BioPharma Credit PLC US$ 762 million IPO and admission to trading on the London Stock Exchange, bringing total capital raised by Pharmakon funds to US$ 2.4 billion

LONDON and NEW YORK, April 3, 2017 /PRNewswire/ -- Pharmakon Advisors, LP ("Pharmakon") is pleased to announce the successful IPO of BioPharma Credit PLC with gross proceeds of US$ 762 million, and its admission to trading on London Stock Exchange (LSE).  BioPharma Credit PLC will have US$ 339 million in seed assets, comprised of loans secured by royalties and other cash flows from sales of close to 30 life sciences products, plus an additional US$ 423 million in cash proceeds raised from a broad range of UK and European institutional investors.  Offers and sales in the IPO were made outside the United States to non-US persons and privately in the United States to qualified purchasers who are also accredited investors.

Pablo Legorreta, Founder and CEO of Royalty Pharma, and Co-Founder of Pharmakon, said, "Our mission is to be the premier provider of debt capital to the life sciences industry.  Debt financing for many industries or asset classes is often provided by large, specialized lenders.  These lenders understand the unique requirements and risks of that industry, enabling them to provide efficient and flexible debt capital where conventional lenders have not.  No large-scale specialized lender currently exists in the $1.1 trillion biopharmaceutical industry, even though it is one of the largest in the world and is a voracious consumer of capital.  Biotech companies are increasingly leading innovation in life sciences and historically have been largely funded with equity capital.  Building upon our 9-year track record, BioPharma Credit is well positioned to meet the strong demand for flexible debt capital as a specialized lender who understand the industry."

Pedro Gonzalez de Cosio, Co-Founder and CEO of Pharmakon, added "BioPharma Credit's IPO brings the total capital raised by Pharmakon managed funds to US$ 2.4 billion, making Pharmakon the largest dedicated provider of debt capital to the life sciences industry.  Together with existing capital commitments from other funds we manage, Pharmakon will seek to invest up to US$ 1 billion over the next twelve months in a portfolio of debt instruments backed by approved life sciences products with target investment sizes ranging from US$ 35 to US$ 500 million."

Recent financings where Pharmakon-managed funds were lead or significant investors include:

• December 2016: $250 million convertible bonds issued by Amicus, Inc.
• January 2016: $150 million royalty loan to subsidiaries of Halozyme, Inc.
• December 2015: $175 million senior secured loan to Merrimack, Inc.
• August 2015: $55 million senior secured loan to iRhythm Technologies
• March 2015: $575 million senior secured loan to Depomed, Inc.

About Pharmakon Advisors:

Established in 2009, New York-based Pharmakon Advisors, LP has raised a total of US$ 2.4 billion and has invested US$ 1.4 billion across 21 different transactions.  Pharmakon is affiliated with Royalty Pharma, the leading investor in biopharmaceutical royalties, with US$ 17 billion in assets and a 20-year track record.

Contact Information: 
Pedro Gonzalez de Cosio:  +1 (212) 883-2296, [email protected] 
Martin Friedman: + 1 (212) 883-2283, [email protected] 
Alexander v. Perfall: + 1 (212) 883-2298, [email protected]

Important Notice

This announcement does not constitute or form a part of any offer to sell, or any solicitation of any offer to purchase or otherwise acquire, securities in any jurisdiction and, in particular, is not intended to offer or to promote the offer or transfer of any securities in the United States or to "U.S. persons" ("US Persons") as defined in Regulation S under the US Securities Act of 1933, as amended (the "Securities Act"). The Pharmakon-managed funds referred to in this announcement have not been and will not be registered under the US Investment Company Act of 1940, as amended, and the securities of such funds have not been and will not be registered under the Securities Act, or with any securities regulatory authority of any state or other jurisdiction of the United States and, subject to certain exceptions, may not be offered, sold, resold, pledged, transferred or delivered, directly or indirectly, into or within the United States or to, or for the account or benefit of, US Persons. There has been and will be no public offer of the securities of the Pharmakon-managed funds referred to in this announcement in the United States.

SOURCE Pharmakon Advisors, LP