On heels of positive data for ATTR drug, Alnylam looks to raise more capital — nearly $1B worth
A week after presenting positive data on its drug for treating the heart failure condition called transthyretin-mediated amyloidosis (ATTR) with cardiomyopathy, Alnylam wants to get almost $1 billion in new money.
The company announced that it was offering a $900 million principal amount of convertible senior notes due 2027. Convertible notes are short-term debt that converts into equity.
“The offering of the notes is subject to market and other conditions and there can be no assurance as to whether or when the offering may be completed, or as to the actual size or terms of the offering,” the company said in a press statement.
Alnylam plans to use approximately $762.0 million of the funds to pay off its loans and debt.
On Sept. 8, the company presented detailed results of the Phase III Apollo-B study, showing that its drug Onpattro had a clear advantage over a placebo in preventing a rapid decline in a 6-minute walk test.
In the study, those on the drug arm had a median drop from baseline of 8.15 meters in the walk test while those on the placebo arm had a drop of 21.34 meters — translating into an estimated 14.7-meter advantage and a p-value of 0.0162.
The study however did not meet its secondary endpoints, which measured all-cause hospitalizations, frequency of all-cause hospitalizations and urgent heart failure visits, raising questions about the drug’s helpfulness to patients.
The company joins a growing list of companies that are raising capital at the behest of positive data, especially when the market is bearish and other cash avenues remain largely shut.
For instance, Verona Pharma issued a public offering of 10 million American depositary shares after showing that its COPD drug had its primary endpoint in a Phase III trial. Another example is Xenon Pharmaceuticals which issued a $250 million public offering straight after an expansion study for its daily epilepsy pill.