Tampa, Fla.-based Pacira BioSciences Inc. (NAS:PCRX) said Monday it is acquiring Flexion Therapeutics Inc. , based in Burlington, Mass., for $8 a share in cash, plus a non-tradeable contingent value right (CVR) worth up to $8.50 a share in cash, in a deal aimed at expanding its position in non-opioid pain management. The CVR is payable based on the company meeting certain sales and regulatory milestones. Flexion's lead product, ZILRETTA(R) (triamcinolone acetonide extended-release injectable suspension) is the first and only FDA-approved treatment for osteoarthritis knee pain using extended-release microsphere technology, the companies said in a joint statement. It also offering non-opioid treatments for musculoskeletal conditions, including postsurgical pain and low back pain. "We believe the Flexion portfolio further solidifies Pacira as a leader in opioid-sparing pain management as we continue to redefine the role of opioids as a last resort rescue medication," Pacira CEO Dave Stack said in a statement. The deal is expected to immediately boost revenue and to lift 2022 earnings and be strongly accretive after that. The deal is expected to close in the fourth quarter. Flexion shares jumped 39% on the news, but are down 50% in the year through Friday's close, while the S&P 500 (S&P:SPX) has gained 17%.
Oct. 11, 2021, 7:14 a.m. EDT