Aralez to sell assets valued at $250M amid Chapter 11 filing
Specialty pharmaceutical firm Aralez Pharmaceuticals announced today that it intends to enter into purchase agreements with two separate stalking-horse purchasers to sell its main operating businesses: an agreement to sell its Vimovo royalties and Canadian operations to Nuvo Pharmaceuticals in a transaction valued at $110 million and an agreement to sell its Toprol-XL franchise to its secured lender, certain funds managed by Deerfield Management Company in a transaction valued at $140 million.
Aralez is also engaged in ongoing efforts to sell the assets not being sold in either of the proposed transactions and intends to wind down its operations following the consummation of the sales, according to the company.
Aralez, and its Canadian subsidiary, Aralez Pharmaceuticals Canada has elected to commence voluntary proceedings under Canada's Companies' Creditor Arrangement Act (the "CCAA") in the Ontario Superior Court of Justice. Aralez's subsidiaries incorporated in the United States and Ireland have elected to file voluntary petitions under Chapter 11 of the Bankruptcy Code in the U.S. Bankruptcy Court for the Southern District of New York (together with the CCAA proceedings, the "Restructuring Proceedings").
"Following a thorough financial and strategic review, we believe that these sales, together with an auction process under court supervision are in the best interests of the Company and its stakeholders," Aralez CEO Adrian Adams, said in a press release statement.
Aralez, together with its subsidiaries, intends to seek and obtain customary relief from the courts to permit it to continue to operate its business in the ordinary course without interruption during the sale process.
Aralez is also engaged in ongoing efforts to sell the assets not being sold in either of the proposed transactions and intends to wind down its operations following the consummation of the sales, according to the company.
Aralez, and its Canadian subsidiary, Aralez Pharmaceuticals Canada has elected to commence voluntary proceedings under Canada's Companies' Creditor Arrangement Act (the "CCAA") in the Ontario Superior Court of Justice. Aralez's subsidiaries incorporated in the United States and Ireland have elected to file voluntary petitions under Chapter 11 of the Bankruptcy Code in the U.S. Bankruptcy Court for the Southern District of New York (together with the CCAA proceedings, the "Restructuring Proceedings").
"Following a thorough financial and strategic review, we believe that these sales, together with an auction process under court supervision are in the best interests of the Company and its stakeholders," Aralez CEO Adrian Adams, said in a press release statement.
Aralez, together with its subsidiaries, intends to seek and obtain customary relief from the courts to permit it to continue to operate its business in the ordinary course without interruption during the sale process.