Dri Healthcare Trust · TSX:DHT.U
Dri Healthcare Trust — Q1 2025 Earnings Presentation
46 slides from Dri Healthcare Trust's earnings presentation, May 2025
Slide 1: Advancing Science in the Pharmaceutical and Biotechnology Sector
Advancing Science in the Pharmaceutical and Biotechnology Sector May 2025 1
Slide 2: Disclaimer
Disclaimer This presentation has been prepared by DRI Healthcare Trust (the “Trust”). The Trust is an unincorporated open-ended trust governed by the laws of the Province of Ontario, Canada and is externally managed by DRI Capital Inc. (“DRI Healthcare”). The Trust completed an initial public offeri
Slide 3: Executive Summary
Executive Summary DRI Healthcare is a pioneer in pharmaceutical royalty monetization DRI Healthcare excels at sourcing, analyzing and executing strategic royalty acquisitions of growing assets. We provide capital to parties along the biopharmaceutical value chain to help fund the future of innovatio
Slide 4: Pharmaceutical royalty model
Pharmaceutical royalty model DRI Healthcare sources deals from all parties along the drug development value chain TRADITIONAL ROYALTY SYNTHETIC ROYALTY acquisition opportunities acquisition opportunities Each constituent sells royalties for different reasons Inventors Academic institutions Drug deve
Slide 5: Our competitive advantages
Our competitive advantages 1 Seasoned team 2 Disciplined capital allocation 3 Proactive sourcing 4 Strong execution Specialized investment Robust investment criteria Proprietary database Fundamental professionals with life that have resulted in tracking royalties on more ground-up diligence science
Slide 6: Experienced and engaged team
Experienced and engaged team Retaining top-tier talent is key to our long-term success TRUST MANAGEMENT DRI HEALTHCARE MANAGEMENT Gary Ali Navin Sandy Babak Collins Hedayat Jacob Kwan Farahmand Chief Executive Acting Chief Executive Vice Chief Financial Executive Vice Officer & Chairman Executive Of
Slide 7: Diversified, risk-mitigated portfolio
Diversified, risk-mitigated portfolio Provides large pharmaceutical company characteristics without traditional pharma risks and costs Ophthalmology 2021 15 Neurology 26% Initial public offering Royalty acquisitions 8% $1.1B1 7,500+ 28 Capital deployed Royalty opportunities in Royalty assets proprie
Slide 8: Focused on closing accretive transactions
Focused on closing accretive transactions Completed fifteen transactions since IPO totaling up to $1.3 billion, with $1.1 billion deployed to date1 INVESTMENT THESIS TRANSACTION SIZE $105 million Sebetralstat Pre-approval asset with high conviction of approval plus PIPE investment + up to $79 millio
Slide 9: Attractive Market
DRIHEALTHCARE ™ Attractive
Slide 10: Long-term drivers support royalty financing growth
Long-term drivers support royalty financing growth Growing capital needs to develop novel drugs bolsters our pipeline Five Year Forward Projected Projected Worldwide Projected Worldwide Pipeline Value ($B)1 • Genomics Biopharma R&D Spend ($B)2 Medicine Spend ($B)3 • Molecular diagnostics • Data scie
Slide 11: Current state of the biotech market
Current state of the biotech market Lack of equity market funding makes the Trust’s royalty financing very attractive Biotech IPOs1 Biotech Equities Performance2 16 120 180 45% 14 160 100 12 Indexed Closing Value (%) 140 80 Total Proceeds ($B) 10 Number of IPOs 120 -5% 8 60 100 6 40 80 -34% 4 60 20
Slide 12: Biotechs' limited cash reserves highlight opportunities for royalty financing
Biotechs’ limited cash reserves highlight opportunities for royalty financing1 60% of unprofitable NASDAQ-listed biotechs are estimated to have <2 years of cash Cash runway for unprofitable NASDAQ listed biotechs with market cap >$25 million Q4 2024 Q1 2025 estimate (months) (months) <12 <12 ≥ 24 ≥
Slide 13: Strong Execution
Strong Execution 13
Slide 14: Q1 2025 financial highlights
Q1 2025 financial highlights Total Cash Receipts1 Total Income Adjusted EBITDA1 $62.0 million $44.0 million $51.7 million -2% over Q1 2024 5% over Q1 2024 -7% over Q1 2024 Adjusted EBITDA Margin1 Adjusted Cash Earnings per Unit1 Declared Cash Distributions per Unit 83% $0.43 $0.10 1. Total Cash Rece
Slide 15: Robust diversified portfolio
Robust diversified portfolio Portfolio currently consists of 28 royalty streams on 21 products By therapeutic area1 By product1 Lysosomal No individual Storage Disorder Dermatology Empaveli / Syfovre Other 4% 5% Zejula product 1% 3% 3% Neurology accounts for 8% Xolair 4% Orserdu 24% more than Oncolo
Slide 16: Portfolio performance
Portfolio performance Portfolio assets show continued growth Total Cash Royalty Receipts 1 ,2 Net Book Value 3 ($ millions) THERAPEUTIC AREA LTM 03/31/2025 03/31/2025 Hematology 5.0 55.1 Hematology / Ophthalmology 7.4 21.4 Ophthalmology 6.9 10.1 Endocrinology 1.8 0.4 Ophthalmology 37.2 184.2 Dermato
Slide 17: Sebetralstat royalty transaction
Sebetralstat royalty transaction First pre-approval royalty acquisition and PIPE investment highlight evolving investment strategy TRANSACTION OVERVIEW STRONG GROWTH POTENTIAL Sebetralstat New Drug Application submitted to the FDA Potential $50 million sales-based with a PDUFA1 date of June 17, 2025
Slide 18: Casgevy transaction
Casgevy transaction Novel deal structure offers predictable annual cash flows plus potential additional payments TRANSACTION OVERVIEW STRONG GROWTH POTENTIAL Approved by the FDA in December 2023 for Potential additional annual sales- the treatment of sickle cell disease (“SCD”) based milestones in e
Slide 19: Xenpozyme II royalty transaction
Xenpozyme II royalty transaction Second royalty on long-term asset further increases portfolio duration TRANSACTION OVERVIEW STRONG GROWTH POTENTIAL Approved by the EMA in June 2022 and by $32.5 million in potential milestone the FDA in August 2022 for the treatment of payments based on Xenpozyme AS
Slide 20: Strong cash generation
Strong cash generation Cash available to drive portfolio growth and maintain distributions to unitholders Adjusted EBITDA for the Last Twelve Months Ended March 31, 2025 ($M)1 Adjusted EBITDA Margin1 81% $3.1 $1.5 $1.9 $189.5 ($1.4) ($1.5) $1.9 $188.5 ($19.4) $183.0 ($13.6) ($2.8) $152.8 -- Adjusted
Slide 21: Positioned for Growth
Positioned for Growth 21
Slide 22: Current deployment on pace to hit target
Current deployment on pace to hit target 5-year deployment target increased to over $1.25 billion ($M) Sebetralstat Additional milestones 1400 Actual deployment 1200 1000 2 800 600 1 400 200 0 Feb-21 May-21 Aug-21 Nov-21 Feb-22 May-22 Aug-22 Nov-22 Feb-23 May-23 Aug-23 Nov-23 Feb-24 May-24 Aug-24 No
Slide 23: Updated guidance
Updated guidance Focus on sustainable strategic growth 2024 GUIDANCE 2025 GUIDANCE 1 Capital deployment target More than $1.25 billion over 5 years More than $1.25 billion over 5 years from IPO2 from IPO1 Income from royalty assets $153 – 155 million2 $172 – 182 million3 Sustainable cash generation
Slide 24: Proactive sourcing provides competitive advantage
Proactive sourcing provides competitive advantage Our strong relationships and proprietary processes generate exclusive deal flow • Proprietary database tracking over 7,500 royalties on ~ 2,500 drugs Identify INTELLECTUAL PROPERTY DRIVEN • Built on various data sources, including from Identify drugs
Slide 25: Rigorous due diligence process
Rigorous due diligence process Appointment of internal multi-disciplinary deal team Individualized diligence plan and deal size considerations Deal Launch Proactive assessment of deal risks Strategic engagement of external consultants Commercial SciMed Review IP and LOE Legal Assessment • Mo
Slide 26: Robust pipeline of over $3 billion in potential opportunities
Address important unmet needs with life-changing therapies for patients Robust pipeline of over $3 billion Marketed by leading biotech or biopharma companies in potential opportunities1 Provides strong intellectual property and regulatory protection 1. As of May 13, 2025. Represents the aggregate va
Slide 27: Compounding cash flows increase growth potential
Compounding cash flows increase growth potential Enables future acquisitions and delivers value for unitholders Virtuous cycle of growing Cumulative effect of compounding returns and reinvestment Annual CF without compounding Annual CF with compounding 1 New asset Total Cash acquisitions Receipts2 C
Slide 28: Growth opportunities from existing assets
Growth opportunities from existing assets1 Additional indications have potential to enhance royalty streams PHASE 1 PHASE 2 PHASE 3 PHASE 4 RESPOND: Spinraza in patients who had received Zolgensma Spinraza ASCEND: Higher dose Spinraza in patients who had received Evrysdi PIERRE: Spinraza evaluating
Slide 29: Committed to ESG practices
Committed to ESG practices Striving to deliver value to our stakeholders, our community, and society as a whole Environmental Social Governance Building a platform Valuing diversity and Accountability and integrity for sustainability community support as core values • Review of our partners’ sustain
Slide 30: Key priorities
Rebuild the trust and the confidence of our unitholders Key Invest in our people and build the priorities industry leading royalty investment team Execute on strong pipeline and operate at peak performance Focus on long-term, sustainable growth generating strong unitholder returns 30
Slide 31: Trust units are undervalued relative to royalty peers
Trust units are undervalued relative to royalty peers Valuation comparisons highlight Trust’s underlying value1 PRICE / OPERATING PRICE / BOOK DIVIDEND YIELD CASH FLOW 2 0.8x 3.7x 4.6% 2.1x 6.9X 2.6% 3.5x Neg 0.0% 2.5x 20.4x 0.0% 5.5x 39.5x 0.8% 5.1x 36.0x 0.8% 1. Information sourced from the Trust’
Slide 32: Investment Highlights
Investment Founded in 1989, DRI Healthcare is the pioneer and a global leader in healthcare royalty investing Highlights DRI Healthcare believes it is well positioned to capitalize on generational industry growth delivering attractive uncorrelated cash flows Diversified portfolio of products by ther
Slide 33: Contact us
Contact us David Levine ir@drihealthcare.com 33
Slide 34: Appendix A: Deal Summaries
DRIHEALTHCARE Appendix A Deal Summaries
Slide 35: Omidria expansion transaction
Omidria expansion transaction Highly accretive transaction with both near and long-term cash flow generation TRANSACTION OVERVIEW STRONG GROWTH POTENTIAL Approved by FDA in May 2014 and by Replaces annual structured caps from the EMA in July 2015 for intracameral original Omidria transaction, giving
Slide 36: Orserdu royalty transactions
Orserdu royalty transactions Uncapped royalties on long-duration asset TRANSACTION OVERVIEW STRONG GROWTH POTENTIAL Orserdu I Approved by the FDA in January 2023 and $85 million upfront purchase price the EMA in September 2023 for advanced/metastatic breast cancer Mid-single digit tiered royalty on
Slide 37: Vonjo II royalty transaction
Vonjo II royalty transaction Second royalty on Vonjo increases exposure to long duration high-quality asset TRANSACTION OVERVIEW STRONG GROWTH POTENTIAL Approved by the FDA in February 2022 First year of sales strongly exceeded as the only treatment for myelofibrosis analyst consensus estimates with
Slide 38: Tzield royalty transaction
Tzield royalty transaction Proceeds reinvested to generate compound effects for unitholders ACQUISITION FROM MACROGENICS SALE TO SANOFI Approved by the FDA in November 2022 Sanofi announced agreement to acquire for the treatment of stage 2 Type 1 Provention Bio days after the Trust’s diabetes acquis
Slide 39: Xenpozyme I royalty transaction
Xenpozyme I royalty transaction Long duration product with strong IP protection anticipated to generate high multiple on invested capital TRANSACTION OVERVIEW STRONG GROWTH POTENTIAL Approved by the EMA in June 2022 $26.5 million in potential milestone and by the FDA in August 2022 for payments base
Slide 40: Omidria I royalty transaction
Omidria I royalty transaction1 Substantial near-term cash flows with long-term structural growth anticipated TRANSACTION OVERVIEW STRUCTURED GROWTH Annual Royalty Receipt Caps ($M) Approved by the FDA in May 2014 and by the EMA is July 2015 for intracameral use during cataract $30 27.50 26.25 surger
Slide 41: Zejula royalty transaction
Zejula royalty transaction Multiple indications in development represent a pipeline in a product TRANSACTION OVERVIEW STRONG GROWTH POTENTIAL Approved by the FDA in March 2017 $10 million milestone payment if Zejula is and by the EMA in November 2017 for approved by FDA for the treatment of the trea
Slide 42: Empaveli royalty transaction
Empaveli royalty transaction Long-term horizon and attractive growth prospects TRANSACTION OVERVIEW STRONG GROWTH POTENTIAL Empaveli: Approved by the FDA in Represents a significant advancement in May 2021 and by the EMA in the standard of care for PNH December 2021 for the treatment of Paroxysmal N
Slide 43: Oracea royalty transaction
Oracea royalty transaction Strong cash flows generate immediate revenues TRANSACTION OVERVIEW STRONG GROWTH POTENTIAL Approved by the FDA in 2006 for It has an established commercial track the treatment of Papulopustular record and brings immediate accretive Rosacea value with substantial royalty re
Slide 44: Deal structure case study: CTI BioPharma / Vonjo
Deal structure case study: CTI BioPharma / Vonjo Proven ability to provide flexibility in deal structuring while managing risk • Funding for Vonjo launch preparation Pre-approval $50 million secured loan • Secured loan provided downside protection if approval not granted • Funding for Vonjo launch •
Slide 45: Appendix B: Industry Metrics
Appendix B Industry Metrics 45
Slide 46: Industry Metrics
Industry Metrics References in this presentation to a securities index or other benchmark are made for informational purposes only and an investment in the Trust is unlike an investment in an index of securities or the aggregate funds constituting such benchmark. The investment characteristics of su