Valeritas Holdings Inc (NASDAQ:VLRX) ("Valeritas" or the "Company"), a medical technology company and maker of the V-Go Wearable Insulin Delivery device, announced on Sunday, that it has signed a contract with Zealand Pharma A/S (NASDAQ: ZEAL), a Denmark-based biotechnology company.

The contract has been signed to sell substantially all of the business to Zealand Pharma A/S. The deal contemplates the retention of nearly all of the Valeritas workforce. In order to accomplish the sale, the company and its subsidiaries have filed voluntary petitions for relief under Chapter 11 of the United States Bankruptcy Code in the United States Bankruptcy Court for the District of Delaware. The company has also filed a motion requesting approval of a stalking horse asset purchase agreement with Zealand and to start a competitive bidding process under Section 363 of the Bankruptcy Code, intended to achieve the highest or otherwise best offer for the business.

Valeritas aims to continue operating its business as usual and has received a commitment for debtor-in-possession financing from HB Fund LLC. The debtor-in-possession is to offer sufficient liquidity to support ongoing operations during the process, including the continued production and sale of V-Go and the deal is subject to Court approval.