Valeritas (NSDQ:VLRX) announced that the company and its subsidiaries filed voluntary petitions for Chapter 11 bankruptcy, having agreed to sell substantially all of the business to Zealand Pharma (CPH:ZEAL).

The agreement is slated to provide a total cash consideration of $23 million along with certain liabilities related to the ongoing business. Once the acquisition is completed, Zealand plans to continue Valeritas’ commercial operations and retain nearly all employees.

Denmark-based Zealand Pharma is a biotechnology research company designing and developing peptide-based medicines, mainly focusing on metabolic diseases such as diabetes and obesity.

Bridgewater, N.J.–based Valeritas developed the V-Go wearable insulin delivery device designed to control blood glucose as a lightweight and fully disposable option that can be worn underneath clothing. It has FDA 510(k) clearance in the U.S.

The company said it expects to continue operating its business as usual, while it obtained a commitment for debtor-in-possession financing to offer the necessary liquidity to support operations during the bankruptcy and sale processes, including the production and sale of V-Go.

“After a thoughtful and thorough review of strategic alternatives, we determined that a process to sell our business is the best path forward to maximize value for all stakeholders,” Valeritas president & CEO John Timberlake said in a news release. “During this process, we will remain focused on successfully serving our patients and healthcare providers as we continue to work hard to improve the health of and simplify the lives of people with diabetes.”