As reported in the Wall Street Journal:

Pfizer’s offer for Lucira challenged by backup bidder. Pfizer Inc. has been named the winning bidder for assets of bankrupt Lucira Health Inc., but the runner-up said its offer was higher and that Pfizer got preferential treatment.

Pearsanta Inc. said in its objection filed Tuesday in the U.S. Bankruptcy Court in Wilmington, Del., that Lucira “could have inked a deal with Pearsanta on better terms,” and had Pfizer’s lower offer as the backup, Pearsanta lawyer Mark Billion said.

Lucira financial adviser Jeffrey Nerland said in a filing on Wednesday that although Pearsanta’s bid was higher, “Pfizer’s significantly superior financial capacity meant that Pfizer’s bid was likely to close.”

The unsecured creditors committee said that although it believes that Pfizer’s offer is the “best bid” received “under the circumstances,” it points out that it brings in as little as $5 million in cash.

A partial auction transcript filed Tuesday shows Pfizer’s $21.2 million offer included a cash portion initially of $5 million, later revised to potentially as much as $12 million. Pearsanta’s offer was $23.8 million, including $13.4 million in cash.

Lucira, maker of Covid-19 and flu tests, filed for bankruptcy with $84.7 million in debt. —Becky Yerak

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