Biotech firm Savient Pharmaceuticals has sought protection under Chapter 11 of the bankruptcy law, due to years of disappointing sales for its primary product Krystexxa.
The Bridgewater, New Jersey-based company filed for protection in the U.S. Bankruptcy Court for the District of Delaware, and said in its filing that it will sell its assets to Sloane Holdings CV for roughly $55 million. Under the agreement, Sloane will serve as the stalking horse bidder in a court supervised auction of the company’s assets. The proposed deal with Sloane sets the floor, or minimum acceptable bid, and is subject to Bankruptcy Court approval, among other conditions.
The firm listed $260 million in liabilities and $74 million in assets. According to Reuters, Savient’s largest creditor has been pressuring it to liquidate in recent years.
The company manufactures Krystexxa, an alternative treatment for gout that has been marketed to those who failed to respond to traditional therapies and medicines. After developing the drug in 2010, however, low sales volume damaged the company financially and rendered it unable to meet its creditor obligations.
“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, taking into account our financial and operational issues and helping to unlock the value of Krystexxa,” said Stephen Jaeger, chairman of the board of Savient.
However, the company noted that it plans to make the gout treatment drug commercially available throughout the U.S. during its bankruptcy proceedings. In addition, Savient has negotiated with its senior secured noteholders to ensure it has sufficient liquidity to conduct its business uninterrupted and to continue to meet its operational financial obligations. The biotech firm will also maintain employee wages and salaries, as well as its worker benefits program.
Redefining Labor Relations: NLRB's Pivot from Abruzzo’s Memoranda
On February 14, 2025, the Office of General Counsel (OGC) of the National Labor Relations Board (NLRB) under Acting General Counsel William B. Cowen issued Memorandum 25-05, “New Process for More Efficient, Effective, Accessible and Transparent Case handling.” The Memorandum rescinds nearly all of the Memoranda issued by his direct predecessor, Jennifer Abruzzo, setting the […]
If you purchase real property from a foreign person or entity, you may be required to withhold taxes from your payment to the seller under the Foreign Investment in Real Property Tax Act (FIRPTA). The federal tax law is designed to ensure that foreign sellers pay any applicable capital gains tax on profits realized from […]
Does Your Homeowners Insurance Provide Adequate Coverage?
Your home is likely your greatest asset, which is why it is so important to adequately protect it. Homeowners insurance protects you from the financial costs of unforeseen losses, such as theft, fire, and natural disasters, by helping you rebuild and replace possessions that were lost While the definition of “adequate” coverage depends upon a […]
Understanding the Importance of a Non-Contingent Offer
Making a non-contingent offer can dramatically increase your chances of securing a real estate transaction, particularly in competitive markets like New York City. However, buyers should understand that waiving contingencies, including those related to financing, or appraisals, also comes with significant risks. Determining your best strategy requires careful analysis of the property, the market, and […]
Fred D. Zemel Appointed Chair of Strategic Planning at Scarinci & Hollenbeck, LLC
Business Transactional Attorney Zemel to Spearhead Strategic Initiatives for Continued Growth and Innovation Little Falls, NJ – February 21, 2025 – Scarinci & Hollenbeck, LLC is pleased to announce that Partner Fred D. Zemel has been named Chair of the firm’s Strategic Planning Committee. In this role, Mr. Zemel will lead the committee in identifying, […]
Novation Agreement Process: Step-by-Step Guide for Businesses
Big changes sometimes occur during the life cycle of a contract. Cancelling a contract outright can be bad for your reputation and your bottom line. Businesses need to know how to best address a change in circumstances, while also protecting their legal rights. One option is to transfer the “benefits and the burdens” of a […]
No Aspect of the advertisement has been approved by the Supreme Court. Results may vary depending on your particular facts and legal circumstances.
Sign up to get the latest from our attorneys!
Explore What Matters Most to You.
Consider subscribing to our Firm Insights mailing list by clicking the button below so you can keep up to date with the firm`s latest articles covering various legal topics.
Stay informed and inspired with the latest updates, insights, and events from Scarinci Hollenbeck. Our resource library provides valuable content across a range of categories to keep you connected and ahead of the curve.
New Jersey-Based Savient Pharmaceuticals Seeks Chapter 11 Bankruptcy
Author: Joel R. Glucksman
Biotech firm Savient Pharmaceuticals has sought protection under Chapter 11 of the bankruptcy law, due to years of disappointing sales for its primary product Krystexxa.
The Bridgewater, New Jersey-based company filed for protection in the U.S. Bankruptcy Court for the District of Delaware, and said in its filing that it will sell its assets to Sloane Holdings CV for roughly $55 million. Under the agreement, Sloane will serve as the stalking horse bidder in a court supervised auction of the company’s assets. The proposed deal with Sloane sets the floor, or minimum acceptable bid, and is subject to Bankruptcy Court approval, among other conditions.
The firm listed $260 million in liabilities and $74 million in assets. According to Reuters, Savient’s largest creditor has been pressuring it to liquidate in recent years.
The company manufactures Krystexxa, an alternative treatment for gout that has been marketed to those who failed to respond to traditional therapies and medicines. After developing the drug in 2010, however, low sales volume damaged the company financially and rendered it unable to meet its creditor obligations.
“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, taking into account our financial and operational issues and helping to unlock the value of Krystexxa,” said Stephen Jaeger, chairman of the board of Savient.
However, the company noted that it plans to make the gout treatment drug commercially available throughout the U.S. during its bankruptcy proceedings. In addition, Savient has negotiated with its senior secured noteholders to ensure it has sufficient liquidity to conduct its business uninterrupted and to continue to meet its operational financial obligations. The biotech firm will also maintain employee wages and salaries, as well as its worker benefits program.
Let`s get in touch!
Sign up to get the latest from the Scarinci Hollenbeck, LLC attorneys!
