BridgeBio secures up to $1 billion in preferred equity as United Therapeutics invests $140 million to acquire Thymmune

BridgeBio Pharma announced that Sixth Street Partners and HealthCare Royalty will provide up to $1 billion in preferred equity to support its upcoming product launches.

The financing is structured with an initial conversion price of $137.79 per share, a premium over the recent average price, and will rise to $153.10 after five years. The preferred shares carry a 7.0% dividend, which analysts say could weigh on profitability but still represents a lower overall cost of capital than issuing new equity.

Sixth Street is contributing $800 million, while HealthCare Royalty is providing $133.9 million. Leerink Partners analyst Mani Foroohar described the deal as "incrementally positive" despite the dividend consideration.

United Therapeutics disclosed that it will spend $140 million upfront to acquire Thymmune Therapeutics, expanding its portfolio in cell therapy.