March 12 (Reuters) - Drugmaker Orexigen Therapeutics Inc said on Monday it filed for Chapter 11 bankruptcy protection and will also file a motion to pursue an auction and sale process of substantially all its assets.
The company, which focuses on the treatment of obesity, said it expects proposed bids to be submitted by May 21 and the sale is intended to be concluded by July 2.
Orexigen listed assets in the range of $50 million to $100 million and liabilities in the range of $100 million to $500 million, according to a filing in the Delaware bankruptcy court.
A number of its senior secured noteholders have made a $35 million financing commitment to the company during the process, Orexigen said.
“While we have been working closely with our noteholders and have the support of a controlling number of senior secured noteholders, our debt covenant requirements and near-term cash flow needs have necessitated the protection afforded by a court-driven process,” Chief Executive Michael Narachi said.
The financing commitment will provide the company with sufficient liquidity to fund its Chapter 11 case, including the sale of its assets, and to continue to meet its operational and financial obligations, the Orexigen said.
Orexigen’s product Contrave, a weight-loss medication approved by the FDA in 2014 and marketed as Mysimba in the European Union, helps control cravings and reduce hunger. (Reporting by Mekhla Raina in Bengaluru; Editing by Gopakumar Warrier)