Fenwick represented Pharmakon, an investor in non-dilutive debt for the life sciences industry and the investment manager of the BioPharma Credit funds, in IP diligence regarding a strategic financing for Insmed (Nasdaq: INSM), a global biopharmaceutical company developing treatments for patients with serious and rare diseases. Insmed has entered into a $350 million senior secured term loan agreement with funds managed by Pharmakon. The five-year term loan matures in October 2027. The term loan bears interest at a rate based upon the secured overnight financing rate (SOFR), subject to a SOFR floor of 2.5%, in addition to a margin of 7.75% per annum.
Proceeds from the financing will be used to fund Insmed’s 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. More information can be obtained from the announcement.
The Fenwick team included corporate partner Eric Shedlosky and intellectual property partner Dr. Carl Morales and senior associate Dr. Glenn Foulds.