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Why Pacira BioSciences Skyrocketed Today
Key Points
Pacira BioSciences is being bought out by Viatrias.
The deal values the company at $36.50 per share or about $1.65 billion.
Shares of Pacira BioSciences skyrocketed on Thursday, rising as much as 44.2%. As of 10:58 a.m. ET, the stock was still up 44.1%.
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The catalyst that sent the specialty healthcare provider higher was news of its acquisition.
Image source: Getty Images.
$1.65 billion takeout
In a press release that dropped Thursday morning, Pacira BioSciences -- which specializes in non-opioid pain management solutions -- announced it had agreed to be acquired by Viatris (NASDAQ:VTRS).
The global healthcare and pharmaceutical company will pay $36.50 per share for Pacira BioSciences, a deal that values the company at about $1.65 billion. That represents a roughly 45% premium compared to Wednesday's closing price. The deal has been unanimously approved by both boards of directors and is expected to close by the end of 2026, subject to customary closing conditions, including the expiration of the applicable regulatory waiting period.
Viatris CEO Scott Smith said the deal marked an important step in building the company's "innovative medicines business." He went on to say that Pacira's Exparel, used for acute postsurgical pain, and Zilretta, used to treat knee osteoarthritis pain, will make the company a leader in non-opioid pain-management therapies.
The buyout marks the end of a tumultuous story for Pacira BioSciences. Recent shuffling of the company's product portfolio, the potential loss of preferred reimbursement status for Medicare patients, and tepid growth have weighed on the stock, which had lost 15% over the past three years (prior to the buyout announcement).
This will be a mixed bag for shareholders. Those who purchased the stock over the past couple of years will likely walk away with a profit, while long-term shareholders may be left holding the bag.
Danny Vena, CPA has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.