(Reuters) - U.S. biotech firm Savient Pharmaceuticals Inc filed for Chapter 11 bankruptcy protection in a Delaware court on Monday and said it has agreed to sell most of its assets to Sloan Holdings CV for about $55 million.
The agreement with Sloan, a unit of US WorldMeds LLC, would serve as a "stalking horse" bid in a court-supervised auction of Savient's assets, the company said in a statement.
A stalking horse bid serves as the minimum offer for the business, which could still be topped by others.
The drugmaker, which has been under pressure from its largest creditor to liquidate, said it would keep its gout drug Krystexxa commercially available in the United States.
Krystexxa, which treats chronic gout in adults who do not respond to conventional therapy, has had disappointing sales since its launch in September 2010.
Savient is a company I was invested in 10 years ago. They were working on a gout treatment then. They had trouble selling Krystexxa. Maybe that tells us that the market for gout treatments is limited, and that's why there are no offers to Biocryst to do a phase 3.
SVNT's mistake was in sales and distribution. once the drug was approved, they should have taken the best offer. SVNT had to ramp up their own sales force, and it was like sending sheep to be slaughtered.
as far as i know, their drug was still being made overseas, in Israel.