SEOUL, South Korea--(BUSINESS WIRE)--South Korean wealth management company, CW Holt Advisory analysts have commented saying that on Monday, Blackstone Group Inc advised it would commit $2 billion U.S Dollars to Alnylam Pharmaceuticals Inc through an equity-and-debt arrangement, offering the drug maker a capital boost without dipping into already turbulent stock markets for funding.
Alnylam is the first drug maker to gain U.S. clearance for a medical treatment using the Nobel prize-winning RNA interference (RNAi) technology. They are also producing other RNAi products to treat a variety of other conditions, including rare bleeding disorders. Earlier this month, the company also partnered with Vir Biotechnology Inc. to develop treatments for the new coronavirus.
The private equity firm has committed to USD 1 billion of capital in exchange for 50% of the royalties on worldwide sales of Alnylam's cholesterol treatment inclisiran, under consideration by U.S. and European regulators right now. CW Holt Advisory analysts commented that at a time when investors are typically seeking major discounts on new investment, the deal would boost the company's balance sheet substantially.
"The offer, which includes Blackstone's $750 million secured term loan, arrives when debt markets are in turmoil as well. Shares in Alnylam were stagnant during morning trade after initially rising." commented Scott Johnson, Director of Private Equity at CW Holt Advisory.
Alnylam said it was in negotiations with multiple investors to sell their royalty rights for Inclisiran months before the coronavirus spread globally. Inclisiran, part of a class of medicines that blocks a protein known as PCSK9, was co-developed with The Medicines Co and was acquired earlier this year by Novartis AG.
"Alnylam is entitled to collect up to 20% of royalties on the global sales of Inclisiran from Novartis. The company also announced they had acquired $100 million of the drug maker’s common stock giving it a stake of less than 1% which will include up to $150 million in future funding for Alnylam's cardiometabolic therapies." Commented Harry Stevens, Director of Private Clients at CW Holt Advisory.
Blackstone will be a long-term holder of the equity stake, Alnylam said, adding that by the end of 2029 it expects the private equity firm to collect USD 1 billion in royalties.
Alnylam combines the RNAi technology with two commercially available therapies, which operates by targeting and "silencing" particular genetic material, preventing the production of deadly proteins that cause diseases.
About CW Holt Advisory
CW Holt Advisory has taken a leading position in the Asia Pacific investment services industry thanks in part to our core values of integrity, transparency and professionalism. CW Holt Advisory is a leader in investment management, delivering innovation in investment services to individuals, families and trusts around the world.
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