Eiger Biopharmaceuticals Shareholders Face Complete Loss as Liquidation Concludes
31.01.2026 - 03:01:04
The Chapter 11 bankruptcy process for Eiger Biopharmaceuticals has concluded, finalizing the company's liquidation and leaving equity investors with a total loss. A U.S. bankruptcy court in Texas gave its approval to the final plan in September 2024, formally ending the biotechnology firm's operations and voiding all common stock.
Prior to the court's confirmation, Eiger sold its remaining key drug programs to competitors. In the summer of 2024, Amylyx Pharmaceuticals acquired the avexitide program for $35.1 million. In a simultaneous transaction, Sentynl Therapeutics obtained the rights to Zokinvy, a treatment for the extremely rare Hutchinson-Gilford Progeria Syndrome.
The confirmed restructuring plan outlined the strategy for addressing creditor claims and distributing any remaining liquid assets. This judicial step effectively terminated the company's business activities.
Shareholder Impact and Equity Annulment
For holders of common stock, the outcome is a complete wipeout. All shares were officially canceled as of September 30, 2024, and trading has ceased. The securities now hold zero market value.
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Is there any remaining hope for partial compensation? The liquidation plan does include a theoretical provision for a recovery pool for former equity interests. However, distributions from this pool would only occur after all creditor obligations are satisfied in full—a scenario considered exceptionally rare in these types of bankruptcy proceedings.
Final Chapter for the Biotech Firm
Eiger Biopharmaceuticals has formally ended its reporting obligations with the U.S. Securities and Exchange Commission (SEC) by filing a Form 15, which occurred in late 2024. This action closes the book on the company's presence in capital markets.
The company's failure highlights the substantial risks inherent in the development and commercialization of orphan drugs within the biotechnology sector. The liquidation underscores the potential for total capital loss when development-stage biotech firms are unable to achieve commercial viability.
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