SSG Advises Eiger BioPharmaceuticals in the Sale of Lonafarnib and Lambda

SSG Capital Advisors served as the investment banker to Eiger BioPharmaceuticals in the sale of Lonafarnib and Lambda, and associated clinical assets, to Eiger InnoTherapeutics. 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 September 2024.

On April 1, 2024, Eiger filed for protection under chapter 11 of the U.S. Bankruptcy Code to institute a sale process for Eiger’s commercial and pipeline assets in order to maximize value for all stakeholders. SSG was retained in March 2024 as Eiger’s exclusive investment banker to run concurrent marketing processes for its commercial and pipeline drug candidates.

SSG led multi-staged marketing processes for all of the company’s assets, including Lonafarnib and Lambda. SSG worked closely with senior management and other advisors to identify and engage potential bidders for these assets individually. After in-depth discussions with numerous prospective investors, the company determined that the bid from Eiger InnoTherapeutics to acquire both assets provided the most comprehensive solution for maximizing asset value. Accordingly, the company and its advisors decided to proceed with a private sale to preserve liquidity, expedite the transaction closing and conclude the sale processes.

Through three distinct transactions, SSG secured total gross sale proceeds exceeding $87 million for all of the company’s assets, likely returning capital to equity holders.

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, counsel to Eiger BioPharmaceuticals

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• Douglas Staut, chief restructuring officer, Paul Rundell, Paul Coloma and Reilly Olson of Alvarez & Marsal North America, financial advisor to Eiger BioPharmaceuticals

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• Kizzy L. Jarashow, Maggie L. Wong, Barry Z. Bazian, David R. Chen, Carolyn Nguyen, James Lathrop and Frank Ruofan Qin of Goodwin Procter, counsel to Eiger InnoTherapeutics

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• Adam C. Rogoff, P. Bradley O’Neill and Andrew J. Citron of Kramer Levin Naftalis & Frankel, co-counsel to the senior secured lender

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• Jeff P. Prostok of Forshey & Prostok, co-counsel to the senior secured lender

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• Michael S. Budwick and Daniel N. Gonzalez of Meland Budwick, co-counsel to the official committee of unsecured creditors

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• Jonathan S. Feldman of Phang & Feldman, co-counsel to the official committee of unsecured creditors

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• Warren J. Martin, Jr., Brett S. Moore and Rachel A. Parisi of Porzio, Bromberg & Newman, co-counsel to the official equity security holders’ committee

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• John J. Sparacino and S. Margie Venus of McKool Smith, co-counsel to the official equity security holders’ committee

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• Matthew Dundon of Dundon Advisers, financial advisor to the official equity security holders’ committee.

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