TSL Express Daily News

SSG Capital Advisors, LLC (“SSG”) served as the investment banker to the Chapter 7 Trustee of ContraFect Corporation (“ContraFect” or the “Company”), in the sale of substantially all intellectual property assets to Aurobac Therapeutics SAS. The transaction closed in March 2024 through a Section 363 sale process in the U.S. Bankruptcy Court for the District of Delaware.

ContraFect Corporation was a clinical-stage biotechnology company focused on the discovery and development of direct lytic agents (DLAs), including lysins and amurin peptides, as new medical modalities for the treatment of life-threatening and antibiotic-resistant infections across multiple indications, including staphylococcus and MRSA.

The Company’s primary drug candidate commenced a Phase 3 clinical trial in early 2020. The clinical trial was negatively impacted by the COVID-19 pandemic and the outcome failed to meet the primary endpoint. Subsequently, the company shifted focus to a new indication, which was a first-in-class lysin with broad-spectrum activity against Gram-negative pathogens, which failed its interim analysis compared to a placebo. Due to liquidity challenges, the Company filed for Chapter 7 bankruptcy protection in December 2023.

SSG was retained by the Chapter 7 Trustee in January 2024 to conduct an expedited marketing process and solicit offers for substantially all of ContraFect’s assets. After canvassing a wide range of investors, SSG received several qualified bids, resulting in a robust auction in March 2024 with multiple rounds of bidding. The final bid from Aurobac Therapeutics SAS ultimately provided the best outcome and maximized value for all stakeholders. SSG's ability to generate interest from buyers in an efficient and timely process enabled the Chapter 7 Trustee to maximize the value of the assets for the benefit of the estate.

Aurobac Therapeutics SAS is a joint venture between Boehringer Ingelheim, Evotec and bioMérieux that focuses on developing precision medicine to fight antimicrobial resistance.

Contacts on this deal:

J. Scott Victor
Managing Director
jsvictor@ssgca.com
(610) 940-5802

Teresa C. Kohl
Managing Director
tkohl@ssgca.com
(610) 940-9521

Craig D. Warznak 
Senior Vice President
cwarznak@ssgca.com
(610) 940-3615

Samuel P. Charlton
Senior Analyst
scharlton@ssgca.com
(610) 940-1072

Other professionals who worked on the transaction include:

• George L. Miller, Chapter 7 Trustee;
  
• Matthew Tomlin and John Reynolds of Miller Coffey Tate LLP, financial advisor to the Chapter 7 Trustee;
• Peter C. Hughes, Graham R. Laub and Alexander J. Kaczynski of Dilworth Paxson LLP, counsel to the Chapter 7 Trustee; and
• Barry Z. Bazian and Mayan Katz of Goodwin Procter LLP, counsel to Aurobac Therapeutics SAS.

About SSG Capital Advisors, LLC

SSG Capital Advisors is an independent boutique investment bank that assists middle-market companies and their stakeholders in completing special situation transactions. We provide our clients with comprehensive investment banking services in the areas of mergers and acquisitions, private placements, financial restructurings, valuations, litigation, and strategic advisory. SSG has a proven track record of closing over 400 transactions in North America and Europe and is a leader in the industry.

Securities are offered through SSG Capital Advisors, LLC (Member SIPC, Member FINRA). All other transactions are effectuated through SSG Advisors, LLC, both of which are wholly owned by SSG Holdings, LLC. SSG is a registered trademark for SSG Capital Advisors, LLC and SSG Advisors, LLC.