RARE Daily

PTC Enters Strategic Financing Collaboration with Blackstone for Up to $1 Billion in Funding

October 28, 2022

PTC Therapeutics said that it has entered into a strategic financing collaboration with funds managed by Blackstone to support its mission to reach a steady state of delivering at least one therapy every two to three years to continue to bring transformative medicines to patients globally.

Photo: Emily Hill, chief financial officer of PTC Therapeutics

As part of the collaboration, funds managed by Blackstone Life Sciences and Blackstone Credit will provide PTC with an initial $500 million commitment, including $350 million in low-cost, low-dilution capital at close.

“This strategic financing will support the acceleration of PTC’s robust and diversified pipeline, business development opportunities and general corporate purposes,” said Emily Hill, chief financial officer of PTC Therapeutics. “Our strong internal drug development and commercialization efforts, record of business development and value creation, combined with Blackstone’s network and life sciences expertise, puts PTC in a strong position to continue to execute our mission.”

PTC is known for its RNA targeting technology with a focus on small molecule rare disease therapeutics. It partnered with Roche and the SMA Foundation to make Evrysdi, the first oral treatment option for spinal muscular atrophy. The company also markets two therapies to treat Duchenne muscular dystrophy—Emflaza and Translarna.

However, there have been some speed bumps for its Huntington’s disease program. In mid-October, PTC said that while enrollment is active for its global phase 2 trial of PTC518 for the treatment of Huntington’s, the U.S. Food and Drug Administration has requested additional data to allow the study to proceed in the United States. The U.S. trial been paused while discussions with the FDA continue towards resuming US enrollment.

The collaboration with Blackstone capitalizes on PTC’s innovative therapeutic platforms and its proven track record of delivering transformative treatments to patients living with rare diseases. The customized senior secured term loan investment by Blackstone is collateralized by Translarna, Emflaza, Upstaza, sepiapterin, and vatiquinone.

Specifically, the transaction is comprised of the following components: $300 million of senior secured debt at 7.25 percent + SOFR for a seven-year term; $50 million purchase of PTC common stock; $150 million delayed draw debt for up to 18 months; $500 million in potential credit facility or other investment capital to support business development opportunities, subject to mutual agreement between Blackstone and PTC.

Author: Rare Daily Staff

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