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 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.
Situation
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.
Solution
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.
