Blackstone bets up to 1.3 billion on Apogee Therapeutics
The funding is for the development of zumilokibart, a potential rival to Dupixent, a drug developed by Regeneron Pharmaceuticals and Sanofi
by Mo.D.
Blackstone strengthened its biotech presence with a maxi-financing of up to $1.3 billion for Apogee Therapeutics, a company developing zumilokibart, a potential competitor to Dupixent, one of the most lucrative blockbuster drugs in the treatment of inflammatory diseases. The deal comes at the same time as the publication of positive clinical results for Apogee's investigational drug in atopic dermatitis, a chronic inflammatory skin disease characterised by itching and skin lesions.
The financing operation
In detail, Blackstone will provide up to USD 800 million in the form of financing and a further USD 500 million through debt, in return for royalties on future sales of the drug. The structure of the deal confirms the growing interest of large alternative investors in the life sciences sector, especially in advanced clinical programmes with high commercial potential.
Prior to the deal, the biotech already had about $1.3 billion in liquidity. The new resources will allow it to finance both clinical trials and the eventual commercialisation of the drug without the immediate need for further capital increases.For Blackstone, this is yet another strategic bet in the healthcare sector.
The Blackstone Life Sciences division manages some $17 billion in assets and increasingly relies on structured deals tied to royalties and long-term financing. In March, the group closed its latest life sciences fund with commitments of $6.3 billion, the largest raised to date by the company to finance clinical trials and medical technologies. The deal also confirms the growing interest of private finance in the immunology drug market, one of the fastest growing segments of the global pharmaceutical industry, where competition to replicate Dupixent's commercial success is set to accelerate in the coming years.
Clinical study
The results of the intermediate phase study showed that about two-thirds of the patients treated with the intermediate dose of zumilokibart achieved at least a 75 per cent improvement in skin lesions after 16 weeks, compared to placebo. The trial involved 346 adult patients.
