Aralez Pharmaceuticals declares bankruptcy and sells assets

Canada-based Aralez Pharmaceuticals has started today filing for bankruptcy and has simultaneously announced it will sell all its assets. The Canada-based group had been on the verge of bankruptcy for over one year, due to the US generics market deteriorating: this is making it almost impossible to local genrics manufacturers to stay afloat and face competition by large Indian groups. Aralez today has sold its Toprol-XL asset, producing hypertension treatments, to the $8bn New York-based Deerfield Management Company investment fund for $140m. Additionally, Aralez has entered into an agreement with competitor Nuvo Pharmaceuticals to sell it its arthritis treatment Vimovo for $110m. Nuvo Pharmaceuticals’ shares declined 7% soon after the announcement (Toronto).

(Source: WSJ)