BridgeBio Pharma has entered into an agreement to raise up to $1 billion in newly issued convertible preferred equity from funds managed by Sixth Street and HealthCare Royalty, a business of KKR. The financing strengthens the company's balance sheet to support current and upcoming product launches, including potential U.S. approvals for three therapies over the next 12 months. These therapies include BBP-418 for LGMD2I/R9, encaleret for ADH1, and infigratinib for achondroplasia, alongside the continued growth of Attruby.

Sixth Street acted as the lead investor, funding $800 million, while HealthCare Royalty contributed $133.9 million at the close of the investment. Neil Kumar, Ph.D., Co-Founder and CEO of BridgeBio, stated that the capital ensures the company can deliver on its mission of launching medicines while maximizing economic value.

Key Investment Terms

The Series A Cumulative Convertible Participating Preferred Stock features a 7.00% initial dividend, payable in kind or in cash at BridgeBio's election. The initial conversion price is set at $137.79 per share, a premium of more than 100% to the company’s 30-day volume-weighted average price. This price increases to $153.10 per share, representing a premium of over 125%, starting from the fifth anniversary. The equity is permanent with no scheduled maturity and no redemption at the holder's option, though BridgeBio may redeem the stock for cash or convert it into common stock under specific terms.

Jeff Pootoolal, Partner at Sixth Street, highlighted the firm's support for BridgeBio during this stage of potential approvals and launches. Clarke Futch, Chairman and CEO of HealthCare Royalty, cited the management team's track record in developing life-changing therapies as a key factor in the partnership. Latham & Watkins LLP advised BridgeBio, while Sullivan & Cromwell LLP and Mintz LLP advised Sixth Street, and Gibson, Dunn & Crutcher LLP advised HealthCare Royalty.

BridgeBio Pharma announced that positive results from the PROPEL 3 trial of oral infigratinib for children with achondroplasia were published in the New England Journal of Medicine. The data, presented at the International Congress of Children’s Bone Health (ICCBH) 2026, showed a statistically significant improvement in annualized height velocity (AHV) compared to placebo. The company intends to submit a New Drug Application (NDA) to the FDA in the third quarter of 2026, with a U.S. launch anticipated in early to mid 2027.

The Phase 3 PROPEL 3 study successfully met its primary endpoint of change from baseline in AHV, with a least squares (LS) mean treatment difference of +1.74 cm/year (p<0.0001). The observed mean difference was +2.10 cm/year (p<0.0001), marking the largest mean increase reported in any Phase 3 achondroplasia study. Additionally, the trial met the key secondary endpoint of change from baseline in height Z-score at Week 52 (p<0.0001), with an LS mean increase of +0.41 SD on the treatment arm.

Key Efficacy and Safety Findings

In a pre-specified exploratory analysis, oral infigratinib demonstrated the first statistically significant improvement in body proportionality in a Phase 3 achondroplasia study. The LS mean treatment difference was –0.05 (p<0.05) in children younger than 8 years old. New data presented at ICCBH also showed a statistically significant improvement in arm span Z-score versus placebo (LS mean +0.37 SD; p<0.0001), the first such result reported for an achondroplasia trial at 52 weeks.

Oral infigratinib was well tolerated, with no discontinuations or serious adverse events related to the study drug. Safety data indicated no adverse events associated with inhibition of FGFR1 or FGFR2. There were 3 cases (4%) of hyperphosphatemia, all mild, transient, asymptomatic, and not requiring dose reductions or discontinuations.

Regulatory Status and Future Plans

BridgeBio plans to submit an NDA to the FDA in the third quarter of 2026 and a Marketing Authorization Application (MAA) to the EMA in the second half of 2026. Oral infigratinib has received Breakthrough Therapy Designation, Orphan Drug Designation, Fast Track Designation, and Rare Pediatric Disease Designation from the FDA for achondroplasia. If approved, the company may qualify for a Priority Review Voucher.