4th Sep 2019 12:50
(Alliance News) - BioPharma Credit PLC on Wednesday reported a rise in net assets over the first half following the acquisition of a portfolio company by pharma giant GlaxoSmithKline PLC.
At June 30, the specialist life sciences debt investment trust's NAV per share stood at USD1.0258, 2.1% higher than the USD1.0044 recorded at December 31.
The trust's total net assets increased 2.2% over the first half to USD1.41 billion from USD1.38 billion.
During the first half, BioPharma Credit paid two quarterly dividends totalling USD0.0368. The trust is targeting a total distribution of 7 US cents for the full year.
"We are pleased to report another period of strong progress defined by acquisition of Tesaro by GlaxoSmithKline that earned a considerable 22.5% annualised rate of return for the company on its largest investment. GSK's acquisition of Tesaro for USD5.1 billion, more than 10 times the amount of the secured debt, demonstrates the extensive collateral value provided by approved life sciences products," said BioPharma's investment manager Pharmakon Advisors' Chief Executive Pedro Gonzalez de Cosio.
At June 30, BioPharma Credit held USD612.9 million in cash and cash equivalents.
de Cosio continued: "The significant cash resources currently held by the company as a result of the Tesaro prepayment and the USD305 million equity raise completed in November 2018 present a key opportunity to deploy capital against a considerable and growing pipeline. We continue to anticipate deploying the majority of these resources by the end of 2019 against a number of attractive opportunities and look forward to updating shareholders in the coming months on our progress."
"The company's existing portfolio investments continue to perform well. Pharmakon's engagement with multiple potential counterparties resulted in the execution of new investments totalling USD127.1 million, including making its first equity investment. BioPharma Credit disbursed an additional USD38.6 million during the period corresponding to prior funding commitments, bringing the total amount invested during the period to USD165.7 million," added de Cosio.
Shares in BioPharma Credit were 0.3% higher in London on Wednesday at USD1.02 each.
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Biopharma Cred.