Acorda Therapeutics, Inc. (Nasdaq: ACOR) has entered into a definitive agreement for the sale of all of its assets, including INBRIJA, AMPYRA, and FAMPYRA, to Merz Therapeutics for a total consideration of $185 million.

This strategic move comes as Acorda, a prominent name in the pharmaceutical industry, seeks to navigate through Chapter 11 bankruptcy proceedings.

Merz Therapeutics, recognized for its expertise in neurotoxins, is part of the globally-operating Merz Group, based in Frankfurt, Germany.

The asset acquisition positions Merz as the initial bidder in a court-supervised auction process designed to maximize the value of Acorda’s offerings.

The decision for Chapter 11 protection was made after a thorough strategic review by Acorda, exploring various options to enhance stakeholder value.

The sale process, governed by Section 363 of the U.S. Bankruptcy Code, is expected to attract multiple bids and reach completion by June 2024.

Dr. Ron Cohen, President and CEO of Acorda, expressed confidence in the decision, emphasizing the company’s commitment to ensuring a steady supply of medications for patients with multiple sclerosis and Parkinson’s disease. He also highlighted Merz Therapeutics’ potential to continue meeting patient needs due to its dedication to treating neurological conditions.

As Acorda proceeds with the sale, it has taken legal steps to maintain business operations and minimize the impact on employees, customers, and patients.

The company has secured a Restructuring Support Agreement with most of its note holders and a Debtor-in-Possession Financing Agreement to support ongoing operations during the bankruptcy phase.

Advisory services for Acorda are being provided by Baker McKenzie, Ernst & Young, Ducera Partners, and Leerink Partners, while Merz has engaged Freshfields Bruckhaus Deringer US LLP, Morgan Stanley, and Deloitte.

The Senior Convertible Noteholders have appointed King & Spalding and Perella Weinberg Partners for legal and financial guidance throughout this transition.

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