Aralez Pharma Announces Agreements To Sell Its Main Operating Businesses
(RTTNews.com) - Aralez Pharmaceuticals Inc. (ARLZ, ARZ.TO) announced the company 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 Inc. 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, L.P., in a transaction valued at $140 million. The company said it 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.
To facilitate the transactions, Aralez, along with its Canadian subsidiary, Aralez Pharmaceuticals Canada Inc., has elected to commence voluntary proceedings under Canada's Companies' Creditor Arrangement Act. 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.
Aralez 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. The company has also obtained commitments for debtor-in-possession financing of approximately $15 million, from its secured lender.
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