BioPharma Credit – executive interview

Published on 4 October 2022

BioPharma Credit (BPCR) is a specialist life sciences debt investment trust, investing in debt instruments secured by approved products of life sciences companies (drugs, devices or diagnostics). BPCR aims to generate an 8–9% net NAV return per year in the medium term, predominantly from stable coupon income, as well as funding, exit and prepayment/make-whole fees. This income in turn is distributed to investors quarterly through dividends, targeting a regular dividend per share of US$0.07 per year (calculated by reference to the issue price), and supplemented by special dividends (as applicable). Pharmakon Advisors, BPCR’s investment manager, as part of its overall investment analysis, considers the collateral value of the approved products in the approved indications and territories and therefore BPCR is not exposed to clinical trial or approval risk (which represent the main risks behind volatility in the biotech industry).

In this interview, Pedro Gonzalez de Cosio (co-founder and CEO of Pharmakon Advisors), provides an overview of BPCR’s investment strategy and how it benefits from current trends in the life sciences sector, as well as relevant conditions in public equity and convertible debt markets. He also explains the key success factors behind its strong track record and discusses BPCR’s dividend policy.

This executive interview has been commissioned by BioPharma Credit and prepared and issued by Edison, in consideration of a fee payable by BioPharma Credit. Edison Investment Research standard fees are £60,000 pa for the production and broad dissemination of a detailed note (Outlook) followed by regular (typically quarterly) update notes. Fees are paid upfront in cash without recourse. Edison may seek additional fees for the provision of roadshows and related IR services for the client but does not get remunerated for any investment banking services. We never take payment in stock, options or warrants for any of our services.

This executive interview does not constitute an offer to sell or a solicitation of an offer to buy an interest in any current or future investment vehicle or account managed or advised by Pharmakon Advisors, LP (“Pharmakon” or the “Firm”). Any such offer or solicitation will be made only by means of the appropriate offering documents directed to certain persons in certain jurisdictions where such offering is permitted. This executive interview contains a depiction of the strategies currently pursued by Pharmakon on behalf of its advisory clients (the “Clients”). Such strategies may change in the future and are subject to significant risks, as further detailed in the Clients’ offering documents. Pharmakon disclaims any liability for any direct, indirect or consequential losses, loss of profits, damages, costs or expenses incurred or suffered by you arising out or in connection with the access to, use of or reliance on any information contained in this executive interview.

Past performance does not guarantee future results. Statements contained in this executive interview that are not historical facts are based on current expectations, estimates, projections, opinions and/or beliefs of Pharmakon. Such statements involve known and unknown risks, uncertainties and other factors, and undue reliance should not be placed thereon. Examples of forward-looking statements include, but are not limited to, estimates with respect to financial condition, results of operations, and success or lack of success of Pharmakon’s investment strategy. All are subject to various factors, including, but not limited to general and local economic conditions, changing levels of competition within certain industries and markets, changes in interest rates, changes in legislation or regulation, and other economic, competitive, governmental, regulatory and technological factors affecting Pharmakon’s operations that could cause actual results to differ materially from projected results.

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