shares Rise as Balance Sheet Improves
Pacira stock jumped 3.8% in premarket trading after the announcement. Investors cheered the $70 million cash infusion, which the company plans to use immediately to pay down its senior revolving credit facility. In the first quarter of 2026, iovera° brought in just $6.2 million out of Pacira's total $177 million in revenue — a small slice of the business for a large operational footprint.
TipRanks' Spark AI Analyst kept a Neutral rating on PCRX. The deal "improves liquidity" and removes a distraction, the analyst noted, but the rating reflects a still-high valuation and only "neutral-to-soft" technical momentum. The divestiture came weeks after Pacira defeated an activist campaign by DOMA Perpetual Capital Management, which held 7.5% of shares and had pushed for a full company sale, TipRanks reported.
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