TSL Express Daily News

SSG Capital Advisors, LLC (“SSG”) served as the investment banker to Eiger BioPharmaceuticals, Inc. (“Eiger” or the “Company”) in the sale of substantially all of its assets related to the FDA-approved drug Zokinvy®, to Sentynl Therapeutics, Inc. The sale was effectuated through a Chapter 11 Section 363 process in the U.S. Bankruptcy Court for the Northern District of Texas (Dallas Division). The transaction closed in May 2024.

Founded in 2008, Eiger is a commercial-stage biopharmaceutical company focused on the development of innovative therapies for the treatment of rare and ultra-rare diseases in patients with high unmet medical needs and for which no approved therapies exist. The Company successfully commercialized Zokinvy (lonafarnib) for the treatment of Hutchinson-Gilford progeria syndrome, an ultra-rare, fatal, genetic premature aging disease.

In September 2023, Eiger suspended a late-stage Phase 3 study amid safety concerns and subsequently determined that advancing its pipeline would not be feasible without an extensive cash infusion. Despite the commercialization of Zokinvy and progress advancing its other Phase 3 pipeline assets, Eiger was unable to close an out-of-court transaction that would provide sufficient liquidity for the Company to continue operations in the normal course. On April 1, 2024, Eiger filed for protection under Chapter 11 of the U.S. Bankruptcy Code to institute a sale process designed to maximize value for all the stakeholders and ensure the continuity of therapeutic access for progeria syndrome patients worldwide.

SSG was retained in March 2024 as Eiger’s exclusive investment banker to solicit competing offers to the proposed stalking horse bid for the Zokinvy assets and concurrently run a marketing process for the remaining pipeline assets of Eiger on a separate timeline. The accelerated process for the Zokinvy assets garnered substantial interest from multiple parties worldwide. A qualified competing bid for the Zokinvy assets was submitted by the bid deadline and an auction was held on April 17, 2024. After 35 rounds of bidding, the Stalking Horse bidder produced the highest and best offer for the Zokinvy assets, at a gross purchase price of $46.1 million in cash. SSG’s extensive Chapter 11 transaction experience, expertise creating a competitive bid environment and knowledge of the biopharmaceutical industry resulted in a process where value was maximized in an expedited time frame.

Sentynl Therapeutics, Inc. is a commercial stage biopharmaceutical company focused on bringing innovative therapies to patients living with rare diseases.

Other professionals who worked on the transaction include:

• Thomas R. Califano, William E. Curtin, Carlton Fleming, Anne G. Wallice, Chelsea McManus and Jake A. Landreth of Sidley Austin LLP, counsel to Eiger BioPharmaceuticals, Inc.;
• Paul Rundell, Doug Staut, Paul Coloma and Reilly Olson of Alvarez & Marsal North America LLC, financial advisor to Eiger BioPharmaceuticals, Inc.;
• Joshua D. Morse and Jason Stirling of Pillsbury Winthrop Shaw Pittman LLP, counsel to Sentynl Therapeutics, Inc.;
• Clifford W. Carlson of Weil Gotshal & Manges LLP, counsel to the Progeria Research Foundation; and
• Roger G. Jones and Jay Bender, of Bradley Arant Boult Cummings LLP, counsel to the senior secured lender.

CONTACTS ON THIS DEAL

J. Scott Victor
Managing Director
jsvictor@ssgca.com
(610) 940-5802
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Teresa C. Kohl
Managing Director
tkohl@ssgca.com
(610) 940-9521

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

Alexander D. Lamm
Senior Associate
alamm@ssgca.com
(610) 940-3882

Nicholas A. Vernacchio
Senior Analyst
nvernacchio@ssgca.com
(610) 940-2619

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.