Eiger BioPharmaceuticals, Inc., a biopharmaceutical company, has completed the sale of its Avexitide asset to Amylyx Pharmaceuticals, Inc. The transaction, which closed on Monday, was valued at $35.1 million, in addition to determined cure costs and assumed liabilities. This development follows Eiger's voluntary filing for Chapter 11 bankruptcy protection on April 1, 2024.
In the court-supervised auction process, Amylyx emerged as the winning bidder for the Avexitide asset, which is used in the development, manufacture, and commercialization of the drug. The sale was authorized by the United States Bankruptcy Court for the Northern District of Texas on June 26, 2024, after Eiger and Amylyx entered into an Asset Purchase Agreement on June 21, 2024.
Eiger, which previously traded on The Nasdaq Stock Market under the ticker symbol EIGR, saw its stock suspended on April 11, 2024, and it began trading on the OTC Pink Marketplace under the symbol "EIGRQ." The sale of the Avexitide asset signifies a critical step in the company's ongoing bankruptcy proceedings.
The company has cautioned its securityholders that trading in Eiger's securities during the Chapter 11 process is highly speculative and involves significant risk. The trading prices may not accurately reflect the actual recovery, if any, for the securityholders in the bankruptcy case. Eiger has warned that investors could face a substantial or total loss of their investment, contingent upon the outcome of the Chapter 11 proceedings.
This transaction marks a pivotal moment for Eiger as it navigates through bankruptcy and aims to satisfy its obligations to creditors. Amylyx Pharmaceuticals, acquiring the Avexitide asset, will now take over its development and commercialization efforts. The financial details of the transaction are based on a statement from an SEC filing.
InvestingPro Insights
As Eiger BioPharmaceuticals, Inc. (EIGRQ) progresses through its Chapter 11 bankruptcy proceedings, the sale of its Avexitide asset is a significant move. Investors monitoring the situation should consider key financial metrics and expert analysis from InvestingPro. With a market capitalization of $17.75 million and a notable revenue growth of 16.98% in the last twelve months as of Q4 2023, Eiger's financial landscape is a mix of challenges and potential. Despite the positive revenue trend, the company's operating income margin stands at a concerning -455.12%, reflecting substantial operating losses.
InvestingPro Tips highlight critical factors such as Eiger's rapid cash burn and the stock's high volatility, with an RSI indicating overbought territory. Moreover, the company's short-term obligations currently exceed its liquid assets, and analysts do not expect profitability this year. On the upside, Eiger's stock has seen a strong return over the last three months, with a 595.07% price total return, which could catch the eye of speculative investors.
For those considering an investment or looking to keep a closer watch on Eiger's financial health, InvestingPro offers additional analysis and tips. There are 11 more InvestingPro Tips available for Eiger, which can be accessed by using the coupon code PRONEWS24 to get up to 10% off a yearly Pro and a yearly or biyearly Pro+ subscription. These insights could be invaluable as stakeholders weigh the risks and opportunities presented by Eiger's ongoing bankruptcy case and its recent asset sale.
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