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Impressive dividend bookends solid year for BioPharma Credit

BioPharma Credit (BPCR), the specialist life sciences debt investor, today announced the publication of its annual report for the year ending 31 December 2022. Company NAV was relatively stable, growing slightly over 2% while shares fell by around the same margin from the year prior. Earnings were the strongest in its history thanks predominantly to its variable interest portfolio and five loan repayments. Management announced a 13.8% dividend yield based on the company’s share price at 31 December 2022 with the 2023 dividend target expected to be covered from the existing portfolio. The company’s discount improved towards the back end of the reporting period, however, has since widened to sit at around 8%

The company was also highly active during the twelve month-period, making five investments totalling $665m. The largest of these was $325m for Collegium, a specialty pharmaceutical company.

Co founder and CEO Pedro Gonzalez de Cosio commenting on the outlook for the year added:

“The impact of COVID-19 and the risk resulting from the inflationary environment and disruptions to the global supply chain are closely monitored at Pharmakon in relation to the existing portfolio and future investments. However, we have confidence in the performance of our loans and there has not been a material impact on the credit quality of the Company’s investments. The Company’s operations and its service providers have adopted hybrid schedules, which have not affected any technical or operational functions during or post- pandemic.

“The invasion of Ukraine by Russia has led to increased market volatility and widespread sanctions on Russian assets and individuals, contributing to the high inflation introduced by the pandemic. While the portfolio has no direct exposure to Russia, Ukraine, or Belarus, we remain vigilant in monitoring this major event closely and will inform investors of any material changes.

“We expect our investment pipeline to grow as new products and companies enter the market in 2023 and beyond. Pharmakon’s extensive network and thorough approach will continue to identify strong investment opportunities. We remain focused on our mission of creating the premier dedicated provider of debt capital to the life sciences industry while generating attractive returns and sustainable income to investors. Although the global economic outlook remains uncertain, we believe the successful prepayment of five portfolio assets within 2022 reinforces our vetting and underwriting process. Furthermore, Pharmakon remains confident of its ability to deliver its target dividend yield to its investors.

BPCR : Impressive dividend bookends solid year for BioPharma Credit

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