NEW YORK—Covington advised Insmed Incorporated in three strategic financings resulting in aggregate gross proceeds of $775 million.
Insmed has entered into a $350 million senior secured term loan agreement with funds managed by Pharmakon Advisors, LP, an investor in non-dilutive debt for the life sciences industry and the investment manager of the BioPharma Credit funds. Insmed also entered into a $150 million secured royalty financing agreement with OrbiMed, an investor in the healthcare industry.
In addition, Insmed has announced that it agreed to sell 13,750,000 shares of its common stock at a price per share of $20.00 in an underwritten offering. Insmed anticipates gross proceeds from the offering to be approximately $275 million, before deducting underwriting discounts and commissions and other offering expenses. The offering is expected to close on October 21, 2022, subject to customary closing conditions.
Insmed intends to use net proceeds from the term loan, the royalty financing, and the equity offering to fund activities related to the commercialization of ARIKAYCE® (amikacin liposome inhalation suspension), potential commercial launch of brensocatib, if approved, and further research and development of ARIKAYCE, brensocatib, TPIP, its translational medicine efforts or any of its product candidates, and for other general corporate purposes, including business expansion activities.
Insmed is a global biopharmaceutical company with a mission to transform the lives of patients with serious and rare diseases. Insmed's first commercial product is a first-in-disease therapy approved in the United States, Europe, and Japan to treat a chronic, debilitating lung disease. Insmed is also advancing a pipeline of investigational therapies targeting areas of serious unmet need, including neutrophil-mediated inflammatory diseases and rare pulmonary disorders.
The Covington team for the term loan and royalty financing included Peter Schwartz, Julian Wright, Jennifer Uren, Brendon Francis, and Ian Macdonald (corporate), Robert Newman and Victoria Ha (benefits), Ansgar Simon and Jeffrey Zink (tax), Michael Stern (FDA/Regulatory), Steven Mossey and Nicholas Rutigliano (IT), Justin Schenck (sanctions), and Ronald Hewitt (swaps).
The Covington team for the common stock offering included Mike Riella, Sarah Griffiths, Jae Kim, Julie Plyler, and Ann Peterson (securities and capital markets), Ansgar Simon, Jamin Koo, and Sumaya Bouadi (tax), Michael Stern and Robin Blaney (FDA/EMA regulatory), and Sinan Utku (IP).
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