Nuvo Pharmaceuticals Inc., a globally focused, healthcare company with a portfolio of commercial products and pharmaceutical manufacturing capabilities, today announced that it has been informed by Aralez Pharmaceuticals Inc. that Nuvo’s previously announced acquisition of Aralez’s Canadian business and the Vimovo® royalty stream was the most favourable bid received and that Aralez will seek court approval for the Transaction. The Transaction 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 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 December 31, 2018.
On September 19, 2018, the Company 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 US$110 million in cash (less the US$4.4 million deposit previously paid and subject to certain working capital adjustments), which Nuvo will satisfy through funding provided by certain funds managed by Deerfield Management Company, L.P., a leading, global, healthcare-specialized investor.
Jesse Ledger, Nuvo’s President & CEO commented, “We are excited about the prospect of gaining the benefit of the positive growth trend of the Aralez business in Canada. We believe this transaction has the potential to create significant shareholder value by adding scale, diversification to our revenue streams and additional platforms for future growth.”
The description of the Transaction and the Financing contained in this news release are qualified in their entirety by the reference to the definitive purchase agreements and binding commitment letter, copies of which are filed under Nuvo’s profile at www.sedar.com. Closing remains subject to court approvals and other customary closing conditions. Closing of the Financing also remains subject to customary conditions. There can be no assurance that that the Transaction as described, or otherwise, will be successfully concluded.
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Date: December 3, 2018
Source: Medindia