Bridgewater company Savient Pharmaceuticals Inc. announced today it has filed for Chapter 11 bankruptcy protection, agreeing to sell its assets for $55 million to WorldMeds subsidiary Sloan Holdings C.V.
The sale will be conducted under bankruptcy court-supervised auction process, Savient said in a news release. The agreement with Sloan sets the floor, or minimum acceptable bid, and can be topped.
Savient assets include gout drug Krystexxa, which gained regulatory approval in 2010. Krystexxa treats refractory chronic gout, a rare condition the company estimates affects about 120,000 people in the United States.
"The board and management team have conducted a rigorous assessment of all of our strategic options and believe that this process represents the best possible solution for Savient," Stephen Jaeger, Savient chairman, said in a statement. "We are committed to an outcome that maximizes value and allows Krystexxa to remain commercially available in the U.S. to all of the patients who have come to rely on this life-changing therapy."
Savient said a final sale approval hearing is expected to take place after the auction with closing anticipated by the end of 2013. Savient filed its bankruptcy in federal court in Wilmington, Del. The company lists $260 million in debt and $74 million in assets.