Blackstone raises $1.6bn for new drugs and therapies development 

RIYADH: American leading alternative investment management company, Blackstone, has raised as much as $1.6 billion for new drugs and therapies development.

The amount will be used to invest in firms with products that have green light for commercial use, as well as royalties that are linked to drug sales, according to Nicholas Galakatos, head of Blackstone’s life-sciences arm.

Many of these companies cannot raise the equity they need, because the public markets are significantly down and the cost of capital is prohibitively expensive, Bloomberg reported, citing Galakatos.

Blackstone is capable of propelling from 25 to 30 medical products and cures with the $6.2 billion dedicated to pharmaceuticals and other life science plays, Galakatos highlighted. 

One of the risks that the company is anticipating is that new therapies will not be easily adopted in the marketplace.

To avoid such risks associated with investing in the sector, the firm has launched what is referred to as Blackstone Life Sciences Yield Fund.