BridgeBio Pharma Secures $1.25 Billion to Propel Genetic Medicine Development

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Introduction

In a strategic move to accelerate the development and launch of genetic medicines, BridgeBio Pharma has successfully secured up to USD 1.25 billion from Blue Owl Capital and Canada Pension Plan Investment Board. The cornerstone of BridgeBio’s funding initiative involves a strategic agreement with Blue Owl Capital and Canada Pension Plan Investment Board. In a deal worth USD 500 million in cash, BridgeBio Pharma has committed to providing the investors with a 5% royalty on worldwide net sales of its drug, acoramidis, pending FDA approval. This arrangement also includes provisions for a potential acquisition of BridgeBio Pharma, demonstrating the complexity and foresight in the financing strategy.

Acoramidis: A Potential Game-Changer for BridgeBio Pharma in ATTR Treatment

Acoramidis, currently under FDA review, represents BridgeBio Pharma’s flagship drug in the ATTR space. ATTR is an inherited disease causing abnormal transthyretin protein and the accumulation of amyloid protein in various tissues, including the heart. BridgeBio Pharma aims to go head-to-head with Pfizer’s Vyndaqel, a successful transthyretin stabilizer that generated USD 2.3 billion in sales in the nine months leading up to September 30, 2023.

Positive Trial Results and Market Strategy

BridgeBio Pharma’s acoramidis has shown promising results in Phase III trials, with the company emphasizing its superiority as a transthyretin stabilizer based on laboratory tests. The proceeds of the funding are anticipated to not only support the commercial launch of acoramidis but also extend the maturity of BridgeBio Pharma’s loan and provide additional capital for strategic corporate development activities.

Future Considerations for BridgeBio Pharma

This financing move is crucial for the company, given its past experiences where drugs approved by the FDA did not significantly contribute to revenue. With a cash position of USD 505.2 million as of September 2023, BridgeBio is strategically using its resources to advance its pipeline, especially in the face of potential competition from Alnylam Pharmaceutical’s Amvuttra, which has approval for treating neuropathy caused by ATTR.