NanoString Technologies strikes deal with Patient Square Capital amid bankruptcy proceedings

In a significant move, NanoString Technologies, Inc. (OTC: NSTGQ), a pioneer in life science tools for discovery and translational research, has announced an agreement with Patient Square Capital, a leading healthcare investment firm. This arrangement places Patient Square Capital as the “stalking horse” bidder in a court-supervised sales process, aiming to acquire substantially all assets of NanoString’s global business operations for $220 million. This deal is a cornerstone of NanoString’s financial restructuring, subject to Bankruptcy Court approval and customary closing conditions.

Brad Gray, President and CEO of NanoString, expressed optimism about the agreement, stating, “This agreement with Patient Square provides continuity for our scientific customers and employees, and represents an important step in our financial restructuring.” He further emphasized Patient Square’s commitment to advancing NanoString’s mission to map the universe of biology, highlighting the investment firm’s readiness to support NanoString’s market-leading product roadmap.

The transaction, part of a Section 363 sale process under the Bankruptcy Code, allows for higher or better offers through agreed upon and court-approved bidding procedures. A critical milestone in this process will be a court hearing slated for March 28, 2024, to approve the stalking horse bid and bidding procedures. NanoString has requested that competing offers be submitted by April 12, 2024, with a final hearing to approve the sale scheduled for April 22, 2024.

The sale is subject to several conditions, including the expiration of a 15-day waiting period under the Hart-Scott-Rodino Antitrust Improvements Act of 1976. The outcome of this transaction could significantly influence the landscape of life science research tools, potentially fostering innovation and growth within the sector. Stakeholders within the industry and investors are keenly watching the developments of this bankruptcy proceeding, given its potential to shape the future of translational research and biological discovery.

This news comes at a critical juncture for NanoString, underscoring the challenges and opportunities within the life sciences sector. As the company navigates through its financial restructuring, the partnership with Patient Square Capital might provide the necessary stability and resources to continue its path of innovation and service to the scientific community.

From an expert perspective, this deal reflects the growing interest of investment firms in the biotechnology and life science sectors, recognizing their potential for significant impact and returns. The arrangement between NanoString Technologies, Inc. and Patient Square Capital illustrates a strategic approach to preserving and enhancing value in the face of financial adversity, offering a lifeline for NanoString to continue its critical work in the life sciences arena.