Will a bankruptcy court allow Otsuka to buy Proteus?

A federal bankruptcy court judge will continue hearing arguments today over the future of Proteus Digital Health, a Silicon Valley company once valued at $1.5 billion that filed for bankruptcy earlier this summer. Proteus built the technology behind the first so-called digital pill, Abilify MyCite, which the drug maker Otsuka produced. But sales were sluggish, and this winter, short on cash, the company also lost its crucial co-development deal with Otsuka. The Japanese drug maker put in a bid to purchase Proteus for $15 million in a deal that would also see Otsuka absorb the company's debts. That deal still needs a go-ahead from the bankruptcy court, which also heard arguments yesterday.