Athenex lines up stalking horse deal with C-MER Specialty Group

By Sarah Lizee

Olympia, Wash., June 6 – Athenex, Inc. is seeking approval to designate C-MER Specialty Group Ltd. as stalking horse bidder for its Orascovery business, according to an emergency motion filed Tuesday with the U.S. Bankruptcy Court for the Southern District of Texas.

The purchase price is $2.5 million, plus a milestone payment of $5 million after net sales of Oraxol have reached $10 million.

The stalking horse agreement includes a $75,000 breakup fee and an up to $25,000 expense reimbursement.

As previously reported, the company has reached an agreement with its lenders to move forward with an expedited sales process for the company’s assets across its primary businesses, which includes its pharmaceutical division, Orascovery and cell therapy.

Athenex said the process will allow it to divest its assets and wind down the Athenex platform in an orderly fashion, while seeking to maximize value for its stakeholders.

The company hopes to close the sale by July 1, with the Chapter 11 cases continuing after that to resolve claims.

Under the approved bid procedures, bids are due by 6 p.m. ET on June 12, an auction will take place on June 15, and a sale hearing is scheduled for June 21.

Cassel Salpeter & Co., LLC is acting as investment banker.

Athenex is a clinical-stage biopharmaceutical company with headquarters in Buffalo, N.Y. The company filed bankruptcy on May 14 under Chapter 11 case number 23-90295.

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