Dive Brief:
- Zimmer Biomet has agreed to pay up to $140 million to acquire Pacira BioSciences’ iovera pain relief device, the companies announced Tuesday.
- Zimmer has agreed to pay $70 million upfront and up to $70 million more in revenue-based milestones through 2031. Zimmer will acquire the rights to develop, manufacture and sell iovera as part of the agreement.
- BTIG analyst Ryan Zimmerman wrote in a research note Tuesday that the acquisition complements Zimmer’s existing product portfolio. Iovera has room to expand into new markets and is supported by legislation that went into effect last year to expand access to non-opioid pain treatments.
Dive Insight:
Iovera is a pain treatment where extreme cold is used to disrupt pain signals in a targeted nerve. Iovera can be used to treat knee pain related to osteoarthritis or after knee replacement surgery. The device can also be used to treat pain in the hip, shoulder, foot, spine and other indications.
Given Zimmer’s customer base, BTIG’s Zimmerman expects the orthopedics firm to leverage clinical data showing sustained improvements in pain for osteoarthritis and knee replacements from Pacira’s device.
Pacira is currently recruiting for a randomized, controlled trial of the device in people with upper extremity spasticity, a type of disruption in muscle movement patterns that can include pain, spasms and tight muscles. The company is looking to enroll 132 people in the study, which is estimated to be completed by August 2026, Zimmerman wrote.
Zimmer said it would collaborate on the spasticity program, and Pacira would have the opportunity to receive incremental compensation assuming successful completion of the study and subsequent regulatory approval.
Under Pacira, the iovera business grew 6% last year to $24.2 million in sales, Zimmerman wrote.
The acquisition is expected to close in the third quarter.
