NovaSom, Inc. has filed a Chapter 11 case in Delaware in order to sell its business through a “363” bankruptcy auction. NovaSom joins other recent healthcare industry filings by companies such as True Health, Avadel Pharma, Argos Therapeutics,
NovaSom is a Maryland-based home sleep testing company. In 2010-2012, it developed a device, AccuSom, that sends sleep data wirelessly rather than requiring patients to return a device to a lab to download data. It is the only in-home sleep test available in the marketplace that provides patient support and next-day test results. Additional information is available at: https://www.novasom.com/
Between 2013 and 2017, orders for AccuSom grew 500%. The average sales price, however, dropped by nearly 30% due to market conditions and the general availability of home sleep testing providers. The company’s filings indicate that the significant cost of growing sales has thus far prevented NovaSom from reaching profitability.
The Auction Process
At present, one entity, VirtuOx, has expressed interested in buying NovaSom’s assets for an estimated $5.3 million. The bid deadline for competing bidders is September 19, 2019 at 4:00 p.m. (Certain qualifications must be met to qualify as a bidder). If the company receives qualified, competing bids, the auction will be held on September 23, 2019 in Philadelphia, PA. The sale hearing will be held two days later.
The NovaSom Bankruptcy Docket
NovaSom’s claims agent is maintaining a public website with information about the case.
Fox Rothschild is monitoring the situation. If you are interested in more information about the auction and the bid process, we are available to assist.
Mette H. Kurth