Mithra bankrupt, sells remaining assets for $188.2m

Mithra Pharmaceuticals, a Belgium-based women's health pharmaceutical company, filed for bankruptcy and subsequently sold its holdings in two subsidiary companies, Neuralis and Estetra, as well as its rights to a portfolio of female hormone drugs. The sale, amounting to €175 million ($188.2 million), was executed with Budapest-based Gedeon Richter.

This financial maneuver follows Mithra's failed attempts earlier this year to lengthen its financial viability, which included an unsuccessful effort to raise $13.7 million by offloading its stake in Mayne Pharma. The company has been experiencing significant financial distress, evidenced by a plummet in its share prices by over 90% in recent years.

The transaction will enable Gedeon Richter to take over Mithra’s Estelle, a drug marketed under the names Nextstellis and Drovelis in the US and EU respectively. Estelle generated €2.6 million for Mithra in the first half of 2023. Additionally, Gedeon Richter gains the development responsibilities for Donesta, Mithra’s menopause treatment candidate that showed favorable Phase III trial results in mid-2023. This estetrol (E4) hormone therapy is anticipated to receive approval from US regulators in 2024 and EU regulators in 2025.

The funds obtained from the sale will be directed towards repaying Mithra's creditors, as stated in a press release dated June 10. Consequently, this transaction does not provide any value to Mithra's shareholders. Despite the sale, certain assets remain unaffected, including Novalon, a long-acting drug specialist entity acquired by Mithra in 2015, and a contract development and manufacturing organization (CDMO) facility. These assets are still under judicial protection, and Mithra expects to receive offers for them by mid-month.

In the announcement of its bankruptcy filing, Mithra emphasized that the research and progress of its employees would persist under a new ownership. The company expressed optimism that these ongoing efforts will result in the development of new treatments that will benefit a broad audience.

The deal also entails the transition of 49 employees from the transferred entities to Gedeon Richter, along with an additional 17 employees who have been offered positions at the acquiring company. This move aims to safeguard the employment and ongoing work of these personnel.

Overall, Mithra's financial collapse and subsequent asset sale to Gedeon Richter underscore the challenges the former has faced in maintaining financial stability. The acquisition by Gedeon Richter not only salvages some of Mithra's valuable assets but also promises continuity for ongoing research and development efforts in women's health pharmaceuticals.