Amicus Therapeutics (FOLD) announced on Monday, 2nd October, that it struck a $430m financial collaboration agreement with Blackstone Life Sciences (BX). According to this agreement, the global biotechnology company will receive $400m from Blackstone Credit as a senior secured term loan to refinance existing debt. The remaining $30m is a strategic investment in Amicus stock.
Amicus Therapeutics strikes $430m strategic financing deal
This deal puts Amicus in a better position to increase its revenues and become a leading biotech in the field of rare diseases. Blackstone only requires interest-only payments until late 2026, with a maturity date of October 2029.
Apart from debt refinancing, the money will also go towards continued operations. The President and Chief Executive Officer of Amicus Therapeutics, Bradley Campbell, said:
This new financing with Blackstone strengthens our balance sheets and financial profile by reducing the interest rate versus our current debt, pushing out the amortization schedules and extending the amortization period. This strategic investment demonstrates Blackstone’s commitment to Amicus’ future and belief in the strong growth potential of Galafold and Pombiliti™ + Opfolda™ as we continue on our mission to develop medicines for people living with rare diseases.
Blackstone stated that the company strives to offer finance solutions to global leaders in biotech and pharmaceuticals as it supports mission-critical sciences. This company feels it is important to develop new medicines that target rare metabolic diseases.
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As a patient-dedicated enterprise focusing on the treatment of rare diseases worldwide, Amicus meets the funding requirements of Blackstone Life Sciences. The private investment platform is known for investing in the life cycle of companies and products to further research and development.
