Dri Healthcare Trust · TSX:DHT.U
Dri Healthcare Trust — Q3 2024 Earnings Presentation
17 slides from Dri Healthcare Trust's earnings presentation, Nov 7, 2024
Slide 1: Advancing Science in the Pharmaceutical and Biotechnology Sector
Advancing Science in the Pharmaceutical and Biotechnology Sector Q3 2024 Earnings Call | November 7, 2024 1
Slide 2: Disclaimer
Disclaimer This presentation has been prepared by DRI Healthcare Trust (the “Trust”). The Trust is an unincorporated open-ended trust governed by the laws of the Province of Ontario, Canada and is externally managed by DRI Capital Inc. (“DRI Healthcare”). The Trust completed an initial public offeri
Slide 3: Gary Collins
Gary Collins Chief Executive Officer, DRI Healthcare Trust 3
Slide 4: Executive Appointments
Executive Appointments New leadership to lead Trust to continued growth Gary Collins Amit Kapur Ali Hedayat Navin Jacob Sandy Kwan David Plow CEO, CFO, Acting CEO, CIO, CFO, COO, DRI Healthcare DRI Healthcare DRI Healthcare DRI Healthcare DRI Healthcare DRI Healthcare Trust Trust 4
Slide 5: Recent Highlights
Recent Highlights Focus on deal execution, capital allocation and unitholder returns Royalty Transactions Amended Credit Agreement Dividend Declaration Casgevy and sebetralstat royalties Significant capacity for growth Quarterly cash distribution • Deployed $162 million • Increased total credit avai
Slide 6: Navin Jacob
Navin Jacob Executive Vice President, Investments & Chief Investment Officer, DRI Healthcare 6
Slide 7: Casgevy transaction
Casgevy transaction Novel deal structure offers predictable annual cash flows plus potential additional payments TRANSACTION OVERVIEW STRONG GROWTH POTENTIAL Approved by the FDA in December 2023 for Potential additional annual sales- the treatment of sickle cell disease (“SCD”) based milestones in e
Slide 8: Sebetralstat royalty transaction
Sebetralstat royalty transaction First pre-approval royalty acquisition and PIPE investment highlight evolving investment strategy TRANSACTION OVERVIEW STRONG GROWTH POTENTIAL Sebetralstat New Drug Application submitted to the FDA Potential $50 million sales-based with a PDUFA1 date of June 17, 2025
Slide 9: Portfolio performance
Portfolio performance Portfolio assets show continued growth ($ millions) Q3 2024 Q3 2023 % Change1 Q2 2024 % Change1 TOTAL CASH ROYALTY RECEIPTS2 $38.9 $25.2 54% $43.0 (10)% Sebetralstat - - n/a - n/a - - n/a - n/a - 0.2 n/a 0.7 n/a 9.5 3.3 195 11.3 (16) 11.2 3.4 224 8.9 26 3.7 3.1 19 3.5 6 1.1 0.8
Slide 10: Robust pipeline of over $3 billion in potential opportunities
Address important unmet needs with life-changing therapies for patients Robust pipeline of over $3 billion Marketed by leading biotech or biopharma companies in potential opportunities1 Provides strong intellectual property and regulatory protection 1. As of November 7, 2024. Represents the aggregat
Slide 11: Amit Kapur
Amit Kapur CFO, DRI Healthcare Trust 11
Slide 12: Q3 2024 financial highlights
Q3 2024 financial highlights Normalized Total Cash Receipts1 Total Income Adjusted EBITDA1 $38.9 million $41.6 million $31.3 million 54% over Q3 2023 22% over Q3 2023 53% over Q3 2023 Adjusted EBITDA Margin1 Adjusted Cash Earnings per Unit1 Declared Cash Distributions per Unit 80% $0.45 $0.085 1. No
Slide 13: Strong cash generation
Strong cash generation Cash available to drive portfolio growth and maintain distributions to unitholders Adjusted EBITDA for the Last Twelve Months Ended September 30, 2024 ($M)1 Adjusted EBITDA Margin1 84% $2.3 $201.1 $198.8 ($3.5) $197.6 ($13.0) ($18.0) $166.6 Adjusted Cash Earnings per Unit4 Roy
Slide 14: Well capitalized for growth
Well capitalized for growth Significant capacity for Cash and cash equivalents Royalties receivable Credit facility availability further $89.4 $45.8 $293.3 growth million1 million1 million2 1. As at September 30, 2024, $57 million of which was used to fund the Casgevy transaction on October 3, 2024.
Slide 15: Ali Hedayat
Ali Hedayat Acting CEO, DRI Healthcare 15
Slide 16: Delivering on our long-term objectives
Delivering on our long-term objectives Focus on sustainable strategic growth GUIDANCE AT IPO (FEB 2021 ) GUIDANCE TODAY Capital deployment target $650 – $750 million over 5 years More than $1.25 billion over 5 years1 Sustainable cash generation Declining cash curve due to expected High-teens royalty
Slide 17: Key priorities
Rebuild trust with a focus on strong governance and tone from the top Key priorities Invest in our people and build the industry leading royalty investment team Execute on strong pipeline and operate at peak performance Focus on long-term, sustainable growth generating strong unitholder returns 17