BioPharma Credit PLC USD · LSE:BPCP

BioPharma Credit PLC USD — BioPharma Credit — Debt Investor Presentation (November 2022)

25 slides from BioPharma Credit PLC USD's debt investor presentation, November 2022

  1. Slide 1: Debt Capital for the Life Sciences Industry

    Debt Capital for the Life Sciences Industry COMPANY PRESENTATION – November 2022 For additional information please email: ir@bpcruk.com or visit BioPharma Credit’s website at www.bpcruk.com

  2. Slide 2: Important notice and 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 presentation was

  3. 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

  4. Slide 4: 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

  5. Slide 5: BPCR has generated consistent returns since IPO

    BPCR has generated consistent returns since IPO1 BPCR annualized2 dividends per share in US$  Interim dividend has consistently met the annualized $0.070 target for almost four years 2017 2018 2019 2020 2021 2022 Price and NAV TR performance3 since IPO 160.0 150.0 140.0  A consistent dividend has

  6. Slide 6: 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%

  7. Slide 7: The right structure / LTV helps generate attractive returns on debt irrespective of equity performance

    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

  8. Slide 8: New investments have allowed BPCR to broaden its diversification and deploy cash

    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 $

  9. Slide 9: 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 Insmed 2% Bristol Myers $115.2 High single % 100% $115.2 $115.2 $115.2 10%

  10. Slide 10: Life Sciences is a $1 Trillion+ Vital Industry with Sales Uncorrelated to Economic Cycles

    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

  11. Slide 11: Life Sciences Sales Uncorrelated and Unaffected by Economic Cycles (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

  12. Slide 12: 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 11

  13. Slide 13: Life sciences industry has benefited from healthy capital inflows

    The life sciences industry has benefited from healthy capital inflows, even in uncertain markets 12 Source: Bloomberg (includes all priced transactions that are categorized as biotechnology, pharmaceuticals, or medical devices).

  14. Slide 14: Choppy biotech equity markets created an attractive environment for debt investments

    Choppy biotech equity markets historically created an attractive environment for debt investments in biotech Source: Pharmakon Advisors, Bloomberg 1. Price performance calculated as change in the average of monthly closing values for a given year. Pharmakon does not invest in the index and all inves

  15. Slide 15: BPCR's portfolio is primarily composed of 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 $

  16. Slide 16: $100m senior secured corporate loan (Immunocore)

    $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: $2.1bn as of September

  17. Slide 17: $350m senior secured corporate loan (Insmed)

    $350m senior secured corporate loan  Insmed: Global biopharmaceutical company focused treating patients with serious and rare diseases  Market Cap: $2.6bn as of September 30 2022  Cash: $513m as of September 30 2022; ~$1.3bn pro forma for the strategic financings  LTM Sales: $242m as of Septembe

  18. Slide 18: $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: $547m as of September 30 2022  Cash: $134m as of September 30 2022  LTM

  19. Slide 19: $100m senior secured corporate loan (UroGen)

    $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

  20. Slide 20: $300m senior secured corporate loan (Coherus)

    $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: $747m as of September 30 2022  Cash: $287m as of September 30 2022  LTM Sales: $239m as

  21. Slide 21: $125m senior secured corporate loan (Evolus)

    $125m senior secured corporate loan  Evolus: Biopharmaceutical company with a customer-centric approach focused on delivering breakthrough performance beauty products  Market Cap: $452m as of September 30 2022  Cash: $66m as of September 30 2022  LTM Sales: $139m as of September 30 2022  Main P

  22. Slide 22: $300m senior secured corporate loan (LumiraDx)

    $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

  23. Slide 23: $100m senior secured corporate loan (Akebia)

    $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: $58m as of September 30 2022  Cash: $145m as of September 30 2022  LTM Sales: $169m as of Septemb

  24. Slide 24: $130m senior secured corporate loan (Optinose)

    $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: $305m as of September 30 2022  Cash: $61m as of September 30 2022  LTM Sales: $78m as of September 30 2022

  25. Slide 25: All four previous BioPharma Credit private funds have returned all capital to investors

    All four previous BioPharma Credit private funds have returned all capital to investors Historical Investment Performance (Private Funds) Private Fund I II III IV Launch Date June 2009 March 2011 February 2013 December 2015  Founded in 2009; manager of the BioPharma Credit funds Amount Raised $268.

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