BioPharma Credit PLC USD · LSE:BPCP
BioPharma Credit PLC USD — BioPharma Credit — Investor Presentation (June 2021)
25 slides from BioPharma Credit PLC USD's investor presentation, June 2021
Slide 1: Debt Capital for the Life Sciences Industry
Debt Capital for the Life Sciences Industry COMPANY PRESENTATION – June 2021 For additional information please email: [email protected] or visit BioPharma Credit’s website at www.bpcruk.com
Slide 2: Disclaimer
Disclaimer . THIS PRESENTATION IS BEING PROVIDED TO YOU SOLELY FOR YOUR INFORMATION. THIS PRESENTATION IS NOT FOR PUBLICATION OR DISTRIBUTION, DIRECTLY OR INDIRECTLY, IN WHOLE OR IN PART, INTO OR WITHIN THE UNITED STATES, CANADA, AUSTRALIA, JAPAN OR THE REPUBLIC OF SOUTH AFRICA OR ANY OTHER JURISDIC
Slide 3: Disclaimer
Disclaimer This presentation was prepared using the financial information available to the Company as at the date of this presentation. Except where otherwise indicated herein, the information provided in this presentation is based on matters as they exist as of the date of preparation and not as of
Slide 4: Experienced Investment Team
Experienced Investment Team Pharmakon Advisors Pedro Gonzalez de Cosio Martin Friedman Pablo Legorreta Co-Founder, Principal and CEO Principal Co-Founder and Principal Co-founded Pharmakon in 2009 Joined Pharmakon in 2011 Co-Founded Pharmakon in 2009 after 17 years in structured after 18 years
Slide 5: Investment Opportunity – Summary
Investment Opportunity – Summary The Life Sciences Debt Market is an Underserved, Large and Growing Opportunity Worldwide $1.1tn industry growing at 6% per annum Large capital needs, private companies spent $180bn in R&D during 2018¹ Industry dynamics create new debt investment opportunities
Slide 6: BPCR has generated consistent returns since IPO
BPCR has generated consistent returns since IPO1 BPCR annualized2 dividends per share in US$ Interim dividend has consistently met the annualized $0.07 target during the past ten quarters The annualized dividend for 2020 totaled $0.073 Price and NAV TR performance3 since IPO 140 130 120 A cons
Slide 7: Investment track record of mostly singles and doubles
Investment track record of mostly singles and doubles – Emphasis on consistency and reduced risk 96% of past Pharmakon transactions have generated returns > 10% (25 Realized Transactions)1 24% (6) > 15.0% 72% (18) 10.0% > <15.0% 4% (1) < 10.0% 1. Realized Internal Rate of Return to the Funds (Gross
Slide 8: New investments have allowed BPCR to broaden its diversification
New investments have allowed BPCR to broaden its diversification and deploy cash from capital raises and loan repayments Evolution of BPCR Portfolio since IPO1 (US$m) Seed Assets $340 Other realized $747 Total invested by BPCR since IPO $2,183 Amortizations $147 Total repayments $1,234 7 1. Values r
Slide 9: BPCR has made thirteen investments to date, four fully repaid
BPCR has made thirteen investments to date, four of which have been fully repaid generating returns above original projections Investments excluding seed assets and convertibles Current Portfolio Investment Loan BPCR Projected Realized Structure Borrower Date Amount1 Investment1 IRR2 IRR Secured Nov
Slide 10: Life Sciences is a Large, Vital Industry with Uncorrelated Sales
Life Sciences is a Large, Vital Industry with Sales that are Uncorrelated and Unaffected by Economic Cycles Global Pharmaceutical Sales: Historical & Projected ($, Trn) Annual Changes in Sales of Oncology Drugs vs Major Indices 100% $140 Oncology Sales $Bn Oncology Sales (% change) Barclays US HY In
Slide 11: Small and midsize companies are involved in a majority of newly approved drugs
Small and midsize companies (target borrowers) are involved in a majority of newly approved drugs Drug Approvals by Size of Drug Originator Source: Bloomberg, Pharmakon Advisors 10
Slide 12: The life sciences industry has benefited from healthy capital inflows
The life sciences industry has benefited from healthy capital inflows, even in uncertain markets IPO Proceeds and Count ($ in billions) 100 $30.0 82 80 66 $19.6 61 58 $20.0 60 51 37 $11.8 40 $8.8 $10.0 $4.9 $4.7 20 $2.1 0 $0.0 2015 2016 2017 2018 2019 2020 Count of IPOs Total Proceeds Converts Amoun
Slide 13: All four previous BioPharma Credit private funds have returned all capital
All four previous BioPharma Credit private funds have returned all capital to investors Historical Investment Performance as of March 2021 (Private Funds)1 Private Fund I II III IV V Founded in 2009; manager of the BioPharma Credit funds Launch Date June 2009 March 2011 February 2013 December 2015
Slide 14: Appendix
Appendix 13
Slide 15: $300m senior secured corporate loan
CONFIDENTIAL $300m senior secured corporate loan LumiraDx: A next-generation point-of-care (POC) diagnostic company addressing the current limitations of legacy POC systems by bringing lab-comparable performance in minutes on a single instrument for a broad menu of tests with a low cost of ownersh
Slide 16: $220m senior secured corporate loan
CONFIDENTIAL $220m senior secured corporate loan Epizyme: Biopharmaceutical company focused on cancer and other diseases through novel epigenetic medicines. Market Cap: $837m as of May 11 2021 Cash: $299m as of March 31 2021 LTM Sales: $16.4m as of March 31 2021 Main Product: Tazverik – an
Slide 17: $550m senior secured corporate loan
CONFIDENTIAL $550m senior secured corporate loan Sarepta Therapeutics: Biopharmaceutical company focused on therapies for neuromuscular diseases. Market Cap: $5,441m as of May 11 2021 Cash: $1,700m as of March 31 2021 LTM Sales: $480m as of March 31 2021 Main products: EXONDYS 51 (eterplir
Slide 18: $200m senior secured corporate loan
$200m senior secured corporate loan Collegium Pharmaceutical: biopharmaceutical company focused on developing and commercializing new medicines for responsible pain management. Loan Balance: $150m as of March 31 2021 Market Cap: $758m as of May 11 2021 Cash: $183m as of March 31 2021 LTM S
Slide 19: $150m senior secured corporate loan
CONFIDENTIAL $150m senior secured corporate loan Global Blood Therapeutics: biopharmaceutical company focused on developing and marketing therapies for sickle cell disease. Market Cap: $2,335m as of May 11 2021 Cash: $492m as of March 31 2021 LTM Sales: $149m as of March 31 2021 Main Produ
Slide 20: $100m senior secured corporate loan
CONFIDENTIAL $100m senior secured corporate loan Akebia Therapeutics is a biopharmaceutical company focused on the development and commercialization of therapeutic for patients with kidney disease. Market Cap: $453m as of May 11 2021 Cash: $273m as of March 31 2021 LTM Sales: $130m as of Mar
Slide 21: $130m senior secured corporate loan
CONFIDENTIAL $130m senior secured corporate loan Optinose: Specialty pharmaceutical company focused on products for patients treated by ear, nose, and throat (ENT) and allergy specialists. Market Cap: $149m as of May 11 2021 Cash: $166m as of March 31 2021 LTM Sales: $52m as of March 31 2021
Slide 22: Rigorous screening and evaluation of opportunities
Rigorous screening and evaluation of opportunities 2020 Pharmakon Opportunities Filters Screened 243 opportunities. Initial screen focused on: 1 § Viable, marketed product 243 Opportunities § Counterparty with financing need 2 Reviewed 64 opportunities under CDA . Performed initial diligence to: Rev
Slide 23: Specialization & Fragmentation of Drug Discovery is Leading to More Lending Opportunities
Specialization & Fragmentation of Drug Discovery is Leading to More Lending Opportunities Basic Research / Applied Research / Commercialization Pre-Clinical Human Clinical Trials Old Model Big Pharma New Model es Big Pharma ens Lic ties es oyal R ens Lic Biotech / Specialty Pharma ties oyal (Target
Slide 24: The right structure / LTV helps generate attractive returns on debt
The right structure / LTV helps generate attractive returns on debt irrespective of equity performance Life Sciences Debt Investments are less risky and are exposed to less volatility than the corresponding equity investments ■ The chart below shows the cash on cash returns of all past Pharmakon inv
Slide 25: Risk Mitigants
Pharma products generate predictable, patent protected cash flows and provide strong collateral across the many stages of product life Top 500 Drugs Based on WW Sales Since 1986 – Average Annual WW Sales Since Year Of Launch $1,422 $1,438 Loss of IP Drug Regulatory $1,384 Exclusivity $1,342 $1,375 A