HealthCare Royalty and Blue Owl Announce $250M Debt Financing with TG Therapeutics

Rhea-AI Summary

HealthCare Royalty (HCRx) and Blue Owl Capital have provided a $250 million term loan facility to TG Therapeutics (NASDAQ: TGTX), a biopharmaceutical company focused on B-cell diseases. The loan, maturing on August 2, 2029, supports TG's commercialization of BRIUMVI®, an anti-CD20 monoclonal antibody for treating relapsing forms of multiple sclerosis. BRIUMVI® generated $89 million in U.S. net revenue in 2023. An additional $100 million facility is available at mutual option. This financing demonstrates confidence in TG Therapeutics' commercial progress and provides capital for its business objectives.

Positive

• Secured $250 million term loan facility, providing significant capital
• BRIUMVI® generated $89 million in U.S. net revenue in 2023
• Additional $100 million facility available at mutual option
• Loan matures in 2029, providing long-term financial support

Negative

• None.

Insights

Financial Analyst

The $250 million term loan facility for TG Therapeutics represents a significant financial boost for the company. With $89 million in U.S. net revenue from BRIUMVI® in 2023, this financing provides a substantial runway for continued commercialization efforts. The loan's maturity in 2029 offers long-term stability, while the additional $100 million facility provides flexibility for future growth.

Investors should note the vote of confidence from established healthcare investors like HCRx and Blue Owl. This deal structure, with each party providing $125 million, suggests a balanced risk assessment. The loan's collateralization indicates a lower risk profile, potentially appealing to risk-averse investors in the volatile biotech sector.

Medical Research Analyst

BRIUMVI®'s success in treating relapsing forms of multiple sclerosis (MS) is noteworthy. Generating $89 million in U.S. net revenue within its first year on the market indicates strong initial adoption. This performance suggests that BRIUMVI® is filling an unmet need in MS treatment, potentially offering advantages over existing therapies.

The B-cell disease focus of TG Therapeutics aligns with current trends in immunology research. With BRIUMVI® as a foundation, the company may be well-positioned to expand its pipeline in related indications. Investors should monitor upcoming clinical data and potential label expansions, as these could significantly impact the company's long-term value proposition in the competitive MS market.

Market Research Analyst

The MS treatment market is highly competitive, with several established players. BRIUMVI®'s $89 million revenue in its first year suggests it's gaining traction, but investors should consider its market share potential against entrenched competitors. The financing deal could provide resources for expanded marketing efforts, potentially accelerating market penetration.

TG Therapeutics' focus on B-cell diseases positions it in a growing therapeutic area. With an aging global population and increasing autoimmune disease prevalence, demand for such treatments is likely to rise. However, investors should watch for emerging therapies and potential market disruptors. The company's ability to leverage this financing for pipeline expansion and potential acquisitions will be important for long-term growth in this dynamic market landscape.

STAMFORD, Conn.--(BUSINESS WIRE)-- HealthCare Royalty (“HCRx”), in conjunction with funds managed by Blue Owl Capital (“Blue Owl”), has entered into a $250 million term loan facility (the “Initial Term Loan”) with TG Therapeutics, Inc. (“TG”, NASDAQ: TGTX), a fully integrated, commercial stage, biopharmaceutical company focused on the acquisition, development and commercialization of novel treatments for B-cell diseases.

In January 2023, TG launched BRIUMVI® (ublituximab-xiiy), an anti-CD20 monoclonal antibody for the treatment of relapsing forms of multiple sclerosis (MS), which generated $89 million of U.S. net revenue in 2023. HCRx and Blue Owl funded the $250 million Initial Term Loan at closing with each party providing $125 million. The Initial Term Loan will mature on August 2, 2029. An additional facility of up to $100 million is available at the mutual option of TG and HCRx / Blue Owl.

“We have been impressed with TG Therapeutics’ launch of BRIUMVI over the past 18 months,” stated Clarke B. Futch, Founder, Chief Executive Officer and Chairman at HCRx. “We believe our loan investment is well collateralized and provides TG Therapeutics with meaningful capital to support its business objectives.”

“We are pleased to invest in TG Therapeutics as it continues to demonstrate strong commercial momentum with BRIUMVI,” said Sandip Agarwala, Managing Director at Blue Owl. “This loan investment is a great example of our scaled and structurally flexible approach in the life sciences sector.”

About HealthCare Royalty

HealthCare Royalty is a leading royalty acquisition company focused on commercial or near-commercial biopharmaceutical products. With offices in Stamford, Conn., San Francisco, Boston and London, HCRx has invested $5+ billion in over 85 biopharmaceutical products since inception. For more information, visit https://www.hcrx.com. HEALTHCARE ROYALTY® and HCRx® are registered trademarks of HealthCare Royalty Management, LLC.

About Blue Owl

Blue Owl (NYSE: OWL) is a leading asset manager that is redefining alternatives.

With over $192.2 billion in assets under management as of June 30, 2024, we invest across three multi-strategy platforms: Credit, GP Strategic Capital, and Real Estate. Anchored by a strong permanent capital base, we provide businesses with private capital solutions to drive long-term growth and offer institutional investors, individual investors, and insurance companies differentiated alternative investment opportunities that aim to deliver strong performance, risk-adjusted returns, and capital preservation.

Together with over 820 experienced professionals, Blue Owl brings the vision and discipline to create the exceptional. To learn more, visit www.blueowl.com.

View source version on businesswire.com: https://www.businesswire.com/news/home/20240806509446/en/

Media:

Carlos Almodóvar

(203) 487-8300

irinfo@hcrx.com

Source: Healthcare Royalty

FAQ

What is the value of the debt financing TG Therapeutics (TGTX) received?

TG Therapeutics (TGTX) received a $250 million term loan facility from HealthCare Royalty and Blue Owl Capital.

When does the term loan for TG Therapeutics (TGTX) mature?

The term loan for TG Therapeutics (TGTX) will mature on August 2, 2029.

How much revenue did BRIUMVI® generate for TG Therapeutics (TGTX) in 2023?

BRIUMVI® generated $89 million in U.S. net revenue for TG Therapeutics (TGTX) in 2023.

Is there additional financing available for TG Therapeutics (TGTX) beyond the initial $250 million?

Yes, an additional facility of up to $100 million is available at the mutual option of TG Therapeutics (TGTX) and the lenders.