Aralez Pharmaceuticals Inc (NASDAQ: ARLZ) is flying early on in the trading session this morning after the crippled biotech company announced that it is working to sell all of its assets. Of course, the news excited investors as the asset sale could return some value to investors awaiting further bankruptcy news. Today, we’ll talk about:
- The asset sale;
- what we’re seeing from ARLZ as a result; and
- what we’ll be watching for ahead.
ARLZ Announces Asset Sale
As mentioned above, Aralez Pharmaceuticals is having a great start to the trading session this morning after announcing that it plans on selling all of its assets. In a press release issued late on Friday, the company announced that it intends to enter purchase agreements with two separate stalking-horse purchasers. Ultimately, these purchase agreement will surround the sale of the company’s main operating businesses.
One of the agreements between ARLZ and a purchaser includes the sale of VIMOVO® royalties and Canadian operations to Nuvo Pharmaceuticals Inc. (“Nuvo”) in a transaction valued at U.S.$110 million. The other agreement surrounds the sale of TOPROL-XL® Franchise to its secured lender, certain funds managed by Deerfield Management Company, L.P., in a transaction valued at U.S.$140 million. In the release, the company said that it is also in the midst of ongoing efforts to sell the assets not being sold in either of thes potential transactions. In a statement, Adrian Adams, CEO at ARLZ, had the following to offer:
Following a thorough financial and strategic review, we believe that these sales, together with an auction process under court supervision are in the best interests of the Company and its stakeholders.
What We’re Seeing From The Stock
One of the first lessons that we learn when we start to dig into the market is that the news leads to move. In the case of ARLZ, the news proved to be positive. After all, the company is in shambles, so the sale of assets is the most likely way that it will be able to return value to investors. So, it comes as no surprise to see that excited investors are sending the stock upward. Of course, our partners at Trade Ideas were the first to alert us to the gains. Currently (9:46), ARLZ is trading at $0.063 per share after a gain of $0.0065 per share or 11.52% thus far today.
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What We’ll Be Watching For Ahead
Moving forward, the CNA Finance team will continue to keep a close eye on ARLZ. In particular, we’re interested in following the story surrounding the proposed sale of assets as well as the company’s work to sell the rest of its assets down the line. Nonetheless, we’ll continue to follow the story closely and bring the news to you as it breaks!
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