Alder Biopharmaceuticals, Inc. (NasdaqGM:ALDR) announced that it has entered into a preferred stock purchase agreement for a private placement of one or more class of non-voting class A preferred stock with funds managed by existing investor, Redmile Group, LLC at a minimum price of $129.50 per share for gross proceeds of $250,000,000 on January 7, 2018. The investor will invest through its funds, Redmile Capital Fund, LP, Redmile Capital Offshore Fund, Ltd., Redmile Capital Offshore Fund (Erisa), Ltd., Redmile Capital Offshore Fund II, Ltd, Redmile Strategic Master Fund, LP, MM LS Opportunities Master Fund, L.P. The transaction will be completed in multiple tranches, to be completed in three years. Each share of class A preferred stock is convertible into 10 shares of the company's common shares, amounting to 13,561,804 shares, representing 19.99% shares of the current outstanding shares. The preferred stock shall be entitled to receive dividends, at a rate of 5% per annum, accrued, accumulated and payable semi-annually in arrears. The dividends may be payable in cash or in shares of preferred stock, at the option of company. The company will pay $2,000,000 commitment fee from first tranche. The company will also pay expenses of $250,000 to the investors. In the event a deemed liquidation occurs within 24 months of the date of the agreement, the company will issue the investors a warrant to purchase an aggregate of 75,000 shares of preferred stock at a purchase price per share equal to the initial purchase price. The company will issue 725,268 shares at a price of $137.88 per share for gross proceeds of $99,999,951.84 in its first tranche closing, to be closed by January 12, 2018. Each holder of preferred stock is entitled to receive in a liquidation an amount equal to the greater of the original purchase price plus all accrued but unpaid dividends thereon or the amount to which such holder would be entitled to receive if such shares had been converted to company’s common stock immediately prior to such liquidation or deemed liquidation as set forth in the applicable certificate of designation. The company will issue securities pursuant to exemption provided under Regulation D.