TORONTO, January 4, 2024 – Sagard Healthcare – a biopharmaceutical royalty and credit
investor – today announced several developments and milestones for the strategy, including the
closing of a $250 million permanent credit facility and the completion of nearly $250 million of
Sagard Healthcare invests in approved and medically-necessary biopharmaceuticals, medical devices, and diagnostics through royalty monetization, revenue interest financing and secured credit investments. The continued growth in global pharmaceutical spending – irrespective of the macroeconomic environment – is increasingly serviced by such forms of alternative financing. The strategy provides investors with attractive yields underpinned by long duration, uncorrelated cash flows, which can be a diversifying complement to an existing credit portfolio.
Closing of Credit Facility
Sagard is pleased to announce that in December 2023, it closed a $250 million revolving credit
facility with a syndicate of lenders. The facility is expected to grow in size as Sagard continues to
expand its portfolio of royalty and credit investments.
Recent Investment Activity
Over the last month, Sagard has also completed nearly $250 million of new royalty and credit
investments, highlighted below:
- Phathom Term Loan (December 2023) – Sagard Healthcare, in collaboration with investment partners, amended and upsized its credit facility with Phathom Pharmaceuticals, with Sagard funding a portion of the $300 million facility; in November 2023, Sagard also funded the second tranche of its existing revenue interest financing investment in Phathom, following US FDA approval of Voquezna (vonoprazan). Voquezna is Phathom’s lead product for the treatment of H. Pylori infection and erosive esophagitis.
- Tyvaso DPI Royalties (December 2023) – Sagard Healthcare purchased a 1% royalty in Tyvaso DPI net sales from MannKind Corporation for up to $200 million. United Therapeutics Corporation licensed Tyvaso DPI from MannKind in 2018 and began marketing it in June 2022 for the treatment of pulmonary arterial hypertension and pulmonary hypertension associated with interstitial lung disease following US FDA approval.
“We believe that royalties are an attractive asset class for investors, providing uncorrelated returns, inflation protection, and stable income generation,” said David MacNaughtan, Partner & Head of Sagard Healthcare. “Since inception just four years ago, the team has delivered on its investment objectives and has built a diversified portfolio of these long-dated, cash-generating, biopharmaceutical royalties. The closing of our credit facility, combined with the first close of our next equity series, will allow us to continuously grow and diversify this asset base over time and deliver attractive absolute and relative returns to our investors.”
Since inception in December 2019, Sagard Healthcare has invested over a billion dollars of capital (inclusive of co-investments), acquiring royalties on innovative drugs including Jemperli, Voquezna, Tibsovo, Hemgenix, and Tyvaso DPI.
Sagard is a multi-strategy alternative asset management firm with over US$15B under management, 125 portfolio companies, and 350 professionals. We invest in venture capital, private equity, private credit, real estate, and royalties. We deliver flexible capital, an entrepreneurial culture, and a global network of investors, commercial partners, advisors, and value-creation experts. Our firm has offices in Canada, the United States, Europe and the Middle East.
For more information, follow us on LinkedIn @Sagard.