Pacira BioSciences has entered into a Stock and Asset Purchase Agreement to sell its iovera business, including its wholly owned subsidiary Pacira CryoTech, Inc., to Zimmer, Inc., a subsidiary of Zimmer Biomet Holdings, Inc. The transaction includes the divestiture of the subsidiary's capital stock and certain assets and liabilities related to Pacira's handheld cryoanalgesia devices, specifically the iovera system. The total deal value is up to $140.0 million, comprising an upfront payment of $70.0 million, subject to customary adjustments. Additional contingent consideration of up to $70.0 million is possible, payable upon the achievement of revenue-based milestones for the iovera business through December 31, 2031. The transaction is expected to close in the third quarter of 2026, subject to customary closing conditions. Pacira intends to use the net proceeds from the upfront payment to strengthen its balance sheet, including paying down its senior secured revolving credit facility. Approximately 66 employees, representing about 8% of Pacira's workforce, are expected to be hired by Zimmer Biomet as part of the transaction. Pacira and Zimmer Biomet will collaborate on advancing the spasticity program, with potential for Pacira to receive incremental compensation upon successful completion of the registrational study and regulatory approval.