Biopharma Credit Share Discussion Threads

[davebowler] 07/3/2023 16:25

Small mention here .......

[jonwig] 21/1/2023 07:02

Covered by IC this week:



Article refers to an Edison note from November and points out risks from a concentrated portfolio (largest investment is 30% of whole), despite no problems to date.

[williamcooper104] 11/1/2023 16:27

And ARCC - it's the BDC with the best track record - has outperformed SPY (20 percent long term CAGRs and up a few percent in total returns for 2022) It's got quite a few junior loans which would worry me but I've been invested there for over 10 year so quite happy to hold BDCs usually borrow fixed and lend floating (with a libor floor) so while they've mostly taken share price falls this year they've also been increasing dividends

[williamcooper104] 11/1/2023 16:22

Not sure it's a good comp - though it's a good fund - I hold it too OCSL is wider than just life sciences/biotech - lending to multiple sectors - plus its leveraged about 50/50 HTGC/TRIN/HRZN/TPVG are all BDCs that do life sciences biotech with wider tech venture lending - again they are all levered usually 1 for 1 - riskier than BPCR but worth a look at the right time in the market, or adding to cautiously (I've held HTGC for years) - they are volatile but often through of big special dividends - BDCs usually also have small equity positions/warrants which gives you more upside

[smidge21] 11/1/2023 15:43

OCSL (from Oaktree) looks an interesting companion to BPCR

[speedsgh] 22/11/2022 11:32

NEW INVESTMENT OF UP TO US$50.0 MILLION -

BioPharma Credit PLC (LSE: BPCR), the specialist life sciences debt investment trust, 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 Immunocore Limited ("Immunocore"). The Company will invest up to US$50.0 million and BioPharma-V will invest up to an additional US$50.0 million.

Based in the UK, Immunocore is a publicly traded biopharmaceutical company with a current market capitalization of ~US$2.9 billion (Ticker: IMCR - NASDAQ). Immunocore currently markets KIMMTRAK (tebentafusp-tebn), a treatment for metastatic uveal melanoma, a rare form of eye cancer. Approved by the FDA on 26 January 2022 and the EU on 4 April 2022, KIMMTRAK generated US$40.4 million in sales during the third quarter of 2022.

Under the terms of the transaction, the Company will invest up to US$50.0 million (US$25.0 million in the first tranche, which was drawn on 8 November 2022, and up to an additional US$25.0 million by 30 June 2024) and BioPharma-V will invest up to US$50.0 million in parallel, with the Company acting as collateral agent. The loan will mature in November 2028 and will bear interest at 9.75% per annum for the first tranche and 3-month SOFR plus 8.75 per cent. per annum subject to a 1.00 per cent. floor for the second tranche, along with an additional consideration of 2.50 per cent. The additional consideration with respect to the first tranche was paid at funding and will be due and payable with respect to the second tranche either at the funding of the second tranche or upon expiration of the second tranche commitment.

Pedro Gonzalez de Cosio, CEO of Pharmakon Advisors, LP. the Company's investment adviser said:

"We are excited to partner with Immunocore as it continues to advance in its mission. Led by a highly experienced management team, Immunocore is a pioneering, commercial-stage T cell receptor biotechnology company working to develop and commercialize a new generation of transformative medicines to address unmet needs in cancer, infectious and autoimmune diseases."

[speedsgh] 22/11/2022 11:30

Net Asset Value(s) and Monthly Factsheet -

As at the 31 October 2022 the unaudited net asset value per Ordinary Share, including current period revenue, was 99.55 cents. The Company's factsheet will be located on the Company's website, hxxp://bpcruk.com.

[31/10/22: 99.55 cents per share]
[30/9/22: 102.17 cents per share]
[31/8/22: 101.36 cents per share]
[31/7/22: 101.67 cents per share]
[30/6/22: 100.72 cents per share]
[31/5/22: 99.81 cents per share]
[30/4/22: 100.83 cents per share]
[31/3/22: 100.11 cents per share]
[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] 07/11/2022 09:42

Liberum-Increased flexibility in discount control mechanismMkt Cap £1,134m | Share price $0.96 | Prem/(disc) -5.3% | Div yield 12.0%EventIn order to reduce the costs to shareholders of the discount control mechanism and increase flexibility for the company, it has changed the discount control mechanism in two regards:If the discount is greater than 5% over a three-month period, the company is required to apply up to 50% of proceeds from debt repayments in purchasing company shares until such time that the two-week discount is less than 5% (previously 1%).If the discount is greater than 10% over a six-month period, the company is required to apply up to 100% of proceeds from debt repayments in purchasing company shares until the such time that the two-week discount is less than 5% (previously 1%). Liberum viewThis is an eminently sensible change to the discount control mechanism given the pressure put on the shares' discount to NAV and it follows best practice used in portfolio rebalancing where the most effective rebalancing rule is to rebalance once a limit is breached, but only to rebalance to the limit that was breached and no further to reduce costs. In this respect, it would have been even better for the company to rebalance only to a 10% discount to NAV instead of 5% in case the second trigger is met. But in the name of balancing investor goals of limiting the discount while reducing the costs of the discount control mechanism (which can be 3% of NAV for a round-trip of purchasing and then re-issuing shares), it makes sense to buy shares in case the second trigger is met until the discount is reduced to 5% on a two-week basis.

[jonwig] 04/11/2022 19:54

Another Edison note;



This is probably the most informative one I've read. Surprising that it consistently trades at a nav discount.

[williamcooper104] 20/10/2022 07:51

All good then

[jonwig] 20/10/2022 07:36

It's xd today, 6.25c. (Special divi included.)

[williamcooper104] 20/10/2022 07:27

Wired price action HL saying on-line dealing not now available IB saying it's marginable Big bid/ask spread

[jonwig] 20/10/2022 06:57

New loan:



mature in October 2027 and will bear interest at a rate based upon the secured overnight financing rate (SOFR), subject to a SOFR floor of 2.5 per cent., and a margin of 7.75 per cent. per annum. A one-time additional consideration of 2.0 per cent. of the total loan amount is also payable upon funding of the loan.

SOFR is currently 3.05%.

[jonwig] 13/10/2022 06:59

Enhanced dividend of 6.25c, plus bump up of NAV to 105.47c.

Thanks to all these early loan repayments, no doubt. And the USD is useful! (US Solar is my target.)

[williamcooper104] 06/10/2022 08:51

Greet stuff Couldn't get a better time to reinvest

[davebowler] 06/10/2022 08:28

Liberum-
Sale of Global Blood Therapeutics nets $42.9m in profits

Mkt Cap £1,132m | Share price $0.94 | Prem/(disc) -7.1% | Div yield 7.4%

Event

Pfizer completed the acquisition of Global Blood Therapeutics (GBT) on 5 October. BioPharma Credit had a $132.5m investment in a senior secured loan to GBT which was prepaid due to the transaction. As a result, BPCR received $175.4m including $42.9m in accrued interest, paydown, prepayment and make-whole fees for an IRR of 27.6%.

Liberum view

The IRR achieved with the GBT sale is the highest BPCR has ever achieved and one of the highest the asset manager of BPCR, Pharmakon, has ever achieved. The chart below is taken from the last annual report of BPCR with today's announcement added by us. It is an excellent result in a difficult time for biotech investments

[jonwig] 06/10/2022 06:55

Prepayment bonus, Global Blood Therapeutics/Pfizer:

[jonwig] 14/9/2022 07:24

And the results are well on track:

[jonwig] 14/9/2022 07:05

They've scored again, $16m in prepayment fees:

[jonwig] 22/8/2022 16:07

RNS:

Pharmakon Advisors, the Investment Manager of BioPharma Credit plc (the "Company") notes the announcement released on Friday 13 August 2022 by Ipsen ("IPN") regarding the completion of its acquisition of Epizyme Inc ("Epizyme") (the "Transaction"). The Company had a US$110 million investment in a senior secured loan to Epizyme which was prepaid upon the closing of the Transaction. The loan was made in four different tranches and each tranche had different prepayment economics. The Company received US$119 million including US$9 million in prepayment and make-whole fees realizing an IRR of 15.2 per cent.

[williamcooper104] 09/8/2022 11:54

Dollar has done so much for me this year

[hpcg] 09/8/2022 09:50

I have certainly enjoyed my dollar distributions.