Saturday, December 7, 2024
HomeLatest Pharma-NewsZealand Pharma announces proposal to acquire Valeritas

Zealand Pharma announces proposal to acquire Valeritas

Feb 10, 2020: Zealand Pharma, a biotechnology company focused on the discovery and development of the innovative peptide-based medicines, announces a bid in order to acquire substantially all assets from Valeritas Holdings, Inc. for a total cash consideration of $23 million and the assumption of certain liabilities related to the ongoing business, pursuant to the terms of the “stalking horse” asset purchase agreement entered into with Valeritas.

On February 9, 2020, Valeritas and its subsidiaries filed the voluntary petitions under Chapter 11 of the U.S. Bankruptcy Code in the U.S. Bankruptcy Court for the District of Delaware.

- Advertisement -

At that time, Zealand entered into a definitive agreement on order to acquire substantially all assets from the Valeritas. Under the terms of the agreement, Zealand serves as the stalking horse bidder in the sale process.

The proposed sale is to be conducted through a Court-supervised sale process under Section 363 of the Bankruptcy Code and will be subject to the Court-approved bidding procedures and receipt of competing for offers at the auction. 

If Zealand’s bid is selected, the sale will be subjected to approval by the Bankruptcy Court and certain other closing conditions. No assurance for the transaction to be concluded.

Zealand’s strategy is to become a fully integrated biotechnology company with commercial operations in the U.S., and Zealand is preparing for the anticipated launch of the dasiglucagon HypoPal® rescue pen in 2021, if approved by the U.S. FDA.

The contemplated bid provides Zealand with an opportunity to acquire a revenue-generating business and infrastructure, accelerating in efforts ongoing to prepare for the anticipated dasiglucagon HypoPal® launch while leveraging the Valeritas organization’s experience and relationships within the U.S. diabetes market.

Valeritas is a multinational medical technology company based in the United States with a focus on improving health and simplifying life for people with diabetes. The V-Go ® Wearable Insulin Delivery system, Valeritas ‘ company, is a simple, inexpensive, all-in-one basal bolus insulin delivery device for adult patients needing insulin that is worn like a patch and can remove the need to take multiple daily shots.

Valeritas posted $22.4 million in revenue and a $41.9 million loss before income taxes for the nine months ending September 30th, 2019. Because of the complexity of this bankruptcy sale process, no statements can be made about the financial impact of the proposed transaction or any guidelines relevant to it.

As a reminder, on 12 March 2020, Zealand Pharma is planning to announce results for the fourth quarter and fiscal year 2019. When appropriate information becomes available Zealand will provide further updates. In this deal, Cooley LLP is working as legal adviser to Zealand Pharma.
https://fda.einnews.com/pr_news/509318162/zealand-pharma-announces-bid-to-acquire-valeritas

LEAVE A REPLY

Please enter your comment!
Please enter your name here

- Advertisment -

Most Popular