Eiger BioPharmaceuticals Inc.

Client Profile

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 and 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(s) for Eiger’s commercial and pipeline assets in order to maximize value for all stakeholders.

Situation

SSG was retained in March 2024 as Eiger’s exclusive investment banker to run concurrent marketing processes for Eiger’s commercial and pipeline drug candidates. Upon effectuating the very successful sale of Zokinvy®, Eiger’s only commercial asset in May 2024, SSG began negotiations with multiple parties on the remaining pipeline assets, including Avexitide. As a Phase 3-ready candidate with an FDA Breakthrough designation, Avexitide is a first-in-class glucagon-like peptide-1 (GLP-1) receptor antagonist that has been evaluated in five Phase 2 clinical studies for post-bariatric hypoglycemia (PBH) and has also been studied in congenital hyperinsulinism (HI).

Solution

To maximize the value of Avexitide, SSG conducted an accelerated process that garnered strong interest from multiple strategic bidders. SSG successfully negotiated a stalking horse bid prior to the bid deadline. A qualified competing bid was submitted by the bid deadline, and an auction was held on June 17, 2024. After 120+ rounds of bidding, the competing bidder to the stalking horse, Amylyx Pharmaceuticals, Inc., produced the highest and best offer for the Avexitide assets, at a purchase price of $35.1 million in cash, 3.5x the stalking horse bid. SSG’s extensive Chapter 11 transaction experience, expertise in creating a competitive bid environment and deep knowledge of the biopharmaceutical industry resulted in a process that produced significant value to stakeholders in an expedited time frame.