STATEMENT RE LUMIRADX
01/08/2024 07:00
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RNS Number : 6872Y BioPharma Credit PLC 01 August 2024
31 July 2024
BIOPHARMA CREDIT PLC
(THE "COMPANY")
STATEMENT RE LUMIRADX
Initial Payment of USD$165.3 million Received
Pharmakon Advisors, LP, the investment manager of the Company ("Pharmakon"),
is pleased to announce that, further to the Company's statement dated 29 July
2024, FTI Consulting LLP (the "Administrators") has made an initial payment to
the senior secured lenders of USD$330.6 million, of which USD$165.3 million
was received by the Company.
Assuming Roche releases 100% of the holdback amount, and estimated total
expenses of USD$10.0 million, the Company is expected to receive an
additional payment of approximately USD$5.3 million within 90 days, assuming
no delays for disputes. With the addition of cash interest received from the
borrower to date, this equates to an approximate 96% recovery rate of invested
capital. Additionally, in due course the Company is expected to receive its
share ownership of LumiraDx's Colombian subsidiary which the Company will seek
to sell.
Pedro Gonzalez de Cosio, CEO of Pharmakon Advisors, LP, the Company's
investment manager, commented: "While we are not pleased with the ultimate
outcome of this transaction, we are thankful to the Administrators, other
service providers and the senior managers of LumiraDX who remained and helped
to guide LumiraDx during this difficult process and were instrumental in
maximizing the recovery in this investment."
Harry Hyman, Chairman of the Board of BioPharma Credit PLC, commented: "On
behalf of the Board I would like to recognize the hard work and diligence
demonstrated by the investment manager and other advisors during this process.
While the outcome was disappointing, the substantial amount recovered through
the management of the collateral helps validate the Company's investment
thesis on the value of unique, patent-protected healthcare assets."
Enquiries
Burson 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. BioPharma Credit
PLC seeks to provide long-term shareholder returns, principally in the form
of sustainable income distributions from exposure to the life sciences
industry. BioPharma Credit PLC 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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