Full Press Release Details
Announces Strategic Financing Collaboration
with Blackstone with up to $1 Billion in Funding
investment accelerates innovative product pipeline -
Blackstone's network and life sciences expertise to broaden business
$350 million in cash at close -
SOUTH PLAINFIELD, N.J., & NEW
YORK, N.Y. Oct. 27, 2022 -- PTC Therapeutics, Inc. (NASDAQ: PTCT) today announced that it has entered into a strategic financing
collaboration with funds managed by Blackstone (NYSE: BX) to support its mission to reach a steady-state of delivering at least one therapy
every 2-3 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
strategic financing will support the acceleration of PTC's robust and diversified pipeline, business development opportunities
and general corporate purposes," said Emily Hill, Chief Financial Officer, PTC Therapeutics.
"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 |
on the arrangement, Kiran Reddy, MD and Craig Shepherd, Senior Managing Directors with Blackstone Life Sciences said, "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. 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."
Senior Managing Director with Blackstone Credit added, "The collaboration represents how Blackstone can support world-class life
sciences and healthcare companies - providing critical resources to help grow their businesses.
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 LLP served as legal counsel to Blackstone.
About PTC Therapeutics, Inc.
PTC is a science-driven, global biopharmaceutical
company focused on the discovery, development and commercialization of clinically differentiated medicines that provide benefits to patients
with rare disorders. PTC's ability to innovate to identify new therapies and to globally commercialize products is the foundation that
drives investment in a robust and diversified pipeline of transformative medicines. PTC's mission is to provide access to best-in-class
treatments for patients who have little to no treatment options. PTC's strategy is to leverage its strong scientific and clinical
expertise and global commercial infrastructure to bring therapies to patients. PTC believes this allows it to maximize value for all
Life Sciences is an industry-leading private investment platform with capabilities to invest across the life cycle of companies and products
within the key life science sectors. By combining scale investments and hands-on operational leadership, Blackstone Life Sciences helps
bring to market promising new medicines and medical technologies that improve patients' lives. More information is provided at
Blackstone Credit is one of the world's
largest credit-focused asset managers, with $234 billion in AUM. We seek to generate attractive risk-adjusted returns for our clients
by investing across the entire corporate credit market, from public debt to private loans. Our capital supports a wide range of companies
across sectors and geographies, enabling businesses to expand, invest, and navigate changing market environments.
For More Information:
Forward-Looking Statement
This press release contains forward-looking
statements within the meaning of The Private Securities Litigation Reform Act of 1995. All statements contained in this release, other
than statements of historic fact, are forward-looking statements, including statements regarding: PTC's expected use of proceeds
from its secured credit facility with Blackstone and related equity sale; the future expectations, plans and prospects for PTC, including
with respect to the expected timing of clinical trials and studies, availability of data, regulatory submissions and responses and other
matters; PTC's expectations with respect to the licensing, regulatory submissions and commercialization of its products and product candidates;
PTC's strategy, future operations, future financial position, future revenues, projected costs; and the objectives of management. Other
forward-looking statements may be identified by the words, "guidance", "plan," "anticipate," "believe,"
"estimate," "expect," "intend," "may," "target," "potential," "will,"
"would," "could," "should," "continue," and similar expressions.
PTC's actual results, performance or
achievements could differ materially from those expressed or implied by forward-looking statements it makes as a result of a variety
of risks and uncertainties, including those related to: the outcome of pricing, coverage and reimbursement negotiations with third party
payors for PTC's products or product candidates that PTC commercializes or may commercialize in the future; significant business effects,
including the effects of industry, market, economic, political or regulatory conditions; changes in tax and other laws, regulations,
rates and policies; the eligible patient base and commercial potential of PTC's products and product candidates; PTC's scientific approach
and general development progress; PTC's ability to satisfy its obligations under the terms of the secured credit facility with Blackstone;
the sufficiency of PTC's cash resources and its ability to obtain adequate financing in the future for its foreseeable and unforeseeable
operating expenses and capital expenditures; and the factors discussed in the "Risk Factors" section of PTC's most recent Annual
Report on Form 10-K, as well as any updates to these risk factors filed from time to time in PTC's other filings with the SEC. You are
urged to carefully consider all such factors.
As with any pharmaceutical under development,
there are significant risks in the development, regulatory approval and commercialization of new products. There are no guarantees that
any product will receive or maintain regulatory approval in any territory, or prove to be commercially successful.
The forward-looking statements contained
herein represent PTC's views only as of the date of this press release and PTC does not undertake or plan to update or revise any such
forward-looking statements to reflect actual results or changes in plans, prospects, assumptions, estimates or projections, or other
circumstances occurring after the date of this press release except as required by law.