Dri Healthcare Trust · TSX:DHT.U
Dri Healthcare Trust — Q4 2022 Earnings Presentation
18 slides from Dri Healthcare Trust's earnings presentation, Mar 2, 2023
Slide 1: Advancing Science in the Fast-Growing Pharmaceutical and Biotechnology Sector
ADVANCING SCIENCE in the Fast-Growing Pharmaceutical and Biotechnology Sector Q4 and FY 2022 Earnings Call | March 2, 2023
Slide 2: Disclaimer
Disclaimer This presentation has been prepared by DRI Healthcare Trust (the “Trust”). The Trust is an unincorporated open-ended fund trust governed by the laws of the Province of Ontario, Canada and is externally managed by DRI Capital Inc. (“DRI Capital” or the “Manager” and together with the Trust
Slide 3: Our competitive advantages
Our competitive advantages 1 Seasoned 2 Disciplined 3 Proactive 3 Exceptional team capital sourcing execution allocation of specialized based on robust proprietary fundamental investment investment criteria database tracking ground-up diligence professionals with that has resulted in royalties on mo
Slide 4: 2022 highlights
2022 highlights 1 Accretive 2 Poised to 3 Unitholder growth execute returns Deployed $281 Robust and active $18.8 million cash million in 5 royalty pipeline returned to transactions1 unitholders2 Recently completed preferred security offering providing additional capacity 1. Includes $6.5 million mi
Slide 5: 2022 financial highlights
2022 financial highlights $96.2 million $93.0 million $82.4 million Total Cash Receipts1 Total Income Adjusted EBITDA1 $1.87 $0.30 86% Declared Cash Distributions Adjusted Cash Earnings per Adjusted EBITDA Margin1 per Unit Unit1 1. Total Cash Receipts and Adjusted EBITDA are non-GAAP measures. Adjus
Slide 6: Delivering on our long-term strategy
Delivering on our long-term strategy At IPO Today 2025 target $381.5 million deployed to date Revised deployment target of Capital deployment $650 – 750 million over 5 years + $850 – 900 million $76 million in milestones and options Flat to slightly growing cash Sustainable cash Declining cash curve
Slide 7: Current deployment exceeds targets
Current deployment exceeds targets ($M) Milestone payment 25-Jan-23 450 28-Nov-22 400 30-Sep-22 350 300 12-Sep-22 30-Sep-21 250 28-Feb-22 21-Jul-22 Ahead 200 of ADDITIONAL MILESTONES 2-year 25-Aug-21 150 + OPTIONS target post-IPO 100 ACTUAL 50 0 Feb-21 May-21 Aug-21 Nov-21 Feb-22 May-22 Aug-22 Nov-2
Slide 8: Industry R&D spending is propelling innovation
Industry R&D spending is propelling innovation Worldwide Total Pharmaceutical R&D Spend ($B)1 Worldwide Medicine Spending ($B)2 Total R&D spend 2022-2028 2027 $1.8 trillion $1.9 trillion 300 2,000 280 1,800 260 1,600 240 1,400 220 1,200 200 1,000 180 800 160 600 140 400 120 200 100 0 2026 2013 2014
Slide 9: R&D spending has resulted in many innovative products
R&D spending has resulted in many innovative products Novel Drug Approvals by the FDA1 60 50 40 30 20 10 0 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 FDA approval of novel drugs opens the door to abundant royalty acquisition opportunities 1. Source: Historic: FDA.gov, 2023 Forecast: Eval
Slide 10: Royalty transaction activity is expanding with strong industry tailwinds
Royalty transaction activity is expanding with strong industry tailwinds Trailing three-year average number of transactions1 Trailing three-year average value of transactions1 40 7,000 35 6,000 30 5,000 Number of Transactions in $USD millions 25 4,000 20 3,000 15 2,000 10 5 1,000 0 0 2017 2018 2019
Slide 11: 2022 pipeline funnel
2022 pipeline funnel Prioritized Opportunities The demand for capital in the 75 life sciences ecosystem combined with a challenging Presented Offers financing environment has 21 created a uniquely robust Full Diligence pipeline of high-quality 8 transaction opportunities Closed Deals1 4 Significant
Slide 12: 2022 Transactions
2022 Transactions Investment Thesis Transaction Size $66.5 million1 High-quality oncology product with strong + growth potential $18.5 million in potential milestone Hematology and ophthalmology product $24.5 million with long-term horizon and attractive growth + prospects $21.0 million option $35.0
Slide 13: Preferred security offering
Preferred security offering Gross Proceeds • $95 million Preferred Securities • Series A Preferred Security (“Pref A”) with principal amount of $95 million • Series B Preferred Security (“Pref B”) with principal amount of $19.76 million Maturity • Pref A – February 9, 2073 • Pref B – December 27, 20
Slide 14: Portfolio performance
Portfolio performance (US$ thousands) Total Cash Royalty Receipts1 Pro forma Primary Marketer(s) Therapeutic Area Q4 2022 Q4 2021 % Change 2022 % Change 20212 Hematology / Ophthalmology 269 - n/a 269 - n/a Ophthalmology 2,697 9,6823 (72%) 11,280 18,406 (39%) Influenza 734 910 (19%) 2,952 3,179 (7%)
Slide 15: Strong cash generation
Strong cash generation Adjusted EBITDA for the Year Ended December 31, 2022 ($M)1 $3.7 $96.2 $87.3 $5.7 $93.0 ($0.5) ($7.3) ($6.5) $82.4 Adjusted EBITDA Margin1 86% Adjusted Cash Earnings per Unit4 Royalty Income Interest Income Total Income on Loan Net Change in Royalties Non-Cash Royalty Income To
Slide 16: Well capitalized for growth
Well capitalized for growth $36.7 million1 Cash and cash equivalents $27.7 million1 Royalties receivable Significant capacity for further $235.8 million2 Outstanding balance on credit facilities growth $95.0 million3 Preferred security offering Significant capital available for deployment 1. As a De
Slide 17: Our key priorities
Our key priorities Invest in our people and build the industry leading royalty investment team People Execute on strong pipeline and operate at Execution peak performance in all aspects of our business Results Focus on long-term, sustainable growth generating strong unitholder returns 17
Slide 18: Contact Us
Contact Us Dave Levine ir@drihealthcare.com