NEW YORK—Covington represented OrbiMed in its entrance into a non-dilutive royalty financing agreement for up to $250 million with Adaptive Biotechnologies Corporation, a commercial stage biotechnology company that translates the genetics of the adaptive immune system into clinical products to diagnose and treat disease.
Under the agreement, Adaptive will receive an initial tranche of $125 million with the option to receive an additional $75 million, both for general corporate purposes. Adaptive can also access a third tranche of $50 million for potential M&A. OrbiMed will be entitled to receive 5% of the Company’s GAAP revenues, increasing to 8% and 10% if the second and third tranches are drawn, respectively.
OrbiMed is a healthcare investment firm, with approximately $18 billion in assets under management. OrbiMed invests globally across the healthcare industry, from start-ups to large multinational corporations, through a range of private equity funds, public equity funds, and royalty/credit funds.
The Covington team was led by Peter Schwartz, Jennifer Uren, Brendon Francis, and Melanie Cook, and included Kurt Baca and Jamin Koo (tax), Steven Mossey and Nicholas Rutigliano (intellectual property), Scott Cunningham and Amy Leiser (FDA regulatory), and Martin Beeler (bankruptcy).
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