SSG Advises Eiger BioPharmaceuticals Inc. in the Sale of Lonafarnib and Lambda Program Assets to Eiger InnoTherapeutics, Inc.
September 16, 2024
Source: SSG Capital Advisors, LLC
SSG Capital Advisors, LLC (“SSG”) served as the investment banker to Eiger BioPharmaceuticals, Inc. (“Eiger” or the “Company”) in the sale of Lonafarnib and Lambda, and associated clinical assets to Eiger InnoTherapeutics, Inc. The sale was effectuated through a Chapter 11 Section 363 process in the U.S. Bankruptcy Court for the Northern District of Texas (Dallas Division). The transaction closed in September 2024.
Founded in 2008, Eiger is a commercial-stage biopharmaceutical company focused on developing innovative therapies for treating rare and ultra-rare diseases in patients with high unmet medical needs for which no approved therapies exist. In September 2023, Eiger suspended a late-stage Phase 3 study and determined that advancing its pipeline would not be feasible without an extensive cash infusion. Despite the commercialization of one of its drug candidates and progress advancing its other Phase 3 pipeline assets, Eiger was unable to close an out-of-court transaction that would have provided sufficient liquidity for the Company to continue operations in the ordinary course. On April 1, 2024, Eiger filed for protection under Chapter 11 of the U.S. Bankruptcy Code to institute a sale process for Eiger’s commercial and pipeline assets in order to maximize value for all stakeholders.
SSG was retained in March 2024 as Eiger’s exclusive investment banker to run concurrent marketing processes for its commercial and pipeline drug candidates. Following the successful sales of Zokinvy® in May 2024 and the Avexitide assets in July 2024, SSG initiated a targeted remarketing of the Lonafarnib and Lambda assets. Lonafarnib is a first-in-class farnesyl-transferase inhibitor, showing promise in the treatment of hepatitis delta virus (HDV). Lambda, a well-tolerated interferon, is being explored for its potential in treating COVID-19 and other viral infections.
SSG led extensive, multi-staged marketing processes for all of the Company’s assets, including Lonafarnib and Lambda. SSG worked closely with senior management and other advisors to identify and engage potential bidders for these assets individually. After in-depth discussions with numerous prospective investors, the Company determined that the bid from Eiger InnoTherapeutics, Inc. to acquire both assets provided the most comprehensive solution for maximizing asset value. Accordingly, the Company and its advisors decided to proceed with a private sale to preserve liquidity, expedite the transaction closing and conclude the sale processes.
Through three distinct transactions, SSG secured total gross sale proceeds exceeding $87.0 million for all of the Company’s assets, likely returning capital to equity holders. SSG’s robust and efficient marketing processes, experience in complex Chapter 11 cases, and strong knowledge of the biopharmaceutical industry resulted in an outcome that delivered significant value to stakeholders.
Eiger InnoTherapeutics, Inc. is a newly formed entity established specifically to acquire Eiger BioPharmaceuticals’ Lonafarnib and Lambda assets and advance the programs through clinical trials.
Other professionals who worked on the transaction include:
• Thomas R. Califano, William E. Curtin, Carlton Fleming, Anne G. Wallice, Chelsea McManus and Jake A. Landreth of Sidley Austin LLP, counsel to Eiger BioPharmaceuticals, Inc.;
• Douglas Staut - Chief Restructuring Officer, Paul Rundell, Paul Coloma and Reilly Olson of Alvarez & Marsal North America LLC, financial advisor to Eiger BioPharmaceuticals, Inc.;
• Kizzy L. Jarashow, Maggie L. Wong, Barry Z. Bazian, David R. Chen, Carolyn Nguyen, James Lathrop and Frank Ruofan Qin of Goodwin Procter LLP, counsel to Eiger InnoTherapeutics, Inc.;
• Adam C. Rogoff, P. Bradley O'Neill and Andrew J. Citron of Kramer Levin Naftalis & Frankel LLP, co-counsel to the senior secured lender;
• Jeff P. Prostok of Forshey & Prostok, LLP, co-counsel to the senior secured lender;
• Michael S. Budwick and Daniel N. Gonzalez of Meland Budwick, P.A., co-counsel to the Official Committee of Unsecured Creditors;
• Jonathan S. Feldman of Phang & Feldman, co-counsel to the Official Committee of Unsecured Creditors;
• Warren J. Martin, Jr., Brett S. Moore and Rachel A. Parisi of Porzio, Bromberg & Newman, P.C., co-counsel to the Official Equity Security Holders' Committee;
• John J. Sparacino and S. Margie Venus of McKool Smith, co-counsel to the Official Equity Security Holders' Committee; and
• Matthew Dundon of Dundon Advisers LLC, financial advisor to the Official Equity Security Holders' Committee.
CONTACTS ON THIS DEAL
J. Scott Victor
Managing Director
jsvictor@ssgca.com
(610) 940-5802
Teresa C. Kohl
Managing Director
tkohl@ssgca.com
(610) 940-9521
Craig D. Warznak
Senior Vice President
cwarznak@ssgca.com
(610) 940-3615
Alexander D. Lamm
Senior Associate
alamm@ssgca.com
(610) 940-3882
Nicholas A. Vernacchio
Senior Analyst
nvernacchio@ssgca.com
(610) 940-2619
About SSG Capital Advisors, LLC
SSG Capital Advisors is an independent boutique investment bank that assists middle-market companies and their stakeholders in completing special situation transactions. We provide our clients with comprehensive investment banking services in the areas of mergers and acquisitions, private placements, financial restructurings, valuations, litigation, and strategic advisory. SSG has a proven track record of closing over 450 transactions in North America and Europe and is a leader in the industry.
Securities are offered through SSG Capital Advisors, LLC (Member SIPC, Member FINRA). All other transactions are effectuated through SSG Advisors, LLC, both of which are wholly owned by SSG Holdings, LLC. SSG is a registered trademark for SSG Capital Advisors, LLC and SSG Advisors, LLC.
Founded in 2008, Eiger is a commercial-stage biopharmaceutical company focused on developing innovative therapies for treating rare and ultra-rare diseases in patients with high unmet medical needs for which no approved therapies exist. In September 2023, Eiger suspended a late-stage Phase 3 study and determined that advancing its pipeline would not be feasible without an extensive cash infusion. Despite the commercialization of one of its drug candidates and progress advancing its other Phase 3 pipeline assets, Eiger was unable to close an out-of-court transaction that would have provided sufficient liquidity for the Company to continue operations in the ordinary course. On April 1, 2024, Eiger filed for protection under Chapter 11 of the U.S. Bankruptcy Code to institute a sale process for Eiger’s commercial and pipeline assets in order to maximize value for all stakeholders.
SSG was retained in March 2024 as Eiger’s exclusive investment banker to run concurrent marketing processes for its commercial and pipeline drug candidates. Following the successful sales of Zokinvy® in May 2024 and the Avexitide assets in July 2024, SSG initiated a targeted remarketing of the Lonafarnib and Lambda assets. Lonafarnib is a first-in-class farnesyl-transferase inhibitor, showing promise in the treatment of hepatitis delta virus (HDV). Lambda, a well-tolerated interferon, is being explored for its potential in treating COVID-19 and other viral infections.
SSG led extensive, multi-staged marketing processes for all of the Company’s assets, including Lonafarnib and Lambda. SSG worked closely with senior management and other advisors to identify and engage potential bidders for these assets individually. After in-depth discussions with numerous prospective investors, the Company determined that the bid from Eiger InnoTherapeutics, Inc. to acquire both assets provided the most comprehensive solution for maximizing asset value. Accordingly, the Company and its advisors decided to proceed with a private sale to preserve liquidity, expedite the transaction closing and conclude the sale processes.
Through three distinct transactions, SSG secured total gross sale proceeds exceeding $87.0 million for all of the Company’s assets, likely returning capital to equity holders. SSG’s robust and efficient marketing processes, experience in complex Chapter 11 cases, and strong knowledge of the biopharmaceutical industry resulted in an outcome that delivered significant value to stakeholders.
Eiger InnoTherapeutics, Inc. is a newly formed entity established specifically to acquire Eiger BioPharmaceuticals’ Lonafarnib and Lambda assets and advance the programs through clinical trials.
Other professionals who worked on the transaction include:
• Thomas R. Califano, William E. Curtin, Carlton Fleming, Anne G. Wallice, Chelsea McManus and Jake A. Landreth of Sidley Austin LLP, counsel to Eiger BioPharmaceuticals, Inc.;
• Douglas Staut - Chief Restructuring Officer, Paul Rundell, Paul Coloma and Reilly Olson of Alvarez & Marsal North America LLC, financial advisor to Eiger BioPharmaceuticals, Inc.;
• Kizzy L. Jarashow, Maggie L. Wong, Barry Z. Bazian, David R. Chen, Carolyn Nguyen, James Lathrop and Frank Ruofan Qin of Goodwin Procter LLP, counsel to Eiger InnoTherapeutics, Inc.;
• Adam C. Rogoff, P. Bradley O'Neill and Andrew J. Citron of Kramer Levin Naftalis & Frankel LLP, co-counsel to the senior secured lender;
• Jeff P. Prostok of Forshey & Prostok, LLP, co-counsel to the senior secured lender;
• Michael S. Budwick and Daniel N. Gonzalez of Meland Budwick, P.A., co-counsel to the Official Committee of Unsecured Creditors;
• Jonathan S. Feldman of Phang & Feldman, co-counsel to the Official Committee of Unsecured Creditors;
• Warren J. Martin, Jr., Brett S. Moore and Rachel A. Parisi of Porzio, Bromberg & Newman, P.C., co-counsel to the Official Equity Security Holders' Committee;
• John J. Sparacino and S. Margie Venus of McKool Smith, co-counsel to the Official Equity Security Holders' Committee; and
• Matthew Dundon of Dundon Advisers LLC, financial advisor to the Official Equity Security Holders' Committee.
CONTACTS ON THIS DEAL
J. Scott Victor
Managing Director
jsvictor@ssgca.com
(610) 940-5802
Teresa C. Kohl
Managing Director
tkohl@ssgca.com
(610) 940-9521
Craig D. Warznak
Senior Vice President
cwarznak@ssgca.com
(610) 940-3615
Alexander D. Lamm
Senior Associate
alamm@ssgca.com
(610) 940-3882
Nicholas A. Vernacchio
Senior Analyst
nvernacchio@ssgca.com
(610) 940-2619
About SSG Capital Advisors, LLC
SSG Capital Advisors is an independent boutique investment bank that assists middle-market companies and their stakeholders in completing special situation transactions. We provide our clients with comprehensive investment banking services in the areas of mergers and acquisitions, private placements, financial restructurings, valuations, litigation, and strategic advisory. SSG has a proven track record of closing over 450 transactions in North America and Europe and is a leader in the industry.
Securities are offered through SSG Capital Advisors, LLC (Member SIPC, Member FINRA). All other transactions are effectuated through SSG Advisors, LLC, both of which are wholly owned by SSG Holdings, LLC. SSG is a registered trademark for SSG Capital Advisors, LLC and SSG Advisors, LLC.