Vivus Reaches Settlement, Paving Way for Icahn Unit’s Ownership

VIVUS Inc. has reached a settlement that would put the bankrupt drugmaker on track for confirmation of a Chapter 11 plan and deliver company ownership to an Icahn Enterprises subsidiary.

The settlement, reached with an equity-holder committee and IEH Biopharma LLC, the Icahn subsidiary, includes a new royalty agreement and a $1 million boost to a stock payout, Vivus’ attorney, Gabriel Morgan of Weil Gotshal & Manges LLP, said at a status conference Thursday.

With the settlement, expected to be filed next week, Vivus will be in position to resuscitate a prepackaged plan originally proposed in July when it filed ...