Eiger Biopharmaceuticals ($14MM market-cap) filed for Chapter 11 protection earlier this year and announced that the company intends to sell substantially all of its assets during the bankruptcy case to facilitate an orderly wind-down of its operations.

This past May, Sentynl Therapeutics bought their FDA-approved drug “Zokinvy” for $45M. Later in June, the company received another $34.5M from the sale of the drug “Avexitide.”

The balance sheet is a fairly clean one. The most recently filed K on April 8 reports a cash position of $25M. Assuming a conservative cash burn of an additional $15M since then, I get the following swag estimate:

There are some cost overheads here from the bankruptcy process, like lawyers’ fees, which are roughly $2M/month. So, the value gap will certainly diminish the longer the process goes. However, the bid deadlines were released for the next auctions: Lonafarnib Bid Deadline July 19, 2024, at 4:00 PM, and Lambda Bid Deadline August 2, 2024, at 4:00 PM Eastern, and I've marked down the value of both to 0. I think it's fair to assume a payout for the remaining shareholders fairly soon.

Disclosure: I own shares of EIGRQ