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Key Takeaways Pacira will divest iovera to Zimmer Biomet for up to $140M, with closing expected in Q3 2026.PCRX to receive $70M upfront plus up to $70M in potential milestones and plans to reduce debt with the cash. Zimmer Biomet gains iovera rights and will collaborate with PCRX on the registrational spasticity program. Pacira BioSciences (PCRX - Free Report) is reshaping its business through an agreement to divest its iovera medical device franchise to Zimmer Biomet (ZBH - Free Report) for up to $140 million. The deal marks another step in Pacira's strategy to transition toward an innovative biopharmaceutical company while allowing Zimmer Biomet to expand its portfolio of pain management technologies. The closing of the transaction is expected in the third quarter of 2026, subject to customary closing conditions.

The iovera system is an FDA-cleared, drug-free cryoneurolysis device that uses controlled cold therapy to temporarily interrupt peripheral nerve signaling and relieve pain. It is approved for destroying tissue during surgical procedures and creating lesions in peripheral nervous tissue to block pain. It is also indicated for relieving pain and symptoms associated with knee osteoarthritis (OA) for up to 90 days, with some patients experiencing longer-lasting benefits.

The system can also assist with nerve targeting when used with compatible stimulation components. Clinical studies have shown that patients treated with iovera after total knee replacement surgery experienced improved knee symptoms and function, lower pain intensity and a 45% reduction in opioid use during the 12 weeks following surgery.

More on PCRX's iovera Divestiture Deal With ZBHUnder the agreement, Pacira will receive up to $140 million from Zimmer Biomet, consisting of $70 million in upfront cash and potential milestone payments tied to future revenues totaling up to an additional $70 million through Dec. 31, 2031. ZBH will acquire all rights related to the development, manufacturing and commercialization of the iovera platform. Pacira expects to use the upfront proceeds to strengthen its balance sheet, including reducing borrowings under its senior secured revolving credit facility.

The companies will also collaborate on advancing the iovera spasticity program. Pacira could earn incremental compensation if the program successfully completes its registrational study and secures regulatory approval. To facilitate the transfer of the business, the companies plan to establish a customary transition services agreement upon the potential closing of the deal.

Year to date, PCRX shares have lost 2% compared to the industry’s 6.3% growth.

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The divestiture aligns with Pacira's broader strategy of sharpening its focus on innovative biopharmaceutical products while monetizing a non-core medical device asset. The cash infusion is expected to enhance financial flexibility, support debt reduction and allow greater emphasis on its long-term growth priorities.

For Zimmer Biomet, the acquisition expands its portfolio with an established, FDA-cleared pain management technology that complements its orthopedic franchise. The company is also expected to leverage its global commercial infrastructure and medical device expertise to broaden adoption of iovera, while the continued collaboration on the spasticity program provides both companies with an opportunity to create additional long-term value.

PCRX’s Other Marketed ProductsApart from the iovera system, Pacira’s marketed product portfolio comprises two drugs — Exparel and Zilretta.

Exparel is PCRX’s flagship pain-management product, initially launched in 2012. It is a long-acting local analgesic currently approved for infiltration, fascial plane block, and as an interscalene brachial plexus nerve block, an adductor canal nerve block and a sciatic nerve block in the popliteal fossa for postsurgical pain management.

Zilretta, on the other hand, is approved as an extended-release intra-articular injection for providing relief to OA patients with knee pain.

Pacira is also currently looking to expand Zilretta’s indication to include treatment for OA pain in the shoulder. Enrollment in the phase III registrational study of Zilretta for this indication has been completed, with top-line results expected later this year. Based on the success of the study, the company plans to seek label expansion of the drug for OA pain in the shoulder.

Beyond its marketed products, PCRX is developing a pipeline of clinical-stage therapies for musculoskeletal pain and related indications. Its most advanced candidate, PCRX-201 (enekinragene inzadenovec), is a novel locally administered gene therapy being evaluated in a phase II study for knee OA.

PCRX’s Zacks Rank & Other Stocks to ConsiderPacira currently carries a Zacks Rank #2 (Buy).

Some other top-ranked stocks in the biotech sector are Liquidia Corporation (LQDA - Free Report) and Immunocore (IMCR - Free Report) , each sporting a Zacks Rank #1 (Strong Buy) at present. You can see the complete list of today’s Zacks #1 Rank stocks here.

Over the past 60 days, estimates for Liquidia’s 2026 EPS have increased from $1.75 to $3.02. Over the same period, EPS estimates for 2027 have also risen from $2.91 to $4.92. LQDA shares have surged 131.1% year to date.

Liquidia’searnings beat estimates in three of the trailing four quarters and missed in the remaining one, with the average surprise being 54.40%.

The estimate for Immunocore’s 2026 EPS is currently pegged at 6 cents, while the same for its 2027 EPS is currently pegged at 87 cents. IMCR shares have lost 8.5% year to date.

Immunocore’s earnings beat estimates in three of the trailing four quarters while missing the same on the remaining occasion, with the average surprise being 46.66%.