Graceway Pharmaceuticals LLC has declared Chapter 11 bankruptcy and simultaneously agreed to sell its assets to Galderma S.A. The sale is authorized under Section 363 of the United States Bankruptcy code.
Bristol, Tenn.–based Graceway filed for bankruptcy on Sept. 29 in the U.S. Bankruptcy Court – Delaware District. The company announced on Sept. 28 that it had reached a definitive agreement with Galderma S.A. to purchase all of Graceway’s U.S. and Canadian assets.
Under the filing, however, the Court could accept higher bids for Graceway. The company is required to put up a public sale notice and an auction will be held at a later date.
The process will be supervised by the U.S. Bankruptcy Court.
Galderma will pay a reported $275 million for Graceway. The company is deep in debt, $872 million as of Sept. 28, with less than $500 million of assets, according to the bankruptcy filing.
Graceway products include Zyclara (imiquimod) cream, 3.75%; Aldara (imiquimod) cream, 5%; Maxair Autohaler (pirbuterol acetate inhalation aerosol); Atopiclair nonsteroidal cream; and Estrasorb (estradiol topical emulsion). Galderma sells products in 70 countries for such dermatologic conditions as acne, rosacea, onychomycosis, psoriasis, and steroid-responsive dermatoses, pigmentary disorders, and skin cancer. The company’s brands include Epiduo, Oracea, Clobex, Azzalure/Dysport, Cetaphil, Tri-Luma, and Restylane.
According to a company statement, Graceway expects to complete the sale to Galderma by January, "with minimal disruption to the business."
The case is In re: Graceway Pharmaceuticals LLC, U.S. Bankruptcy Court, District of Delaware, No. 11-13036.