BioPharma Credit PLC New Investments (1812T)

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RNS Number : 1812T

BioPharma Credit PLC

13 November 2019

BIOPHARMA CREDIT PLC

("BIOPHARMA CREDIT" OR THE "COMPANY")

NEW INVESTMENTS

BioPharma Credit PLC (LSE: BPCR), the specialist life sciences debt investor, is pleased to announce that it has entered into two separate loan agreements where BPCR will invest US$52.5 million now and up to an additional US$32.5 million over the next twelve months.

Epizyme, Inc.

On 4 November 2019, BPCR entered into a definitive senior secured term loan agreement for up to US$70 million with Epizyme, Inc. (Nasdaq: EPZM) a late-stage biopharmaceutical company developing novel epigenetic therapies with a current market capitalisation of approximately US$1.4 billion ("Epizyme"). This investment was made alongside BioPharma Credit Investments V (Master) LP ("BioPharma-V"), a private fund also investing in life sciences debt managed by Pharmakon Advisors. The Company's share of the transaction will be up to US$35.0 million (50 per cent. of the overall financing) and the Company will initially invest US$12.5 million. In addition, the loan facility is expandable by up to US$300 million, subject to mutual agreement between BPCR and Epizyme.

The loan will mature in November 2024 and will bear interest at LIBOR plus 7.75 per cent. per annum along with a one-time additional consideration of 2.00 per cent. of the total loan amount. Epizyme's lead product, tazemetostat, is a first-in-class, oral EZH2 inhibitor in clinical development for certain oncology indications, including epithelioid sarcoma and follicular lymphoma. Prior to tazemetostat obtaining FDA approval, the loan will be over collateralized with cash. Epizyme has filed for accelerated approval for tazemetostat with the US FDA. Tazemetostat's application has received a Priority Review designation and the US FDA target action date is 23 January 2020. As of 30 September 2019, Epizyme had US$292.9 million in cash, cash equivalents and marketable securities. On 4 November 2019, Royalty Pharma, an affiliate of Pharmakon Advisors, announced an agreement to purchase future royalties on tazemetostat net sales outside of Japan owned by Eisai Co. for US$330 million and a separate US$100 million equity investment directly in Epizyme. Pablo Legorreta, a principal of Pharmakon and RP management was named to the Epizyme board of directors.

Akebia, Inc.

On 11 November 2019, BPCR entered into a definitive senior secured term loan agreement for up to US$100 million with Akebia, Inc. (Nasdaq: AKBA) a fully integrated biopharmaceutical company focused on the development and commercialization of therapeutics for people living with kidney disease with a current market capitalisation of approximately US$460 million ("Akebia"). This investment was also made alongside BioPharma-V. The Company's share of the transaction will be up to US$50.0 million (50 per cent. of the overall financing) and the Company will initially invest US$40.0 million.

The loan will mature in November 2024 and will bear interest at LIBOR plus 7.50 per cent. per annum along with a one-time additional consideration of 2.00 per cent. of the total loan amount. Akebia currently markets Auryxia(R) (ferric citrate) which is approved in the US for hyperphosphatemia (elevated phosphorus levels in blood serum) in adult patients with chronic kidney disease (CKD) on dialysis and iron deficiency anemia in adult patients with CKD not on dialysis. Akebia is developing a late-stage product candidate called vadadustat which is being studied for anemia due to CKD in both dialysis and non-dialysis patients. During the quarter ended 30 June 2019, Akebia reported Auryxia(R) revenue of US$29.1 million, a 26 per cent. sequential increase from the previous quarter. As of 30 June 2019, Akebia had US$136.8 million of cash and liquid investments.

"We are pleased to partner with Epizyme and Akebia", said Pedro Gonzalez de Cosio, CEO of Pharmakon Advisors, LP. "Both companies are led by excellent management teams and manufacture products that are life-saving therapies."

Link Company Matters Limited

Company Secretary

13 November 2019

Enquiries:

Buchanan

David Rydell / Mark Court/ Jamie Hooper/ Henry Wilson

[phone]

[e-mail]

Notes to Editors:

BioPharma Credit PLC is London's only listed specialist investor in debt from the life sciences industry and joined the LSE on 27 March 2017. The Company seeks to provide long-term shareholder returns, principally in the form of sustainable income distributions from exposure to the life sciences industry. The Company seeks this objective primarily through investments in debt assets secured by royalties or other cash flows derived from the sales of approved life sciences products.

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November 13, 2019 02:00 ET (07:00 GMT)