Clovis cancels auction for FAP-2286; will seek sale to Novartis

By Sarah Lizee

Olympia, Wash., March 8 – Clovis Oncology, Inc. canceled an auction scheduled for Thursday for its pipeline clinical candidate, FAP-2286, and named Novartis Innovative Therapies AG the winning bidder, according to a notice filed Tuesday with the U.S. Bankruptcy Court for the District of Delaware.

As previously reported, the company entered into a stalking horse purchase agreement with Novartis to acquire substantially all its rights to FAP-2286 for an upfront payment of $50 million and up to an additional $333.75 million upon the successful achievement of specified development and regulatory milestones and $297 million in later sales milestones.

Bid protections include a $6 million breakup fee and a $2 million expense reimbursement.

Under the bid procedures, the bid deadline was 4 p.m. ET on March 7. The bid deadline for the company’s other assets is 4 p.m. ET on March 21.

The sale hearing for the FAP-2286 assets is scheduled for March 21, and the sale hearing for the other assets it scheduled for April 10.

Clovis Oncology is a Boulder, Colo.-based biopharmaceutical company. The company filed bankruptcy on Dec. 11 under Chapter 11 case number 22-11292.

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