Synergy Pharmaceuticals gets court approval of asset sale procedures

By Caroline Salls

Pittsburgh, Jan. 7 – Synergy Pharmaceuticals Inc. obtained court approval of the bid procedures for the proposed $200 million sale of substantially all of its assets to Bausch Health Cos. Inc., according to an order filed Monday with the U.S. Bankruptcy Court for the Southern District of New York.

The sale includes all rights to Synergy’s Trulance and dolcanatide products and related intellectual property.

Competing bids are due by 4 p.m. ET on Feb. 23 and must at least equal the amount of the stalking horse bid, plus a $7 million break-up fee and $1.95 million expense reimbursement to be paid to Bausch if it is not the high bidder and a $2 million minimum overbid amount.

An auction will be held on Feb. 26, if necessary. Bids at auction must be made in minimum increments of $1 million.

The sale hearing is scheduled for March 1.

Synergy is a New York-based biopharmaceutical company focused on the development and commercialization of novel gastrointestinal therapies. The company filed bankruptcy on Dec. 12 under Chapter 11 case number 18-14010.

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