2023-10-04| FundingPartnerships

Amicus Therapeutics Secures $430 Million Financing Pact with Blackstone to Propel Rare Disease Mission

by Richard Chau
Share To

Philadelphia-based biotech firm Amicus Therapeutics has officially entered into a definitive agreement for a $430 million financing collaboration with Blackstone Life Sciences and Blackstone Credit. This deal not only facilitates a refinancing of Amicus’ existing debt but also aligns with its commitment to advancing its mission of developing and delivering novel medicines for patients grappling with rare diseases. 

Related Article: Prenatal Enzyme Therapy Could Help Treat Rare Genetic Disease 

Strategic Features of the Financing Agreement

The strategic collaboration, announced on October 2, comprises a $400 million senior secured term loan and a $30 million strategic investment in Amicus’ common stock. Regarding the financing arrangement, essential features include an interest rate at an adjusted Term SOFR (Secured Overnight Financing Rate) plus 6.25%, subject to a 2.50% floor on Term SOFR. Importantly, it allows for interest-only payments until late 2026 and matures in October 2029. The full loan amount and equity purchase will be accessible and fully utilized at the initial funding, with the proceeds allocated to refinancing Amicus’ existing debt and supporting its ongoing operations.

Leadership Perspectives on the Financing Collaboration

Bradley Campbell, President and CEO of Amicus Therapeutics, expressed enthusiasm about this strategic financing pact, highlighting its impact on the company’s financial profile. Campbell stated, “This new financing with Blackstone strengthens our balance sheet and financial profile by reducing the interest rate versus our current debt, pushing out the amortization schedule and extending the amortization period.” He emphasized Blackstone’s commitment to Amicus’ future and belief in the growth potential of key rare disease products such as Galafold, Pombiliti, and Opfolda. 

Craig Shepherd, Senior Managing Director with Blackstone Life Sciences, and Brad Colman, Senior Managing Director with Blackstone Credit, underscored Blackstone’s dedication to providing customized financing solutions for leading biotech and pharma companies. In a joint statement, they both expressed excitement about collaborating with Amicus to support critical scientific innovation and the development of medicines for individuals living with rare diseases globally. 

Recent FDA Approval and Market Projections for Amicus Therapeutics

In late September, Amicus Therapeutics achieved a significant milestone with the FDA approval of Pombiliti and Opfolda, targeting adults with late-onset Pompe disease, a rare and life-threatening genetic disease (called “lysosomal disorder”) that leads to buildup of excessive glycogen in cells, causing progressive damage to the heart, skeletal muscles and respiratory muscles. The approval covers patients weighing 40 kg or above who show no improvement with current enzyme replacement therapy (ERT). It is noteworthy that the Pombiliti-Opfolda duo also won approval in the European Union in late June

Pombiliti, a long-term ERT administered by intravenous infusion, and Opfolda, an oral stabilizer, represent a formidable combination in the Pompe disease market. With the market projected to reach $1.8 billion by 2027, Amicus anticipates peak sales of its combo reaching $1.2 billion. The company is poised to launch in the U.S. immediately, pricing the treatment at $650,000 per year for each patient, signaling a significant step forward in addressing the unmet needs of patients suffering from rare diseases.

© All rights reserved. Collaborate with us:
Related Post
FDA Approves First Treatment for Fibrodysplasia Ossificans Progressiva
The U.S. FDA Grants Orphan Drug Designation to NS-089/NCNP-02 for the Treatment of DMD
Reata’s Groundbreaking Therapy for an Ultra-rare Neuromuscular Disease Secures FDA Approval
GeneOnline’s Weekly News Highlights: Nov 20-Nov 24
SK Bioscience and Hilleman Laboratories Join Forces for Ebola Vaccine Development
BeiGene to Expand Oncology Pipeline Through ENSEM Therapeutics Partnership
Advancing the Frontiers of Cell and Gene Therapy – An Interview with Dr. Shin Kawamata
Astellas and Pfizer’s Drug Receives FDA Approval as Treatment for High-Risk Prostate Cancer Recurrence
GeneOnline’s Weekly News Highlights: Nov 13-Nov 17
Singapore’s NUS Medicine Launches Centre for Sustainable Medicine
2023 Healthcare+ EXPO・Taiwan
Taipei , Taiwan
Scroll to Top