Court rules Orexigen agreement party not entitled to disputed funds

By Caroline Salls

Pittsburgh, Nov. 13 – Orexigen Therapeutics, Inc. agreement party McKesson Corp. and its McKesson Patient Relationship Solutions (MPRS) wholly owned subsidiary’s motion for a ruling that they were entitled to disputed funds was denied Tuesday by the U.S. Bankruptcy Court for the District of Delaware.

The court said McKesson was looking to offset $6.92 million it owed to Orexigen under a core distribution agreement based on Orexigen’s $9.1 million debt to MPRS under a master services agreement.

“The court finds that McKesson is seeking a triangular setoff, which is prohibited in bankruptcy due to the lack of mutuality,” the ruling said.

According to the order, Orexigen and its noteholders claim that the company actually only owes MPRS $8.5 million, not the $9.1 million asserted by McKesson.

Orexigen is a San Diego-based biopharmaceutical company focused on the treatment of obesity. The company filed for bankruptcy on March 12, 2018 in the U.S. Bankruptcy Court for the District of Delaware under Chapter 11 case number 18-10518.

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