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Alnylam Rises on $2 Billion Blackstone Investment

Shares of Alnylam Pharmaceuticals gain after Blackstone Group announces $2 billion investment to help develop and bring to market a high-cholesterol drug.

Shares of biopharmaceutical company Alnylam Pharmaceuticals  (ALNY) - Get Report gained on Monday after Blackstone Group  (BX) - Get Report said it was investing some $2 billion in the Cambridge, Mass.-based company to help it develop and bring to market a high-cholesterol drug treatment, among other drugs.  

Alnylam gained more than 4% in premarket trading on Monday after Blackstone said it was investing a total of $2 billion - $1 billion to buy up to 10% of the future royalties of Alnylam's high-cholesterol drug inclisiran, and up to $150 million in the development of two other drugs.

Through Blackstone Life Sciences, a business line the private-equity firm launched in the fall of 2018 when it purchased investment firm Clarus, Blackstone also will provide Alnylam with a term loan of up to $750 million and is buying $100 million worth of newly issued stock. 

“A central component of this strategic relationship is a partial monetization of our royalty for inclisiran. If approved, we believe this therapy holds enormous promise as a potential game-changer in hypercholesterolemia management,” said Alnylam CEO John Maraganore. “We are pleased to retain half of the royalties we receive from Novartis, allowing to benefit from inclisiran’s anticipated future success.”

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The deal gives Alnylam, which has a current market capitalization of around $13 billion, firepower to move through the costly phase of bringing late-stage drugs to market. Another noteworthy aspect of the deal: With Blackstone receiving a relatively small amount of stock, Alnylam avoids significantly diluting its existing shareholders.

“Our collaboration with provides non-dilutive access to capital to advance important new medicines in development across several disease indications including heart disease, the leading cause of death in the and globally,” said Blackstone Life Sciences CEO Nicholas Galakatos.

Shares of Alnylam were up 4.10% at $121.15 in premarket trading on Monday. The stock ended the day Friday up 4.48% at $116.38.