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KaloBios Pharmaceuticals Letter, Seal Approval Sought

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KaloBios Pharmaceuticals filed with the U.S. Bankruptcy Court a motion for entry of an order, under Sections 105(a) and 363(b), (i) authorizing the Debtor to execute and enter into a proposed binding letter of intent (LOI) with Savant Neglected Diseases relating to the Debtor’s acquisition of worldwide rights to benznidazole for human use, (ii) authorizing the Debtor to make certain payments in connection with the LOI and perform other obligations thereunder and (iii) granting related relief.

The motion explains, “The Proposed Binding LOI addresses the basic terms and conditions of proposed transactions to be consummated in connection with the Debtor’s emergence from bankruptcy under which the Debtor will acquire from Savant the regulatory and non-intellectual property assets and obtain an exclusive license from Savant of the intellectual property assets, in each case of the worldwide rights in and relating to benznidazole for human use….The key terms of the Proposed Binding LOI are as follows: KaloBios Pharmaceuticals (the purchaser) will acquire certain regulatory and non-intellectual property assets (the Regulatory and Other Assets) and the proposed exclusive license of intellectual property assets not constituting Regulatory and other assets ( the IP Assets) in each case of the worldwide rights in and relating to benznidazole for human use owned by Savant Neglected Diseases.”

The motion continues, “The Purchaser will make the following payments as consideration for the Regulatory and other assets: $3,000,000 payable as soon as is practicable but in no event later than the Bankruptcy Exit (the initial payment).”

The Company is also seeking Court approval to file under seal a redacted version of the (i) Debtor’s motion to execute and enter into the LOI and (ii) a related confidential exhibit. The Court scheduled a February 29, 2016 hearing for both the motions, with objections due by February 26, 2016.

Read more KaloBios bankruptcy news.