Monday, Eiger BioPharmaceuticals Inc ( EIGR ) announced that it and its direct subsidiaries have filed voluntary petitions for Chapter 11 protection in the U.S. Bankruptcy Court for the Northern District of Texas.

The company also announced a “stalking horse” agreement to sell Zokinvy (lonafarnib) to Sentynl Therapeutics Inc., a biopharmaceutical company focused on rare diseases. 

Under the terms of the “stalking horse” agreement, subject to court approval, Sentynl Therapeutics will pay up to $26.0 million, subject to certain purchase price adjustments, including per diem reductions, if the sale closes after April 24, 2024.

In accordance with Section 363 of the Bankruptcy Code, other potential bidders can submit competing bids for the company’s assets through a court-supervised process.

Eiger filed customary “first-day” motions with the court requesting relief designed to enable Eiger to transition into Chapter 11 and uphold its commitments to stakeholders without material disrupting its ordinary course of operations. 

The company intends to sell substantially all of its assets during the bankruptcy case and to facilitate an orderly wind-down of its operations.

In January, Eiger BioPharmaceuticals ( EIGR ) and its partner AnGes Inc. received marketing approval from the Ministry of Health, Labour and Welfare for Zokinvy (lonafarnib) for Hutchinson-Gilford progeria syndrome (HGPS) and processing deficient progeroid laminopathy (PDPL).

Collectively known as progeria, HGPS, and PL are ultra-rare and fatal pediatric diseases that cause dramatically accelerated aging and premature death. The main cause of death is heart attack or stroke due to severe hardening of the arteries.

In September, Eiger BioPharmaceuticals ( EIGR ) discontinued the Phase 3 LIMT-2 study of peginterferon lambda in patients with chronic hepatitis delta (CHD). 

Price Action: EIGR shares are down 73.2% at $1.34 on the last check Monday.