In a recent development, Eiger BioPharmaceuticals, Inc. has completed the sale of two key assets as part of its ongoing bankruptcy proceedings. On Tuesday, the company finalized the disposition of its lonafarnib antiviral and peginterferon lambda assets to a purchaser for a combined total of $6.2 million, plus additional cure costs and the assumption of specified liabilities.
Eiger, operating in the biological products sector, had previously filed for Chapter 11 bankruptcy on April 1, 2024. The sales were approved by the Bankruptcy Court on August 20, and the closures of these transactions mark a significant step in the company's restructuring efforts.
The company's lonafarnib antiviral asset, which has been a part of its development, manufacturing, and commercialization portfolio, was sold for $5.2 million. The peginterferon lambda asset, another product in the company's developmental pipeline, was sold for $1.0 million. The purchaser, whose identity was not disclosed in the press release statement, will now be responsible for the further development, manufacture, and commercialization of these products.
The completion of these asset sales is part of Eiger's broader efforts to address its financial challenges and restructure its operations. The company's securities will continue to trade in a speculative manner, reflecting the uncertainty surrounding the bankruptcy outcome.
This report is based on the most recent 8-K filing by Eiger BioPharmaceuticals with the Securities and Exchange Commission.
In other recent news, Eiger BioPharmaceuticals, Inc. has been navigating significant developments in its ongoing Chapter 11 bankruptcy proceedings. The biopharmaceutical company has submitted its monthly operating reports, warning investors against using these reports for investment decisions due to their non-compliance with generally accepted accounting principles (GAAP).
Eiger BioPharmaceuticals has also proposed a Joint Plan of Liquidation, which will lead to the cancellation and extinction of all equity securities, impacting current shareholders. In a crucial step forward, the company has finalized the sale of its Avexitide asset to Amylyx Pharmaceuticals, Inc. for $35.1 million, excluding determined cure costs and assumed liabilities.
Furthermore, Eiger has filed for Chapter 11 bankruptcy protection and announced a "stalking horse" agreement for the sale of its FDA-approved drug, Zokinvy®, to Sentynl Therapeutics. This agreement involves a potential payment of up to $26.0 million from Sentynl Therapeutics, subject to court approval and potential price adjustments.
These recent developments highlight Eiger BioPharmaceuticals' strategic steps in its ongoing bankruptcy proceedings and asset sales.
InvestingPro Insights
As Eiger BioPharmaceuticals, Inc. navigates through its Chapter 11 bankruptcy, the InvestingPro data provides a clearer picture of the company's financial health. With a market capitalization of just $14.81 million, Eiger's financial struggles are reflected in its significant negative operating income margin of -455.12% for the last twelve months as of Q4 2023. Despite a revenue growth of 16.98% over the same period, the company's basic and diluted EPS (Continuing Operations) stood at a staggering negative $50.78.
InvestingPro Tips highlight critical factors for investors to consider. Eiger's stock has experienced a large price uptick over the last six months, with a total return of 61.42%, yet analysts remain cautious, noting that the company is not expected to be profitable this year. Additionally, the short-term obligations exceeding liquid assets and the company's high cash burn rate are red flags for potential investors. For those looking for more in-depth analysis, InvestingPro offers 12 additional tips on Eiger BioPharmaceuticals, which can be accessed for further guidance.
Overall, these insights shed light on the volatile nature of Eiger's stock and the challenges it faces. Investors are advised to stay informed and consider these factors when assessing the company's future prospects.
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