Apogee Therapeutics, Inc. (APGE) on Wednesday announced a financing partnership with Blackstone Life Sciences that could provide up to $1.3 billion in non-dilutive capital to help advance and potentially commercialize its lead drug candidate, zumilokibart.
The deal includes as much as $800 million in synthetic royalty financing along with up to $500 million in senior debt financing, subject to mutual agreement between the two companies.
Under the agreement, Blackstone will receive low-to-mid single-digit royalties on global sales of zumilokibart for 15 years. The royalty rate declines as sales increase and is completely eliminated once annual worldwide sales exceed $8 billion.
Apogee expects to receive the first $400 million in pre-approval funding across three milestones, including an upfront $100 million payment, another $100 million tied to completion of zumilokibart Phase 3 enrollment, and $200 million upon positive Phase 3 data. Following potential FDA approval, another $400 million could become available, including $150 million at Apogee's discretion.
The agreement also includes change-of-control provisions that give Apogee the option to repurchase a significant portion of the royalty rights.
The company said the financing, combined with its existing cash position of roughly $1.3 billion, could support operations through commercialization of zumilokibart without requiring additional equity financing.
Separately, Apogee reported positive 16-week results from Part B of its Phase 2 APEX study in patients with moderate-to-severe atopic dermatitis. The company said the trial achieved both primary and secondary endpoints with high statistical significance and that Phase 3 studies are expected to begin in the second half of 2026.
The company's shares were down more than 14% in pre-market trading after closing at $82.81 on Tuesday.
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