Shares of biotech company Pacira soared 44%: the maker of "Viagra" is set to acquire it

Shares of Pacira BioSciences, a manufacturer of non-opioid—and therefore non-addictive—pain relievers, soared 44% on October 8 and reached a more than three-year high. The company announced that it would be acquired at a premium by its competitor, Viatris. Viatris was formed just six years ago through the merger of the pharmaceutical company Mylan and one of the divisions of pharmaceutical giant Pfizer, from which it acquired a number of drugs, including “Viagra.”

Pacira's stock rose to $36.4 at the close of trading on October 8—its highest price since mid-2023.

The rally began after the biotech company announced that it was set to be acquired by the pharmaceutical company Viatris. To do so, Viatris intends to launch a tender offer and buy back the shares at $36.50. This represents a premium of nearly 45% over the stock’s price on October 7—the day before the deal was announced. Pacira’s total valuation is estimated at approximately $1.65 billion.

The deal was unanimously approved by the boards of directors of both companies, according to a press release. It will go through if Pacira’s shareholders tender the majority of their outstanding shares for the buyout. The parties plan to complete all procedures by the end of 2026, after which Pacira will become a subsidiary of Viatris, and its shares will be delisted from the Nasdaq.

Through the acquisition of Pacira, Viatris will add two non-opioid pain relievers—Experel and Zilretta—to its portfolio and become the market leader in non-narcotic pain management, according to a press release.

Both drugs are already on the market in the U.S. and are generating revenue for Pacira. For the twelve months ended June 30, 2026, revenue totaled approximately $746 million, with adjusted EBITDA (earnings before interest, taxes, depreciation, and amortization) of approximately $177 million. Viatris, which has its own non-opioid drug, Meloxicam, plans to launch these drugs in several other countries, according to a press release.

Amid reports of an impending deal between Viatris and Pacira, at least two Wall Street analysts—from Needham and Jefferies —have dropped their “Buy” recommendation on Pacira shares and are now advising investors to “Hold” them (they downgraded the stock from “Buy” to “Hold”). JPMorgan, on the other hand, has upgraded its rating from “Underweight” (which corresponds to a sell recommendation) to “Neutral.”

The "Hold" recommendation for Pacira stock is the most popular among analysts tracking the company's stock: they have seven "Hold" ratings versus two "Buy" ratings, according to MarketWatch. A month ago, there were only three "Hold" recommendations, compared with five "Buy" ratings and one "Sell" rating.

The average target price is $34.21, which is nearly in line with Viatris's proposal.