Global Blood Therapeutics Raises $300 Million in Convertible Debt Offering

Sickle Cell disease drugmaker Global Blood Therapeutics said it priced $300 million aggregate principal amount of its Convertible Senior Notes due 2028 in a private offering to qualified institutional buyers.

GBT also granted the initial purchasers of the notes a 13-day option to purchase up to an additional $45 million aggregate principal amount of notes. The sale of the notes to the initial purchasers is expected to close on December 17, 2021, subject to customary closing conditions, and is expected to result in approximately $290.4 million in net proceeds to GBT after deducting the initial purchasers’ discounts and commissions and the estimated offering expenses payable by GBT.

GBT intends to use most of the net proceeds from the offering for the continued commercialization of Oxbryta, the first FDA-approved medicine that directly inhibits sickle hemoglobin polymerization, the root cause of red blood cell sickling in sickle cell disease, and the clinical development of Oxbryta and GBT’s product candidates, and for other general corporate purposes, which may include potential acquisitions, investments, and strategic transactions.

GBT is also advancing its pipeline program in SCD with inclacumab, a P-selectin inhibitor in phase 3 development to address pain crises associated with the disease, and GBT021601 (GBT601), the company’s next-generation hemoglobin S polymerization inhibitor. In addition, GBT’s drug discovery teams are working on new targets to develop the next wave of potential treatments for SCD.

Sickle Cell disease (SCD) is an inherited blood disease that affects millions around the world, with more than 300,000 born with the condition annually and disproportionately affecting those of African descent, and sub-Saharan Africa bears roughly 80 percent of the disease burden. It also is common among people with ancestry from South America, Central America, and India, as well as several Mediterranean countries, such as Italy and Turkey.

SCD affects the structure and function of hemoglobin, reduces the ability of red blood cells to transport oxygen efficiently and, early on, progresses to a chronic vascular disease. The disease can lead to acute episodes of pain known as sickle cell pain crises, or vaso-occlusive crises, as well as life-threatening complications. The resulting, frequent hospitalizations associated with sickle cell disease combined with an overall lack of specialized care places a significant burden on patients and their families, healthcare systems, and the overall economy.

Author: Rare Daily Staff