REG - BioPharma Credit PLC - NEW INVESTMENT OF UP TO US$100 MILLION

Biopharma CreditAnnouncement

24/04/2024 07:00

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RNS Number : 7705L  BioPharma Credit PLC  24 April 2024

24 April 2024

 

BIOPHARMA CREDIT PLC

(THE "COMPANY")

NEW INVESTMENT OF UP TO US$100 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 Tarsus Pharmaceuticals,
Inc. ("Tarsus"). The Company will invest up to US$100 million and
BioPharma-V will invest up to an additional US$100 million in parallel, with
the Company acting as collateral agent.

Based in the US, Tarsus is a publicly traded biopharmaceutical company with
a current market capitalization of ~US$1.2 billion (Ticker: TARS -
NASDAQ). Tarsus currently markets XDEMVY® (lotilaner ophthalmic solution), a
treatment for Demodex blepharitis. XDEMVY® was approved in the US in July
2023 and generated net sales of US$14.7 million during 2023, of which $13.1
million were generated in the fourth quarter of 2023. Tarsus is also
developing TP-03 as an investigational therapy for the treatment of Meibomian
Gland Disease, TP-04 for the treatment of rosacea and TP-05 as an oral tablet
for the prevention of Lyme disease, all of which are in Phase 2.

Under the terms of the transaction, the Company will invest up to US$100
million across four tranches:

·      Tranche A of US$37.5 million was drawn on 19 April 2024;

·      Tranche B of US$12.5 million will be available to be drawn at the
election of Tarsus until 31 December 2024;

·      Tranche C of US$25 million will be available upon achievement of
certain revenue thresholds until 30 June 2025;

·      Tranche D of US$25 million will be available upon achievement of
certain revenue thresholds until 31 December 2025.

The loan will mature in April 2029 and will bear interest at 3-month SOFR
plus 6.75 per cent. per annum subject to a 3.75 per cent. SOFR floor.

Pedro Gonzalez de Cosio, CEO of Pharmakon Advisors, LP, the Company's
investment adviser said:

"The Tarsus team is driving extraordinary success with the launch of XDEMVY®,
and we are excited to support the company and management team as they continue
growing to profitability and develop additional indications for lotilaner."

Enquiries

Buchanan

David Rydell / Mark Court / Jamie Hooper / Henry Wilson

+44 (0) 20 7466 5000

biopharmacredit@buchanan.uk.com (mailto: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.

 

 

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