Share Name Share Symbol Market Type Share ISIN Share Description
Biopharma Credit Plc LSE:BPCR London Ordinary Share GB00BDGKMY29 ORD USD0.01
  Price Change % Change Share Price Bid Price Offer Price High Price Low Price Open Price Shares Traded Last Trade
  0.001 0.1% 0.977 0.974 0.98 0.978 0.976 0.98 1,652,263 16:35:10
Industry Sector Turnover (m) Profit (m) EPS - Basic PE Ratio Market Cap (m)
Unknown 99.5 79.7 5.8 16.8 1,342

Biopharma Credit Share Discussion Threads

Showing 26 to 49 of 100 messages
Chat Pages: 4  3  2  1
WilliamC - NAV at 102c is higher than the share price. They won't try new equity until they can reverse that. I think ram was suggesting debt.
Hope it raises equity - should be able to do at around NAV - bigger = diversified = better - my concern has always been the borrower concentration risk Have been happy to hold a little position
By coincidence, a related company is planning IPO (BPCR is mentioned): https://www.ft.com/content/0797fd6c-4d68-11ea-95a0-43d18ec715f5 A Canadian healthcare investment group has chosen London to float its flagship fund, reinforcing the UK market’s status as a hub for alternative income investments. DRI Capital of Toronto operates funds that buy long-term royalty rights for pharmaceutical products from the inventors, research institutions and companies involved with their development. The group said today it was seeking to raise $350m by listing DRI Healthcare, a closed-ended investment company, on the London Stock Exchange’s premium segment. Behzad Khosrowshahi, chief executive of DRI Capital, said familiarity made London the best fit for the float. The LSE already hosts royalty collection vehicles including BioPharma Credit, a sector peer, and music rights manager Hipgnosis Songs Fund, all of which promise investors returns uncorrelated with conventional asset classes. “There’s an understanding of the business model,” Mr Khosrowshahi said. “It’s a totally vibrant sector in the LSE. An investor base exists in and around the UK who are frequent investors in the space, so that definitely gives us a bit of a running start.” DRI typically buys rights to established pharmaceuticals that pay out royalties for a decade or more, which Mr Khosrowshahi said was better suited to public markets than private capital. “Private equity funds tend to have shorter and shorter lives now, and putting a ten to 12 year long asset into a vehicle with a five to seven year long life just didn’t make sense for us,” he said. The company plans to use the float proceeds to buy assets from three of its existing funds for an aggregate cost of $458.8m. Annual royalties from this seed portfolio are expected to shrink from over $60m a year in 2020 to around $20m by 2027 so future value growth will depend on the acquisition pipeline. DRI’s independent board handles investment decisions while the listed vehicle will be chaired by Paul Mussenden, who was general counsel and head of strategic affairs at UK pharmaceuticals group BTG from 2000 until its takeover in 2019 by Boston Scientific. More than a quarter of DRI Healthcare’s initial gross asset value post float will be tied to income from Spinraza, a spinal muscular atrophy injection sold by Biogen. It is among the most expensive drugs in the world, with a US list price of $125,000 per dose, and could face competition later this year after US regulators fast-tracked for approval a rival oral treatment developed by Roche and PTC Therapeutics. Mr Khosrowshahi said DRI’s asset valuation models were reflecting competitive threats as well as factoring in long-term drug price deflation in all developed markets. “The nice thing about the pharmaceutical industry is that it typically takes between eight and 12 years for a drug to be developed and come to market. That process is very transparent,” he said. DRI was also prepared for any outcome in the 2020 US presidential election, he said. “We’re kind of indifferent to the methodology but we are modelling for US drug prices to be controlled in some fashion, regardless of whether Bernie Sanders makes it [to the White House] or not.”
Just looked on their site, and there's an investor presentation from yesterday. If you add up the investments/commitments made since last sept, it comes to well above the cash held. So either they have to issue equity, and I'm not sure the mkt wants it at the moment, or they'll have to take on some debt facility. Assuming they can get decent terms, it should pep up the performance a bit.
Could do, I hadn't really thought about it until now, but: The Company may incur indebtedness of up to a maximum of 50 per cent. of its net asset value (‘‘Net Asset Value’’ or ‘‘NAV217;’), calculated at the time of drawdown, for investment and for working capital purposes. Although not forming part of the investment policy of the Company, under the investment management agreement between the Company and Pharmakon Advisors LP (the ‘‘Investment Manager’’;) dated 1 March 2017 (the ‘‘Investment Management Agreement’R17;), the Investment Manager will not incur aggregate borrowings greater than 25 per cent. of the Net Asset Value, calculated as at the time of drawdown, without prior Board approval. [Prospectus pdf p16.]
Citywire: https://citywire.co.uk/investment-trust-insider/news/biopharma-credit-back-on-track-after-finding-loans-for-423m-cash-mountain/a1307480?ref=investment-trust-insider-latest-news-list
More on the problem loan, etc. - https://citywire.co.uk/investment-trust-insider/news/james-carthew-a-good-testing-time-for-biopharma-credit/a1266759?ref=investment-trust-insider-latest-news-list
Lexicon loan problem: https://citywire.co.uk/investment-trust-insider/news/lexicon-setback-raises-further-question-mark-over-biopharma-dividend/a1255428?ref=investment-trust-insider-latest-news-list
Edison research coverage: https://www.edisongroup.com/publication/debt-and-equity-investment-in-bdsi/24303
TESARO: Pharmakon Advisors, the Investment Manager of BioPharma Credit PLC (the "Company") notes the announcement released yesterday by GlaxoSmithKline plc ("GSK") regarding the definitive agreement pursuant to which GSK will acquire TESARO Inc ("TESARO"). The Company's largest investment is a two-tranche $322 million loan to TESARO, which includes a prepayment fee structure of a premium of 3 per cent., 2 per cent., or 1 per cent. if the loan is prepaid before the second, third, or fourth anniversaries of the relevant closing date respectively plus, if the prepayment is made before the second anniversary, a make whole amount equal to the interest payable between the prepayment date and the second anniversary of the relevant closing date. Pharmakon will continue to monitor the situation and update shareholders as appropriate.
DT Questor: We make one of our rare forays into premium territory this week. Normally this column seeks to live up to its name by focusing on trusts that trade at a discount, but occasionally we think it is justifiable to pay a small premium. As recently as a month ago shares in the trust we have in mind, BioPharma Credit, were trading at 6.8pc above its net asset value per share. But the recent sell-off in the stock market has caused the premium to shrink to a more palatable 3pc. The most obvious attraction of the fund, which lends money to life sciences companies at relatively high interest rates, is its 6.7pc yield, but it offers further benefits. “We expect returns to have a very low correlation with other investments, along with relatively low volatility,” said Alan Brierley, an investment trust analyst at Canaccord Genuity, the broker. He said the portfolio’s defensive qualities “could have significant value in more challenging [market] conditions”. Part of the fund’s resilience stems from the fact that the cash flows used to pay interest on the loans it makes derive from sales of drugs and other medical products that have been commercially approved and made available to patients – “investments with long-dated intellectual property protection”, Brierley said. But the experience and skill of the management team at Pharmakon Advisors are also important. “The managers are highly experienced and can demonstrate an impressive track record; the unlevered weighted average annualised net return is 10pc and there have been no defaults [on loans in any of their funds],” Brierley added. The trust, whose shares trade in dollars, targets an annual total return of 8pc-9pc, including the target yield of 7pc at the flotation price. Such a high income at a time of historically low interest rates is striking and the reason for it owes much to the specialised niche in which the trust operates. The fund is able to charge rates of 9pc-12pc on its loans. Normally such high rates would ring alarm bells because they would be a sign of elevated risk. But the fast-growing life sciences firms that borrow from the trust are prepared to pay them because it is ultimately cheaper for their shareholders than issuing new shares, which would dilute existing holdings. In fact the loans are very safe indeed, as the absence of defaults shows. The trust is one of the 17 in Canaccord’s model portfolio. Also reassuring are the personal stakes of Pablo Legorreta, a principal at Pharmakon Advisors, who owns 76.7m shares, and several board members. Questor says: buy
C share fundraising: Http://citywire.co.uk/investment-trust-insider/news/mark-barnett-backs-biopharma-credit-s-300m-c-share-issue/a1099464?ref=investment-trust-insider-latest-news-list
Potential share issue: The Company is pleased to announce that, given the investments recently announced and the sizeable pipeline of near-term opportunities, it is considering an issue of ordinary shares prior to the end of January 2018. Any such issue would be for a total of up to 20% of the Company's total issued share capital and shares would be issued without a prospectus at a price not less than the most recently published NAV per share plus a premium to cover the costs of the issue. Any placing is likely to include participation by some cornerstone investors. Further details will be announced in due course. I'd rather like a slice of these, but doubt I'll be invited! (NAV latest was 99.24c - so issue at about 101c?
Comment on the first loan: Http://citywire.co.uk/investment-trust-insider/news/mark-barnett-backed-biopharma-credit-on-track-after-500m-cancer-loan/a1071226?ref=investment-trust-insider-latest-news-list
First investment, quite a big one and a decent return projected: https://www.investegate.co.uk/biopharma-credit-plc--bpcr-/rns/announcement-of-first-major-investment-since-ipo/201711211350011291X/ Latest NAV 99.24c.
BPCR the chief subject here: Http://citywire.co.uk/investment-trust-insider/news/james-carthew-don-t-let-biopharma-s-slow-start-give-you-the-wrong-impression/a1061739?ref=investment-trust-insider-latest-news-list
H1 results. No closures as yet, but expect to be full invested by March 2018. Meanwhile, market is expecting a lot, with this premium! Https://www.investegate.co.uk/biopharma-credit-plc--bpcr-/rns/half-year-report/201709210700053637R/
No I hadn't seen it - thanks! Dollar weakness is a problem, of course, but since I have a 'pool' of USD, I don't have forex issues when trading such shares.
Thank you very much, jonwig, that's good news. I've bought a little stake ahead of results on Thursday. Don't know if you'd seen it, but was mentioned in MoneyWeek on Friday,in a positive article by David C Stevenson : hTTp://moneyweek.com/a-useful-income-from-drugs/
Distributions from some of their investments could be subjected to US WT - see p43 of the prospectus. Their own dividends should be paid under UK tax law - see p120.
Anyone know if the dividend payments here are / will be subject to US withholding tax? TIA.
Premium to nav now 13%. Factsheet for May: Http://bpcruk.com/wp-content/uploads/2017/02/BioPharma_Credit_PLC-Fact_Sheet-May_2017.pdf Premium maybe explained by IRR on the Depomed loan of 11.9% which won't be booked until repayment. if other assets behave similarly, it might be justified.
Dealings begin 27 March. "Therefore, the Gross Issue Proceeds total US$761,877,360 and accordingly the Company will issue 761,877,360 Shares. This exceeds the Company's initial target of US$300 million." Rather impressive demand, should see an opening premium. My broker (TDD) wasn't offering it, and sending a USD cheque with proofs of identity was messy, so we'll wait and see. EDIT: bought.
Chat Pages: 4  3  2  1
ADVFN Advertorial
Your Recent History
Biopharma ..
Register now to watch these stocks streaming on the ADVFN Monitor.

Monitor lets you view up to 110 of your favourite stocks at once and is completely free to use.

By accessing the services available at ADVFN you are agreeing to be bound by ADVFN's Terms & Conditions

P: V: D:20211018 20:15:03