Drugmaker Egalet Files Bankruptcy With Plan to Buy Iroko’s Drugs

Egalet Corp. filed for bankruptcy with a plan to reorganize that includes buying Iroko Pharmaceuticals Inc.’s non-narcotic painkillers.

The Wayne, Pa.-based company’s Chapter 11 filing in Delaware Oct. 31 listed around $143 million in total debt. The pharmaceutical company currently promotes a nasal spray and oxycodone tablets, and said in a separate statement Oct. 31 that, conditioned upon the bankruptcy, it plans to buy four of Iroko’s products.

Among reasons for the filing were “shifting legislative and social responses to the opioid epidemic,” Chief Executive Robert Radie said in a court affidavit. As painkiller addiction became a bigger problem, the ...