Insys inks amended Chilion asset purchase agreement; CEO to step down

By Caroline Salls

Pittsburgh, Oct. 25 – Insys Therapeutics, Inc. entered into an amended asset purchase agreement under which Chilion Group Holdings US, Inc. will purchase additional equipment and intellectual property and an additional lease agreement for Insys’s Ellis facility, according to an 8-K filed Friday with the Securities and Exchange Commission.

As previously reported, Insys entered into an asset purchase agreement with Chilion on Aug. 6 to sell its CBD formulations across current pre-clinical, clinical, third-party grants and investigator-initiated study activities, THC programs of Syndros oral dronabinol solution and Buprenorphine products and related equipment and other assets for $12.2 million in cash.

Under the amended sale agreement, Chilion will pay an additional $105,000 in cash for the incremental costs and expenses resulting from the deferral of the closing as a result of delays in Chilion’s procurement of financing, $856,797.26 in cash concurrently with the execution of the amendment, payment to the Food and Drug Administration, or to Insys as reimbursement, of cash equal to the fees due under the Prescription Drug User Fee Act for the Syndros products, reimbursement to Insys for costs and expenses up to $100,000 in connection with a corporate integrity agreement and reimbursement of up to $200,000 in costs and expenses for professional services performed by Insys’s advisers.

The parties agreed to use their best efforts to close the sale no later than Oct. 31.

In addition, Insys said Andrew G. Long will step down from his position as chief executive officer and from the company’s board of directors, effective Nov. 8.

The company said its senior management team and board of directors will continue to manage, oversee and wind down its operations through the effective date of its Chapter 11 plan.

The specialty pharmaceutical company is based in Phoenix. The company filed bankruptcy on June 10 in the U.S. Bankruptcy Court for the District of Delaware under Chapter 11 case number 19-11292.

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