BioPharma Credit PLC USD · LSE:BPCP

BioPharma Credit PLC USD — BioPharma Credit — Investor Presentation (February 2018)

22 slides from BioPharma Credit PLC USD's investor presentation, February 2018

  1. Slide 1: Debt Capital for the Life Sciences Industry

    Debt Capital for the Life Sciences Industry COMPANY PRESENTATION – February 2018 For additional information please email: ir@bpcruk.com or visit BioPharma Credit’s website at www.bpcruk.com

  2. Slide 2: Disclaimer

    Disclaimer THIS PRESENTATION IS BEING PROVIDED TO YOU SOLELY FOR YOUR INFORMATION. THIS PRESENTATION IS NOT FOR PUBLICATION OR DISITRIBUTION, DIRECTLY OR INDIRECTLY, IN WHOLE OR IN PART, INTO OR WITHIN THE UNITED STATES, CANADA, AUSTRALIA, JAPAN OR THE REPUBLIC OF SOUTH AFRICA. ANY FAILURE TO COMPLY

  3. Slide 3: BioPharma Credit Team

    BioPharma Credit Team Pedro Gonzalez de Cosio Co-Founder & Principal, Pharmakon (2009 to Present) Prior Experience „ 17 years in Structured Finance with leading global banks § Deutsche Bank, JP Morgan, Nomura Securities, Société Géneralé „ 2 years coordinating the issuance of external debt for the M

  4. Slide 4: BioPharma Credit – Overview

    BioPharma Credit – Overview Mission „ To become the premier dedicated provider of debt capital to the global life sciences Statement industry „ To generate long-term shareholder returns, predominantly in the form of sustainable income distributions from exposure to the life sciences industry Investm

  5. Slide 5: BioPharma Credit – Update as at December 2017

    BioPharma Credit – Update as at 31 December 2017 4

  6. Slide 6: BioPharma Credit – Investment Manager Update

    BioPharma Credit – Investment Manager Update „ Following IPO, the Company has announced three investments: „ Tesaro (21-Nov-17): $500m loan (BPCR up to $370m) „ Lexicon (04-Dec-17): $200m loan (BPCR up to $166m) „ Novocure (07-Feb-18): $150m loan „ Bristol Myers Squibb (08-Dec-17): BPCR funding an e

  7. Slide 7: $500m senior secured loan to Tesaro

    $500m senior secured loan to Tesaro Tesaro Corporate Overview Description of key products „ Description: Tesaro is an oncology-focused biopharmaceutical „ Zejula (niraparib) – is a once-daily orally active poly (ADP-ribose) company focused on in-licensing and developing oncology-related polymerase,

  8. Slide 8: $200m senior secured loan to Lexicon

    $200m senior secured loan to Lexicon Lexicon Corporate Overview Description of key products „ Description: Lexicon is a biopharmaceutical company focused on „ Xermelo (telotristat ethyl) - an oral treatment that works with developing drugs for cancer, diabetes, and pain including Xermelo for somatos

  9. Slide 9: $150m senior secured loan to Novocure

    $150m senior secured loan to Novocure Novocure Corporate Overview Description of key products „ Description: Novocure is a commercial stage oncology company „ Optune System - a cancer treatment centered on a proprietary developing a profoundly different cancer treatment utilizing a therapy called TT

  10. Slide 10: Target Investments

    Target Investments BioPharma Credit will mainly invest in debt secured by rights to approved life sciences products or royalties from sales of approved life sciences products Debt „ Investments seek predictable cash flows with downside protection Secured „ Product rights or royalties will serve as c

  11. Slide 11: Providing Debt Capital for the Life Sciences Industry is a Unique Investment Opportunity

    Providing Debt Capital for the Life Sciences Industry is a Unique Investment Opportunity 1 2 3 Industry dynamics Product and structural Life Sciences is a large create new debt investment expertise help optimize and attractive market opportunities risk/reward „ Annual pharmaceutical sales „ Speciali

  12. Slide 12: Life Sciences is a Large, Vital Industry with Strong, Consistent Growth

    1 Life Sciences is a Large, Vital Industry with Strong, Consistent Growth WW Pharmaceutical Industry vs. Other Industries Global Pharmaceutical Sales: Historical & Projected ($, Trn) Est. WW US Sales $1.4trn $1.1trn $727bn $304bn $15bn $1.4 Mkt. Size WW Sales Mult. of 0.8x¹ 1.5x 3.6x 73x Forecast in

  13. Slide 13: An Industry with a Constant Need for Capital

    1 An Industry with a Constant Need for Capital Global R/D Investment in Life Sciences ($, bn) By Region By Source 25 25 RoW $79bn 28 Public (27%) 54 $99bn 15 15 (34%) RoW 46 $41bn 26 24 28 Public $80bn 24 EU $85bn 42 (30%) 54 EU $72bn 57 48 26 BioPharma 57 46 Companies 42 48 BioPharma $190bn Compani

  14. Slide 14: Specialization & Fragmentation of Drug Discovery is Leading to More Lending Opportunities

    2 Specialization & Fragmentation of Drug Discovery is Leading to More Lending Opportunities Basic Research / Pre-Clinical Human Clinical Trials Commercialization No Licenses / No Royalties Old Model Fully Integrated Pharmaceutical Company s nse Big Pharma Lice New Model Potential Borrowers: ore s lt

  15. Slide 15: Biotech Companies and Academic Institutions are Driving Industry Innovation and Growth

    2 Biotech Companies and Academic Institutions are Driving Industry Innovation and Growth Worldwide Sales from Top 30 Products $180 $159bn Biotech Product $160 Biotech Company Involved University/Hospital Involved 72% 53% 41% (20 prod.) (13 prod.) (12 prod.) $140 Other $65 $120 $85 $114 US$ billions

  16. Slide 16: Life Sciences Products Have Stable Cash Flows and Long Runway of Visibility

    3 Life Sciences Products Have Stable Cash Flows and Long Runway of Visibility Top 500 Drugs Based on WW Sales Since 1986 – Average Annual WW Sales Since Year Of Launch Initial Patent Drug Regulatory Expiration Loss of IP Discovery Approval 20-years Exclusivity US: FDA Patent Term Europe: EMA Extensi

  17. Slide 17: The Investment Manager

    3 The Investment Manager „ Founded in 2009; manager of the BioPharma funds „ $1.3bn committed over 7 years in 21 transactions & 4 funds „ 13% unlevered weighted average projected gross returns from first three funds1 „ 10% unlevered net returns after all fees and expenses1 „ No defaults Pharmakon Ad

  18. Slide 18: BioPharma Credit's Experienced Senior Management Team

    3 BioPharma Credit’s Experienced Senior Management Team Pharmakon Advisors Pedro Gonzalez de Cosio Martin Friedman Pablo Legorreta Jeffrey Caprio, CPA Co-Founder and Principal Principal Co-Founder and Principal Controller „ Co-founded Pharmakon in „ Joined Pharmakon in 2011 „ Co-Founded Pharmakon „

  19. Slide 19: Case Study: $575m Senior Secured Loan for Depomed

    Case Study: $575m Senior Secured Loan for Depomed Background DEPOMED Senior Secured Loan $700 7 $600 6 USD million Debt/EBITDA $500 5 „ In 2015, Depomed required financing to purchase Nucynta, a pain $400 4 product, from JNJ for $1.05bn $300 3 „ Depomed needed to raise $575m but traditional banks we

  20. Slide 20: Case Study: $150m loan to Halozyme Secured by Roche/Genentech & Baxalta Royalties

    Case Study: $150m loan to Halozyme Secured by Roche/Genentech & Baxalta Royalties Background Transaction Structure „ Halozyme developed ENHANZE™ technology that allows for intra- venous (IV) infused drugs to be reformulated and delivered via more Initial Flows convenient Sub-Q injection $150m Sale o

  21. Slide 21: BioPharma Credit Assets at IPO (30-Mar-2017)

    BioPharma Credit Assets at IPO (30-Mar-2017) „ Unique portfolio of seed assets representing a cross section of all existing assets, generating a gross return of approximately 12%1 „ Target returns of 8-9% net total return on NAV per annum over the medium term1 „ 7% target dividend yield on issue pri

  22. Slide 22: 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 $190bn in R&D during 2014 „ Industry dynamics create new debt investment opportunities „

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