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

 

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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