Rare Daily Staff
BridgeBio Pharma said that it has entered into a definitive agreement with an undisclosed purchaser to sell its priority review voucher for $110 million.
The U.S. Food and Drug Administration awarded the company the voucher in February 2021 when its Origin Biosciences affiliate received approval of Nulibry for injection as the first therapy to reduce the risk of mortality in patients with molybdenum cofactor deficiency (MoCD) Type A. The vouchers are part of incentives created to encourage the development of therapies for rare pediatric diseases.
The company said that in connection with the sale, it has executed an amendment to its existing senior secured credit facility, extending the interest-only period by two years and principal repayment to November 17, 2026.
The company received consent for the voucher sale from its lenders with all proceeds retained by BridgeBio. BridgeBio retains access to up to $100 million in delayed debt draws through year end 2022, subject to certain conditions. The amendment was approved unanimously by existing lenders in the syndicate without adjusting pricing and without imposing financial covenants.
The moves are a latest in a series of steps BridgeBio has taken to reduce its burn rate, build cash, and focus its pipeline. The company reduced staff and out-licensed programs in recent weeks as part of that effort.
“The sale of this voucher will help us advance our pipeline of drug development programs targeting genetic diseases and cancers,” said Brian Stephenson, BridgeBio’s chief financial officer. “We believe this deal, coupled with our amended loan agreement, offers us the opportunity to read out more data within the duration of our debt and advance meaningful medicines to patients in need in the years to come.”
Photo: Brian Stephenson, chief financial officer of BridgeBio