Graceway Pharmaceuticals agrees to sale via bankruptcy, receivership

By Caroline Salls

Pittsburgh, Sept. 28 - Graceway Pharmaceuticals, LLC has entered into a definitive agreement under which Galderma SA would acquire substantially all of Graceway's U.S. and Canadian assets, according to a company news release.

Under the agreement, Galderma will acquire substantially all of Graceway's assets, including inventory and intellectual property rights, and will assume the majority of Graceway's contract manufacturing, contract research and other vendor contracts related to the acquired assets.

To implement the transaction, Graceway will seek authority to sell its assets under Section 363 of the U.S. Bankruptcy Code and through concurrent receivership proceeding in Canada.

Graceway said other parties will have an opportunity to submit higher and better offers to purchase the assets under this court-supervised process.

The company said it expects the sale to be completed by the end of January with minimal disruption to the business.

Lazard is acting as financial adviser to Graceway, Latham & Watkins LLP is serving as legal adviser, and Alvarez & Marsal North America, LLC is serving as restructuring adviser.

Graceway is a Bristol, Tenn.-based pharmaceutical company.

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