Bausch Health to Buy Synergy Pharmaceuticals Out of Bankruptcy for $200 Million--Update
December 12 2018 - 7:18AM
Dow Jones News
By Chris Wack
Bausch Health Companies Inc. (BHC) is buying substantially all
of Synergy Pharmaceuticals Inc.'s (SGYP) assets, including all
rights to TRULANCE (plecanatide), dolcanatide and related
intellectual property, for $200 million in cash plus the assumption
of certain liabilities related to the assets to be acquired.
Synergy Pharmaceuticals said in a release Wednesday that the
sale is subject to a competitive process and the company's receipt
of higher and better offers, with Bausch Health serving as the
stalking horse bidder.
In order to speed up the sale and address its debt obligations,
Synergy started voluntary chapter 11 bankruptcy proceedings. The
New York-based biopharmaceutical company plans to operate its
business as usual while it works to complete the sale through the
chapter 11 process.
"We have worked diligently to serve our patients, health care
professionals and other stakeholders by bringing TRULANCE to market
and developing other gastrointestinal therapies to address
previously unmet needs. Unfortunately, we have now reached a point
where our financial challenges are preventing us from taking this
important work to the next level," said Troy Hamilton, chief
executive of Synergy Pharmaceuticals.
Synergy has entered into a binding term sheet with its existing
first lien lenders for debtor-in-possession financing in an
aggregate principal amount equal to $155 million.
Bausch Health said that it doesn't require any financing to
complete the acquisition, and if its bid is successful, the
transaction is expected to close in the first quarter of 2019.
Shares of Synergy Pharmaceuticals were down 53% to 16 cents a
share premarket, while shares of Bausch Health rose slightly to
$23.12 premarket.
Write to Chris Wack at chris.wack@wsj.com
(END) Dow Jones Newswires
December 12, 2018 08:03 ET (13:03 GMT)
Copyright (c) 2018 Dow Jones & Company, Inc.
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