Axsome Therapeutics, Inc. (NASDAQ: AXSM) announced on May 13, 2025, that it has secured a $570 million term loan and revolving credit facility with funds managed by Blackstone Life Sciences and Blackstone Credit & Insurance. The biopharmaceutical company, focused on central nervous system (CNS) disorders, has simultaneously retired its previous term loan with Hercules Capital.
The new financial arrangement is expected to significantly reduce Axsome's interest expenses while providing substantial additional capital to support its growing commercial portfolio and pipeline development.
Strategic Financial Restructuring
The $570 million facility consists of a $500 million term loan facility and a $70 million revolving credit facility. Upon closing, Axsome drew $120 million from the term loan to retire its previous Hercules Capital loan. The company can access an additional $250 million at its discretion, with a further $200 million available subject to Blackstone's approval.
"The new agreement with Blackstone simultaneously expands our total available credit facility by more than $200 million, and significantly reduces our cost of capital," said Herriot Tabuteau, MD, Chief Executive Officer of Axsome Therapeutics. "The improved terms of the new facility underscore our commitment to accelerating time to profitability and enhancing shareholder value, while advancing our mission to improve the lives of patients living with serious CNS disorders."
The facility offers favorable terms, including interest rates of SOFR plus 4.75% for the term loan and SOFR plus 4.0% for the revolving credit facility. It matures in May 2030 and features a 60-month interest-only payment period, providing Axsome with significant operational flexibility.
As part of the agreement, Blackstone purchased $15 million of Axsome common stock at the 30-day volume weighted average price of $107.14 per share, further demonstrating confidence in the company's long-term prospects.
Strengthening CNS Treatment Portfolio
Axsome has established itself as a leader in CNS therapeutics with FDA-approved treatments for major depressive disorder, excessive daytime sleepiness associated with narcolepsy and obstructive sleep apnea, and migraine. The company's commercial products include SUNOSI®, AUVELITY®, and SYMBRAVO®.
The CNS disorders that Axsome targets affect more than 150 million people in the United States alone, representing a significant unmet medical need and market opportunity. The company's pipeline includes multiple late-stage development programs addressing a broad range of serious neurological and psychiatric conditions.
Strategic Partnership with Blackstone
Blackstone's investment reflects growing interest from major financial institutions in the CNS therapeutic space, which has seen renewed attention after years of limited development.
"Blackstone is proud to partner with Axsome at a time of growth and expanding commercial opportunity," said Craig Shepherd and Kiran Reddy, MD, Senior Managing Directors with Blackstone Life Sciences. "This investment is designed to reinforce the company's operational and financial agility to support its next phase of growth, and it is a testament to Blackstone's ability to deliver customized and flexible financing solutions to help leading biopharma companies achieve their strategic objectives."
Brad Colman, Global Head of Healthcare with Blackstone Credit & Insurance, added, "Axsome's proven commercial success, innovative pipeline, and strong leadership team make it an ideal partner as we continue to invest in transformative therapies to help patients. This transaction exemplifies how we can provide scaled credit solutions to world-class life sciences companies."
Blackstone Life Sciences currently manages $12 billion in assets and focuses on investing across the life cycle of companies and products within key life science sectors. The investment firm brings not only capital but also industry expertise that could benefit Axsome's strategic growth plans.
Market Impact and Future Outlook
The refinancing comes at a pivotal time for Axsome as it continues to commercialize its approved products while advancing its pipeline candidates. The improved financial terms are expected to extend the company's cash runway and potentially accelerate its path to profitability.
Industry analysts note that the deal represents a vote of confidence in Axsome's commercial strategy and scientific approach to addressing complex CNS disorders. The company's focus on novel mechanisms of action has yielded treatments that provide meaningful advancements in patient outcomes in therapeutic areas that have seen limited innovation.
With this enhanced financial flexibility, Axsome is positioned to continue its mission of delivering scientific breakthroughs by identifying critical gaps in care for patients with CNS disorders. The company's approach of developing differentiated products with novel mechanisms of action has already yielded FDA-approved treatments, with more potentially on the horizon.
Additional details regarding the financing agreement are available in Axsome's Form 8-K filed with the Securities and Exchange Commission.
