In Re Orexigen Therapeutics, Inc.

596 B.R. 9 (2018)

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Nature of the Case

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Facts

P manufactures Contrave®, a drug that treats obesity. P manufactures Contrave®, a drug that treats obesity. McKesson and MPRS are legally distinct entities. On June 9, 2016, P entered into the Distribution Agreement with McKesson, which contemplated that McKesson would purchase and distribute Contrave® to various pharmacies in the United States. McKesson had certain rights, including a right to set off debts owed between P and its affiliates against debts owed between McKesson and its affiliates. As of the petition date, McKesson owed P $6,932,816.40. On July 15, 2016, Pr entered into the Services Agreement with MPRS. The Services Agreement does not incorporate or relate to the Distribution Agreement; they are wholly distinct. As of the petition date, P owed MPRS approximately $9,100,000. On March 12, 2018, P filed Chapter 11. P, McKesson, and MPRS entered into three stipulations and presented their motion to the court. The Court entered an order approving a stipulation between the P and MPRS. P would pay MPRS the sum of $6,027,155 on account of the post-petition reimbursements MPRS remitted under the LoyaltyScript® program. P would make weekly payments of $1,675,000 to MPRS. None of the payments would apply to MPRS's prepetition claim of approximately $9,100,000. Before the court is McKesson’s set off motion.