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BioPharma Credit PLC on Wednesday posted a slightly higher net asset value as profit shot up on the back of increased investment.
The life sciences debt investment trust said NAV per share at June 30 was up 0.9% to $1.0072 from USD 0.9980 a year ago. Pretax profit in the six months to June 30 rose 54% to $68.2 million from $44.2 million a year prior.
BioPharma reported a net gain of $7.1 million on investments at fair value, compared to a loss of $22.7 million.
The Winchester, England-based firm targets a dividend of 7 US cents, unchanged from a year ago.
‘Having successfully navigated through Covid, we are mindful of the macroeconomic outlook driven by geopolitical and social risk, however, our significant origination network continues to produce a number of compelling pipeline opportunities, and we expect our investment pipeline to grow and further diversify as new products and companies enter the market. We remain focused on our mission to create the premier dedicated provider of debt capital to the life sciences industry while generating attractive returns and sustainable income for investors,’ said Pedro Gonzalez de Cosio, chief executive officer of Pharmakon Advisors LP, which is the investment manager of BioPharma.
Further, BioPharma noted an announcement made by Sarepta Therapeutics Inc, in which BioPharma has a $350 million investment in a senior secured loan. Sarepta on Monday announced it has terminated and repaid some of its existing senior secured debt with proceeds from an issuance of $1 billion in convertible bonds. BioPharma expects to receive around $16 million in paydown, prepayment and make-whole fees.
BioPharma shares were flat at 82.42 pence each in London on Wednesday morning. The stock is up 15% over the past 12 months.
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