Bankrupt Clovis sells Rubraca rights for up to $135 million

After previously disclosing filing voluntary petitions under Chapter 11 of the US Bankruptcy Code on December 11, 2022, Clovis Oncology has now entered into a deal to sell certain of its assets and rights associated with its cancer drug Rubraca (rucaparib) and the business and operations related to the development and exploitation of the asset pursuant to the bidding procedures.

According to a filing with the US Securities and Exchange Commission (SEC), Clovis has determined that pharma& Schweiz GmbH (Pharma&) submitted the highest and otherwise best bid at the auction. Accordingly, on April 5, 2023, the company entered into an asset purchase agreement with Pharma& to sell the product business for an upfront payment of $70 million, and up to an additional $50 million on the successful achievement of specified regulatory milestones and $15,000,000 in later sales related milestones.

Under the deal, Pharma& will be responsible for the payment of up to $41,000,000 (the “cure cost cap”) of cure costs in respect of the assigned contracts that are part of the product business, with Clovis being responsible for the payment of cure costs above the cure cost cap, if any.