Research & Development
Zealand Pharma bids to acquire Valeritas for USD23m
11 February 2020 -

Zealand Pharma A/S (Zealand)(CPH:ZEAL) (NYSE:ZEAL), a biotechnology company focused on the discovery and development of innovative peptide-based medicines, announced on Monday the submission of a bid to acquire substantially all assets of Valeritas Holdings Inc (Valeritas) (Nasdaq: VLRX), a US based commercial-stage company focused on improving health and simplifying life for people with diabetes, for a total cash consideration of USD23m.

This bid also includes the assumption of certain liabilities related to the ongoing business, pursuant to the terms of the 'stalking horse' asset purchase agreement entered into with Valeritas.

Reportedly, Valeritas and its subsidiaries had filed voluntary petitions under Chapter 11 of the US Bankruptcy Code in the US Bankruptcy Court for the District of Delaware on 9 February 2020. At that time, Zealand had entered into a definitive agreement to acquire substantially all assets from Valeritas. Under the terms of the agreement, Zealand serves as the stalking horse bidder in a sale process.

This proposed sale is to be conducted through a court-supervised sale process under Section 363 of the Bankruptcy Code and will be subject to court-approved bidding procedures and receipt of competing offers at auction. In the event that Zealand's bid is selected, the sale will be subject to approval by the Bankruptcy Court and certain other closing conditions. There can be no certainty that the transaction will be concluded.

According to the company, this contemplated bid provides an opportunity for it to acquire a revenue-generating business and infrastructure, accelerating ongoing efforts to prepare for the anticipated dasiglucagon HypoPal launch, while leveraging Valeritas' experience and relationships within the US diabetes market.

Zealand's strategy is to become a fully integrated biotechnology company with commercial operations in the US and Zealand is preparing for the anticipated launch of the dasiglucagon HypoPal rescue pen in 2021, if approved by the US Food and Drug Administration.

Valeritas' product, the V-Go Wearable Insulin Delivery device, is a simple, affordable, all-in-one basal-bolus insulin delivery device option for adult patients requiring insulin that is worn like a patch and can eliminate the need for taking multiple daily shots. Valeritas reported revenue of USD22.4m and loss before income taxes of USD41.9m for the nine months ended 30 September 2019. Valeritas also reported having 142 full-time employees as of 30 September 2019.

Zeeland added that due to the nature of this bankruptcy sale process, no comments can be made on the financial impact of the potential acquisition or any related guidance.

Cooley LLP is serving as legal advisor to Zealand Pharma in this transaction.



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