Aceto Corp. received no additional bids for its struggling generic drugs division, so a $15 million offer from an India-based drugmaker now is poised to be approved by a bankruptcy court, the Port Washington company said.
“No such bids were received,” Aceto said in a securities filing on Wednesday night, referring to higher offers for its Rising Pharmaceuticals Inc. unit in New Jersey. Therefore, Shore Suven Pharma Inc. “was selected as the successful buyer of the pharma business on March 29,” Aceto said.
Rising's sale is now subject to a hearing on Monday in U.S. Bankruptcy Court in Newark, New Jersey, according to the filing.
In February, Aceto filed for bankruptcy protection from its creditors, citing mounting losses and a shortage of cash. Executives said at the time that Rising faced intense competition from rivals and had trouble delivering products.
Rising’s prospective buyer, Shore Suven Pharma, is a joint venture of Suven Life Sciences Ltd., a public company in India, and Aceto board director Vimal Kavuru, according to company documents.
The proposed $15 million sale comes eight years after Aceto purchased Rising for $80 million. It then enlarged Rising in December 2016 by purchasing some of the assets of two other drugmakers for $462 million.
Those drugmakers were run by Kavuru, who subsequently joined the Aceto board and helped to run Rising. He now will be CEO of Shore, officials said.
Aceto also has negotiated a deal to sell its chemicals division for $338 million to the private equity firm New Mountain Capital in Manhattan, subject to a court supervised auction. The chemicals are used primarily in agriculture and manufacturing.
Both sales are expected to be completed by June 30.
Aceto shares began trading Wednesday on the Over-The-Counter Pink Sheet Market after being delisted from the Nasdaq stock marketing on Tuesday.
As part of the bankruptcy filings and proposed sales, the company has secured $60 million in financing to keep operating and to pay its workforce of 315 people.