Orthopedic medtech company Zimmer Biomet has agreed to acquire an FDA-approved pain relief device for osteoarthritis and knee pain from Pacira BioSciences for $140 million.
Pacira BioSciences is divesting its iovera system, a drug-free medical device that relieves pain through cryoneurolysis. The process involves applying cold therapy to a targeted nerve, according to a June 30 news release from Pacira BioSciences.
Zimmer Biomet will pay $70 million upfront and milestone payments totaling up to an additional $70 million for the device. With the transaction, Zimmer Biomet will obtain all of the rights, titles and interests for the development, manufacture and commercialization of iovera.
The two organizations intend to enter into a transition services agreement to support a smooth handoff of iovera to Zimmer Biomet.
The transaction is expected to close in the third quarter, the release said.
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