Biopharma1 Jun 2017 12:41
BioPharma Credit PLC on Wednesday said it is planning an initial public offering on the London Stock Exchange, with the aim of raising at least USD300 million.
The closed-ended investment company will look to be admitted to trading on London's Specialist Fund segment on the Main Market, with admission expected on March 27.
It will be managed by Pharmakon Advisors LP.
BioPharma will invest in debt in the life sciences industry, and is targeting a dividend yield of 7% once it is substantially invested, and a net total return on net asset value of 8% to 9% per year in the medium term.
Cash proceeds from the IPO, together with future cash flows from seed assets, will be invested in line with its investment policy.
"This investment trust will give investors access to debt investments tied to the fast growing life sciences industry, offering predictable cash flows over a sustained period of time. Investors will benefit from the unrivalled skills and services of Pharmakon, established in 2009, and Royalty Pharma, founded in 1996, leaders in the field of investing in debt and royalties tied to life sciences products," said Chairman Jeremy Sillem in a statement.
"Since its inception in 2009, Pharmakon has invested over USD1.3 billion in debt tied to the life sciences industry. Building upon this track record, we are excited to offer access to this strategy to a broader set of investors, and allow public market investors access to the benefits of our strong network and in-depth knowledge of the sector," said Chief Executive Officer of Royalty Pharma and Co-Founder of Pharmakon Pablo Legorreta in a statement.
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