Bausch Health makes $200m bid for bankrupt Synergy Pharmaceuticals

Canada-based Bausch Health Companies (previously Valeant Pharmaceuticals) has entered a definitive agreement to acquire select assets of Synergy Pharmaceuticals for around $200m and certain assumed liabilities.

Bausch Health agreed to buy majority of Synergies assets. The deal will include intellectual property, customer and vendor contracts, accounts receivable and goodwill.

Synergy Pharmaceuticals is a US-based firm focused on gastrointestinal medicine. The company voluntarily filed for bankruptcy under Chapter 11 of the US Code.

Bausch Health said that it will serve as the ‘stalking horse’ bidder in a court-supervised auction and sale process.

Bausch Health chairman and CEO Joseph Papa said: "As part of our transformation strategy, we will continue to seek strategic bolt-on opportunities that we believe will help drive long-term growth in our core businesses and for the company."

The Canadian pharmaceutical company expects the acquisition to expand its gastroenterology portfolio. Synergy’s Trulance (plecanatide) will complement Bausch Health’s Xifaxan (rifaximin).

"With the scale and strength of our sales footprint in GI and primary care, our Salix team will be able to offer physicians and patients multiple treatment options."

Trulance is indicated for adults with chronic idiopathic constipation (CIC) and irritable bowel syndrome with constipation (IBS-C), while Xifaxan is approved to treat IBS with diarrhea and minimise risk of overt hepatic encephalopathy (HE) recurrence in adults.

The deal will also add Synergy’s investigational gastrointestinal candidate, dolcanatide.

Papa added: "The acquisition of the assets of Synergy will enhance our Salix Pharmaceuticals business.

"We believe Trulance is a natural complement to Xifaxan (rifaximin), and with the scale and strength of our sales footprint in GI and primary care, our Salix team will be able to offer physicians and patients multiple treatment options that span the types of irritable bowel syndrome."

As per the sale process, Bausch Health’s bid is subject to higher or better offers, where other parties could make competing proposals.

Further, the transaction is subject to customary closing conditions and Bankruptcy Court approval.

If the bid is successful, Bausch Health expects to complete the acquisition by the first quarter of next year.

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