Apogee Therapeutics announced a strategic financing collaboration with Blackstone Life Sciences worth up to $1.3 billion to support the Phase 3 development and potential commercialization of zumilokibart, the company’s lead treatment candidate for moderate-to-severe atopic dermatitis and other inflammatory and immunology indications.
The financing package includes up to $800 million in synthetic royalty funding and up to $500 million in senior corporate debt. Apogee said the deal, combined with its existing cash position of approximately $1.3 billion, is expected to support the company through the commercialization of zumilokibart without requiring future equity financing.
According to the company, the synthetic royalty agreement gives Blackstone low-to-mid single digit tiered royalties on worldwide annual sales of zumilokibart over a 15-year term. Royalty rates decline as sales increase, with no royalties owed on annual global sales above $8 billion.
The initial $400 million in preapproval funding will be distributed across three tranches, including $100 million at signing, $100 million upon completion of Phase 3 enrollment, and $200 million following positive Phase 3 data. An additional $400 million becomes available after FDA approval, including $150 million that Apogee can access at its discretion.
The agreement also contains change-of-control provisions that would allow Apogee to repurchase a substantial portion of the royalty obligation. The optional senior debt facility of up to $500 million would require mutual consent from both companies.
Apogee said it is withdrawing its prior cash runway guidance following the transaction.
The financing announcement comes alongside the release of results from the APEX Phase 2 Part B study evaluating zumilokibart. The company hosted a webcast discussing both the financing collaboration and the trial results.
Goldman Sachs served as exclusive financial advisor to Apogee, while Latham & Watkins LLP acted as legal counsel. Ropes & Gray LLP served as legal counsel to Blackstone Life Sciences.
Zumilokibart is being developed initially for atopic dermatitis, as well as asthma and eosinophilic esophagitis. Apogee’s broader pipeline targets several inflammatory and immunology conditions through engineered antibody therapies designed to improve efficacy and dosing profiles.
KEY QUOTES:
“Our partnership with Blackstone Life Sciences represents a major milestone in the advancement of zumilokibart as the next meaningful first line therapy for moderate-to-severe atopic dermatitis. This collaboration provides non-dilutive flexible funding at an attractive cost of capital for the late-stage development of zumilokibart and establishes a path to commercialization and profitability for Apogee. As supported by our Apex Part B data announced today, we believe zumilokibart has the potential to be a transformative therapy for patients with differentiated efficacy and dosing in atopic dermatitis and other large I&I indications.”
Michael Henderson, M.D., Chief Executive Officer, Apogee Therapeutics
“We are excited to support Apogee’s advancement of zumilokibart through Phase 3 development and potential commercialization. Our collaboration with Apogee is a great example of our strategy to provide leading biotechnology companies with non-dilutive financing at scale and the resources and flexibility to further scientific innovation and invest in the advancement of their pipelines.”
Dr. Nicholas Galakatos, Global Head, Blackstone Life Sciences
“This is the largest royalty financing for a pre-Phase 3 program to date. It reflects our conviction that zumilokibart has the potential to become a highly differentiated, multi-indication product that will have a major impact on patients’ quality of life.”
Kiran Reddy, M.D., Senior Managing Director, Blackstone Life Sciences
