Achaogen closes sale of plazomicin rights sale, announces loan default

By Caroline Salls

Pittsburgh, July 29 – Achaogen, Inc. closed the $4.8 million sale of its worldwide rights to Zemdri (plazomicin) to Cipla USA Inc. on July 23, according to an 8-K filed Monday with the Securities and Exchange Commission.

The rights in Greater China were not included in the sale.

The sale was approved on July 23 by the U.S. Bankruptcy Court for the District of Delaware.

Effective on the closing date, Achaogen said Bryan E. Roberts, Gregory Stea, Karen Bernstein and John C. Doyle resigned as members of its board of directors. Kent Lieginger, John W. Smither and Blake Wise will continue as directors.

In addition, the company said chief executive officer Blake Wise left the company on the closing date, although he will continue to serve as president and secretary on a part-time hourly consulting basis. Chief restructuring officer Nicholas K. Campbell of MERU, LLC will continue in that role.

Achaogen also said in the 8-K that it is in default of some debtor-in-possession credit agreement milestones. Specifically, the company said it failed to obtain a final DIP financing order by June 25 and close a sale of all or substantially all of its assets by June 28.

The default gives the DIP financing lender the right to accelerate the DIP loan obligations and to terminate the agreement.

The South San Francisco, Calif.-based biopharmaceutical company filed bankruptcy on April 15. The Chapter 11 case number is 19-10844.

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