The Blackstone Group L.P. : Blackstone Invests $125 Million in NantPharma, a NantWorks Company
07/24/2012| 11:40am US/Eastern
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Company will become premier provider of bio-derived products and
critically needed injectables of the highest quality
California-based NantWorks, LLC, announced today that leading investment
firm Blackstone (NYSE: BX) has invested US$125 million in NantPharma, a
NantWorks company whose products include high quality, biologically
derived pharmaceuticals. NantPharma operates a number of drug
manufacturing and research facilities around the country. In January
2012, it announced the acquisition and redevelopment of a former Pfizer
facility in Terre Haute, Indiana, with a commitment to invest $85.5
million to produce critical care injectable and oncological drugs. The
new plant is expected to become operational in 2015.
NantWorks and NantPharma Chairman, Dr. Patrick Soon-Shiong, has
previously founded two successful pharmaceutical companies addressing
the unmet needs of critically ill patients. The injectable drug company
he led, APP Pharmaceuticals, was the nation's only safe source of
heparin during the supply crisis in 2008, and his biopharmaceutical
company, Abraxis Bioscience, developed the world's first protein
nanotechnology cancer drug transporter for breast cancer and now is in
trials for pancreatic and lung cancer. Dr. Soon-Shiong sold these
companies in 2008 and 2010, respectively, raising several billion
dollars to pursue his vision of personalized medicine.
As part of the deal, Chinh E. Chu and Anjan Mukherjee, Blackstone Senior
Managing Directors, and Arthur J. Higgins from Blackstone's dedicated
healthcare group, Blackstone Healthcare Partners, will join Dr. Patrick
Soon-Shiong on the NantPharma board. Mr. Higgins is a former Chairman of
the Board of Management of Bayer HealthCare AG, who led that company's
restructuring, including the acquisition of Schering AG and the
over-the-counter medicines business of Roche. He is a former head of
Abbott Laboratories' pharmaceutical business in the United States, and a
34 year veteran of the pharmaceutical business.
"I am delighted that we will be building this company together with
Blackstone and with seasoned executives Chinh Chu, Anjan Mukherjee and
Art Higgins," said Dr. Soon-Shiong, welcoming the agreement. "Our
country must have absolutely reliable sources of blood plasma products.
The effective treatment of auto immune and other diseases will depend on
this. We must have the highest quality standards for all biologically
derived drugs. Safety is paramount with such products."
"We must also enhance our capabilities to manufacture injectable and
next generation drugs in America," added Dr. Soon-Shiong, noting that
since 2010 there has been a growing and alarming shortage of injectable
drugs for cancer sufferers and other critically ill patients.
Chinh Chu and Anjan Mukherjee, who have led many of Blackstone's
investments in healthcare, welcomed the agreement with NantPharma: "We
have followed Dr. Soon-Shiong's extraordinary career with much interest
for nearly a decade, and we see great opportunity working together with
him at the leading edge of the healthcare industry, both in this
exciting venture and in other initiatives."
Bank of America Merrill Lynch acted as financial advisor, and Fried,
Frank, Harris, Shriver & Jacobson LLP served as legal counsel, to
NantPharma and NantWorks in the transaction.
About NantWorks
NantWorks, LLC, is a company founded and led by Dr. Patrick Soon-Shiong.
Its core mission is to converge a wide range of technologies to
transform scientific discoveries, research and healthcare. It is
building an integrated evidence-based, genomically-informed,
personalized approach to the delivery of care and the development of
next generation diagnostics and therapeutics. NantPharma is a NantWorks
company specializing in pharmaceutical development and manufacturing.
For more information, see www.nantworks.com.
About Blackstone
Blackstone (NYSE: BX) is one of the world's leading investment and
advisory firms. Blackstone seeks to create positive economic impact and
long-term value for its investors, the companies they invest in, the
companies they advise and the broader global economy. Blackstone does
this through the commitment of their extraordinary people and flexible
capital. Their alternative asset management businesses include the
management of private equity funds, real estate funds, hedge fund
solutions, credit-oriented funds and closed-end mutual funds. Blackstone
also provides various financial advisory services, including financial
and strategic advisory, restructuring and reorganization advisory and
fund placement services. Further information is available at www.blackstone.com.
NantWorks
Jen Hodson, 310-405-7539
jhodson@nantworks.com
or
Blackstone
Peter
Rose, 212-583-5871
rose@blackstone.com
© Business Wire 2012
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