Biopharma Credit Share Discussion Threads

[williamcooper104] 22/3/2022 08:27

Just a shame we don't have a more granular loan book here It's what's always held me of from buying more here

[jonwig] 22/3/2022 08:25

I'm always surprised at the high interest rates these biopharma companies are willing and able to borrow at. On top of that, the loans are usually amortising and have upfront early repayment charges.

[speedsgh] 22/3/2022 08:19

ANNUAL REPORT AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2021 -

SHAREHOLDER RETURNS

· 7.29 cents per share in total dividends during period referencing net income for the four quarters ended 30 September 2021, once again ahead of the target to distribute at least 7 cents per share

· The Company has therefore maintained its record of paying a dividend of at least 1.75 cents per share every quarter since the quarter ended 30 June 2018

· Company NAV was highly stable during the period decreasing by 1.11 cents from 100.37 cents to 99.26 cents

· On 30th September 2021 shareholders approved the proposed admission to trade on the premium segment of the Main Market and transfer became effective on 5th October 2021

· In addition, the Company introduced a new additional market quote on 5th October 2021 for the ordinary shares to be denominated in GBP with the ticker BPCP

· The Company reported total net income for 2021 of $85m, this compares with $89m reported during 2020 which included $20.5m relating to the change in fair value of its subsidiary BPCR Limited Partnership

· There remains no material impact on the credit quality of any loan as a result of the global disruption caused by the Covid-19 pandemic

INVESTMENT HIGHLIGHTS

In the twelve month-period, the Company's portfolio performed robustly supplemented by further new investment activity and an attractive repayment:

· The Company and its subsidiaries invested $238m in new commitments during the period including:

o $150m with LumiraDx through a senior secured loan announced on 24th March 2021

o $50m additional expansion of the existing senior secured loan agreement with Global Blood Therapeutics announced on 15th December 2021

o $38m with Evolus through a senior secured loan announced on 15th December 2021

· The Company received an attractive repayment from Sebela totalling $194.2m on 30th June 2021 realising a Gross IRR of 11.2%

· Post period end the Company invested significant further capital in three investments:

o $325m senior secured loan with Collegium announced on 14th February 2022, as part of this transaction the existing loan commitments with Collegium and BDSI were repaid ($93m and $60m respectively)

o Up to $150m senior secured loan with Coherus ($50m deployed immediately, $50m by 1 April 2022 and $50m by 17 March 2023) announced on 10th January 2022

o Up to $50m senior secured loan with UroGen ($37.5m deployed on 16th March 2022 and up to an additional $12.5m by 31 December 2022) announced on 8th March 2022


· The Company's investment manager, Pharmakon Advisors is currently progressing a pipeline of further near term opportunities

[speedsgh] 22/3/2022 08:15

Net Asset Value(s) and Monthly Factsheet -

As at the 28 February 2022 the unaudited net asset value per Ordinary Share, including current period revenue, was 101.03 cents. The Company's factsheet will be located on the Company's website, hxxp://bpcruk.com.

[28/2/22: 101.03 cents per share]
[31/1/22: 100.07 cents per share]
[31/12/21: 99.26 cents per share]
[30/11/21: 98.94 cents per share]
[31/10/21: 100.23 cents per share]
[30/9/21: 99.62 cents per share]
[31/8/21: 99.22 cents per share]
[31/7/21: 100.38 cents per share]
[30/6/21: 99.80 cents per share]
[31/5/21: 100.93 cents per share]
[30/4/21: 100.27 cents per share]
[31/3/21: 99.85 cents per share]
[28/2/21: 101.40 cents per share]
[31/1/21: 100.84 cents per share]
[31/12/20: 100.37 cents per share]
[30/11/20: 99.91 cents per share]
[31/10/20: 101.13 cents per share]
[30/9/20: 101.00 cents per share]

[davebowler] 02/3/2022 08:43

htTPs://masterinvestor.co.uk/funds-and-investment-trusts/earn-a-seven-percent-income-from-these-two-high-yielding-trusts/?mc_cid=e76d3423da&mc_eid=31ad53697c

[jonwig] 14/2/2022 19:37

New loan activity:



Some steep rates here -

he loan will bear interest at 3-month LIBOR plus 7.50 per cent. per annum subject to a 1.20 per cent. floor along with a one-time additional consideration of 2.00 per cent. of the loan amount payable at signing and 1.00 per cent. of the loan amount payable at funding.

[speedsgh] 10/2/2022 11:04

Currently have IBT & BBH but WWH is also on the watchlist.

[jonwig] 10/2/2022 08:24

WWH and BBH are my two. I'm looking top top up if they continue to lag.

[speedsgh] 10/2/2022 07:38

Great article, jonwig. Have been taking advantage of the healthcare/biotech sector being out of favour by building a long term holding in a couple of ITs so there is a lot of comment in the article which is very interesting/useful. Thanks for highlighting.

[jonwig] 10/2/2022 07:23

FT article: "Biotechs face cash crunch after stock market ‘bloodbath’".

Lossmaking biotech shares in freefall, can't raise new equity. This has spread to even profitable ones. Some are turning to debt financing. More business for BPCR?

[speedsgh] 24/1/2022 19:15

Net Asset Value(s) and Monthly Factsheet -

As at the 31 December 2021 the unaudited net asset value per Ordinary Share, including current period revenue, was 99.26 cents. The Company's factsheet will be located on the Company's website, hxxp://bpcruk.com

[31/12/21: 99.26 cents per share]
[30/11/21: 98.94 cents per share]
[31/10/21: 100.23 cents per share]
[30/9/21: 99.62 cents per share]
[31/8/21: 99.22 cents per share]
[31/7/21: 100.38 cents per share]
[30/6/21: 99.80 cents per share]
[31/5/21: 100.93 cents per share]
[30/4/21: 100.27 cents per share]
[31/3/21: 99.85 cents per share]
[28/2/21: 101.40 cents per share]
[31/1/21: 100.84 cents per share]
[31/12/20: 100.37 cents per share]
[30/11/20: 99.91 cents per share]
[31/10/20: 101.13 cents per share]
[30/9/20: 101.00 cents per share]

[jonwig] 11/1/2022 16:27

Well, you have a point of course! And the answer is that the yield reflects the risk.

From memory, BPCR has had just one problematic loan, which actually turned out OK. And the management firm has a strong track record, and loans appear to be well secured on assets. Certainly I wouldn't have too big a slice of my portfolio here.

[riverman77] 11/1/2022 14:46

An absolute key for these debt funds is to be very well diversified. BPCR fails that test for me. As we've seen with other debt funds, if one large loan goes bad then the share price gets absolutely hammered. Debt investing has limited upside but unlimited downside so you really need to be well diversified - ideally no more than a few % in any single position.

[speedsgh] 10/1/2022 07:45

NEW INVESTMENT OF UP TO US$150.0 MILLION -

US$50.0 million immediately deployed

BioPharma Credit PLC (LSE: BPCR), is pleased to announce that it, through its fully owned subsidiary, together with BioPharma Credit Investments V (Master) LP ("BioPharma-V" and jointly with the Company the "Lenders") has entered into a definitive senior secured loan agreement with Coherus Inc ("Coherus"). The Company will invest up to US$150.0 million and BioPharma-V will invest up to an additional US$150.0 million.

Based in the US, Coherus is a publicly traded biopharmaceutical company with a current market capitalization of ~US$1.2 billion (Ticker: CHRS - NASDAQ). Coherus, a commercial stage biopharmaceutical company, reported net sales of US$253 million during the first nine months of 2021. Coherus markets UDENYCA® (pegfilgrastim-cbqv), a biosimilar of Neulasta® in the United States, and expects to launch the FDA-approved Humira® biosimilar YUSIMRY™ (adalimumab-aqvh) in the United States in 2023. The FDA is currently reviewing the biologics license application for CHS-201, a biosimilar of Lucentis® (ranibizumab), with a target action date of August 2022. Coherus is also developing CHS-305, a biosimilar of Avastin® (bevacizumab). Coherus' strategy is to build a leading immuno-oncology franchise funded with cash generated by its commercial biosimilar business. In February 2021, Coherus in-licensed toripalimab, an anti-PD-1 antibody, in the United States and Canada. A biologics license application for toripalimab for the treatment of metastatic or recurrent nasopharyngeal carcinoma is currently under priority review by the FDA with a target action date of April 2022. Toripalimab is also being evaluated in pivotal clinical trials for the treatment of cancers of the lung, breast, liver, skin, kidney, stomach, esophagus, and bladder.

Under the terms of the transaction, the Company will invest up to US$150.0 million (US$50.0 million in the first tranche, US$50.0 million by 1 April 2022 and up to an additional US$50.0 million by 17 March 2023) and BioPharma-V will invest up to US$150.0 million in parallel, with the Company acting as collateral agent. The loan will mature in January 2027 and will bear interest at 3-month LIBOR plus 8.25 per cent. per annum subject to a 1.00 per cent. floor along with a one-time additional consideration of 2.0 per cent. of the total loan amount payable upon funding of the first tranche.

"We are pleased to partner with Coherus in this transaction," said Pedro Gonzalez de Cosio, CEO of Pharmakon Advisors, LP. the Company's investment adviser, "This non-dilutive capital will support the launch of several new products as Coherus enters a period of rapid topline growth and diversification of its commercial product portfolio, launching as many as five new products over the next 18 months."

[speedsgh] 23/12/2021 13:49

Net Asset Value(s) and Monthly Factsheet -

As at the 30 November 2021 the unaudited net asset value per Ordinary Share, including current period revenue, was 98.94 cents. The Company's factsheet will be located on the Company's website, hxxp://bpcruk.com.

[30/11/21: 98.94 cents per share]
[31/10/21: 100.23 cents per share]
[30/9/21: 99.62 cents per share]
[31/8/21: 99.22 cents per share]
[31/7/21: 100.38 cents per share]
[30/6/21: 99.80 cents per share]
[31/5/21: 100.93 cents per share]
[30/4/21: 100.27 cents per share]
[31/3/21: 99.85 cents per share]
[28/2/21: 101.40 cents per share]
[31/1/21: 100.84 cents per share]
[31/12/20: 100.37 cents per share]
[30/11/20: 99.91 cents per share]
[31/10/20: 101.13 cents per share]
[30/9/20: 101.00 cents per share]

[davebowler] 15/12/2021 09:03

Liberum;
New investments of up to $113m in Evolus and Global Blood Therapeutics

Mkt Cap £1,008m | Share price $0.97 | Prem/(disc) -3.0% | Div yield 7.5%

Event

BioPharma Credit has announced two new investments worth $88m immediately and up to $25m over the next 12 months, alongside the BioPharma Credit Investments V fund. The two new counterparties are Evolus (up to $63m) and Global Blood Therapeutics (up to $50m). BPCR had $248m of cash at 31 October 2021.

An agreement has been reached with US-based Evolus for a senior secured loan, with BPCR committing $38m in the first tranche, followed by up to $25m by the end of 2022. Evolus markets Jeuveau, a neurotoxin used for aesthetics. The company reported H1 2021 revenue of $64m and trades at a market cap of $300m. The loan will mature in December 2027, paying interest at 3-month LIBOR plus 8.5% p/a, subject to a 1.0% floor along with an additional fee of 2.25% of the loan amount payable upon funding of the first tranche.

The Global Blood Therapeutics (GBT) investment follows an amended loan agreement resulting in BPCR investing an additional $50m in the GBT loan. GBT markets Oxbryta (voxelotor), used to treat sickle cell disease. Revenue over the first nine months of the year was $139m. An original $150m loan was agreed with GBT in December 2019 (BPCR invested $83m). The latest agreement for a third tranche totalling $100m (50:50 split between BPCR and BioPharma-V) will mature in December 2025. In exchange for lengthening the maturity of the first two tranches from December 2025 to December 2027, the syndicate will receive a one-time 1.25% fee.

[speedsgh] 15/12/2021 07:45

NEW INVESTMENTS OF UP TO US$112.5 MILLION -

[speedsgh] 27/10/2021 12:45

New Edison note...

Now listed in the Premium Segment of LSE -

[speedsgh] 22/10/2021 12:58

Net Asset Value(s) and Monthly Factsheet -

As at the 30 September 2021 the unaudited net asset value per Ordinary Share, including current period revenue, was 99.62 cents. The Company's factsheet will be located on the Company's website, hxxp://bpcruk.com.

[30/9/21: 99.62 cents per share]
[31/8/21: 99.22 cents per share]
[31/7/21: 100.38 cents per share]
[30/6/21: 99.80 cents per share]
[31/5/21: 100.93 cents per share]
[30/4/21: 100.27 cents per share]
[31/3/21: 99.85 cents per share]
[28/2/21: 101.40 cents per share]
[31/1/21: 100.84 cents per share]
[31/12/20: 100.37 cents per share]
[30/11/20: 99.91 cents per share]
[31/10/20: 101.13 cents per share]
[30/9/20: 101.00 cents per share]

[speedsgh] 10/10/2021 21:00

Performance since launch suggest that this is a pure income play with a bit of currency risk thrown in. NAV appears to constantly bob around the initial issue price. I have been following its progress for a while but have yet been persuaded to dip a toe. A very useful write up by James Carthew and it remains on the watchlist but nothing more.

[williamcooper104] 10/10/2021 20:15

Usually get a good bit of diversification with dollar assets in that in risk off markets the dollar usually rises and sterling conversely rises when risk sentiment is better

[jonwig] 10/10/2021 19:53

Rare commentary:



They are creating a sterling line of stock (BPCP).

[jonathan49] 03/10/2021 16:31

Thanks for prompt replies. I will still probably do it becuase exchange rate is $1.35 at the moment which is "relatively strong". My view is that in the long run GBP is unlikely to get a lot stronger and may substantially weaken.