PhaseRx, Inc. said it entered an asset purchase agreement with N.Y.-based privately held drugmaker Roivant Sciences, Inc. following the auction of company's assets.
U.S.-based PhaseRx had filed for Chapter 11 bankruptcy protection in the U.S. Bankruptcy Court for the District of Delaware in December 2017.
An auction for substantially all of the company's assets concluded Jan. 31, with Roivant Sciences' German unit selected as the highest and best bid.
The bid consists of a purchase price of $800,000 plus the assumption of certain liabilities and a note between Roivant and PhaseRx's senior secured lender Hercules Capital Inc.
The note includes milestone payments to pay down the Hercules' secured debt, among other items.
PhaseRx said all proceeds from the auction will be used to satisfy its liabilities to the creditors.
The sale is expected to close Feb. 2, subject to the satisfaction of customary closing conditions, including approval by the bankruptcy court.
