Iovera Deal: Tucking More Products Into The Ortho Bag

Research evidence excerpt

Iovera Deal: Tucking More Products Into The Ortho Bag

Medical Supplies & Devices: Orthopedics

Zimmer Biomet Holdings

TD SECURITIES (USA) LLC QUICK TAKE: COMPANY UPDATE

June 30, 2026

Price: $91.24 (06/29/2026) Iovera Deal: Tucking More Products Into The

Price Target: $109.00 Ortho Bag

BUY (1)

Mathew Blackman THE TD COWEN INSIGHT

646 562 1321

Earlier today, ZBH announced a small acquisition -- Iovera from PCRX -- for $140mn in total

mathew.blackman@tdsecurities.com

considerations (~6x TTM on ~$25M revenue base) with a 3Q26 expected close. In short, we

Drew Ranieri think this is a strategically sound, small bolt-on deal that deepens ZBH's already strong

646 562 1460 surgeon relationships and leverages an existing commercial channel with another product to

drew.ranieri@tdsecurities.com

sell.

Key Data

Symbol NYSE: ZBH Transaction Details: This morning, Zimmer Biomet announced an agreement to acquire

Market Cap $17.7B the Iovera product from Pacira BioScience (PCRX; not covered), for a total consideration of

$140mn which includes $70mn in an upfront payment with the remainder as future revenue-

based milestone payments through Dec '31. We had a chance to speak with the company, and

the strategic rationale for Iovera centers on channel leverage and cross-selling opportunities

that increase potential share of wallet. Given the small size of the transaction and use of

cash on hand, management indicated the acquisition does not impact capacity for share

repurchases ($750mn remaining for '26).

What is Iovera? We think this transaction plays well into ZBH's strategy of owning the

continuum of care in orthopedics (in Knees, for instance) by dropping a product already sold

to orthopedic surgeons in ZBH's bag with potential cross-selling opportunities over time. For