Valeritas Holdings Inc., a medical technology company based in Bridgewater, announced it has agreed to sell the majority of its business assets to Danish biotechnology firm Zealand Pharma A/S for $23 million.
The deal encompasses nearly all of Valeritas’ workforce, it said.
To finalize the sale, Valeritas and its subsidiaries filed voluntary petitions for relief under Chapter 11 of the U.S. Bankruptcy Code. It then filed a motion to approve a stalking horse asset purchase agreement with Zealand and to initiate a competitive bidding process under Section 363 of the Bankruptcy Code.
Valeritas said it expects to continue operating its business as usual.
“After a thoughtful and thorough review of strategic alternatives, we determined that a process to sell our business is the best path forward to maximize value for all stakeholders,” John Timberlake, CEO and president, said. “During this process, we will remain focused on successfully serving our patients and health care providers as we continue to work hard to improve the health of and simplify the lives of people with diabetes.”
Once the deal has closed, Zealand will continue Valeritas commercially-focused operations and retain nearly all of its employees.
“We believe that entering the process with an agreed offer from Zealand, whose stated goal is to work with our highly-talented workforce to build a successful commercial competitor in the U.S. diabetes market, is the most advantageous option for Valeritas,” Timberlake said.
DLA Piper LLP is serving as legal counsel, Lincoln International is serving as investment banker, PricewaterhouseCoopers LLP is serving as financial advisor to Valeritas.
