Canada-based Aralez Pharmaceuticals has signed two separate agreements to divest its main operating businesses for a total consideration of $250m.

The move follows a financial and strategic review launched by the company to analyse various alternatives for improving its financial profile.

One of the transactions involves the sale of more than 20 products, as well as associated personnel and infrastructure, to Nuvo Pharmaceuticals for $110m.

Under the second deal with Deerfield Management Company, Aralez is set to divest Toprol-XL franchise, which targets the high blood pressure therapy market, for $140m.

The letter of intent with Nuvo covers Aralez’s Canadian specialty pharmaceutical business formerly called Tribute Pharmaceuticals Canada. The business primarily includes Cambia, Blexten, Suvexx and distribution rights to Resultz in Canada.

It additionally involves royalties and Canadian operations of Vimovo medicine indicated for relief of signs and symptoms associated with osteoarthritis, rheumatoid arthritis and ankylosing spondylitis.

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The drug is also approved to minimise the risk of gastric ulcers development in non-steroidal anti-inflammatory drug patients.

“The move follows a financial and strategic review launched by the company to analyse various alternatives for improving its financial profile.”

The proposed acquisitions are subject to mutually agreeable definitive agreements.

Deerfield Management is set to provide committed financing to Nuvo.

Meanwhile, the closing of the transactions is subject to regulatory approvals and other customary closing conditions.

Aralez and its Canadian division Aralez Pharmaceuticals Canada will commence voluntary proceedings in the country to facilitate the transactions.

In connection with these proceedings, the US and Irish subsidiaries of the company have filed for bankruptcy in New York, US.

Aralez Pharmaceuticals CEO Adrian Adams said: “Following a thorough financial and strategic review, we believe that these sales, together with an auction process under court supervision are in the best interests of the company and its stakeholders.”

The company added that it is working to sell its other assets, with plans to wind down its operations after the consummation of the sales.