Medly gets bankruptcy court approval of asset sale to Walgreen

By Sarah Lizee

Olympia, Wash., Feb. 7 – Medly Health Inc. received court approval of a sale to winning bidder Walgreen Co. of some of its assets following an auction held Friday, according to an order filed Tuesday with the U.S. Bankruptcy Court for the District of Delaware.

The assets include substantially all of the debtors’ pharmacy records and scripts, pharmaceutical inventory, intellectual property, and certain other assets.

The purchase price is $20.4 million.

As previously reported, the official committee of unsecured creditors asked the court to compel Medly to qualify Walgreen’s bid, as well as a bid from CVS Pharmacy Inc.

The company had entered into an $18.5 million stalking horse bid from an affiliate of prepetition and debtor-in-possession lender TriplePoint Venture Growth BDC Corp. for its Pharmaca business line.

Both Walgreen and CVS’ bids differed from the stalking horse bid and from each other in terms of purchase price, the type of assets to be purchased and the assumed liabilities.

The bid submitted by CVS contemplated a purchase price of $17.6 million.

Both Walgreen and CVS’ bids excluded some assets, which would be reserved for the debtors’ estates and made available to other buyers.

Additional offers on partial assets have been received from other entities.

The Boulder, Colo.-based pharmacy company filed Chapter 11 bankruptcy on Dec. 9 under case number 22-11257.

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