Danish biotech, Zealand Pharma, has announced a stalking-horse bid to acquire Valeritas, a New Jersey-based commercial-stage company focussed on improving health for people with diabetes, out of bankruptcy for a total consideration of $23 million.
Last week, Valeritas and its subsidiaries filed voluntary petitions under Chapter 11 of the US Bankruptcy Code in the US Bankruptcy Court for the District of Delaware.
At that time, Zealand entered into a definitive agreement to acquire substantially all assets from Valeritas. Under the terms of the agreement, Zealand serves as the stalking horse bidder in a 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 Court-approved bidding procedures and receipt of competing offers at auction.
If Zealand’s bid is selected, the sale will be subject to approval by the Bankruptcy Court and certain other closing conditions.
Zealand’s strategy is to become a fully integrated biotechnology company with commercial operations in the US, and it is preparing for the anticipated launch of the dasiglucagon HypoPal rescue pen in 2021, if approved by the FDA.
The contemplated bid provides Zealand with an opportunity to acquire a revenue-generating business and infrastructure, accelerating ongoing efforts to prepare for the anticipated dasiglucagon HypoPal launch while leveraging the Valeritas organisation’s experience and relationships within the US diabetes market.