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SSG Advises the Chapter 7 Trustee of ContraFect Corporation in Sale of Substantially All Intellectual Property Assets

April 12, 2024, 07:54 AM
Filed Under: Biotechnology

SSG Capital Advisors served as the investment banker to the Chapter 7 Trustee of ContraFect Corporation, 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.

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.   

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