PTC Therapeutics entered into a strategic financing collaboration with funds managed by Blackstone to support its mission to reach a steady-state of delivering at least one therapy every few years to continue to bring transformative medicines to patients globally. As part of the collaboration, funds managed by Blackstone Life Sciences and Blackstone Credit will provide PTC with an initial $500 million commitment, including $350 million in low-cost, low-dilution capital at close.

“This strategic financing will support the acceleration of PTC’s robust and diversified pipeline, business development opportunities and general corporate purposes,” Emily Hill, CFO of PTC Therapeutics, said. “Our strong internal drug development and commercialization efforts, record of business development and value creation, combined with Blackstone’s network and life sciences expertise, puts PTC in a strong position to continue to execute our mission.”

This collaboration with Blackstone capitalizes on PTC’s multiple innovative therapeutic platforms and its proven track record of delivering transformative treatments to patients living with rare diseases. The customized senior secured term loan investment by Blackstone is collateralized by Translarna, Emflaza, Upstaza, sepiapterin and vatiquinone.

Specifically, the transaction is comprised of the following components:

  • $300 million of senior secured debt at 7.25% + SOFR for a seven-year term
  • $50 million purchase of PTC common stock
  • $150 million delayed draw debt for up to 18 months
  • $500 million in potential credit facility or other investment capital to support business development opportunities, subject to mutual agreement between Blackstone and PTC

“This transaction demonstrates our unique ability, in partnership with Blackstone Credit, to combine deep domain expertise and flexible scale capital in the life sciences, helping to grow impressive companies like PTC Therapeutics as they optimize their capital structure and advance important treatments for patients,” Kiran Reddy, MD and Craig Shepherd, senior managing directors with Blackstone Life Sciences, said. “PTC has a deep track record of bringing life-changing therapies to patients and we are excited to support them as they launch important initiatives with the goal of commercializing new medicines.”

“The collaboration represents how Blackstone can support world-class life sciences and healthcare companies – providing critical resources to help grow their businesses,” Brad Colman, senior managing director with Blackstone Credit, said. “Our collaboration will enable PTC to study new potential medicines and brings them a secure, long-term capital solution.”

WilmerHale served as legal counsel to PTC Therapeutics. Ropes & Gray served as legal counsel to Blackstone.