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
+44 (0) 20 7466 5000
biopharmacredit@buchanan.uk.com
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.