RESEARCH TRIANGLE PARK – Just three days ago BioCryst Pharmaceuticals announced FDA approval for its drug argeting a rare hereditary disease and on Monday announced $325 million in new capital to launch it commercially as well as advance other research.
The news triggered a 14% jump in BioCryst (BCRX) shares to nearly $7.
“The substantial financial commitment of exceptional long-term partners like Royalty Pharma and Athyrium Capital Management enables BioCryst to fully invest in the launch of [the new drug] Orladeyo and to accelerate the development of BCX9930 to address an unmet need for patients and deliver value to shareholders,” said BioCrys CEO Jon Stonehouse.
“We believe today’s financing reflects the next step in the transformation of BioCryst.”
The Factor D inhibitor is seen as a treatment of complement-mediated diseases. Explains Wikipedia: “It is thought that the complement system might play a role in many diseases with an immune component, such as Barraquer–Simons Syndrome, asthma, lupus erythematosus, glomerulonephritis, various forms of arthritis, autoimmune heart disease, multiple sclerosis [and] inflammatory bowel disease.”
BioCryst will receive an up-front payment of $125 million from Royalty Pharma in exchange for future royalties from Orladeyo.
Also, Athyrium Capital Management is providing BioCryst with a credit facility of $200 million.
“We believe Orladeyo will be a transformative medicine and we are excited to partner with BioCryst to bring this oral, once-daily medicine to HAE patients. Based on the encouraging proof of concept data in paroxysmal nocturnal hemoglobinuria with BCX9930, we also believe this oral Factor D inhibitor offers substantial opportunities across multiple complement-mediated diseases,” said Pablo Legorreta, Chief Executive Officer of Royalty Pharma, in the announcement.