Viatris Inc. (VTRS) said Thursday it agreed to buy Pacira BioSciences Inc. (PCRX) for $1.65 billion, a move that plants the company more firmly in the non-opioid pain management business.
The terms are simple enough: Viatris pays $36.50 per share in cash for every outstanding Pacira share. Viatris had $886.5 million in cash and cash equivalents on hand as of its second fiscal quarter ending June 30, 2026.
Wall Street's reaction was split down the middle. Viatris stock fell nearly 3%, while Pacira shares shot up more than 44%.
What Viatris Is Actually Getting
The acquisition adds two established, patent-protected treatments to the portfolio.
EXPAREL handles acute pain after surgery. ZILRETTA is an extended-release treatment for knee pain tied to osteoarthritis.
Those two products generated roughly $746 million in revenue and $177 million in adjusted EBITDA for Pacira over the 12 months ended June 30, 2026.
Viatris also wants to push the products into select international markets using its global distribution network.
CEO Scott Smith framed the deal as a fit with Viatris' broader strategy of expanding its innovative medicines business.
He added that Pacira's products complement Viatris' fast-acting meloxicam opportunity. The deal also beefs up the company's U.S. commercial operations, market access, medical affairs and research capabilities.
The Money Side
Viatris expects the transaction to immediately contribute positively to its financial guidance metrics.
Interim CFO Paul Campbell said the company plans to fund most of the purchase with excess cash, with the rest coming from short-term borrowing.
That structure means Viatris expects minimal impact on its gross leverage ratio while keeping financial flexibility intact.
The company also sees room to cut costs and lift revenue through operational synergies.
What Happens Next
Both boards unanimously approved the deal, which still needs regulatory clearance and shareholder tender conditions to clear.
Viatris expects to wrap up the acquisition by the end of 2026. Once closed, Pacira becomes a wholly owned subsidiary and its shares stop trading on Nasdaq.
Price Action: Viatris shares were down 2.66% at $17.02 and Pacira BioSciences shares were up 44.05% at $36.29 at the time of publication on Thursday, according to market data.
