Biopharma Credit Share Discussion Threads

[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 11:45

New Edison note...

Now listed in the Premium Segment of LSE -

[speedsgh] 22/10/2021 11:58

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 20:00

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 19:15

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 18:53

Rare commentary:



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

[jonathan49] 03/10/2021 15:31

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.

[williamcooper104] 03/10/2021 13:57

As listed in dollars and recording their accounts in dollars they won't bother hedging to sterling

[jonwig] 03/10/2021 13:42

jonathan - you're right that they "don't propose to enter into any hedging or other derivative arrangements other than as may from time to time be considered appropriate for ..."

In their defence, their assets are (I think) all in the US, the credit facility is USD denominated and a hedging contract costs money. Why hedege against GBP when you have no exposure to it?

Speaking personally, my USD assets are maybe 5% of my portfolio and my broker (ii) allows me to hold a USD account. So I'm not really bothered.

[jonathan49] 03/10/2021 12:04

Hi,
All of the credit ITs that I currently hold have an express policy to hedge overseas holdings back to GBP in the expectation that investors are GBP based. I see that BPCR is priced in $ which would be fine but on reading their literature I cannot see that there is any hedging in place. If so, then obviously the capital value would deteriorate in GBP if GBP were to strengthen vs. $. Is it correct that there is no hedging?
Thanks,

[speedsgh] 21/9/2021 16:28

Net Asset Value(s) and Monthly Factsheet -

As at the 31 August 2021 the unaudited net asset value per Ordinary Share, including current period revenue, was 99.22 cents. The Company's factsheet will be located on the Company's website, hxxp://bpcruk.com.

[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]

[rogerramjett] 21/9/2021 10:01

Thanks very much everyone.

[williamcooper104] 20/9/2021 19:24

For WHT it's not where it's listed but where the tax residency of the parent company who pays the dividend is So for BPCR it's the UK (from memory it's not in the Channel Islands) thus no WHT AY (a renewable yield co) for instance is NYSE listed but tax resident in the UK and thus you get your dividends WHT free (Needless to say I am not a tax advisor - and rules do often change/get interpreted wrongly)

[williamcooper104] 20/9/2021 19:20

You can do an on line W1BEN form It gets your US WHT down to zero for a SIPP (but most UK brokers charge you 1 percent for covering your dividends into sterling) For anything held personally, corporately or in an ISA the reduced WHT rate is 15 percent - if you hold personally/corporately then this 15 percent is offset against your UK tax so it's only a timing cashflow issue But it's always a bit annoying to have to suffer it in an ISA There's usually no WHT for any payments deemed to be interest - so they can be held effeicnrlu in an ISA

[williamcooper104] 20/9/2021 19:16

HL let me put it in my ISA There is (IIRC) a rule about foreign currencies not being eligible for ISAs; but most brokers just interrupt that as being ok so long as they charge an exorbitant fee for converting dollar dividends into sterling

[jonwig] 20/9/2021 19:13

I suspected that, but my broker (II) tells me not - it's their house rule, I guess. I haven't made a big issue of it.