BIOPHARMA CREDIT PLC

Capital/Financing Update • Dec 8, 2017

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RNS Number : 8759Y

BioPharma Credit PLC

08 December 2017

BIOPHARMA CREDIT PLC

(THE "COMPANY")

NEW INVESTMENT

BioPharma Credit PLC (LSE: BPCR, the "Company"), a specialist life sciences debt investor, is pleased to announce that, on 8 December 2017, its wholly owned subsidiary has entered into a purchase, sale and assignment agreement (the "Assignment Agreement") with a wholly-owned subsidiary of Royalty Pharma Investments ("RPI"), for the purchase of a 50% interest in a stream of payments (the "Purchased Payments") acquired by RPI's subsidiary from Bristol Myers Squibb (NYSE: BMY) through a purchase agreement (the "Purchase Agreement") dated 14 November 2017. The Purchased Payments are linked to tiered worldwide sales of Onglyza and Farxiga, diabetes agents marketed by AstraZeneca, and related products.

RPI is an investment vehicle managed by RP Management LLC, an affiliate of Pharmakon Advisors LP, the Company's investment manager. Under the terms of the Assignment Agreement, RPI's subsidiary has assigned the benefit of 50% of the Purchased Payments to the Company's subsidiary in consideration for the Company's subsidiary meeting 50% of the funding obligations owed to Bristol Myers Squibb under the Purchase Agreement. As a result of the arrangements, RPI's subsidiary and the Company's subsidiary will each be entitled to the benefit of 50% of the Purchased Payments under identical economic terms.

The Assignment Agreement has been negotiated on an arm's length basis and requires, among other things, the Company's subsidiary's consent to any future material changes to the commercial terms of the Purchase Agreement.

The Company is expected to fund US$140 million to US$160 million in consideration for acquiring the Purchased Payments during 2018 and 2020, determined by product sales over that period, and will receive payments from 2020 through 2025. The Purchased Payments are expected to generate attractive risk-adjusted returns in the high single digits per annum. Bristol Myers Squibb and Astra Zeneca are rated A2/A+ and A3/BBB+ respectively.

-Ends-

Link Company Matters Limited

Company Secretary

8 December 2017

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 listed specialist investor in debt from the life sciences industry and joined the LSE on 27th 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

This announcement contains Inside Information as defined under the Market Abuse Regulation (EU) No. 596/2014.

This information is provided by RNS

The company news service from the London Stock Exchange

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