Dri Healthcare Trust · TSX:DHT.U
Dri Healthcare Trust — BBHIC 2023
16 slides from Dri Healthcare Trust's conference presentation, Apr 25, 2023
Slide 1: Advancing Science in the Fast-Growing Pharmaceutical and Biotechnology Sector
ADVANCING SCIENCE in the Fast-Growing Pharmaceutical and Biotechnology Sector April 25, 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 4 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: Track record of delivering growth and value
Track record of delivering growth and value Drug Royalty I Drug Royalty II Drug Royalty III DHT 2006 – 2008 2009 – 2013 2013 – 2018 2021 - present 19 New Royalties 27 New Royalties 15 New Royalties 10 New Royalties & 1 Loan valued at valued at valued at valued at up to $645M $730M1 $586M $661M2 IRR
Slide 5: Low risk exposure to rapid biopharma growth
Low risk exposure to rapid biopharma growth Neurology For the year ended December 31, 2022 14% Respiratory 8% 34-year1 $93M History Total Income Autoimmune 17% 24 $2.5B+ Royalty assets2 $82M Capital deployed 20 Oncology Adjusted EBITDA Products 71 Other 5% 20% 86% Royalty acquisitions Dermatology $1
Slide 6: Delivering on our long-term strategy
Delivering on our long-term strategy At IPO Today 2025 target $485 million deployed to date Revised deployment target of Capital deployment $650 – 750 million over 5 years + $850 – 900 million $176 million in milestones and options Sustainable cash Declining cash curve due to Flat to slightly growin
Slide 7: Current deployment exceeds targets
Current deployment exceeds targets ($M) 8-Mar-23 700 Additional milestones + options Milestone Actual deployment payment 600 25-Jan-23 28-Nov-22 500 30-Sep-22 400 12-Sep-22 300 30-Sep-21 21-Jul-221 28-Feb-22 200 25-Aug-21 100 0 Feb-21 May-21 Aug-21 Nov-21 Feb-22 May-22 Aug-22 Nov-22 Feb-23 Deploymen
Slide 8: Sustainable and efficient business model focused on cashflow
Sustainable and efficient business model focused on cashflow % Sales of leading therapies Sourcing, research New royalty Adjusted cash & deal execution acquisitions receipts1 Cash for Adjusted redeployment EBITDA1 Cash distributions Business model allows for continuous compounding of cash flows 1. A
Slide 9: 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 transactions ($B)1 40 7 35 6 30 5 25 4 20 3 15 2 10 5 1 0 0 2017 2018 2019 2020 2021 2022 2017 2018 2019 2020 2021 2022 Aggregate royalty
Slide 10: State of the biotech market
State of the biotech market Biotech IPOs1 Biotech Equities Performance2 16 120 140 130 14 100 120 11.0% 12 110 80 Total Proceeds ($B) 10 100 -7.6% Number of IPOs 90 8 60 80 6 40 70 -46.1% 4 60 20 50 2 40 Jan-21 Feb-21 Jan-22 Feb-22 Jan-23 Feb-23 Mar-21 Nov-21 Dec-21 Apr-21 Jun-21 Jul-21 Mar-22 Nov-2
Slide 11: Biotechs' limited cash reserves
Biotechs’ limited cash reserves Cash Runway for Unprofitable Biotechs (months) Q4 2022 Q1 2023 (estimate) <12 <12 ≥24 ≥ 24 12-18 12-18 18-24 18-24 ≥24 months = 40% ≥ 24 months = 35% <12 months = 20% <12 months = 30% 65% of unprofitable NASDAQ-listed biotechs are estimated to have <2 years of operati
Slide 12: Creating win-win deals for multiple counterparties
Creating win-win deals for multiple counterparties Monetize long-term royalties in Provide royalty financing flexible, tax advantaged deals to fund capital projects Research Inventors institutions Flexible approach – Existing royalties – Synthetic royalties – Launch & development capital Monetize ex
Slide 13: Proven track record of closing accretive transactions
Proven track record of closing accretive transactions Investment Thesis Transaction Size High-quality oncology product with strong $116.5 million + growth potential $18.5 million potential milestone Dermatology product with existing $50.5 million commercial track record Hematology and ophthalmology
Slide 14: Robust diversified portfolio
Robust diversified portfolio By Therapeutic Area1 By Product1 Lysosomal Storage Zytiga Other Natpara Rydapt Disorder 3% 5% 3% 2% 5% Eylea Dermatology 4% Ophthalmology Omidria 5% Empaveli/Syfovre 20% 26% 4% Respiratory 8% Xenpozyme 5% Oracea 5% Tzield Zejula 16% Neurology 6% 14% Oncology 20% Xolair 8
Slide 15: Strong cash generation
Strong cash generation Adjusted EBITDA for the Year Ended December 31, 2022 ($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: 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 16