NEW INVESTMENT OF UP TO US$400 MILLION

BioPharma Credit PLC

02 May 2024

 

2 May 2024

BIOPHARMA CREDIT PLC

(THE "COMPANY") 

NEW INVESTMENT OF UP TO US$400 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 Novocure Luxembourg S.a.r.l. (the "Borrower"), a wholly-owned subsidiary of Novocure Limited ("Novocure") (the "Loan Agreement"). The Company will invest up to US$200 million and BioPharma-V will invest up to an additional US$200 million in parallel, with the Company acting as collateral agent.

Based in Switzerland, Novocure is a publicly traded global oncology company with a current market capitalization of ~US$1.38 billion (Ticker: NVCR - NASDAQ). Novocure has a proprietary platform technology called Tumor Treating Fields ("TTFields"), which are electric fields that exert physical forces to kill cancer cells via a variety of mechanisms. Optune Gio is approved for the treatment of adult patients with newly diagnosed glioblastoma in the U.S, the European Union, the United Kingdom, Japan and certain other countries. Optune Lua is approved by for the treatment of malignant pleural mesothelioma and pleural mesothelioma in the U.S., the European Union and certain other countries. Novocure reported net sales of US$509 million for the twelve months ended December 2023.

Under the terms of the transaction, the Company will invest up to US$200 million across four tranches:

·      Tranche A of US$50 million was drawn on 1 May 2024;

·      Tranche B of US$50 million is required to be drawn by 30 June 2025, subject to customary conditions precedent set forth in the Loan Agreement;

·      Tranche C of up to US$50 million will be available upon achievement of certain milestones and revenue thresholds until 31 December 2025; and

·      Tranche D of up to US$$50 million will be available upon achievement of certain milestones and revenue thresholds until 31 March 2026.

The loan will mature in May 2029 and will bear interest at 3-month SOFR plus 6.25 per cent. per annum subject to a 3.25 per cent. SOFR floor, along with an additional consideration of 2.50 per cent. The additional consideration with respect to Tranche A and Tranche B was paid at the funding of Tranche A and will be due and payable with respect to Tranche C and Tranche D at the funding of those tranches.

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

"We are excited to once again partner with Novocure as it continues to advance in its mission. This transaction marks the third investment in Novocure made by entities managed by Pharmakon Advisors. BioPharma III invested US$100m in 2015 which was repaid in 2018, in part with proceeds from a US$150 million loan made by the Company in 2018 and repaid in 2020."

Enquiries

Buchanan

David Rydell / Mark Court / Jamie Hooper / Henry Wilson

[phone]

[e-mail]

Notes to Editors

BioPharma Credit PLC is London's only specialist debt investor to the life sciences industry and joined the LSE in 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 to achieve this objective primarily through investments in debt assets secured by royalties or other cash flows derived from the sales of approved life sciences products.

 

END