bridgebio pharma secures up to $1.25 billion of capital from blue owl and cpp investments to accelerate the development and launch of genetic medicines

BridgeBio Pharma, Inc. (BridgeBio or the Company), a commercial-stage biopharmaceutical company focused on genetic diseases and cancers, announced strategic financing from Blue Owl Capital (Blue Owl) and Canada Pension Plan Investment Board (CPP Investments), through a wholly owned subsidiary (CPPIB Credit) of CPPIB Credit Investments Inc., bringing in capital of up to $1.25 billion.

With these transactions, BridgeBio obtains financing from experienced healthcare investors who share the Company’s confidence in the anticipated launch of acoramidis as the potential backbone of therapy for transthyretin amyloid cardiomyopathy (ATTR-CM).

“We are excited to be working with a distinguished group of life sciences investors who are aligned with our view of acoramidis’ blockbuster market opportunity,” said Brian Stephenson, Ph.D., CFA, Chief Financial Officer of BridgeBio. “Our newly strengthened balance sheet will enable us to serve ATTR-CM patients with a well-resourced launch of acoramidis, as well as patients with genetic diseases more broadly with multiple Phase 3 readouts for blockbuster indications anticipated over the next few years. Our increasing patient impact should allow us to diversify drivers of top line revenue in the near term and enable reinvestment into R&D paired with opportunistic business development.”

The overall collaboration includes the following key features:

• A royalty agreement with Blue Owl and CPPIB Credit:
  • $500 million cash payment upon FDA approval of acoramidis to help support the Company’s commercial launch in exchange for future royalties of 5% of worldwide net sales of acoramidis, both of which are subject to various conditions. This consists of $300 million from Blue Owl and $200 million from CPPIB Credit
  • Total royalty payments are capped at 1.9 times the invested capital, and the royalty agreement includes investment features (such as change of control provisions that apply prior to FDA approval) intended to provide broad strategic flexibility for BridgeBio going forward
• A refinancing with Blue Owl of BridgeBio’s existing senior credit facility:
  • $450 million of committed capital funded at close to refinance BridgeBio’s existing senior credit facility, extending maturity from 2026 to 2029 and providing the Company with considerable operational flexibility
  • An additional tranche of up to $300 million, funded at the Company and Blue Owl’s mutual consent to support strategic corporate development activities

“Blue Owl is well-positioned to provide bespoke and scaled financing solutions to the most consequential companies in the life sciences sector,” said Sandip Agarwala, Managing Director at Blue Owl Capital. “Acoramidis has demonstrated an impressive and differentiated clinical profile, and we believe it will be an important advancement in the treatment of ATTR-CM.   Further, BridgeBio’s promising pipeline of late-stage targeted rare disease therapies address critical unmet needs in these underserved populations. We are pleased to support BridgeBio in its mission of bringing breakthrough medicines to patients.”

“This investment in BridgeBio represents an opportunity to provide structured capital solutions to an innovative company in the healthcare space and leverage CPP Investments’ deep capabilities in life sciences,” said David Colla, Managing Director and Head of Capital Solutions, CPP Investments. “Investments in leading therapies also help to diversify our capital allocations to income streams that are typically uncorrelated to the broader capital markets.”

Morgan Stanley & Co. LLC acted as sole structuring agent on the transactions. Latham & Watkins served as legal advisor to BridgeBio and Cooley LLP advised Blue Owl.