BioPharma Credit PLC USD · LSE:BPCP
BioPharma Credit PLC USD — BioPharma Credit — FY2020 Earnings Presentation
21 slides from BioPharma Credit PLC USD's earnings presentation, March 2021
Slide 1: Debt Capital for the Life Sciences Industry
Debt Capital for the Life Sciences Industry COMPANY PRESENTATION – March 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 THIS PRESENTATION IS NOT FOR PUBLICATION OR DISTRIBUTION, DIRECTLY OR INDIRECTLY, IN WHOLE OR IN PART, INTO OR WITHIN THE UNITED STATES, CANADA, AUSTRALIA, JAPAN OR THE REPUBLIC OF SOUTH AFRICA OR ANY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 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: Financial Highlights as at December 2020
Financial Highlights as at 31 December 2020 1. Net income includes $20.5 million relating to the change in fair value of the Company’s subsidiary, BPCR Limited Partnership. This change in fair value of $20.5 million is equal to the undistributed net income earned by BPCR Limited Partnership in the y
Slide 6: 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 $180bn in R&D during 2018¹ Industry dynamics create new debt investment opportunities
Slide 7: BPCR has generated consistent returns since IPO
BPCR has generated consistent returns since IPO1 BPCR annualized2 dividends per share in US$ $0.09 $0.08 Interim Special $0.07 Interim dividend has consistently $0.06 met the annualized $0.070 target $0.05 during the past ten quarters $0.04 The annualized dividend for 2020 $0.03 totaled $0.073 $
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) $1,600 $1,400 Cash Seed Assets Other Realized (repaid) Investments Outstanding Investments $1,200 $1,000 $800 $600 $400 $200 $0 Mar‐1
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 Sarepta $550m loan BPCR $350m Mkt Cap: $11.0 billion Cash: $1.9 billion3 All BPCR Investments4 8
Slide 10: Investment track record of mostly singles and doubles
Investment track record of mostly singles and doubles – Emphasis on consistency and reduced risk 96% of past Pharmakon transactions have generated returns > 10% (25 Realized Transactions)1 24% (6) > 15.0% 72% (18) 10.0% > <15.0% 4% (1) < 10.0% 1. Realized Internal Rate of Return to the Funds (Gross
Slide 11: The life sciences industry has benefited from healthy capital inflows
The life sciences industry has benefited from healthy capital inflows, even in uncertain markets IPO Proceeds and Count ($ 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 $0.0 2015 2016 2017 2018 2019 2020 Count of IPOs Total Proceeds Converts Amoun
Slide 12: Rigorous screening and evaluation of opportunities
Rigorous screening and evaluation of opportunities 2020 Pharmakon Opportunities Filters Screened 243 opportunities. Initial screen focused on: 1 Viable, marketed product 243 Opportunities Counterparty with financing need 2 Reviewed 64 opportunities under CDA . Performed initial diligence to: Rev
Slide 13: Life Sciences is a Large, Vital Industry with Uncorrelated Sales
Life Sciences is a Large, Vital Industry with Sales that are Uncorrelated and Unaffected by Economic Cycles Global Pharmaceutical Sales: Historical & Projected ($, Trn) Annual Changes in Sales of Oncology Drugs vs Major Indices 100% $140 Oncology Sales $Bn Oncology Sales (% change) Barclays US HY In
Slide 14: 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. 13
Slide 15: Funds managed by Pharmakon Advisors 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 16: $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. Market Cap: $895m as of 15 March 2021 Cash: $174m as of 31 December 2020 Main Products: Xtampza® ER, an abuse-deter
Slide 17: $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: $2.8bn as of 15 March 2021 Cash: $561m as of 31 December 2020 Main Product: Oxbryta® (voxeletor) approved i
Slide 18: $550m senior secured corporate loan
CONFIDENTIAL $550m senior secured corporate loan Sarepta Therapeutics: Biopharmaceutical company focused on therapies for neuromuscular diseases. Market Cap: $6.9 as of 15 March 2021 Cash: $1.9bn as of 31 December 2020 Main products: EXONDYS 51 (eterplirsen) approved September 2016 for the t
Slide 19: $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: $554m as of 15 March 2021 Cash: $269m as of 31 December 2020 Main product: Auryxia
Slide 20: $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: $926m as of 15 March 2021 Cash: $374m as of 31 December 2020 Main Product: Tazverik – an oral, first-in-class, selective sm
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: $207m as of 15 March 2021 Cash: $144m as of 31 December 2020 Main product: XHANCE® – flutic