RARE Daily

BridgeBio Secures up to $1.25 Billion to Accelerate Development and Launch of Genetic Medicines

January 18, 2024

Rare Daily Staff

BridgeBio Pharma, a commercial-stage company focused on genetic diseases and cancers, has secured up to $1.25 billion in strategic financing from Blue Owl Capital and Canada Pension Plan Investment Board to support the anticipated launch of acoramidis as the potential backbone of therapy for transthyretin amyloid cardiomyopathy, or ATTR-CM, a buildup of faulty proteins on the heart that can cause heart failure.

“Our newly strengthened balance sheet will enable us to serve ATTR-CM patients with a well-resourced launch of acoramidis, as well as patients with genetic diseases more broadly with multiple phase 3 readouts for blockbuster indications anticipated over the next few years,” said Brian Stephenson, chief financial officer of BridgeBio. “Our increasing patient impact should allow us to diversify drivers of top line revenue in the near term and enable reinvestment into R&D paired with opportunistic business development.”

The financing includes $300 million in cash from Blue Owl and $200 million in cash from CPP Investments upon U.S. Food and Drug Administration approval of acoramidis to help support its commercial launch in exchange for a 5 percent royalty on future global net sales, both of which are subject to various conditions.

Total royalty payments are capped at 1.9 times the invested capital, and the royalty agreement includes investment features (such as change of control provisions that apply prior to FDA approval) intended to provide broad strategic flexibility for BridgeBio going forward.

The financing also includes a $450 million credit facility from Blue Owl that refinances existing senior secured credit, extending maturity from 2026 to 2029, and the possibility of additional facilities from Blue Owl of up to $300 million of credit to support strategic pipeline expansion and acceleration.

Photo: Brian Stephenson, chief financial officer of BridgeBio

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