Apogee Therapeutics shares jump on $1.3B Blackstone deal

Investing.com -- Shares of Apogee Therapeutics are trading approximately 16% higher in pre-market Wednesday after the company announced a $1.3 billion financing collaboration with Blackstone Life Sciences to fund the development and commercialization of zumilokibart, a treatment for atopic dermatitis.

The agreement includes up to $800 million in synthetic royalty funding and up to $500 million in senior corporate debt, available with mutual consent from both parties. Blackstone will receive low-to-mid single digit tiered royalties on worldwide annual sales of zumilokibart for 15 years, with no royalties on global annual sales exceeding $8 billion.

The synthetic royalty funding is structured in tranches. Apogee will receive $100 million at signing, $100 million upon completion of Phase 3 enrollment, and $200 million upon positive Phase 3 data. An additional $400 million becomes available upon FDA approval, with $150 million at Apogee's option.

Combined with Apogee's current cash of $1.3 billion, the company stated this positions it to achieve financial sustainability through zumilokibart commercialization without requiring future equity financing. The company removed its previous cash runway guidance as a result of this agreement.

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