Pacira BioSciences has signed a definitive agreement to acquire biopharmaceutical firm Flexion Therapeutics to strengthen its position in non-opioid pain management.
Founded in 2007, Flexion is focused on the development and commercialisation of novel, local non-opioid therapies to treat people suffering with musculoskeletal conditions, osteoarthritis (OA), post-operative pain and lower back pain.
The transaction will add Flexion’s ZILRETTA, an FDA-approved treatment for OA knee pain, to Pacira’s commercial offering portfolio.
The intra-articular therapy uses microsphere technology, which combines triamcinolone acetonide with a poly lactic-co-glycolic acid (PLGA) matrix to provide extended pain relief.
Through the acquisition, Pacira will also get access to Flexion’s two more drugs, FX201 and FX301, which aim to treat musculoskeletal pain and postsurgical pain, respectively.
The company stated that the combined portfolio helps in providing end-to-end non-opioid solutions along the neural pain pathway.
Pacira chairman and CEO Dave Stack said: “This acquisition is a major milestone in our strategy to build a robust offering of novel, non-opioid treatments to improve patient care along the neural pain pathway while simultaneously providing us with a complementary commercial asset in ZILRETTA for the treatment of OA knee 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. Importantly, this acquisition creates diversification and growth to our topline while providing what we would expect to be meaningful synergies that should result in substantial near- and long-term accretion to our cash flows and earnings.”
Under the deal, Pacira will pay $8.50 a share in cash along with one non-tradeable contingent value right (CVR) worth up to $8.00 a share in cash to Flexion if certain sales and regulatory milestones are met.
The company will also begin a tender offer to acquire all Flexion’s outstanding shares.
Subject to customary closing conditions, the acquisition is expected to be concluded in the fourth quarter of this year.