Bausch Health Agrees to Buy Synergy Pharmaceuticals for $200 Million

By Chris Wack

Bausch Health Companies Inc. (BHC) said Wednesday it agreed to buy substantially all of Synergy Pharmaceuticals Inc.'s (SGYP) assets for around $200 million in cash plus the assumption of some liabilities.

The deal includes all rights to Synergy's flagship product Trulance (plecanatide), a tablet approved for adults with chronic idiopathic constipation and irritable bowel syndrome with constipation, as well as dolcanatide and related intellectual property, Bausch said.

Synergy said the sale is subject to a competitive process and the receipt of higher and better offers, with Bausch Health serving as the stalking horse bidder.

The New York-based biopharmaceutical company said it has filed a voluntary chapter 11 bankruptcy proceedings. The company said it plans to operate its business as usual while it works to complete the sale through the bankruptcy process.

"We have worked diligently to serve our patients, health care professionals and other stakeholders by bringing TRULANCE to market and developing other gastrointestinal therapies to address previously unmet needs. Unfortunately, we have now reached a point where our financial challenges are preventing us from taking this important work to the next level," Synergy Chief Executive Troy Hamilton said.

Synergy said it has entered into an agreement with existing first lien lenders for debtor-in-possession financing of up to $155 million.

Bausch Health said that it doesn't require any financing to complete the deal and the transaction is expected to close in the first quarter of 2019.

Shares of Synergy Pharmaceuticals rose 12% to 38 cents premarket, while shares of Bausch Health rose slightly to $23.12.

Write to Chris Wack at [e-mail]

(END) Dow Jones Newswires

December 12, 2018 06:59 ET (11:59 GMT)

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