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July 1, 2022

Blueprint Medicines announces financing partnerships for $1.25bn

At the closing of the deal, Blueprint will get a total of $575m in cash.

Blueprint Medicines has entered strategic financing partnerships for up to $1.25bn with life sciences-focused investors Sixth Street and Royalty Pharma.

The company noted that the deal will bring substantial non-dilutive, low-cost capital to boost innovation and growth. 

The funding will offer capital to extend Blueprint’s varied pipeline toward marketing as well as to continue seeking strategic and synergistic business development prospects.

Sixth Street and Royalty Pharma’s investments build on Blueprint’s achievements so far and bring on new strategic financial partners who share the company’s growth goals in the planned commercial opportunity and launch performance of Ayvakit/Ayvakyt (avapritinib) and Gavreto (pralsetinib). 

Ayvakit has received the US Food and Drug Administration (FDA) approval to treat advanced systemic mastocytosis in adults.

Gavreto (pralsetinib) is approved by the FDA for three indications.

The therapy is used to treat adults with metastatic RET fusion-positive non-small cell lung cancer (NSCLC).

It is also indicated for adult and paediatric patients aged 12 years and above with advanced or metastatic RET-mutant medullary thyroid cancer as well as for advanced or metastatic RET fusion-positive thyroid cancer.

The partnership with Royalty Pharma monetises royalty payments obtainable from net sales of Gavreto by Roche outside of the US, excluding Greater China.

Under the deal, Blueprint Medicines will receive an upfront cash payment of $175m as well as up to $165m in potential milestone payments contingent on sales in the future.

The collaboration with Sixth Street has three parts. Blueprint will receive an upfront payment of $250m in cash for Ayvakit/Ayvakyt and BLU-263 royalties in the future.

Furthermore, up to $400m will be offered in a senior secured credit facility, of which Blueprint will use $150m in the initial stage while another $250m will be offered in delayed draw tranches at the company’s discretion.

Dependent on the mutual agreement between Sixth Street and Blueprint, another $260m will be offered in a potential credit facility to back the buy-side business development opportunities.

At the closing of the deal, Blueprint will get a total of $575m in cash.

Blueprint Medicines CEO Kate Haviland said: “The combination of our strong cash position, multiple drivers of top-line revenue, and diversity of important pipeline programs uniquely positions us to continue building a leading precision therapy company and bring transformative medicines to patients worldwide.”

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