Amryt Pharma PLC said its acquisition of Aegerion Pharmaceuticals Inc. is going ahead after a U.S. Bankruptcy Court approved the latter's plan of reorganization.
Aegerion is a unit of Vancouver, British Columbia-based Novelion, which makes drugs for rare diseases. Aegerion's plan of reorganization — backed by the company's key creditors and stakeholders — was formally confirmed by the U.S. Bankruptcy Court for the Southern District of New York.
When the reorganization plan takes effect, which is expected to be on or about Sept. 24, Amryt will acquire Aegerion in exchange for stock and new debt. The stock and debt will be distributed to Aegerion's convertible bond holders, certain unsecured creditors and Novelion.
Amryt previously agreed to acquire 100% of the reorganized shares of Aegerion. Following the deal, Aegerion will become a fully owned unit of the Dublin-based pharmaceutical company.
Prior to deal completion, registered shareholders of Amryt will receive contingent value rights, or CVRs, after which up to $85 million may become payable to the company's existing shareholders and option holders if certain milestones are met in relation to AP101, one of the Irish drugmaker's principal products.
Registered shareholders will receive CVRs on the CVR record date of Sept. 20, subject to closing of the transaction. Shareholders who sell their ordinary shares before the CVR record date will not be entitled to receive CVRs.
The CVRs will be valued up to $1.48 per ordinary share, Amryt said in a news release.
The deal is expected to close on or around Sept. 24, subject to shareholder approval.
Meanwhile, Amryt plans to raise $60 million in new equity concurrent to the closing of the acquisition. Based on the company's issued share capital prior to deal closing, the placing price equates to $1.79 per new Amryt share.
Proceeds from the financing will be used to develop Amryt's pipeline, to develop new indications for the company's late-stage product candidates and to fund general corporate purposes.
