Savient Pharmaceuticals Inc said it has obtained the approval of a US Bankruptcy Court to divest substantially all its assets to Crealta Pharmaceuticals. The sale will also include all the assets of KRYSTEXXA, a therapy for chronic refractory gout.

Savient and Crealta had already entered into an acquisition deal previously wherein Crealta would buy all the assets of Savient for a price tag of $120.4 million. The deal was agreed upon after auction was undertaken through a Court-approved bidding process. Under the terms of the agreement, Crealta will be purchasing the portfolio of Savient.

Crealta was created in August this year in partnership with GTCR. It is a specialty pharmaceutical firm that concentrates on innovative therapeutics that will improve patient outcomes. Crealta was established to buy, develop and market specialty pharmaceutical products. GTCR, meanwhile, is a private equity firm that looks for opportunities in growth companies in the Healthcare and Information Services and Technology and Financial Services and Technology industries. Since it was created in 1980, it has already invested over $10 billion in more than 200 companies.

Although the transaction has already been approved by the Court, it is still subject to closing conditions and the termination of the waiting period under the Hart-Scott-Rodino, the statement said.

The legal advisors for Savient in the transaction are Skadden, Arps, Slate, Meagher & Flom LLP and Cole, Schotz, Meisel, Forman & Leonard P.A while Lazard served as its financial advisor. Meanwhile, Crealta's legal advisor is Kirkland & Ellis.

Savient Pharmaceuticals filed for bankruptcy in October. Citing a filing in the Bankruptcy Court in Wilmington, Delaware, Bloomberg reported that Savient had debts amounting to $260 million and only had assets of $74 million. The largest shareholder of Bridgewater, New Jersey-based Savient is Palo Alto Investors which held a 15% stake of its common stock. Franklin Templeton owns 8% while Wellington Management Co has a 7% stake, the report said.