Nuvo Pharmaceuticals Inc., a company with a portfolio of commercial products and pharmaceutical manufacturing capabilities, reported that its previously announced acquisition bid for of Aralez’s Canadian business and the Vimovo royalty stream was the most favorable one received and that Aralez will seek court approval for the transaction.
The deal must be approved by the Ontario Superior Court of Justice and the U.S. Bankruptcy Court for the Southern District of New York, which oversee the respective pending proceedings involving Aralez and certain affiliates under Canada’s Companies’ Creditors Arrangement Act (the CCAA) and chapter 11 of the U.S. Bankruptcy Code.
Subject to such court approvals and other customary closing conditions, closing is anticipated to occur prior to the end of this year.
On September 19, Nuvo announced that it had entered into definitive, binding purchase agreements with Aralez to acquire a portfolio of revenue-generating products, as well as the associated personnel and infrastructure to continue the products’ management and growth, subject to a competitive bidding and auction process approved by the U.S. and Ontario courts.
Upon closing of the transaction, Nuvo will pay Aralez U $110 million in cash (less the US$4.4 million deposit previously paid and subject to certain working capital adjustments).
(Source: Nuvo Pharmaceuticals Inc.)