Canadian specialty pharmaceutical firm Aralez Pharmaceuticals has entered into two separate agreements to sell substantially all of its assets for a total of $250m.
Aralez has signed an agreement to sell its VIMOVO royalties and Canadian operations to Nuvo Pharmaceuticals for $110m.
In another deal, the company agreed to offload its TOPROL-XL Franchise to certain funds managed by Deerfield Management for $140m.
Aralez is also looking to wind down its operations altogether by selling the assets that are not part of the two proposed transactions.
The company said that along with Aralez Pharmaceuticals Canada, its Canadian subsidiary, it has opted to begin voluntary proceedings under Canada’s Companies’ Creditor Arrangement Act (CCAA) in the Ontario Superior Court of Justice, to facilitate the two deals.
Aralez also said that its subsidiaries incorporated in the US and Ireland will file for bankruptcy.
Aralez CEO Adrian Adams said: “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.”
Nuvo Pharmaceuticals will be acquiring a portfolio of over 20 revenue-generating products from Aralez as part of its deal along with the associated personnel and infrastructure to continue the management and growth of the acquired products.
The acquisition for Nuvo includes Aralez’s Canadian specialty pharmaceutical business, which in the past was known as Tribute Pharmaceuticals Canada.
Products owned by the business include Cambia, Blexten, Suvexx and also the Canadian distribution rights to Resultz.
Nuvo, which is a global healthcare company, expects the deal to help it create a platform to buy and launch more commercial products in Canada.
Nuvo CEO Jesse Ledger said: “The Proposed Transaction would be transformative for Nuvo. It provides critical mass, an expanded platform for future growth, diversifies our revenue streams and significantly increases our projected revenue and adjusted EBITDA.”