BioPharma Credit PLC USD · LSE:BPCP
BioPharma Credit PLC USD — BioPharma Credit — FY2022 Earnings Presentation
27 slides from BioPharma Credit PLC USD's earnings presentation, Mar 22, 2023
Slide 1: Debt Capital for the Life Sciences Industry
Debt Capital for the Life Sciences Industry COMPANY PRESENTATION – 22 March 2023 For additional information please email: ir@bpcruk.com or visit BioPharma Credit’s website at www.bpcruk.com
Slide 2: Disclaimer
Disclaimer This presentation of information relating to BioPharma Credit PLC (“BPCR”) is confidential and is intended solely for the information and exclusive use of the person to whom it has been provided. It is not to be reproduced, or transmitted, in whole or in part, to third parties. This prese
Slide 3: Experienced Investment Team
Experienced Investment Team 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 in healthcare Foun
Slide 4: Financial Highlights as at December 2022
Financial Highlights as at 31 December 2022 3
Slide 5: The Gross Yield of the Portfolio has Benefited from Higher Reference Rates
The Gross Yield1 of the Portfolio has Benefited from Higher Reference Rates and an Increase in Floating Rate Investments Floating vs. Fixed 19% 54% 81% 46% YE 2021 YE 2022 Floating Fixed Gross Yield1 13.0% 12.0% 11.0% 11.7% 10.0% 10.8% 9.0% 9.5% 9.0% 9.0% 8.9% 8.0% 7.0% 6.0% Dec-21 Mar-22 Jun-22 Sep
Slide 6: Recent Updates
Recent Updates 9 January 2023 BPCR repurchased 523,783 shares. BPCR currently holds 55,277,181 of its ordinary shares in treasury and has 1,318,654,886 ordinary shares in issue (excluding treasury shares). 6 February 2023 The Coherus loan was amended to allow for a short term waiver to the sales cov
Slide 7: Investment Opportunity – Summary
Investment Opportunity – Summary Investments in Approved Life Sciences Products – No Clinical Trial or Approval Risk Debt investments backed by life sciences products (drugs, devices and diagnostics) Collateral value assigned only to approved products in their approved indications and territorie
Slide 8: BPCR has generated consistent returns since IPO
BPCR has generated consistent returns since IPO1 BPCR annualized2 dividends per share in US$ $0.140 Interim Special $0.120 $0.100 Interim dividend has consistently met the annualized $0.070 target $0.080 for almost four years $0.060 $0.040 $0.020 $0.000 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4
Slide 9: Investment track record of mostly singles and doubles
Investment track record of mostly singles and doubles – Emphasis on consistency and reduced risk Unlevered Returns have been consistent over the years (32 Realized Transactions)1 BP-I BP-II BP-III BP-IV Private Fund BPCR 2 Net IRR 10.9% 6.8% 11.2% 11.5% NA NA 28% (9) > 15.0% 69% (22) 10.0% > <15.0%
Slide 10: The right structure / LTV helps generate attractive returns on debt
The right structure / LTV helps generate attractive returns on debt irrespective of equity performance Life Sciences Debt Investments were less risky and are generally exposed to less volatility than an equity investment in the corresponding issuer ■ The chart below shows the cash-on-cash gross retu
Slide 11: New investments have allowed BPCR to broaden its diversification
New investments have allowed BPCR to broaden its diversification and deploy cash from capital raises and loan repayments Evolution of BPCR Portfolio since IPO1 (US$m) $1,800 Cash Seed Assets $1,600 Other Realized (repaid) Investments Outstanding Investments $1,400 $1,200 $1,000 $800 $600 $400 $200 $
Slide 12: BPCR currently has ~$1.0bn invested across 10 transactions
BPCR currently has ~$1.0bn invested across 10 transactions ($ millions) BPCR Total Invested Total Projected IRR Total Remaining Investment Share (%) Share ($) Net of Amount to Maturity1 Invested Tranches Repayments Immunocore Bristol Myers $103.5 High single % 100% $103.5 $103.5 $103.5 Insmed 2% 10%
Slide 13: Life Sciences is a $1 Trillion+ Vital Industry
Life Sciences is a $1 Trillion+ Vital Industry with Sales that are Uncorrelated and Unaffected by Economic Cycles Global Historical Pharmaceutical Sales ($ in trillions) COVID-19 Global Financial $1.4 Crisis $1.3 $1.3 $1.2 $1.1 $1.1 $1.1 $1.1 $1.0 $1.0 $1.0 $0.9 $0.8 $0.8 $0.7 $0.6 $0.6 $0.6 $0.5 $0
Slide 14: Life Sciences is a $1 Trillion+ Vital Industry (cont'd)
Life Sciences is a $1 Trillion + Vital Industry with Sales that are Uncorrelated and Unaffected by Economic Cycles (cont’d) Annual Changes in Sales of Oncology Drugs vs Major Indices Correlations Barclays SP500 NASDAQ Oncology (1990 - 2018) High Yield Index Index Drugs Barclays High Yield 100% 64% 6
Slide 15: 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 2009 - 2020 Source: Bloomberg, Pharmakon Advisors 14
Slide 16: 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 Count and Proceeds $30 165 180 160 $25 130 140 Total Proceeds ($bn) $20 120 IPO Count 84 84 100 $15 75 64 $26 80 $24 $10 47 60 36 $14 40 $5 $11 $7 $6 20 $4 $3 $0 0 2015 2016 2017 2018 2019 2020 2021
Slide 17: Choppy biotech equity markets created an attractive environment for debt
Choppy biotech equity markets historically created an attractive environment for debt investments in biotech Pharmakon Commitments Since 2015 ($mm) $1,600 $1,500 $1,398 $1,400 $1,200 $1,011 $1,000 $800 $657 $600 $405 $425 $400 $225 $200 $200 $0 2015 2016 2017 2018 2019 2020 2021 2022 XBI Biotech Ind
Slide 18: BPCR's portfolio is primarily senior secured loans to listed companies
BPCR’s portfolio is primarily composed of senior secured loans to listed companies Investment: Investment Date: November 1, 2017 September 12, 2019 November 25, 2019 March 22, 2022 March 29, 2021 Structure: Royalty Stream Secured Loan Secured Loan Secured Loan Secured Loan Loan Amount: $165m $130m $
Slide 19: $100m senior secured corporate loan
$100m senior secured corporate loan Immunocore: A commercial stage biopharmaceutical company focused on developing a novel class of TCR bispecific immunotherapies designed to treat a broad range of diseases, including cancer, infectious and autoimmune diseases Market Cap: $2.5bn as of March 17 2
Slide 20: $350m senior secured corporate loan
$350m senior secured corporate loan Insmed: Global biopharmaceutical company focused treating patients with serious and rare diseases Market Cap: $2.4bn as of March 17 2023 Cash: $1.15bn as of December 31 2022 LTM Sales: $245m as of December 31 2022 Main Product: Arikayce® (amikacin liposo
Slide 21: $650m senior secured loan to finance Collegium's acquisition of BDSI
$650m senior secured loan to finance Collegium’s acquisition of BDSI Collegium Pharmaceutical: biopharmaceutical company focused on developing and commercializing new medicines for responsible pain management. Market Cap: $813m as of March 17 2023 Cash: $174m as of December 31 2022 LTM 4Q22
Slide 22: $100m senior secured corporate loan
$100m senior secured corporate loan UroGen: Biopharmaceutical company focused on developing products to treat specialty cancers and urologic diseases. The Company’s products are being developed as chemoablation agents designed to remove tumors by non-surgical means. The Company is focused on treat
Slide 23: $300m senior secured corporate loan
$300m senior secured corporate loan1 Coherus BioSciences: Biopharmaceutical company building a leading immuno-oncology franchise funded with cash generated by its commercial biosimilars business Market Cap: $484m as of March 17 2023 Cash: $192m as of December 31 2022 LTM Sales: $211m as of D
Slide 24: $125m senior secured corporate loan
$125m senior secured corporate loan Evolus: Biopharmaceutical company with a customer-centric approach focused on delivering breakthrough performance beauty products Market Cap: $472m as of March 17 2023 Cash: $54m as of December 31 2022 LTM Sales: $149m as of December 31 2022 Main Product
Slide 25: $300m senior secured corporate loan
$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 ownership. Market
Slide 26: $100m senior secured corporate loan
$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: $117m as of March 17 2023 Cash: $91m as of December 31 2022 LTM Sales: $177m as of December 31
Slide 27: $130m senior secured corporate loan
$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: $193m as of March 17 2023 Cash: $94m as of December 31 2022 LTM Sales: $76m as of December 31 2022 Mai