Biopharma Cred. Regulatory News (BPCR)

9 NOVEMBER 2020 

BioPharma Credit plc

(the "Company")

ADDITIONAL INVESTMENT IN EPIZYME  

BioPharma Credit PLC (the "Company"), 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 an amended and restated loan agreement with Epizyme, Inc ("Epizyme") dated 3 November 2020. As part of this amendment, the Company will invest an additional US$75 million in the Epizyme loan.

Under the original terms of the loan agreement, executed in November 2019, Epizyme borrowed US$70 million in three tranches and the Company previously invested US$35 million with BioPharma-V investing the US$35 million balance. The original US$70 million loan will mature in November 2024 and bears interest at LIBOR plus 7.75 per cent. per annum along with a one-time additional consideration of 2.00 per cent. of the total loan amount. In addition, the facility was expandable by up to US$300 million, subject to mutual agreement between the Lenders and Epizyme after approval of tazemetostat for the treatment of follicular lymphoma. On 23 January 2020, TAZVERIK® was granted accelerated approval from the U.S. Food and Drug Administration (FDA) for the treatment of patients with epithelioid sarcoma and on 18 June 2020 TAZVERIK received accelerated approval from the FDA for the treatment of patients with relapsed/refractory follicular lymphoma.

The amendment increases the aggregate principal amount of the loan to Epizyme to US$220 million through a US$150 million fourth tranche ("Tranche D"), which the parties expect to be drawn in full on 18 November 2020. The Company will invest US$75 million of the US$150 million Tranche D and BioPharma-V will invest the US$75 million balance. Tranche D will have the same fees and coupon as the earlier tranches, will be secured by the same collateral as the earlier tranches, and will mature in November 2026 after eight equal amortization payments beginning in February 2025. As part of the amendment, the amortization terms of the initial US$70 million advanced in the first three tranches were changed from eight equal quarterly payments starting in February 2023 to four equal quarterly payments starting in February 2024. Following the expected Tranche D closing, the facility will remain expandable by up to an additional US$150 million, subject to mutual agreement between the Lenders and Epizyme. 

"We are delighted to expand our partnership with Epizyme", said Pedro Gonzalez de Cosio, CEO of Pharmakon Advisors, LP. "TAZVERIK is now approved to meet the well-defined unmet patient needs in two very different indications (a solid tumor and a hematologic malignancy), demonstrating its broad therapeutic potential."

Further to the 4 November 2019 announcement of the original loan agreement, Royalty Pharma continues to hold approximately 9.1% of the issued share capital of Epizyme and Pablo Legorreta, a principal of Pharmakon and Royalty Pharma, continues to be a member of Epizyme's board of directors.

Enquiries

BioPharma Credit plc

via Link Company Matters Limited

Company Secretary

+44 (0)1392 477 500

Buchanan

+44 (0)20 7466 5000 / biopharmacredit@buchanan.uk.com

David Rydell

Mark Court

Jamie Hooper

Henry Wilson

Notes to Editors:

BioPharma Credit PLC is London's only listed specialist investor in debt from the life sciences industry and joined the LSE on 27 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.