Wayne-based Egalet is set to acquire four marketed products from Philadelphia-based Iroko Pharmaceuticals while simultaneously starting Chapter 11 bankruptcy proceedings, writes John George for the Philadelphia Business Journal.

The bankruptcy filing contains a reorganization plan to assist the transaction and will reorganize Egalet’s capital structure.

“We believe that the acquisition of the Iroko assets will enable us to leverage our existing commercial infrastructure while driving efficiencies,” said Bob Radie, Egalet president and CEO.

Egalet saw its stock delisted from Nasdaq two months ago as it did not meet the requirements for value and stock price. However, it disclosed its interest in pursuing the acquisition in documents filed with the Securities and Exchange Commission in October.

The four pain-relief products in the deal include three that are FDA-approved (Vivlodex, Tivorbex, and Zoervolex) and an oral suspension product (Indocin).

Under the asset purchase agreement, Egalet will issue $45 million in new senior secured notes to Iroko, as well as 49 percent of the new Egalet common stock and a royalty payment based on annual net sales of Indocin over $20 million.

Read more about Egalet in the Philadelphia Business Journal here.

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