BioPharma Credit PLC USD · LSE:BPCP
BioPharma Credit PLC USD — BioPharma Credit — Investor Presentation (December 2020)
23 slides from BioPharma Credit PLC USD's investor presentation, December 2020
Slide 1: Debt Capital for the Life Sciences Industry
Debt Capital for the Life Sciences Industry COMPANY PRESENTATION – December 2020 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 THIS PRESENTATION IS NOT FOR PUBLICATION OR DISTRIBUTION, DIRECTLY OR INDIRECTLY, IN WHOLE OR IN PART, INTO OR WITHIN THE UNITED STATES, CANADA, AUSTRALIA, JAPAN OR THE REPUBLIC OF SOUTH AFRICA OR ANY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 Management Team
Experienced Management 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 $180bn in R&D during 2018¹ Industry dynamics create new debt investment opportunities
Slide 6: BPCR has generated consistent returns since IPO
BPCR has generated consistent returns since IPO1 BPCR annualized2 dividends per share in US$ $0.09 $0.08 Interim Special TBD Interim dividend has consistently $0.07 met the annualized $0.07 target $0.06 during the past ten quarters $0.05 $0.04 The interim dividend for Q4 is projected to again me
Slide 7: Investment track record of mostly singles and doubles
Investment track record of mostly singles and doubles – Emphasis on consistency and reduced risk 96% of past Pharmakon transactions have generated returns > 10% (25 Realized Transactions)1 24% (6) > 15.0% 72% (18) 10.0% > <15.0% 4% (1) < 10.0% 1. Realized Internal Rate of Return to the Funds (Gross
Slide 8: New investments have allowed BPCR to broaden its diversification
New investments have allowed BPCR to broaden its diversification and deploy cash from capital raises and loan repayments Evolution of BPCR Portfolio since IPO1 (US$m) Seed Assets $340 Other realized $747 Total invested by BPCR since IPO $2,033 Amortizations $110 Total repayments $1,200 7 1. Values r
Slide 9: BPCR has made thirteen investments to date, four fully repaid
BPCR has made thirteen investments to date, four of which have been fully repaid generating returns above original projections Investments excluding seed assets and convertibles Current Portfolio Investment Loan BPCR Projected Realized Structure Borrower Date Amount1 Investment 1 IRR 2 IRR Secured N
Slide 10: Life Sciences is a Large, Vital Industry with Uncorrelated Sales
Life Sciences is a Large, Vital Industry with Sales that are Uncorrelated and Unaffected by Economic Cycles Global Pharmaceutical Sales: Historical & Projected ($, Trn) Annual Changes in Sales of Oncology Drugs vs Major Indices 100% $140 Oncology Sales $Bn Oncology Sales (% change) Barclays US HY In
Slide 11: Small and midsize companies are involved in a majority of newly approved drugs
Small and midsize companies (target borrowers) are involved in a majority of newly approved drugs New product approvals lead to more companies with attractive collateral for BioPharma Credit funds. 10
Slide 12: Life sciences industry has benefited from healthy capital inflows
The life sciences industry has benefited from healthy capital inflows, even in uncertain markets IPO Proceeds and Count ($ in billions) 80 $30.0 66 68 61 58 60 51 $15.4 $20.0 40 37 $11.8 $8.8 $10.0 20 $4.9 $4.7 $2.1 0 $0.0 2015 2016 2017 2018 2019 9M Ended 2020 Count of IPOs Total Proceeds Converts
Slide 13: Funds managed by Pharmakon have invested over $4.7bn across 40 transactions
Funds managed by Pharmakon Advisors have invested over $4.7bn across 40 transactions Historical Investment Performance as of September 2019 (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 2013December 2015
Slide 14: Appendix
Appendix 13
Slide 15: Global Blood Therapeutics $150m senior secured loan
CONFIDENTIAL $150m senior secured corporate loan Global Blood Therapeutics: biopharmaceutical company focused on developing and marketing therapies for sickle cell disease. Market Cap: $3.4bn as of 9/30/20 Cash: $535m as of 9/30/20 Main Product: Oxbryta (voxeletor) approved in November 2019
Slide 16: Sarepta $550m senior secured loan
CONFIDENTIAL $550m senior secured corporate loan Sarepta Therapeutics: Biopharmaceutical company focused on therapies for neuromuscular diseases. Market Cap: $11.0bn as of 9/30/20 Cash: $1.8bn as of 9/30/20 Main products: EXONDYS 51 (eterplirsen) approved September 2016 for the treatment of
Slide 17: Akebia $100m senior secured 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: $360m as of 9/30/20 Cash: $269m as of 9/30/20 Main product: Auryxia® approved on S
Slide 18: Epizyme $220m senior secured loan
CONFIDENTIAL $220m senior secured corporate loan Epizyme: Biopharmaceutical company focused on cancer and other diseases through novel epigenetic medicines. Market Cap: $1.2bn as of 9/30/20 Cash: $280m as of 9/30/20 Main Product: Tazverik – an oral, first-in-class, selective small molecule d
Slide 19: Optinose $130m senior secured 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: $203m as of 9/30/20 Cash: $143 as of 9/30/20 Main product: XHANCE® – fluticasone propionate
Slide 20: Specialization & Fragmentation of Drug Discovery 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 Big Pharma Biotech / Specialty Pharma (Target Borrowers for BPC funds) Governments and Aca
Slide 21: 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 22: Rigorous screening and evaluation of opportunities
Rigorous screening and evaluation of opportunities 2019 Pharmakon Opportunities Filters Screened 261 opportunities. Initial screen focused on: 1 Viable, marketed product 261 Opportunities Counterparty with financing need 2 76 opportunities met initial requirements. Performed initial 76 diligence
Slide 23: 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 $
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