Dri Healthcare Trust · TSX:DHT.U
Dri Healthcare Trust — Corporate Update (October 2022)
12 slides from Dri Healthcare Trust's corporate update, Oct 3, 2022
Slide 1: Executing On Our Strategy
Executing On Our Strategy October 3, 2022
Slide 2: Disclaimer
DISCLAIMER Certain statements made in this presentation, including responses to questions, may contain forward-looking statements within the meaning of the safe harbor provisions of Canadian provincial securities laws. Forward-looking statements involve risks and uncertainties and undue reliance sho
Slide 3: What Sets DRI Apart
WHAT SETS DRI APART ▪ Pioneer in the industry with a 33-year track record of success ― Strong track record of execution across counterparties and therapeutic areas ▪ Deep institutional knowledge and market intelligence tools based on thousands of evaluated and dozens of executed transactions ― Propr
Slide 4: Exceeding Our Goals
EXCEEDING OUR GOALS Three transactions in Q3 2022 deploying $184.5 million Total deployment since IPO at $3451 million – 46% of top end of 5-year target in less than 2 years Transactions fit investment criteria with total duration of portfolio at over 9 years 1. Excluding additional $56 million in a
Slide 5: Deployment Track Record
DEPLOYMENT TRACK RECORD DRUG ROYALTY I DRUG ROYALTY II DRUG ROYALTY III DRI HEALTHCARE TRUST (2006 – 2008) (2009 – 2013) (2013 – 2018) (2021 - ) 7 Royalties & 19 Royalties 27 Royalties 15 Royalties 1 Loan valued at valued at valued at valued at up to $645M $730M(1) $586M $401M(3) 18.8% IRR 17.5% IRR
Slide 6: 2022 Portfolio Additions
2022 PORTFOLIO ADDITIONS Completed three transactions, deploying $184.5 million with potential of up to $215.5 million Hematology product with long-term High-quality oncology product with Ophthalmology product with substantial horizon and attractive growth prospects multiple pipeline indications in
Slide 7: Empaveli Transaction
EMPAVELI TRANSACTION ▪ $24.5 million purchase price funded from cash on hand ▪ <1% royalty on worldwide net sales up to $500 million per annum ▪ Step down in royalty rate following patent expiry by jurisdiction ▪ Option to increase the annual sales cap to $1.1 billion in Approved in use for paroxysm
Slide 8: Zejula Transaction
ZEJULA TRANSACTION ▪ $35 million up front purchase price ▪ $10 million milestone payment if Zejula is approved by FDA for the treatment of endometrial cancer by December 31, 2025 ▪ 0.5% net royalty on worldwide net sales Approved in use for ovarian cancer ▪ Royalty term expected to continue for at l
Slide 9: Omidria Transaction
OMIDRIA TRANSACTION ▪ $125 million purchase price Annual Royalty Receipt Caps ($M) $30 27.50 25.00 25.00 25.00 25.00 26.25 $25 20.00 $20 $15 13.00 $10 $5 1.67 Approved for intracameral use during cataract $0 2022 2023 2024 2025 2026 2027 2028 2029 2030 surgery or intraocular lens replacement (Sep –
Slide 10: Our Updated Portfolio
OUR UPDATED PORTFOLIO 21 17 >9 years Weighted average Royalty assets Products remaining duration 9 5 Products Therapeutic areas $1B+ Annual Global Sales Our 2022 transactions will contribute meaningfully to near term cash flow and portfolio duration 10
Slide 11: Portfolio Update
PORTFOLIO UPDATE Natpara ▪ Internally have concluded that issues in US that resulted in recall will not be resolved in the foreseeable future ▪ Expect continued sales in the near term in Europe ▪ Evaluating the potential impact of this scenario on future cash flows and carrying value, as well as opt
Slide 12: Reiterating Our Strategic Priorities
REITERATING OUR STRATEGIC PRIORITIES Grow asset Accretive Unitholder base growth returns Execute on strong Focus on long-term, Continue focus on pipeline to acquire sustainable growth in unitholder returns royalties on high top line royalty and appropriate quality assets that receipts and cash distr
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