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Share Name | Share Symbol | Market | Stock Type |
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Biopharma Credit Plc | BPCR | London | Ordinary Share |
Open Price | Low Price | High Price | Close Price | Previous Close |
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0.852 | 0.852 | 0.856 | 0.854 | 0.85 |
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Posted at 21/11/2024 10:25 by davebowler BioPharma Credit (BPCR), a high-yielding, dollar-based fund, has seen a $25m (£19.7m) loan repaid, topping up its coffers following a string of investments in the past two weeks.Pharmakon Advisors, manager of the £810m biotechnology loan portfolio, has reported the repayment of a $50m senior secured loan by Immunocore, an Oxfordshire-based T-cell receptor therapy group. BPCR’s share made up 2.6% of the portfolio at 30 September. The repayment includes a $1.5m prepayment fee, of which BioPharma receives $750,000. Deutsche Numis analyst Ash Nandi calculated BPCR also received accrued interest of $264,000. She said the repayment would result in a ‘small uplift’ of 0.1% to the September net asset value (NAV) and leave the cash balance at about $165m, or 14.2% of the portfolio. The cash pile takes into account the recent flurry of loans the fund has made, carrying on the pick-up in lending that started this year after a 10-month hiatus. On 31 October, BPCR funded $35m of a $200m loan to Alphatec, a Nasdaq-listed medical device company. Alphatec’s ‘organic innovation machine’ focused on developing newer approaches to spinal surgery to make it safer and deliver reproducible outcomes. Pedro Gonzalez de Cosio, chief executive of Pharmakon Advisors, said Alphatec aims to be ‘the standard bearer’ in spinal surgery and care and reported net sales of $435m in the first nine months of this year. The loan, which matures in January 2028, charges interest at a three-month secured overnight financing rate (SOFR) – the benchmark for dollar-denominated loans – plus 5.75% a year, subject to a 3% SOFR floor. The fund received a 1% fee on its $35m investment at the signing of the loan and will receive a repayment premium of 3% of the principal amount should it be repaid within 12 months of the signing of the loan, reducing to 2% between 13 months and two years, and 1% after two years. Gonzalez de Cosio said Alphatec’s ‘mission to improve spine care is fuelling exceptional growth’. ‘We are excited to partner with the team in support of that important mission as the company continues to expand profitability and inflects to positive cashflow,’ he said. Just a day after the Alphatec investment, BPCR announced an additional investment in Insmed, a Nasdaq-listed drug developer for rare and serious diseases. BPCR put up $140m of a $350m loan to Insmed in 2022 and is now investing another $60m in a new $150m tranche. This takes its total exposure to the $12bn company to $223.5m. In funding the new tranche, BPCR also made amendments to the loan, including extending the maturity to September 2029 and reducing the interest rate from a three-month SOFR plus 7.75% a year to a fixed rate of 9.6% and adding a 2% exit fee. Last week BPCR topped off these deals with a new investment in Geron Corporation, which develops blood cancer treatments. The biotech company has had a drug approved in the US and is conducting phase three trials on a new drug. BPCR will loan up to $100m across three tranches, the first $50m of which was drawn on 1 November. The second tranche of $30m will be available from 31 December 2025 and the final $20m can be drawn on the achievement of certain revenue milestones. The loan will mature in November 2029 and bear interest at a three-month SOFR plus 5.75%, subject to a 3% SOFR floor. Gonzalez de Cosio said Geron was ‘driving commercial success in the US’ with its drugs and he looked forward to ‘supporting the company and management team as they plan for a potential launch in the EU and continue to develop the asset in additional hematologic malignancies’. Numis analyst Nandi said the fund has ‘deployed significant capital’ this year and has also been active in buying back shares after amending its discount control mechanism in March to improve its ‘flexibility to allocating capital and prevent cash drag’. She said the current 11% discount was ‘an attractive entry point’ for new investors. ‘It has delivered a historic yield of 8% for ordinary dividends, increasing to 11% including special dividends. We believe it has the potential to continue to deliver an attractive yield to investors given the high yield of portfolio, currently 11.5%, post the latest investments.’ Launched at $1 each in 2017, shares in London-listed BPCR have fallen to 87 cents, below their 97.2 cents of NAV at 30 September. |
Posted at 29/7/2024 09:32 by davebowler Panmure-Roche completes acquisition of LumiraDx assets Analyst: Joachim Klement Mkt Cap £839m | Share price 75.8p | Prem/(disc) -16.6% | Div yield 8.3% Event Roche announced that it had completed the acquisition of the LumiraDx assets after receiving all regulatory clearances. In connection with the closing of the transaction, the amount due to the administrators of LumiraDx is $351.1m and includes $15m holdback from the purchase price, which is expected to be released in accordance within the next 90 days. The company expects to receive 50% of the amounts due to the administrators, less certain expenses, most of which will be returned to the senior secured lenders within the next 10 days and the balance within the next 90 days. Assuming Roche releases the full holdback amount and estimated total expenses of $10m, the company expects to receive approximately $170.6m, which is $3m more than the June 2024 valuation of the position. Altogether, the company expects to recover approximately 96% of its original $206m investment in LumiraDx. Pharmakon notes that the transaction did not involve the sale of LumiraDx’s 81% interest in a Colombian distributor of third party diagnostic products with $13.7m in sales in 2023. The ownership of this asset is expected to be transferred to the senior secured lenders in due course and any proceeds from the sale of these assets would be in addition to the amounts described above. Panmure Liberum view This puts a positive end to the long story of the LumiraDx investment. We think the outcome is very good for BioPharma Credit investors with minimal losses on the investment that may shrink some more if the Colombian distribution assets can be sold at a reasonable price. The completion of the windup of LumiraDx should do two things: ยท It removes uncertainty over the NAV and the assets of BioPharma Credit thus boosting the share price. It should refocus investor attention to the excellent investment track record of Pharmakon Advisors. The chart below, taken from the annual Report 2023 shows that BPCR has managed not only to average Net IRRS of more than 10% in its portfolios but that apart from LumiraDx, the net IRR of every single investment since IPO has been close to or above 10%. The Reata loan repaid in 2023 even had a net IRRR of 106.1%. The discount to NAV of 16.6% is clearly too wide and investors should pick up the fund while they can, in our view. |
Posted at 22/7/2024 08:49 by davebowler Specialist DebtBioPharma Credit CMA clears sale of LumiraDx to RocheAnalyst: Joachim KlementMkt Cap £850m | Share price $0.90 | Prem/(disc) -10.1% | Div yield 11.3%EventOn 19 July 2024, the CMA cleared the proposed acquisition of LumiraDx by Roche. With the CMA's clearance of the acquisition, LumiraDx has started to work with Roche toward finalising the acquisition closing. BPCR is awaiting further confirmation as to the status of the transaction, but Pharmakon Advisors LP cannot comment further beyond what has been made public by the CMA and the two companies involved in the transaction.Panmure Liberum viewWith the clearance by the CMA, BPCR investors will soon be able to draw a line under a rather unhappy episode in an overall successful fund. In particular this news means that BPCR will not have to guarantee more bridge funding beyond the amount provided until end of August, which reduced the potential cash drain ion BPCR. |
Posted at 20/6/2024 18:56 by speedsgh Dividend Declaration - BioPharma Credit PLC (LSE: BPCR), the specialist life sciences debt investor, is pleased to declare an interim dividend in respect of the financial period ending 30 June 2024 of $0.0175 per ordinary share, payable on 31 July 2024 to ordinary shareholders on the register as at 5 July 2024. The ex-dividend date will be 4 July 2024. The Company has chosen to designate the entire amount of this interim dividend as an interest distribution. Shareholders in receipt of such a dividend will be treated for UK tax purposes as though they have received a payment of interest. This will result in a reduction in the corporation tax payable by the Company. The Company is currently paying and continues to target a 7-cent annual dividend per ordinary share... |
Posted at 09/2/2024 12:21 by speedsgh Q4 dividend announcement which includes another special div taking FY payment to 10.21 cents...-------------------- Dividend Declaration - 2.96 CENT PER SHARE DISTRIBUTION INCLUDES 1.2 CENT SPECIAL DECLARATION BioPharma Credit PLC (LSE: BPCR), the specialist life sciences debt investor, is pleased to declare an interim dividend in respect of the financial period ending 31 December 2023 of $0.02957930 per ordinary share, payable on 15 March 2024 to ordinary shareholders on the register as at 16 February 2024. The ex-dividend date will be 15 February 2024. The Company has chosen to designate the entire amount of this interim dividend as an interest distribution. Shareholders in receipt of such a dividend will be treated for UK tax purposes as though they have received a payment of interest. This will result in a reduction in the corporation tax payable by the Company. The $0.02957930 dividend comprises an ordinary dividend of $0.0175 and a special dividend of $0.01207930. The Company is currently paying and continues to target a 7 cent annual dividend per ordinary share. This will bring total dividends for 2023 to 10.21 cents including special dividends totalling 3.21 cents. |
Posted at 02/1/2024 18:03 by gsbmba99 According to the 30 November factsheet, BPCR's share of the LumiraDx loan is valued at $126.3m (up slightly from 31 October presumably to reflect additional monies lent) and NAV is $1.01. Per the RNS, "the information as set forth below helped form the basis for the main assumptions reflected in the current valuation of the LumiraDx loan (as set forth in the October and November 2023 monthly updates)." |
Posted at 29/11/2023 08:09 by smidge21 DIVIDEND DECLARATION3.75 CENT PER SHARE DISTRIBUTION INCLUDES 2.0 CENT SPECIAL DECLARATION BioPharma Credit PLC (LSE: BPCR), the specialist life sciences debt investor, is pleased to declare an interim dividend in respect of the financial period ended 30 September 2023 of $0.0375 per ordinary share, payable on 5 January 2024 to ordinary shareholders on the register as at 8 December 2023. The ex-dividend date will be 7 December 2023. The Company has chosen to designate the entire amount of this interim dividend as an interest distribution. Shareholders in receipt of such a dividend will be treated for UK tax purposes as though they have received a payment of interest. This will result in a reduction in the corporation tax payable by the Company. The $0.0375 dividend comprises an ordinary dividend of $0.0175 and a special dividend of $0.0200 The Company is currently paying and continues to target a 7 cent annual dividend per ordinary share. |
Posted at 24/11/2023 12:57 by gsbmba99 Per the most recent fact sheet ( "At 31 October 2023, the Company has revised the valuation of its investment in LumiraDx to reflect revised assumptions based on new information available to the Investment Manager. As per the table, the revised valuation of the LumiraDx investment is $123.4 million as of 31 October 2023 vs $172.9 million as of 30 September 2023. Please note the valuation of the Company’s investment in LumiraDx is subject to further change, depending on any further revised assumptions made by and/or information available to the Investment Manager." |
Posted at 18/8/2023 12:28 by speedsgh Good news for BioPharma Credit as Biogen swoops on Reata - BioPharma Credit (BPCR), the specialist debt fund struggling with concerns over one of its big loans, is in line for a payday after US biotech company Biogen announced the acquisition of portfolio holding Reata Pharmaceuticals, which could net the investment trust returns of more than 70%, analysts estimate. In May, the £851m trust agreed a $137.5m senior secured loan to Reata over up to four payments; $62.5m has already been funded. BPCR will be recompensated for that sum, as well as fees for early prepayment. In an announcement on 31 July, the trust estimated the early repayment fees of 3% would total $15.5m if the transaction closed at the end of September, a sum that is likely to be higher given the trust anticipates completion in the following quarter, when it will have incurred more interest. The shares rose 1% to 0.85 cents on Monday as investors leapt at the first bit of good news since May, when the dollar-denominated trust flagged its second-largest investment, LumiraDx, which accounts for 12.8% of assets, as a problem loan. The shares had fallen 13% since their 0.97-cent peak this year in mid-May to 0.84 cents, representing a 14.6% discount to net asset value (NAV). JP Morgan Cazenove analyst Chris Brown estimated the gross uplift from prepayment fees and make-whole fees would add 0.8% to NAV after performance charges, based on the calculation that BPCR is likely to exceed the 6% hurdle given high interest rates. He added that the 16.9% discount to NAV at the end of last week was larger than the LumiraDx loans, reflecting that investors have priced in the worst, being a LumiraDx default. Floating rate loans, whose coupons have risen with interest rate rises, make up 98% of the portfolio, setting the trust on track for another special dividend, which it has paid out every year since launch in 2017. Maintaining an ‘overweight&rs Numis analyst Ewan Lovett-Turner said the positive news demonstrated BPCR’s approach, where the underlying assets it lends to have value to strategic buyers, and flagged the significant early prepayment fees it earns in the event of an acquisition. |
Posted at 24/5/2023 06:17 by mondex From CityWire:Concerns are rising around BioPharma Credit (BPCR) as the lender to US drugs companies reported ‘problem’ Pharmakon Advisors, which manages the £984m investment trust, made a $300m loan to diagnostics platform LumiraDx in 2021, half of which was funded by BPCR, representing 15% of assets, its fifth biggest of 12 loans. The debt matures in 2024 and is secured against LumiraDx’s assets, including the rights to its testing platform, point-of-care diagnostic systems, and its molecular technology. The size of the loan to the company is now causing nervousness as LumiraDx delivered revenue of just $22.2m in the first three months of the year, a steep fall from the $126m delivered in the same period in 2022, which was the final quarter of Covid-19-related revenues from the Omicron variant. It racked up a loss of $44.1m for the quarter. Shares in Nasdaq-listed LumriaDx have fallen 8% over the past five days, while BPCR’s 8%-yielding shares have shed 4% to stand at a 1% discount below net asset value. Over the past year, stock in LumiraDx shares has plunged 87%. The company plans to go back to the market to raise as much as $100m of additional capital this year, having raised around $840m on the stock market as of 31 March, plus an additional $52m in grants from the Bill & Melinda Gates Foundation. However, a capital raise last year saw the stock shed 20% of its value. Jefferies analyst Matthew Hose said a raise would come with ‘execution risk and would not be enough to cash cover the loan’. He noted the Nasdaq exchange has notified the company that its shares could be subject to delisting because it failed to meet the $1 minimum bid price. ‘Furthermore, even though the loan has a relatively modest fixed interest rate of 8%, we see a refinancing via a third-party lender as doubtful in the context of the current cash burn,’ said Hose, who downgraded BPCR from ‘hold’ to ‘underperform& ‘A more likely option, in our view, would be that Pharmakon and BPCR amends and extends the loan.’ The company is currently in the middle of a restructuring, which accounted for a large drop in operating expenses, although BPCR said additional restructuring announced in April is not factored into the accounts. ‘Additional restructuring activities are expected to reduce the global workforce by 40% with expense reductions of $36m per annum with the full impact from June 2023 onward,’ said the trust. A ‘problem child’ Numis investment trust analyst Ewan Lovett-Turner said it was ‘clearly disappointing to see a large investment…suf However, he said this was not a new problem but a ‘continuation of a trend seen throughout 2022 as Covid-19-related revenues declined for its point-of-care diagnostic systems’. ‘This has been a problem child for BPCR and its adjusted covenants in 2022 to reflect the changing environment,’ he said. However, Lovett-Turner said the trust had ‘never made a loss on a loan’ thanks to the strength of its underwriting, which is based on borrowers having assets to support the loan. ‘This has often led to troubled companies being acquired, which funds the debt repayment,’ he said. ‘Strengthening the cash position and balance sheet would be welcomed and we expect the results of the equity raise to be closely watched, we note the company has previously had some significant backing from investors such as the Bill & Melinda Gates Foundation. It will be also interesting to see whether there is further corporate action on the horizon.’ Stifel analyst Sachin Saggar said a concentrated loan book like BPCR is ‘always going to have moments where investors are unnerved if borrowers fall materially below expectations’. However, he said disappointing fund updates should not be a ‘bolt from the blue’ and should instead be ‘progressively priced into the NAV, as clearly borrower risk has increased since underwriting’. He noted that an investor call with LumiraDx focused on product growth and approvals, even in the Q&A section, with ‘no concern around balance sheet’ from investors. ‘It does not appear to us that despite Covid-19 revenues falling off a cliff the company is running into immediate issues, but also that investors would prefer this loan, which is 15% of NAV, to be repaid sooner rather than later,’ said Saggar. ‘This is likely to take some months and in the interim we expect the discount to widen, given we expect the loan to be marked at par.’ Launched in March 2017, BPCR has generated a five-year total shareholder return of 40% from the quarterly dividends it pays. |
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