Orexigen asset sale procedures OK’d; $75 million lead bid received

By Caroline Salls

Pittsburgh, April 23 – Orexigen Therapeutics, Inc. obtained court approval of the bid procedures for the sale of substantially all of its assets, according to an order filed Monday with the U.S. Bankruptcy Court for the District of Delaware.

Nalpropion Pharmaceuticals, Inc. is the stalking horse bidder. Nalpropion has agreed to pay $75 million for the assets and assume related liabilities.

If Nalpropion is not the high bidder, Orexigen will pay it a $3.5 million break-up fee and reimburse up to $2 million of its sale-related expenses.

Competing bids are due by 4 p.m. ET on June 21.

An auction will be held on June 26, if necessary. Bids at auction must be made in minimum increments of $500,000.

The sale hearing is scheduled for June 28.

Orexigen is a San Diego-based biopharmaceutical company focused on the treatment of obesity. The company filed for bankruptcy on March 12 under Chapter 11 case number 18-10518.

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