30th Jul 2020 16:00
30 JULY 2020
BioPharma Credit plc
(the "Company")
STATEMENT REGARDING LEXICON PHARMACEUTICALS
Pharmakon Advisors, the Investment Manager of BioPharma Credit PLC (the "Company"), notes the announcement released today by Lexicon Pharmaceuticals ("Lexicon") regarding the definitive agreement pursuant to which Lexicon will sell Lexicon's XERMELO® (telotristat ethyl) product and related assets for up to $224 million in upfront and milestone payments to TerSera Therapeutics LLC.
Lexicon will use the upfront proceeds from the XERMELO sale to substantially reduce its debt, including full repayment of its $150 million secured term loan, of which the Company owns $124.5 million.
The Lexicon loan has a prepayment premium of 2 per cent. if prepaid before the fourth anniversary of the relevant closing date plus, if the prepayment is made before the third anniversary, a make whole amount equal to the interest payable between the prepayment date and the third anniversary of the relevant closing date. The Lexicon loan closed on 4 December 2017.
Lexicon has not announced when they plan to close on the sale of XERMELO so Pharmakon will continue to monitor the disposal and update shareholders as appropriate.
Enquiries
BioPharma Credit plc
via Link Company Matters Limited
Company Secretary
+44 (0)1392 477 500
Buchanan
+44 (0)20 7466 5000 / [email protected]
David Rydell
Mark Court
Jamie Hooper
Henry Wilson
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 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.
LEI: 213800AV55PYXAS7SY24
Related Shares:
Biopharma Cred.