Seattle-based Impel Pharmaceuticals Inc. is pursuing a sale and has filed for Chapter 11 bankruptcy protection in the Northern District of Texas.
According to Impel, the bankruptcy proceedings will allow for an orderly sale process and for bidders to submit offers. The company is going into the bidding process with JN BIDCO LLC as the "stalking horse" bidder, or an entity that has already put in a bid to set the low-end bidding bar. The entity is linked to Wixom, Michigan-based investors.
Impel announced the moves Tuesday. A company spokesperson said Impel wasn't commenting beyond its news release.
"After carefully reviewing all available strategic options with our advisors, Impel made the decision to pursue a sale through an in-court restructuring process," Impel interim CEO Len Paolillo said in a release.
According to a filing with the Securities and Exchange Commission, JN BIDCO LLC's low-end bid is $17.5 million plus additional cash based on net sales and licensing fees. Impel plans to operate as normal and pay employees during the process. The company will solicit competing bids and plans for a sale in the first quarter of next year. The sale needs court approval.
Impel's pursuit of the sale follows the company's announcement in October that it was exploring "strategic alternatives," including a sale of some or all of the company, or a merger.
Impel was founded in 2008. The company makes a nasal spray for migraines called Trudhesa, which gained Food and Drug Administration approval in September 2021. Trudhesa is delivered through the upper nasal space, and Impel says targeting the vascular-rich upper nasal space allows for rapid absorption.
In November, Impel announced then-CEO Adrian Adams was resigning. Adams, who held multiple tenures as CEO of different biotechs, had led Impel for almost four years. Paolillo had been the company's chief commercial officer since March 2021 before taking over the interim CEO duties.
Earlier this month, the company announced Chief Financial Officer Michael Kalb is leaving at the end of the year. He joined Impel in May, according to his LinkedIn page, and the company hasn't named a replacement.
In April 2021, Impel went public through an $80 million initial public offering. The company generated $5 million in revenue during the third quarter, up from $3.1 million during the third quarter of last year. It reported a $12.8 million loss during the third quarter.
