12:06 PM EDT, 04/01/2024 (MT Newswires) -- Eiger BioPharmaceuticals ( EIGR ) said Monday the company and its direct subsidiaries have filed voluntary petitions for chapter 11 protection in the US Bankruptcy Court for the Northern District of Texas.

The company plans to sell substantially all its assets during the bankruptcy case and to facilitate an orderly wind down of its operations, it said.

Eiger said it also signed a "stalking horse" agreement for the sale of Zokinvy, or lonafarnib, to Sentynl Therapeutics. Sentynl will pay as much as $26 million, subject to purchase price adjustments, including per diem reductions if the sale closes after April 24, for the acquisition of Zokinvy, the company said.

The biopharmaceutical company said other potential bidders can submit competing bids for its assets via a court-supervised process.

Eiger shares were down nearly 77% in recent trading.

Price: 1.17, Change: -3.83, Percent Change: -76.60