Viatris bets on non-opioid pain drugs with $1.65bn Pacira deal

Viatris (VTRS) has agreed to buy Pacira BioSciences (PCRX) for $1.65bn in cash. The deal adds two non-opioid pain treatments to its portfolio as the drugmaker tries to build out higher-value branded medicines beyond its core generics business.

Viatris will pay $36.50 per share, a 44.8 percent premium to Pacira's last close. Pacira shares rose about 44 percent in morning trading, while Viatris shares slipped nearly 2 percent.

Les Sulewski, an analyst at Oppenheimer, said the premium represented a "full price" and that he saw limited antitrust overlap. He noted that activist pressure on Pacira had persisted since November 2025. Pacira shares trading near the offer price, he said, suggested investors were confident the deal would close and expected no higher bid.

The acquisition gives Viatris access to Exparel, used to manage acute pain after surgery, and Zilretta, a treatment for pain associated with osteoarthritis of the knee. The two drugs generated net product sales of $575.1mn and $116.6mn respectively in 2025. Viatris said it expects to expand them into select international markets as it deepens its push into patent-protected medicines in search of new growth drivers.

Scott Smith, Viatris chief executive, said the deal was "synergistic with our fast-acting meloxicam market opportunity" and positioned the company as a leader in non-opioid pain management. The US Food and Drug Administration is expected to decide by December 27 whether to approve fast-acting meloxicam for moderate-to-severe acute pain.

Viatris plans to fund the purchase primarily with excess cash, with the remainder coming from short-term borrowings. It said the transaction would have minimal impact on its gross leverage ratio.

The deal follows an increase in Viatris's annual adjusted profit forecast in August, helped by strong branded-drug sales and growth in China. The company has nonetheless faced pressure from manufacturing setbacks in India, including a fire at its Nashik plant, as well as intensifying competition in generics.

The companies expect the transaction to close by the end of 2026. Viatris said it would be immediately accretive to its financial guidance metrics.