Viatris to Buy Pacira BioSciences for $1.65 Billion

Viatris VTRS -0.71%decrease; red down pointing triangle has agreed to buy pain-drug maker Pacira BioSciences PCRX 44.07%increase; green up pointing triangle for $1.65 billion in a deal that expands the healthcare company’s medicines portfolio.

The deal is slated to close by the end of the year.

Shares of Pacira were recently up 44% at $36.33 in premarket trading, while shares of Viatris edged down 0.1% to $17.47.

Viatris said the addition of Pacira’s Exparel and Zilretta products to its proposed meloxicam treatment for moderate-to-severe acute pain, positions the Canonsburg, Pa., company as a leader in non-opioid pain-management therapies.

The U.S. Food and Drug Administration is currently reviewing Viatris’ application for the approval of meloxicam, with a target action date of Dec. 27.

Viatris said it plans to fund the Pacira acquisition primarily from excess cash, with the remainder from short-term borrowings, adding that it expects the deal will have minimal impact on its gross leverage ratio.