💥New Chapter 11 Bankruptcy Filing - RevitaLid Pharmaceutical Corp. (Case Roster)💥

On October 12, 2023, NJ-based RevitaLid Pharmaceutical Corp. ($RVLP) and two affiliates (the “debtors”) filed prepackaged chapter 11 bankruptcy cases in the District of Delaware (Judge Shannon). The debtors categorize themselves as “…a specialty pharmaceutical company focused on the commercialization and development of products that target markets with underserved patient populations in the ocular and medical aesthetics therapeutic areas.” Say what? In layman’s terms, the debtors’ flagship product, Upneeq — great name btw guys — is for treating blepharoptosis. Wait. Say what again?? Yeah, we had zero clue either but a quick Google search suggests that that’s just a fancy name for a droopy eyelid. Think Thom Yorke.

Like a lot of other biopharma companies we’ve seen pass through bankruptcy courts, this one is awfully good at incinerating heaps of cash while simultaneously failing to actually make any. The company has ~$80mm of funded debt pursuant to a note purchase agreement (“NPA”) with Athyrium Opportunities IV Acquisition LP (“Athyrium”) as agent. The lack of revenues from Upneeq led to the company breaching the minimum liquidity covenant under the NPA on October 3, 2023. The debtors also failed to meet a quarterly interest payment on October 2, 2023.