Analyst: Non-Farm Payroll Data Completely Overturns Fed's Justification for Rate Cuts

Viatris has proposed an acquisition price of $36.50 per share, representing a 44.8% premium over Pacira’s last closing price. This acquisition will drive Viatris’ transition from the generic drug business to the field of patented pharmaceuticals. The company stated that the transaction is expected to be completed by the end of 2026 and will immediately enhance its financial metrics. On Thursday, Siddhi Mahatole from Reuters reported that pharmaceutical company Viatris (VTRS.O) announced a $1.65 billion cash acquisition of Pacira BioSciences (PCRX.O), aiming to add two non-opioid pain medications to its portfolio and expand beyond its core generic drugs into the high-value branded drug market. Viatris will acquire Pacira at $36.50 per share, a 44.8% premium over its last trading day closing price. In early trading, Pacira’s stock surged around 44%, while Viatris shares fell nearly 2%. Oppenheimer analyst Les Sulewski commented that the premium was “full price” and noted limited antitrust risk. He mentioned that Pacira has faced pressure from activist investors since November 2025, and with the stock close to the offer price, investors appear confident the deal will close with limited expectations for a higher bid. Through this transaction, Viatris will obtain Pacira’s “Exparel” (for the management of acute postsurgical pain) and “Zilretta” (for pain associated with osteoarthritis of the knee). In 2025, these two products are expected to achieve net sales of $575.1 million and $116.6 million respectively. Viatris stated it plans to promote these drugs in select international markets, seeking new growth drivers while deepening its presence in the patented drug segment. CEO Scott Smith said the acquisition “creates synergies with our fast-acting Meloxicam market opportunity and positions us as a leader in non-opioid pain therapeutics.” The US Food and Drug Administration is expected to decide by December 27 whether to approve Viatris’ rapid-acting Meloxicam for the treatment of moderate to severe acute pain. Viatris said it plans to mainly use excess cash to finance the acquisition, with the remainder raised through short-term borrowing. The company noted the deal will have a minimal impact on its overall leverage. Previously, Viatris raised its annual adjusted profit forecast in August thanks to strong branded drug sales and growth in the Chinese market. However, the company continues to face pressures from manufacturing setbacks in India, including a fire at its Nashik plant, as well as intense competition in the generics market. Both parties expect the deal to be completed by the end of 2026. Viatris said the acquisition will immediately improve its financial guidance metrics.

US Vice President Vance: The United States has suspended Microsoft’s (MSFT.US) “Permanent Labor Certification (PERM)” program. This move is intended to convey to Microsoft the message that it must hire American workers.