Blackstone Labs LLC

GREENFIELD, Ind., May 5, 2025 /PRNewswire/ -- Elanco Animal Health Incorporated (NYSE: ELAN) today announced the sale of certain future tiered royalties and commercial milestones associated with XDEMVY® (lotilaner ophthalmic solution) 0.25%, for the human health application of lotilaner, to funds affiliated with Blackstone Life Sciences and Blackstone Credit & Insurance for $295 million in cash. Monetization of this non-core asset will be used to accelerate debt reduction, positioning Elanco to achieve an expected net leverage ratio of 3.9x to 4.3x adjusted EBITDA by the end of 2025. Elanco will repay portions of its outstanding term loans on a pro-rata basis, which is expected to reduce interest expense by approximately $10 million, offset by the sale of approximately $10 million of royalties based on Elanco's initial 2025 guidance. In 2019, Elanco exclusively licensed lotilaner to Tarsus Pharmaceuticals, Inc. (NASDAQ: TARS) for exploration as a solution to several unmet human health needs. In 2023, XDEMVY became the first lotilaner-based product approved for human use and the only FDA-approved medicine for treatment of Demodex blepharitis (DB), a common eyelid disease in humans caused by Demodex mites. "Elanco's team of scientific experts is focused on identifying and developing molecules to generate high-impact innovation, not just in our own portfolio, but in adjacent industries to create broader value," said Jeff Simmons, Elanco President and CEO. "As we continue to focus on launching our recent innovation and accelerating our core business sales growth in 2025, this transaction delivers incremental cash that advances our deleveraging goals making high 3x net leverage a real possibility by the end of 2025. We appreciate Blackstone's collaborative investment to further Elanco's goals and their recognition of the positive potential impact of XDEMVY on millions of DB patients in the U.S." "Elanco's innovation served as the basis for XDEMVY's strong efficacy and safety profile, and Tarsus' executional strength has led to its rapid adoption and commercial success. We are pleased to partner with both leading pharmaceutical companies and back this first-in-class treatment that addresses a pervasive and damaging eyelid disease," said Craig Shepherd and Kiran Reddy, MD, Senior Managing Directors, Blackstone Life Sciences. The agreement applies to certain tiered royalties associated with the U.S. net sales of XDEMVY from April 2025 through August 2033 and certain commercial milestones. Elanco retains the rights to all royalty payments on net sales outside the U.S. as well as any future human applications of lotilaner beyond ophthalmic solutions. Morgan Stanley & Co. LLC acted as the sole structuring agent. CAUTIONARY STATEMENT REGARDING FORWARD-LOOKING STATEMENTS This press release contains forward-looking statements within the meaning of the federal securities laws, including, without limitation, statements concerning the expected financial impacts of the royalty sale on our financial results, plans for using the cash we receive in the sale, and expected financial results for 2025. Forward-looking statements are based on our current expectations and assumptions regarding our business, the economy and other future conditions. Because forward-looking statements relate to the future, by their nature, they are subject to inherent uncertainties, risks and changes in circumstances that are difficult to predict. As a result, our actual results may differ materially from those contemplated by the forward-looking statements. Important risk factors that could cause actual results to differ materially from those in the forward-looking statements include regional, national or global political, economic, business, competitive, market and regulatory conditions, including our ability to recognize the expected financial and cash generation benefits of the transaction and additional factors that could cause actual results to differ materially from forward-looking statements described in the company's latest Form 10-K and Form 10-Qs filed with the Securities and Exchange Commission. We caution you against relying on any forward-looking statements, which should also be read in conjunction with the other cautionary statements that are included elsewhere in this press release. Any forward-looking statement made by us in this press release speaks only as of the date thereof. We undertake no obligation to publicly update or to revise any forward-looking statement, whether as a result of new information, future developments or otherwise, except as may be required by law. ABOUT ELANCO Elanco Animal Health Incorporated (NYSE: ELAN) is a global leader in animal health dedicated to innovating and delivering products and services to prevent and treat disease in farm animals and pets, creating value for farmers, pet owners, veterinarians, stakeholders and society as a whole. With 70 years of animal health heritage, we are committed to breaking boundaries and going beyond to help our customers improve the health of animals in their care, while also making a meaningful impact on our local and global communities. At Elanco, we are driven by our vision of Food and Companionship Enriching Life and our Elanco Healthy Purpose™ sustainability pillars – all to advance the health of animals, people, the planet and our enterprise. Learn more at . About Blackstone Life Sciences Blackstone Life Sciences (BXLS) is an industry-leading private investment platform with capabilities to invest across the life cycle of companies and products within the key life science sectors. By combining scale investments and hands-on operational leadership, BXLS helps bring to market promising new medicines and medical technologies that improve patients' lives and currently has $12 billion in assets under management. About Blackstone Credit & Insurance Blackstone Credit & Insurance ("BXCI") is one of the world's leading credit investors. Our investments span the credit markets, including private investment grade, asset-based lending, public investment grade and high yield, sustainable resources, infrastructure debt, collateralized loan obligations, direct lending and opportunistic credit. We seek to generate attractive risk-adjusted returns for institutional and individual investors by offering companies capital needed to strengthen and grow their businesses. BXCI is also a leading provider of investment management services for insurers, helping those companies better deliver for policyholders through our world-class capabilities in investment grade private credit. Investor Contact: Tiffany Kanaga (765) 740-0314 [email protected] Media Contact: Colleen Dekker (317) 989-7011 [email protected]   SOURCE Elanco Animal Health WANT YOUR COMPANY'S NEWS FEATURED ON PRNEWSWIRE.COM? 440k+ Newsrooms & Influencers 9k+ Digital Media Outlets 270k+ Journalists Opted In GET STARTED

President Donald Trump's "America First" investment policy, Pfizer's U.S. manufacturing plan, and Blackstone's purchase of a 60% stake in CMIC made our news this week. U.S. President Donald Trump has issued a memorandum directing federal agencies to restrict inbound and outbound investments related to China in several sectors, including biotech. Pfizer could shift overseas production to the U.S. if tariffs become a problem, CEO Albert Bourla, Ph.D., said. Blackstone bought a 60% stake in Japanese CRO giant CMIC. And more.1. Trump's 'America First' investment policy raises uncertainty for US-China biotech dealmakingPresident Donald Trump’s newly issued "America First Investment Policy" aims to put additional restrictions on both inbound and outbound investments related to China in some strategic industries, including biotechnology. While the high-level policy still needs to be fleshed out with specific rules, it hints at potential disruptions to biopharma dealmaking between the U.S. and China.2. Pfizer could shift overseas production to US if Trump's pharma tariffs take hold, CEO saysFollowing President Donald Trump’s threat of placing additional tariffs on pharmaceutical imports, Pfizer CEO Albert Bourla, Ph.D., said the company could try to mitigate the impact by transferring manufacturing stateside. Pfizer currently has 13 U.S. manufacturing sites, including several megasites for sterile injectables and antibody manufacturing, he noted at an investor event.3. Blackstone buys majority stake in CMIC, Japan's largest contract research organizationJapan’s first and largest CRO, CMIC, has sold a 60% stake to private equity giant Blackstone for an undisclosed price. In a release, Blackstone Japan’s head of private equity, Atsuhiko Sakamoto, described the purchase as a continuation of the firm’s strong commitment to Japan and investing in life-sciences-related services, where it has built a meaningful portfolio in Japan and around the world.4. China bans sales of Illumina DNA sequencers as Trump escalates global tariffsRight after the U.S. went ahead with an additional 10% tariffs—on top of another 10% levied in early February—on Chinese imports, China banned Illumina’s DNA sequencers. Illumina is still able to operate in China, as the Chinese government’s notice did not mention the reagents or consumables necessary to run the sequencing machines, the company noted.5. Takeda's $300M bet on Protagonist's blood cancer drug pays off with phase 3 winTakeda’s rusfertide, an injectable hepcidin mimetic, has succeeded in a phase 3 trial in a rare blood disorder called polycythemia vera, the company said. The drug induced a response—defined as patients not requiring phlebotomy across weeks 20 to 32 of treatment—in 77% of patients. For the placebo group, the rate was 33%. Takeda licensed the product last year from Protagonist Therapeutics.6. AstraZeneca, Daiichi unblind Enhertu study early as star ADC helps stomach cancer patients live longerAstraZeneca and Daiichi Sankyo’s Enhertu significantly prolonged patients’ lives in second-line HER2-positive stomach cancer. The readout came from an interim analysis of the phase 3 DESTINY-Gastric04 trial, which pitted the HER2-targeted antibody-drug conjugate against Eli Lilly’s Cyramza and chemo. Apparently encouraged by the result, the companies have launched a phase 3 trial in the first-line setting.Other News of Note:7. As Gardasil underwhelms, Merck lights up landmarks in China in HPV awareness day push8. Takeda rains 100 toy zebras down on Boston Celtics fans to mark Rare Disease Day9. In UK, it's strike 2 for Alzheimer's treatments from Lilly and Biogen/Eisai10. Eisai, Biogen's Leqembi emerges from safety reappraisal unscathed as Europe's CHMP endorses slate of new drugs and label expansions11. Granules slammed in FDA warning letter detailing discarded documents, intruding birds at Indian plant12. Glenmark issues another recall, this time for nearly 1.5M bottles of generic ADHD drug13. Nxera sells APAC license to lupus drug to Viatris for $10M upfront

Blackstone has recently been busy in Japan, as showcased by its May 2024 acquisition of clinical trial management company I’rom Group.\n Private equity giant Blackstone is going big on Japan, acquiring a majority stake in the country’s leading contract research organization, CMIC.Blackstone now owns 60% of the CRO, the New York-based firm announced in a March 3 release, while CMIC’s holding company owns the remaining 40%. Blackstone didn\'t reveal the purchase price for the CMIC stake.“This is a continuation of our strong commitment to Japan—one of our fastest-growing markets globally—and investing in our high conviction theme, life-sciences-related services, where we’ve built a meaningful portfolio in Japan and around the world,” Atsuhiko Sakamoto, Blackstone Japan’s head of private equity, said in the release.Founded in 1992, CMIC was Japan’s first CRO and is its largest, with operations in 12 countries including Australia, China, South Korea and Taiwan.The company is no stranger to the U.S., either, having struck partnerships in recent years with the Moffitt Cancer Center in Tampa, Florida, and Rutgers University in New Jersey.Blackstone has recently been busy in Japan, as showcased by its May 2024 acquisition of clinical trial management company I’rom Group.  Blackstone isn’t the only American private equity firm betting big on healthcare in the land of the rising sun. Last month, Bain Capital triumphed in a bidding war to acquire Japan’s Mitsubishi Tanabe Pharma for $3.3 billion, carving it out from parent company Mitsubishi Chemical Group.Blackstone’s CMIC buy follows several of its recent stateside biotech ventures, including its move to pledge up to $750 million to Moderna to support mRNA flu vaccines and the $300 million unveiling of a new immunology and inflammation biotech, Uniquity Bio, complete with a phase 2 antibody licensed from Merck & Co.