BioPharma Credit – executive interview

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.