BioPharma Credit PLC USD · LSE:BPCP

BioPharma Credit PLC USD — BioPharma Credit — Investor Presentation (April 2023)

27 slides from BioPharma Credit PLC USD's investor presentation, Apr 19, 2023

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

    Debt Capital for the Life Sciences Industry COMPANY PRESENTATION – April 19, 2023 For additional information please email: ir@bpcruk.com or visit BioPharma Credit’s website at www.bpcruk.com

  2. Slide 2: Disclaimer

    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 prese

  3. Slide 3: Experienced Investment Team

    Experienced Investment Team Pharmakon Advisors, LP 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 ye

  4. Slide 4: Gross Yield of the Portfolio has Benefited from Higher Reference Rates

    The Gross Yield1 of the Portfolio has Benefited from Higher Reference Rates and an Increase in Floating Rate Investments Floating vs. Fixed2 27% 24% 59% 73% 76% 41% YE 2021 YE 2022 PF 1Q23 Floating Fixed 2Q23 estimated Gross Yield1 Gross Yield1: 12.1% 13.0% 12.0% 11.0% 11.7% 10.0% 10.8% 9.0% 9.5% 9.

  5. Slide 5: 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

  6. Slide 6: BPCR has generated consistent returns since IPO

    BPCR has generated consistent returns since IPO1 BPCR annualized2 dividends per share in US$ $0.140 Interim Special $0.120 $0.100  Interim dividend has consistently met the annualized $0.070 target $0.080 for almost four years $0.060 $0.040 $0.020 $0.000 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4

  7. Slide 7: Investment track record of mostly singles and doubles

    Investment track record of mostly singles and doubles Page 6 – 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% >

  8. Slide 8: The right structure / LTV helps generate attractive returns on debt

    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

  9. Slide 9: New investments have allowed BPCR to broaden its diversification

    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 $

  10. Slide 10: BPCR currently has ~$1.2bn invested across 12 transactions

    BPCR currently has ~$1.2bn invested across 12 transactions ($ millions) BPCR Outstanding Balances + Cash Original Projected IRR Total Outstanding Remaining Investment Loan Amt. to Maturity1 Share (%) Share ($) Invested Balance Tranches (As of April 19, 2023) Bristol Myers $97.6 High single % 100% $9

  11. Slide 11: Life Sciences is a $1 Trillion+ Vital Industry

    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

  12. Slide 12: 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 100% $140 Oncology Sales $Bn 80% $120 NASDAQ (% change) 60% $100 40% $80 20% $60 0% $40 (20%) (40%) $20 (60%) $0 1990

  13. Slide 13: 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 12

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

    Choppy biotech equity markets historically created an attractive environment for debt investments in biotech XBI Biotech Index Price Performance1 60% 44% 35% 40% 25% 22% 16% 20% 0% (20%) (4%) (23%) (40%) (38%) (60%) 2015 2016 2017 2018 2019 2020 2021 2022 Convert Count and Proceeds $30 80 Total Amou

  15. Slide 15: BPCR's portfolio is primarily 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 December 14, 2021 Structure: Royalty Stream Secured Loan Secured Loan Secured Loan Secured Loan Secured

  16. Slide 16: $450m senior secured corporate loan

    $450m senior secured corporate loan  BioCryst: A global biopharmaceutical company that discovers and commercializes novel, oral, small-molecule medicines  Market Cap: $1.5bn as of April 17, 2023  Cash: $444m as of December 31, 2022  LTM Sales: $268m as of December 31, 2022  Main Product: Orlade

  17. Slide 17: $125m senior secured corporate loan

    $125m senior secured corporate loan  ImmunoGen: A commercial-stage biotechnology company focused on developing and commercializing the next generation of antibody-drug conjugates (ADCs) to improve outcomes for cancer patients  Market Cap: $979m as of April 17, 2023  Cash: $275m as of December 31,

  18. Slide 18: $100m senior secured corporate loan

    $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: $2.7bn as of April 17,

  19. Slide 19: $350m senior secured corporate loan

    $350m senior secured corporate loan  Insmed: Global biopharmaceutical company focused treating patients with serious and rare diseases  Market Cap: $2.4bn as of April 17, 2023  Cash: $1.15bn as of December 31, 2022  LTM Sales: $245m as of December 31, 2022  Main Product: Arikayce® (amikacin lip

  20. Slide 20: $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: $789m as of April 17, 2023  Cash: $174m as of December 31, 2022  LTM 4Q2

  21. Slide 21: $100m senior secured corporate loan

    $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

  22. Slide 22: $300m senior secured corporate loan

    $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: $655m as of April 17, 2023  Cash: $192m as of December 31, 2022  LTM Sales: $211m as of

  23. Slide 23: $125m senior secured corporate loan

    $125m senior secured corporate loan  Evolus: Biopharmaceutical company with a customer-centric approach focused on delivering breakthrough performance beauty products  Market Cap: $455m as of April 17, 2023  Cash: $54m as of December 31, 2022  LTM Sales: $149m as of December 31, 2022  Main Prod

  24. Slide 24: $300m senior secured corporate loan

    $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

  25. Slide 25: $100m senior secured corporate loan

    $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: $120m as of April 17, 2023  Cash: $91m as of December 31, 2022  LTM Sales: $177m as of December 3

  26. Slide 26: $130m senior secured corporate loan

    $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: $229m as of April 17, 2023  Cash: $94m as of December 31, 2022  LTM Sales: $76m as of December 31, 2022 

  27. Slide 27: All four previous BioPharma Credit private funds have returned all capital

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

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