RARE Daily

Harmony Biosciences Enters into Strategic Financing Collaboration with Blackstone

August 11, 2021

Harmony Biosciences said it entered into a strategic financing collaboration with private investment firm Blackstone where funds managed by Blackstone have agreed to provide Harmony with up to $330 million of financing and growth capital.

Photo: John Jacobs, pesident and CEO of Harmony Biosciences

“This financing provides us with further flexibility to grow our business by providing us with access to capital to expand our portfolio of assets in rare, neurological diseases while also reducing our annual interest expense,” said John Jacobs, pesident and CEO of Harmony Biosciences.

The deal comes days after Harmony acquired a potential first-in-class molecule with a novel mechanism of action from ConSynance Therapeutics for the treatment of narcolepsy and other rare neurological diseases. The deal gives Harmony full development and commercialization rights globally, with the exception of Greater China, with financial terms including an upfront payment of $3.5 million and potential development and regulatory milestone payments and royalties.

The strategic financing collaboration with Blackstone includes up to $300 million in debt capital and a $30 million equity investment in Harmony common stock. The $300 million of debt capital includes a senior secured term loan facility in aggregate original principal amount of $200 million, and a $100 million senior secured delayed draw term loan facility that is available to be drawn within 12 months of closing, subject to the terms of the facility. Substantially all of the proceeds from the initial $200 million term loan and the related sale of Harmony’s common stock were used to pay off Harmony’s existing debt facility, together with the payment of fees and expenses, resulting in a significantly lower cost of capital.

Harmony Biosciences’ Wakix is approved by the U.S. Food and Drug Administration for the treatment of excessive daytime sleepiness or cataplexy in adult patients with narcolepsy and has been commercially available in the United States since the fourth quarter of 2019. Wakix was designed and developed by French biotech Bioprojet. Harmony has an exclusive license from Bioprojet to develop, manufacture and commercialize pitolisant in the United States.

Author: Rare Daily Staff

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