Bausch Health Agrees to Buy Synergy Pharmaceuticals for $200 Million
December 12 2018 - 7:14AM
Dow Jones News
By Chris Wack
Bausch Health Companies Inc. (BHC) said Wednesday it agreed to
buy substantially all of Synergy Pharmaceuticals Inc.'s (SGYP)
assets for around $200 million in cash plus the assumption of some
liabilities.
The deal includes all rights to Synergy's flagship product
Trulance (plecanatide), a tablet approved for adults with chronic
idiopathic constipation and irritable bowel syndrome with
constipation, as well as dolcanatide and related intellectual
property, Bausch said.
Synergy said the sale is subject to a competitive process and
the receipt of higher and better offers, with Bausch Health serving
as the stalking horse bidder.
The New York-based biopharmaceutical company said it has filed a
voluntary chapter 11 bankruptcy proceedings. The company said it
plans to operate its business as usual while it works to complete
the sale through the bankruptcy 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," Synergy Chief Executive Troy
Hamilton said.
Synergy said it has entered into an agreement with existing
first lien lenders for debtor-in-possession financing of up to $155
million.
Bausch Health said that it doesn't require any financing to
complete the deal and the transaction is expected to close in the
first quarter of 2019.
Shares of Synergy Pharmaceuticals rose 12% to 38 cents
premarket, while shares of Bausch Health rose slightly to
$23.12.
Write to Chris Wack at chris.wack@wsj.com
(END) Dow Jones Newswires
December 12, 2018 06:59 ET (11:59 GMT)
Copyright (c) 2018 Dow Jones & Company, Inc.
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