Insmed raises $775 million

Biotech company Insmed has entered into three strategic financing deals, increasing the overall growth…

Biotech company Insmed closed three strategic financing deals, generating total gross proceeds of $775 million.

The deals consist of a five-year, $350 million secured loan from fund manager Pharmakon Advisors and a $150 million royalty financing facility from healthcare investor OrbiMed, both of which were closed October 19. The remaining $275 million came from a common stock offering that closed two days later on Oct. 21.

Insmed received legal advice from Covington & Burling on each of the transactions, with SVB Securities acting as exclusive financial advisor on the term loan and royalty financing. Akin Gump Strauss Hauer & Feld acted as legal counsel to Pharmakon Advisors, while OrbiMed retained Morrison & Foerster in the same capacity.

Based in Bridgewater, New Jersey, Insmed is an international biotechnology company specializing in therapies to treat serious and rare diseases. It intends to use the proceeds to bolster its financial strength and facilitate its research, development and monetization of treatments, including its ARIKAYCE and brensocatib lung treatments.

Pharmakon was founded in 2009 and has raised $4.2 billion to date, targeting the life sciences sector, while New York-based OrbiMed currently manages $18 billion in assets in the sector. of health.

In a statement, Insmed Chairman and CEO Will Lewis said the company “stands at a pivotal time in its history as we prepare to serve many more patients with serious and rare diseases.” We believe these fundings provide the company with sufficient resources to advance our four pillars through key clinical trials and prepare for the potential commercial availability of ARIKAYCE. […] and brensocatib”.

Covington used a secured lending and royalty finance team made up of corporate practitioner Peter Schwartz, along with his colleague Robert Newman on benefits, Ansgar Simon on tax and a wider team of special advisers, advisors and associates on the Food and Drug Administration (FDA) regulatory, IT, sanctions and exchanges. Equity and capital markets partner Mike Riella led the equity offering, assisted by tax partner Ansgar Simon and Robin Blaney on the FDA and European Medicines Agency aspects.

In May, Bird & Bird and Squire Patton Boggs cooperated in Catalyst Clinical Research’s first foray outside the United States, through its purchase of British life sciences company and contract research organization Aptus Clinical. .