Insys Therapeutics asset sale procedures OK’d; auction set for Aug. 5

By Caroline Salls

Pittsburgh, July 2 – Insys Therapeutics, Inc. received court approval of the bidding procedures for the sale of its assets, according to an order filed Tuesday with the U.S. Bankruptcy Court for the District of Delaware.

As previously reported, 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.

The bid procedures order gives Insys until July 10 to enter into any stalking horse bid agreement.

If a stalking horse bid is selected and that bidder is not ultimately the high bidder for the assets, Insys will pay it a 2% break-up fee and reimburse up to $100,000 of its sale-related expenses.

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

An auction will be held on Aug. 5, if necessary. The company said the minimum bidding increment will be announced at the start of the auction.

The sale hearing is scheduled for Aug. 22.

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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