Insys Therapeutics sets asset sale procedures, eyes Aug. 2 auction

By Caroline Salls

Pittsburgh, June 12 – Insys Therapeutics, Inc. requested court approval of the bidding procedures for the sale of its assets, according to a motion filed with the U.S. Bankruptcy Court for the District of Delaware.

On Monday, Insys chief executive officer Andrew G. Long said in a news release that “After conducting a thorough review of available strategic alternatives, we determined that a court-supervised sale process is the best course of action to maximize the value of our assets and address our legacy legal challenges in a fair and transparent manner.”

“Insys has compelling assets and a highly talented team,” Long said. “We believe this process will provide us with a forum to negotiate an equitable resolution with our creditors and represents the best opportunity for our people and our business.”

The company said it aims to complete the asset sales within 90 days and address creditors’ claims as expeditiously as possible.

Although two interested parties withdrew non-binding offers for the assets, Insys said in the bid procedures motion that multiple bidders have expressed interest in, and intent to participate in an auction for the sale of, the assets.

Under the proposed procedures, bids will be due by 4 p.m. ET on July 23.

An auction will be held on Aug. 2, if necessary. The company said the minimum bidding increment will be announced at the start of the auction.

Insys is requesting an Aug. 19 sale hearing.

The specialty pharmaceutical company is based in Phoenix. The company filed bankruptcy on June 10 under Chapter 11 case number 19-11292.

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