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13 April 2020 By Robert Cyran Follow @rob_cyran

The private-equity firm is sinking $2 bln into Alnylam, including buying rights to future revenue from a drug still under regulatory review. It’s a way to match Blackstone’s bulging wallet with the biotech’s hefty costs while limiting exposure to volatile equity markets.

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Blackstone said on April 13 it had agreed to invest up to $2 billion into Alnylam Pharmaceuticals in a deal involving equity, debt and royalties. Alnylam will use the funds to continue developing so-called gene-silencing therapies.

The biotechnology company will receive $1 billion in committed payments, led by Blackstone Life Sciences, for 50% of Alnylam’s royalties on inclisiran, a drug for the treatment of hypercholesterolemia. Prior to the announcement, Alnylam was entitled to royalties of up to nearly 20% on the therapy, which is owned by Novartis. The drug is currently under review by the U.S. Food and Drug Administration.

Alnylam will also receive up to $750 million in a first lien senior secured loan led by GSO Capital Partners, Blackstone’s credit arm, and up to $150 million from Blackstone Life Sciences for the development of other drugs. Blackstone will also purchase $100 million of the drugmaker’s stock.

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