Viatris acquires Pacira BioSciences for $1.65 billion

Viatris is acquiring Pacira BioSciences for $1.65 billion in cash to expand its pain-drug portfolio. The deal, announced on October 8, 2026, will give Viatris control of Pacira's two biggest drugs, Exparel and Zilretta, which treat post-surgical and osteoarthritis pain, respectively.

Per deal terms, Viatris will pay Pacira investors $36.50 per share in cash. This represents a 45% premium over Pacira's closing share price from the previous Wednesday. The transaction has an aggregate equity value of $1.65 billion. Viatris expects to fund the purchase primarily from excess cash, with the remainder from short-term borrowings. The deal is expected to close by the end of 2026.

Pacira’s core products and market position

Pacira's lead drugs booked $692 million in sales in 2025, a figure that grew about 4% over 2024. The company generated approximately $746 million in total revenue during the last twelve months ended June 30, 2026, with roughly $177 million in adjusted EBITDA.

Both Exparel and Zilretta are novel formulations of older, now-generic non-opioid pain relievers. Exparel is a liposome injectable suspension of bupivacaine for post-surgical pain. Zilretta is an extended-release injectable suspension of triamcinolone acetonide for knee pain associated with osteoarthritis.

Intellectual property and generic competition outlook

Despite strong recent sales, Pacira's key products face impending generic competition. Generic erosion of Exparel is likely to begin in early 2030. This follows patent settlements Pacira made last year with Fresenius Kabi and a Hengrui Pharma subsidiary.

Those deals allow the two companies to begin marketing 'high single digit' percentages of total U.S. volume. They can escalate to the 30% range within three years. The settlement was facilitated by manufacturing patents won in 2024 that pushed Exparel's intellectual property protections out to 2044, according to the FDA's Orange Book. Two other manufacturers are challenging those 2024 manufacturing patents.

Patents covering Zilretta are set to expire in 2031.

Analyst perspective and financial expectations

Leerink analyst Daniel Clark wrote a client note on the transaction. Clark said the deal could help grow earnings into the 2030s. He added that the transaction should be 'immediately accretive' to revenue.

In initiating coverage on Pacira in September, Clark noted that Exparel's growth has been constrained by hospital formularies reluctant to add it to usual post-surgical protocols. The drug recently won coverage from large insurer United Healthcare. Clark believes the deal adds steady sources of growth and margin expansion into the 2030s for Viatris.

The transaction is expected to be immediately accretive to Viatris’s financial guidance metrics and have minimal impact on its gross leverage ratio. Pacira’s board of directors unanimously approved the transaction and recommends stockholders tender their shares.

Viatris’s post-acquisition plans

Viatris said it plans to leverage its intellectual property expertise and proven ability to extend product lifecycles to sustain meaningful sales after generics arrive. The company also expects to expand the products' reach across select markets within its global infrastructure.

Viatris may soon launch a fast-acting version of the drug meloxicam if the Food and Drug Administration clears it by a December 27, 2026 decision deadline. The company already markets its own pain medications, Celebrex and Relpax. Adding Pacira's portfolio fits with its strategy of purchasing on-market, commercial assets.

The transaction is subject to customary closing conditions, including tender of a majority of Pacira’s shares and expiration of the regulatory waiting period. Morgan Stanley & Co. LLC is financial advisor to Viatris; Cravath, Swaine & Moore LLP is legal advisor to Viatris.

Upon completion, Pacira will become a wholly owned subsidiary of Viatris and its stock will no longer be listed on Nasdaq Global Select Market.