Another medtech company is filing for bankruptcy and auctioning off assets.
Surgalign, a surgical device maker, filed for bankruptcy with estimated assets and liabilities in the range of $50 million to $100 million in the Bankruptcy Court for the Southern District of Texas.
The Deerfield, IL-based company said it would sell substantially its hardware and biomaterials assets to Xtant Medical Holdings for $5 million. The move comes just a few months after the company reduced its workforce by about 20%.
As part of the Chapter 11 proceedings, Surgalign also filed a motion seeking authorization to pursue an auction and sale process under section 363 of the U.S. Bankruptcy Code pursuant to which Xtant will be designated as the stalking horse bidder. The proposed sale process also encompasses the company’s other assets that are not the subject of the Asset Purchase Agreement, according to a release from Surgalign.
The turbulent economy has been difficult for many medtech companies. There have been numerous layoffs in the space and some companies have just outright tanked.
In April, Pear Therapeutics, a digital health company focused on prescription digital therapeutics announced filing for Chapter 11 protection.