Biopharma Cred. Regulatory News (BPCR)

27 September 2023

BIOPHARMA CREDIT PLC

(THE "COMPANY")

HALF YEAR REPORT FOR THE PERIOD ENDED 30 JUNE 2023

FLOATING RATES RISE TO 98% OF LOAN PORTFOLIO; INVESTMENT RETURNS INCREASE

BioPharma Credit PLC (LSE: BPCR), the specialist life sciences debt investor, is pleased to present the Half Yearly Report of the Company for the period ended 30 June 2023.

The full Half-Yearly Report and Financial Statements can be accessed via the Company's website at www.bpcruk.com or by contacting the Company Secretary by telephone on +44 (0) 333 300 1950

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INVESTMENT HIGHLIGHTS

· Over the first six months of 2023, the Company and its subsidiaries invested $195 million comprising three investments, further increasing portfolio diversification:

o  $37.5 million for the loan to ImmunoGen announced on 11 April 2023

o  $120 million for the loan to BioCryst announced on 19 April 2023

o  $37.5 million for the loan to Reata announced on 11 May 2023

· The Company also received increased liquidity from amortisation payments from the Akebia and Collegium loans and the BMS purchased payments

· Post period-end deployment of an additional $41 million further reduced the effect of cash drag

· At period end the Company had $154 million in cash and $67 million available to draw under its credit facility

· LumiraDx one of the Company's investees, is currently considering strategic alternatives

o  The Company's investment manager is actively engaged with the board of directors and management of LumiraDx and looks forward to updating investors on developments as they occur

· On 26 September 2023, Biogen closed on its acquisition of Reata and Reata paid $62.5 million to the Company and the Company also received $15.6 million in prepayment and make whole fees

· The Company's investment manager continues to develop a pipeline of additional potential investments to further diversify the portfolio

FINANCIAL HIGHLIGHTS

· The percentage of floating rate senior secured loans within the portfolio further increased to 98% from 81%, having a significant positive impact on the Company's earnings as well as offering protection in a rising rate environment

· Investment returns increased to $79 million during the first six months of 2023 compared with $76 million during the same period in 2022

· The Company made two dividend payments over the period totalling $0.0508 per share, referencing net income for the quarters ending 31 December 2022 and 31 March 2023

o  The Company is currently paying and continues to target a 7-cent annual dividend per share

SUMMARY

as at 30 June 2023

PORTFOLIO COMPOSITION

* Cash and cash equivalents include balances at the Company and BPCR Limited Partnership.

Pedro Gonzalez de Cosio, CEO and co-founder of Pharmakon Advisors, LP, the Investment Manager of BioPharma Credit PLC, said:

"We are pleased with another highly active period for the Company and its portfolio with a further $195 million deployed in three new investments during the six months under review.

"Further, we are encouraged to see the Company's earnings profile continue to rise in line with both strong investment activity and the very high allocation of the Company's loan portfolio to floating rate investments, currently 98%. In addition, the announcement from Biogen to acquire Reata resulted in a highly attractive IRR for the Company's initial investment that will enhance the available capital for distribution in the second half of the year. While LumiraDx has faced liquidity issues, the Company is currently considering strategic alternatives and we look forward to providing investors with updates as they occur.

"We expect our investment pipeline to grow as new products enter the market during the second half of 2023 and we are continuing to develop an attractive pipeline to further diversify our portfolio. We remain focused on our mission of creating the premier dedicated provider of debt capital to the life sciences industry while generating attractive returns and sustainable income to investors and remain confident of our ability to deliver the Company's dividend target to investors."

Results presentation

As announced on 31 August 2023, a management presentation for sell side analysts will be held via a webcast call facility at 2pm BST today. To request details or to register to attend please RSVP biopharmacredit@buchanan.uk.com.

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 in 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.

CHAIRMAN'S STATEMENT

DURING THE FIRST HALF OF 2023, THE COMPANY ANNOUNCED THREE NEW TRANSACTIONS TOTALING $380 MILLION IN FRESH COMMITMENTS

INTRODUCTION

I am pleased to present the half yearly report for the Company, which covers the period 1 January 2023 to 30 June 2023. The Company continues to offer investors exposure to an attractive and diversified

portfolio of secured loans. Consistent with challenges seen across the market, the Company's shares have traded at a discount to NAV through the period. The Company has therefore continued the buyback programme to demonstrate support for the NAV and provide confidence to the market. The Company will continue to execute buy backs at appropriate prices subject to closed periods.

INVESTMENTS

Over the first six months of 2023, the Company and its subsidiaries invested $195 million, comprised of $37.5 million for the ImmunoGen loan, $120 million for the BioCryst loan and $37.5 million for the Reata loan. The portfolio diversification increased during 2022 and into 2023.

The Company, including assets and liabilities from its financing subsidiary, BPCR Limited Partnership, ended the period with total net assets of $1,328 million, comprising $1,178 million of investments, $154 million of cash and $4 million of other net liabilities. The Company and its subsidiaries saw $65 million increased liquidity from the amortisation payments of the Akebia and Collegium loans and the BMS purchased payments. The post balance sheet deployment of $41 million has further reduced any negative impact of cash drag.

As further described in Pharmakon Advisors, LP's ("Pharmakon" or the "Investment Manager") section of this report, the loans in the portfolio remain current. LumiraDx, one of the Company's borrowers has been facing liquidity issues and is currently considering strategic alternatives. The Investment Manager is actively engaged with the board of directors and management of LumiraDx and will continue to update investors on developments as they occur.

SHAREHOLDER RETURNS

The Company reported net income on ordinary activities after finance costs and before taxation for the first half of 2023 of $71 million, up from the $68 million reported during the first half of 2022. On 30 June

2023, the Company's Ordinary Shares closed at $0.8960, below the closing price on 31 December 2022 of $0.9500. Net Asset Value ("NAV") per Ordinary Share increased over the same timeframe by

$0.0039 from $1.0139 to $1.0178.

The Company made two dividend payments over the period totaling $0.0508 per share, referencing net income for the quarters ending 31 December 2022 and 31 March 2023. The Company is currently paying and continues to target a 7 cent annual dividend per share.

INVESTMENT VALUATIONS

The valuation of the Company's investments is performed by the Investment Manager. Investments with quoted prices in active markets or external market data are verified with independent sources. The valuation principles of the Company's unlisted secured loans are valued based on a discounted cash flow methodology. A fair value for each loan is calculated by applying a discount rate to the cash flows expected to arise from each loan. Further details on the valuation methodology are given in note 7 to the financial statements.

ESG

The Board has supported the Investment Manager's Environmental, Social and Governance ("ESG") programme over the first six months of 2023, with progress made in embedding ESG as an integral part of the investment process. The key areas are described in more detail on page 16 of the full Half-yearly Report.

OUTLOOK

The Company started 2023 strongly having announced three transactions that represent $380 in commitments. 98 per cent. of the Company's investment loan balance consists of floating interest rates

enabling the Company's strategy to remain attractive in the new interest rate environment. The Company had $154 million in cash and $67 million available to draw under its credit facility with JPMorgan Chase Bank to make new investments at 30 June 2023. The Investment Manager continues to develop a pipeline of additional potential investments and, as a consequence, we are currently evaluating a number of potential alternatives to fund future growth and further diversify our portfolio. On behalf of the Board, I should like to express our thanks to Pharmakon for their continued achievements on behalf of the Company in 2023 and to our shareholders for their continued support.

Harry Hyman

Chairman

26 September 2023

INVESTMENT MANAGER'S REPORT

Pharmakon is pleased to present an update on the Company's portfolio and investment outlook. Pharmakon's engagement with potential counterparties during the first six months of the year resulted in $380 million of new transactions for the Company. The majority of the Company's portfolio continues to perform well. LumiraDx, one of the Company's borrowers, has been facing liquidity issues and is currently considering strategic alternatives. The Investment Manager is actively engaged with the board of directors and management of LumiraDx and will continue to update investors on developments as they occur.

The proportion of floating rate loans in the portfolio, together with an increase in the interest free rate, leads to investment returns increasing by 4 per cent. During the first six months of 2023 compared to the same period in 2022. There were no prepayments during the period.

Below is an update on the Company and its subsidiaries portfolio.

Reata

On 5 May 2023, the Company and a Private Fund also managed by the Investment Manager (the "Private Fund"), entered into a definitive senior secured term loan agreement for up to $275 million with Reata Pharmaceuticals Inc. ("Reata") maturing in May 2028. Tranche A of $75 million was funded at closing. Tranche B of $50 million and Tranche C of $75 million will be drawn after achieving certain performance-based milestones, and Tranche D of $75 million will be available at the Company's discretion after achieving certain sales-based milestones. The loan has a coupon of 3-month secured overnight financing rate ("SOFR"), plus 7.5 per cent. (subject to a 2.5 per cent. floor).

There is also a 2.0 per cent. upfront fee upon each draw. The interest only period for the loan is for 3 years but can be extended to 4 years if trailing twelve month sales are greater than $250 million. The Company's share of the transaction is $137.5 million, of which $37.5 million was funded at closing. Reata is a biopharmaceutical company focused on identifying, developing, and commercializing small-molecule therapeutics with novel mechanisms of action for the treatment of severe, life-threatening diseases with few or no approved therapies. Their lead program is omaveloxolone in a rare neurological disease called Friedreich's Ataxia (FA) which activates the transcription factor Nrf2 to normalize mitochondrial function, restore redox balance, and resolve inflammation. Reata's key product Skyclarys was approved in the US on 28 February 2023, and is indicated for the treatment of Freidreich's Ataxia in adults and adolescents 16 years and older. On 10 July 2023, the Company funded Tranche B of the Reata loan for $25,000,000.

On 28 July 2023, Inc. ("Biogen") Biogen announced a definitive agreement pursuant to which Biogen will acquire Reata for an enterprise value of approximately $7.3 billion. Biogen and Reata currently anticipate that the Transaction will close in the fourth quarter of 2023. If the Transaction were to close on 29 September 2023, the Company would be expected to receive approximately $15.5 million in prepayment and make-whole fees.

BioCryst

On 17 April 2023, the Company along with the Private Fund entered into a definitive senior secured term loan agreement for up to $450 million with BioCryst Pharmaceuticals Inc. ("BioCryst") maturing in April 2028. Tranche A of $300 million was drawn at closing. The remaining three tranches of up to $50 million each will be available through 30 September 2024. The loan has a coupon of 3-month SOFR plus 7.0 per cent. (subject to a 1.75 per cent. floor) and up to 50 per cent. of the interest during the first 18 months may be paid-in-kind (PIK) at a rate of 3-month SOFR plus 7.25 per cent. There is also a 1.75 per cent. upfront fee on the loan.

The Company's share of the transaction is $180 million, of which $120 million was funded at closing. BioCryst has elected the option to accrue 50 per cent. of their interest due from closing through 30 June

2023 as a payment-in-kind as allowed in the loan agreement. BioCryst is a global biopharmaceutical company that discovers and commercializes novel, oral, small- molecule medicines. BioCryst's commercial product, Orladeyo, is indicated for prophylaxis to prevent attacks of hereditary angioedema (HAE) in adults and pediatric patients 12 years and older. BioCryst also has one pipeline product for BCX10013, a factor D inhibitor being studied in atypical hemolytic uremic syndrome (aHUS), IgA nephropathy (IgAN), and complement 3 glomerulopathy(C3G). BioCryst's key product Orladeyo was

approved in the US on 3 December 2020, and is indicated for prophylaxis to prevent attacks of hereditary angioedema (HAE) in adults and pediatric patients 12 years and older. The product was subsequently approved in Japan on 22 January 2021, and the European Union on 30 April 2021.

ImmunoGen

On 6 April 2023, the Company along with the Private Fund entered into a definitive senior secured loan agreement with ImmunoGen, Inc. ("ImmunoGen") for up to $125 million. The loan will mature in April 2028 and bears interest at SOFR plus 8.0 per cent. (subject to a 2.75 per cent. floor), with an additional consideration of 2.0 per cent. of the total loan amount.

The Company committed to invest up to $62.5 million (Tranche A - $37.5 million; Tranche B - $25.0 million by 31 March 2024) and funded its allocation of Tranche A of $37.5 million on 6 April 2023. ImmunoGen is a commercial-stage biotechnology company focused on developing and commercializing the next generation of antibody-drug conjugates (ADCs) to improve outcomes for cancer patients. ImmunoGen's commercial product, Elahere, is indicated for the treatment of FRa positive, platinum-resistant ovarian cancer and is currently being commercialized in the US. ImmunoGen is also developing pivekimab sunirine for the treatment of blastic plasmacytoid dendritic cell neoplasm (BPDCN) and acute myeloid leukemia (AML).

Immunocore

On 8 November 2022, the Company along with the Private Fund entered into a definitive senior secured loan agreement for up to $100 million with Immunocore Limited (Nasdaq: IMCR), a biopharmaceutical company focused on developing a novel class of TCR bispecific immunotherapies designed to treat a broad range of diseases, including cancer, infectious and autoimmune diseases ("Immunocore").

The Company and its subsidiaries funded $25 million of the first tranche of $50 million on 8 November 2022. The remaining $50 million may be drawn by 30 June 2024. The Company's share of the final tranche is $25 million. Tranche A will mature in November 2028 and bears interest at 9.75 per cent. per annum along with an additional consideration of 2.50 per cent. paid at funding.

Tranche B if drawn, will mature in November 2028 and will bear interest at 3-month SOFR plus 8.75 per cent. per annum subject to a 1.00 per cent. floor along with an additional consideration of 2.50 per cent.

Insmed

On 19 October 2022, the Company and the Private Fund entered into a definitive senior secured loan agreement for $350 million with Insmed Incorporated (Nasdaq: INSM), a biopharmaceutical

company focused on treating patients with serious and rare diseases ("Insmed").

The Company and its subsidiaries funded $140 million of the $350 million loan on 19 October 2022. Insmed has elected the option to accrue 50 per cent. of their interest due from closing through 30 June 2023 as a payment-in-kind as allowed in the loan agreement. The loan will mature in October 2027 and bears interest at a rate based upon the 3-month SOFR, plus 7.75 per cent. per annum subject to a SOFR floor of 2.50 per cent. with a one-time additional consideration of 2.00 per cent. of the total loan amount paid at funding.

Collegium 2022

On 14 February 2022, the Company along with the Private Fund provided Collegium Pharmaceuticals, Inc. (Nasdaq: COLL), a biopharmaceutical company focused on developing and commercialising new medicines for responsible pain management ("Collegium"), with a commitment to enter into a new senior secured term loan agreement for $650 million. On 22 March 2022, proceeds from the new loan were used to fund Collegium's acquisition of BDSI as

well as repay the outstanding debt of Collegium and BDSI. At closing, the Company and its subsidiaries invested $325 million in a single drawing.

The four-year loan will have $100 million in amortisation payments during the first year and the remaining $550 million balance will amortize in equal quarterly installments. The loan will mature in March 2026 and bears interest at 3-month LIBOR plus 7.50 per cent. per annum subject to a 1.20 per cent. floor along with a one-time additional consideration of 2.00 per cent. of the loan amount paid upon signing and a one-time additional consideration of 1.00 per cent. of the loan amount paid at funding. On 23 June 2023, the Company and the Private Fund entered into an amendment which modified the loan interest rate to 3-month SOFR plus 7.50 per cent. Collegium currently markets Xtampza ER, an abuse-deterrent, extended-release, oral formulation of oxycodone and Nucynta(tapentadol), a centrally acting synthetic analgesic.

UroGen

On 7 March 2022, the Company and the Private Fund entered into a definitive senior secured loan agreement for up to $100 million with UroGen Pharma, Inc. (Nasdaq: URGN), a biopharmaceutical company dedicated to creating novel solutions that treat urothelial and specialty cancers ("UroGen"). UroGen drew down $75 million at closing and the remaining $25

million on 16 December 2022.

The Company and its subsidiaries funded $50 million across the two tranches. The loan will mature in March 2027 and bears interest at 3-month LIBOR plus 8.25 per cent. per annum subject to a 1.25 per cent. floor along with a one-time additional consideration of 1.75 per cent. of the total loan amount paid at funding of the first tranche. On 29 June 2023, the Company and the Private Fund entered into an amendment which modified the loan interest rate to 3-month SOFR plus 8.25 per cent. UroGen markets JELMYTO (mitomycin), a prescription medicine used to treat adults with a type of cancer of the lining of the upper urinary tract including the kidney called low- grade Upper Tract Urothelial Cancer (LG- UTUC).

Coherus

On 5 January 2022, the Company and the Private Fund entered into a definitive senior secured loan agreement for up to $300 million with Coherus BioSciences, Inc. (Nasdaq: CHRS), a biopharmaceutical company building a leading immunooncology franchise funded with cash generated by its commercial biosimilars business ("Coherus"). Coherus drew down $100 million at closing, another $100 million on 31 March 2022, and an additional $50 million on 14 September 2022. The remaining $50 million commitment lapsed so there are no additional funding commitments.

The Company and its subsidiaries funded $125 million across the first three tranches. The loan will mature in January 2027 and bears interest at 3-month LIBOR plus 8.25 per cent. per annum subject to a 1.00 per cent. floor along with a one-time additional consideration of 2.00 per cent. of the total

loan amount paid at funding of the first tranche. On 6 February 2023, the Coherus loan was amended to allow for a short term waiver to the sales covenant, as well switching the LIBOR component of the loan coupon to SOFR. Coherus markets UDENYCA® (pegfilgrastimcbqv), a biosimilar of Neulasta

in the United States, and expects to launch the FDA-approved Humira biosimilar YUSIMRY (adalimumab-aqvh) in the United States in 2023.

Evolus

On 14 December 2021, the Company and the Private Fund entered into a definitive senior secured loan agreement for up to $125 million with Evolus, Inc. (Nasdaq: EOLS), a biopharmaceutical company that develops, produces, and markets clinical neurotoxins for aesthetic treatments ("Evolus"). The Company and its subsidiaries funded $37.5 million of the first tranche of $75 million on 29 December 2021. The remaining $50 million may be drawn by 31 December 2023.

The Company's share of the final tranche is $25 million. The loan will mature in December 2027 and bears interest at 3-month LIBOR plus 8.50 per cent. per annum subject to a 1.00 per cent. floor along with a one-time additional consideration of 2.25 per cent. of the total loan amount paid at funding of the first tranche. On 5 December 2022, the Evolus loan was amended to extend the draw down date for Tranche B in exchange for a $500,000 amendment fee, of which 50 per cent. was allocated to the Company. On 9 May 2023, the Company and the Private Fund entered into an amendment which modified the loan interest rate to 3-month SOFR plus 8.50 per cent and the Tranche B closing. The Company completed the funding of $12.5 million to Evolus on 31 May 2023. Evolus will borrow the remaining fifty percent of Tranche B on 15 December 2023. Evolus currently markets Jeuveau (prabotulinumtoxinA-xvfs), the first and only neurotoxin dedicated exclusively to aesthetics.

LumiraDx

On 23 March 2021, the Company and the Private Fund entered into a definitive senior secured loan agreement for $300 million with LumiraDx Investment Limited and LumiraDx Group Limited (collectively "LumiraDx"). The Company and its subsidiaries funded $150 million of the $300 million loan on 29 March 2021. The loan is due to mature in March 2024 and bears interest at 8.00 per cent. per annum along with an additional consideration of 2.50 per cent. of the loan amount paid at funding and an additional 1.50 per cent. of the loan payable at maturity. On 28 September 2021, LumiraDx became public via a SPAC transaction with CA Healthcare Acquisition Corp. and began trading on NASDAQ under the ticker LMDX.

The Company and the Private Fund both received 742,924 warrants exercisable into common stock of LumiraDx under the terms of the transaction. On 28 March 2022, the LumiraDx loan was amended to allow LumiraDx to enter into a royalty agreement with certain investors to raise up to an aggregate amount of $50 million. On 17 June 2022, the LumiraDx loan was amended to provide LumiraDx with certain waivers in exchange for increasing the fee payable at maturity from 1.50 to 3.00 per cent. of the loan. On 25 July 2022, LumiraDx raised $100 million in a follow-on offering at a price of $1.75. As part of the financing, Pharmakon re-tiered its sales covenants, received a facility fee, and was issued new five-year warrants with the original warrants being cancelled. On 22 February 2023, the LumiraDx loan was amended to provide LumiraDx with certain waivers in exchange for increasing the fee payable at maturity from 3.00 to 9.00 per cent. of the loan. On 1 March 2023, the LumiraDx loan was amended to allow for conforming updates to the loan agreement. On 7 June 2023, the LumiraDx loan was amended to provide for, among other things, revisions to the minimum net sales and the minimum liquidity covenants in the loan agreement. In exchange LumiraDx has agreed to, among other things, pay additional payment-in-kind interest with respect to amounts outstanding under the Loan Agreement in an amount equal to three month term SOFR. On 30 June 2023, the LumiraDx loan was amended to extend the time that LumiraDx has to comply with certain minimum net sales and minimum liquidity covenants in the Loan Agreement until 17 July 2023. LumiraDx is a UK based, next-generation Point of Care ("POC"), diagnostic company addressing the current limitations of legacy POC systems by bringing performance comparable to a central lab to the POC in minutes, on a single instrument for a broad menu of tests with a low cost of ownership. To date, LumiraDx has developed and launched twelve diagnostic tests for use with its platform, three of which have been approved in the United States under an Emergency Use Authorization and in the European Union under a Conformite Europeenne mark: a SARS-CoV-2 ("COVID-19") antigen test, a COVID-19 antibody test, and a COVID-19 surveillance test. The nine other tests are currently approved only in the European Union under a Conformite Europeenne mark. LumiraDx has also used its technology to develop two rapid COVID-19 reagent testing kits for use on open molecular systems, LumiraDx SARS-CoV-2 RNA STAR and SARS-CoV-2 RNA STAR Complete, both of which obtained Emergency Use Authorization by the FDA.

Akebia

On 11 November 2019, the Company and the Private Fund entered into a definitive senior secured term loan agreement for up to $100 million with Akebia Therapeutics, Inc. (Nasdaq: AKBA), a fully integrated biopharmaceutical company focused on the development and commercialisation of therapeutics for people living with kidney disease ("Akebia"). Akebia drew down $80 million at closing and an additional $20 million on 10 December 2020.

The Company and its subsidiaries funded $50 million across both tranches. The loan will mature in November 2024 and bears interest at LIBOR plus 7.5 per cent. per annum along with a one-time additional consideration of 2 per cent. of the total loan amount paid at funding. The Akebia loan began amortising in September 2022. On 18 February 2022, the Akebia loan was amended to provide Akebia certain waivers. On 15 July 2022, the Akebia loan was amended to provide Akebia with certain waivers. As a result of this amendment on 15 July 2022, Akebia made a $25 million pre-payment, of which $12.5 million went to the Company, as well as a 2 per cent. prepayment fee. On 30 June 2023, the Company and the Private Fund entered into an amendment which modified the loan interest rate to 3-month SOFR plus 7.50 per cent. The Company's outstanding balance as of 30 June 2023 is $21.5 million. Akebia currently markets Auryxia® (ferric citrate) which is approved in the US for hyperphosphatemia (elevated phosphorus levels in blood serum) in adult patients with chronic kidney disease ("CKD") on dialysis and iron deficiency anaemia in adult patients with CKD not on dialysis.

OptiNose

On 12 September 2019, the Company and the Private Fund entered into a definitive senior secured note purchase agreement for the issuance and sale of senior secured notes in an aggregate original principal amount of up to $150 million by OptiNose US, Inc. a wholly owned subsidiary of OptiNose Inc. Nasdaq: OPTN), a commercial stage specialty pharmaceutical company ("OptiNose"). OptiNose drew a total of $130 million in three tranches: $80 million on 12 September 2019, $30 million on 13 February 2020 and $20 million on 1 December 2020. There are no additional funding commitments.

The Company and its subsidiaries funded a total $72 million across all tranches. The notes mature in September 2024 and bore interest at 10.75 per cent. per annum along with a one-time additional consideration of 0.75 per cent. of the aggregate original principal amount of senior secured notes which the Company was committed to purchase under the facility and 445,696 warrants exercisable into common stock of OptiNose at a strike price of $6.72 In prior years, there were two amendments to the OptiNose note purchase agreement, resulting in re-tiered sales covenants, permission for an equity issuance, amended amortisation and make-whole provisions, and the issuance of new three-year warrants, with the original warrants being canceled. On 10 August 2022, the OptiNose note and purchase agreement were amended resulting in re-tiered sales covenants in exchange for an amendment fee of $780,000, payable upon repayment, of which the Company will be allocated $429,000. On 9 November 2022, OptiNose negotiated certain waivers in exchange for a waiver fee, of which the Company earned $715,000 of the total $1.3 million waiver fee. On 21 November 2022, OptiNose entered into an Amended and Restated Note Purchase Agreement (the "A&R NPA"). As part of the A&R NPA, Pharmakon revised the sales covenants, amended the amortization and make-whole, and modified the loan interest from a fixed rate of 10.75 per cent. to a floating rate equal to 3-month SOFR plus 8.50 per cent., subject to a 2.50 per cent. floor, in exchange for an amendment fee. OptiNose's leading product, XHANCE (fluticasone propionate), is a nasal spray approved by the U.S. Food and Drug Administration (FDA) in September 2017 for the treatment of nasal polyps in patients 18 years or older. XHANCE utilises a novel and proprietary exhalation delivery system to deliver the drug high and deep into the sinuses, targeting areas traditional intranasal sprays are not able to reach.

Bristol-Myers Squibb, Inc.

On 8 December 2017, the Company's wholly-owned subsidiary entered into a purchase, sale and assignment agreement with a wholly-owned subsidiary of Royalty Pharma Investments ("RPI"), an affiliate of the Investment Manager, for the purchase of a 50 per cent. interest in a stream of payments (the "Purchased Payments") acquired by RPI's subsidiary from Bristol-Myers Squibb (NYSE: BMY) through a purchase agreement dated 14 November 2017.

As a result of the arrangements, RPI's subsidiary and the Company's subsidiary are each entitled to the benefit of 50 per cent. of the Purchased Payments under identical economic terms. The Purchased Payments are linked to tiered worldwide sales of Onglyza and Farxiga, diabetes agents marketed by AstraZeneca, and related products. The Company was expected to fund $140 million to $165 million during 2018 and 2019, determined by product sales over that period, and will receive payments from 2020 through 2025. The Purchased Payments are expected to generate attractive risk-adjusted returns in the high single digits per annum. The Company funded all of the Purchased Payments based on sales from 1 January 2018 to 31 December 2019 for a total of $162 million.

REALIZED INVESTMENTS

GBT

On 17 December 2019, the Company and the Private Fund entered into a definitive senior secured term loan agreement for up to $150 million with Global Blood Therapeutics Inc. (Nasdaq: GBT), a biopharmaceutical company focused on innovative treatments that provide hope to underserved patient communities ("GBT"). GBT drew down $75 million at closing and an additional $75 million on 20 November 2020. On 14 December 2021 the loan agreement was amended and restated. The amendment increased the aggregate principal amount of the loan to $250 million through a $100 million third tranche, which was drawn on 22 December 2021. The Company and its subsidiaries funded $133 million across all three tranches. The loan was due to mature in December 2027 and bore interest at three- month LIBOR plus 7.00 per cent. per annum subject to a 2.00 per cent. floor along with a one-time additional consideration of 1.50 per cent. of the total loan amount paid upon funding and an additional 2.00 per cent. payable upon the repayment of the loan. The third tranche also incurred additional consideration of 1.50 per cent. at the time of funding. As a part of the amendment in 2021, the Company and its subsidiaries received a one-time fee equal to 1.25 per cent. of the first two tranches and the three-year make- whole period was reset to December 2021. On 5 October 2022, Pfizer acquired GBT and, as a result, GBT repaid its $250 million senior secured loan. The Company received its $133 million of principal and $43 million in prepayment and make whole fees. The Company and its subsidiaries earned a 27.6 per cent. gross internal rate of return* and a 20.7 per cent net internal rate** of return on its GBT investment.

SAREPTA

On 13 December 2019, the Company and the Private Fund entered into a definitive senior secured term loan agreement for up to $500 million with Sarepta Therapeutics, Inc. (Nasdaq: SRPT), a fully integrated biopharmaceutical company focused on precision genetic medicine ("Sarepta"). On 24 September 2020 the Sarepta loan agreement was amended, and the loan amount was increased to $550 million. Sarepta

drew down the first $250 million tranche at closing and an additional $300 million on 2 November 2020. The Company and its subsidiaries funded $175 million of each tranche for a total investment of $350 million. The first tranche was originally due to mature in December 2023 and the second tranche in December 2024. The loan bore interest at 8.5 per cent. per annum along with a one-time additional consideration of 1.75 per cent. of the first tranche and 2.95 per cent. of the second tranche paid upon funding and an additional 2 per cent. payable upon the repayment of the loan. On 12 September 2022, Sarepta announced the early termination and repayment of its existing senior secured debt with proceeds from the issuance of $1 billion in convertible bonds. On 16 September 2022, Sarepta repaid its $550 million senior secured loan. The Company received its $350 million of principal and $22 million in prepayment, paydown fees, make whole fees, and accrued interest. The Company and its subsidiaries earned a 12.0 per cent. gross internal rate of return* and 9.0 per cent net internal rate of return** on its Sarepta investment.

EPIZYME

On 4 November 2019, the Company and the Private Fund entered into a definitive senior secured term loan agreement for up to $70 million with Epizyme, Inc. (Nasdaq: EPZM), a late-stage biopharmaceutical company developing novel epigenetic therapies for cancer ("Epizyme"). On 3 November 2020 the Epizyme loan agreement was amended, and the loan amount was increased to $220 million. Epizyme drew down $25 million at closing and an additional $195 million during 2020. The Company and its subsidiaries funded a total of $110 million of the Epizyme loan. The loan was originally due to mature in November 2024 and bore interest at LIBOR plus 7.75 per cent. per annum along

with a one-time additional consideration of 2 per cent. of the total loan amount paid upon funding. On 27 June 2022, Ipsen announced a definitive agreement pursuant to which Ipsen would acquire Epizyme. On 12 August 2022, Epizyme repaid its $220 million senior secured loan. The Company received its $110 million of principal and $8 million in prepayment and makewhole fees. The Company and its subsidiaries earned a 15.2 per cent. gross internal rate of return* and 11.4 per cent net internal rate of return** on its Epizyme investment.

COLLEGIUM 2020

On 6 February 2020, the Company and the Private Fund entered into a definitive senior secured term loan agreement for $200 million with Collegium Pharmaceutical, Inc. (NaSsdaq: COLL), a biopharmaceutical company focused on developing and commercialising new medicines for responsible pain management ("Collegium 2020"). The Company and its subsidiaries funded $165 million of the $200 million loan on 13 February 2020. The secured loan began amortising immediately and was due to fully mature in February 2024. The loan bore interest at three-month LIBOR plus 7.50 per cent. per annum subject to a 2.00 per cent. LIBOR floor with a one-time additional consideration of 2.50 per cent. of the loan amount paid upon funding. The loan was repaid in its entirety on 22 March 2022. The Company and its subsidiaries earned a 11.9 per cent. gross internal rate of return* and 8.9 per cent net internal rate of return** on its Collegium 2020 investment.

BIODELIVERY SCIENCES

On 23 May 2019, the Company entered into a senior secured loan agreement for up to $80 million with BioDelivery Sciences International (Nasdaq: BDSI), a commercial-stage specialty pharmaceutical company ("BDSI"). In addition, the Company acquired 5,000,000 BDSI shares at $5.00 each for a total cost of $25 million in a public offering that took place on 11 April 2019. The first tranche of the loan for $60 million was funded on 28 May 2019 and the second $20 million tranche was funded on 22 May 2020. The loan was due to mature in May 2025 and bore interest at LIBOR plus 7.50 per cent., along with 2.00 per cent. additional consideration paid at closing. On 23 September 2021, BDSI made an early prepayment of $20 million, and made its final payment for the remainder of the loan on 22 March 2022. The Company earned a 11.9 per cent. gross internal rate of return* and a 9.0 per cent net internal rate of return** on the BDSI loan. The Company sold 46 per cent of its BDSI shares during 2019 at an average price of $6.50 and received $5.60 per remaining shares on the date of the M&A Transaction. The Company earned a 11.6 per cent. gross internal rate of return* and a 8.7 per cent net internal rate of return** on the BDSI equity investment.

MARKET ANALYSIS The life sciences industry is expected to continue to have substantial capital needs during the coming years as the number of products undergoing clinical trials continues to grow. All else being equal, companies seeking to raise capital are generally more receptive to straight debt financing alternatives at times when equity markets are soft, increasing the number and size of fixed-income investment opportunities for the Company, and will be more inclined to issue equity or convertible bonds at times when equity markets are strong. A good indicator of the life sciences equity market is the New York Stock Exchange Biotechnology Index ("BTK Index"). While there was substantial volatility during the period, the BTK Index decreased 1 per cent. during the first six months of 2023, compared to a 16 per cent. decrease during the same period in 2022***. Global equity issuance by life sciences companies during the first six months of 2023 was $22 billion, a 97 per cent. increase from the $11 billion issued during the same period in 2022****. This dynamic contributed to additional deal flow for the Company during the recent period from 4Q 2022 through 2Q 2023, as we deployed $207.5 million across three new investments and an additional tranche of an existing investment. We anticipate a continued slowdown in equity issuance coupled with greater appetite for fixed income as a source of capital during the remainder of 2023.

Acquisition financing is an important driver of capital needs in the life sciences industry in general and a source of investment opportunities. An active M&A market helps drive opportunities for investors such as the Company, as acquiring companies need capital to fund acquisitions. Global life sciences M&A volume during the first six months of 2023 was $34 billion, a 31 per cent. increase from the $26 billion witnessed during the same period in 2022.****

USD LIBOR On 5 March 2021, the Financial Conduct Authority ("FCA"), the regulatory supervisor of USD LIBOR's administrator ("IBA") announced in a public statement the future cessation of the 3-month USD LIBOR tenor setting. As of that date, 30 June 2023, all available tenors of USD LIBOR have either permanently or indefinitely ceased to be provided by IBA. As of 30 June 2023 the benchmark replacement rate is based on Secured Overnight Financing Rate ("SOFR"), and all LIBOR-based interest payments will now be calculated with SOFR beginning on the respective effective date. The Company has eleven loans with coupons that reference 3-month USD SOFR and five have a 2.50 per cent. floor or greater and six have a floor ranging from 1.00 per cent. to 2.00 per cent. As of 30 June 2023, the 3-month SOFR rate was 5.27 per cent, significantly above the floors in the eleven loans.

INVESTMENT OUTLOOK We expect our investment pipeline to grow as new products and companies enter the market during the remainder of 2023. Pharmakon's extensive network and thorough approach will continue to identify strong investment opportunities. We remain focused on our mission of creating the premier dedicated provider of debt capital to the life sciences industry while generating attractive returns and sustainable income to investors. Further, Pharmakon remains confident of our ability to deliver its target dividend yield to its investors.

Pedro Gonzalez de Cosio

Co-founder and CEO, Pharmakon

26 September 2023

* The gross internal rate of return of a particular investment means an aggregate, annual, compounded, as applicable, internal rate of return, calculated on the basis of historical capital inflows and outflows related to a particular investment, without taking into account the impact of management fees, incentive compensation, taxes, or transaction and organizational costs and expenses. Past performance is not an indication of future performance.

** The net internal rate of return of a particular investment is calculated by applying a 25% reduction to the respective gross internal rate of return of a particular investment, which is the average percentage reduction from the gross internal rate of return and net internal rate of return from all previously realized investments from prior closed private funds. The net internal rate of return for realized investments in the prior closed prior funds means an aggregate, annual, compounded, as applicable, internal rate of return, calculated on the basis of realized capital inflows and outflows for such investment, taking into account, the impact of its proportional share of fees and expenses actually paid by its relevant closed private fund. The Investment Manager believes this methodology is the appropriate approach to derive an approximate realized net internal rate of return for realized investments in the Company. Past performance is not an indication of future performance.

*** Source: BTK Index

**** Source: Bloomberg

Below are Case Studies for the new investments that the company has funded during the first six months of the year.

CASE STUDY - ImmunoGen

ImmunoGen is a commercial stage biotechnology company focused on developing and commercializing the next generation of antibody drug candidates ("ADCs") to improve outcome for cancer patients. established a leadership position in ADCs with a portfolio of differentiated product candidates to address both solid tumors and hematologic malignancies.

ImmunoGen's proprietary technology comprises an antibody that binds to a target found on tumor cells and is conjugated to one of ImmunoGen's potent anti-cancer agents to kill the tumor cell once the ADC has bound to its target. ADCs are an expanding class of anticancer therapeutics, with twelve approved products and the number of agents in development growing significantly in recent years. ImmunoGen has established a leadership position in ADCs with a portfolio of differentiated product candidates to address both solid tumors and hematologic malignancies.

On 14 November 2022, Elahere (mirvetuximab soravtansine-gynx) received accelerated approval from the FDA for the treatment of adult patients with FRα positive, platinum-resistant epithelial ovarian, fallopian tube, or primary peritoneal cancer, who have received one to three prior systemic treatment regimens. The product subsequently launched in the US on 1 December 2022. Ovarian cancer affects ~20,000 women annually.

Elahere is a first-in-class ADC targeting folate receptor alpha (FR), a cell-surface protein over-expressed in several epithelial tumors, including ovarian, endometrial, and non-small-cell lung cancers.

ImmunoGen is also developing pivekimab sunirine for the treatment of blastic plasmacytoid dendritic cell neoplasm ("BPDCN") and acute myeloid leukemia ("AML").

CASE STUDY - BIOCRYST

BioCryst is a global biopharmaceutical company that discovers and commercializes novel, oral, small-molecule medicines.

BioCryst focuses on oral treatments for rare diseases in which significant unmet medical needs exist and an enzyme plays the key role in the biological pathway of the disease. BioCryst integrates the disciplines of biology, crystallography, medicinal chemistry and computer modeling to discover and develop small molecule pharmaceuticals through the process known as structure-guided drug design.

BioCryst's commercial product, Orladeyo (berotralstat), is indicated for prophylaxis to prevent attacks of hereditary angioedema ("HAE") in adults and pediatric patients 12 years

and older. HAE is a rare, severely debilitating and potentially fatal genetic condition with a prevalence of between 1 in 33,000 to 1 in 67,000 people.

Orladeyo received US FDA approval on 3 December 2020, and was subsequently approved in Japan on 22 January 2021 and the EU on 30 April 2021.

BioCryst also has one pipeline product in BCX10013, a factor D inhibitor being studied in atypical hemolytic uremic syndrome (aHUS), IgA nephropathy (IgAN), and complement 3 glomerulopathy (C3G).

CASE STUDY - REATA

Reata is a biopharmaceutical company focused on identifying, developing, and commercializing small-molecule therapeutics with novel mechanisms of action for the treatment of severe, life-threatening diseases with few or no approved therapies.

Reata's first commercial product, Skyclarys (omaveloxolone), is indicated for Friedreich's Ataxia ("FA"), a rare neurological disease. Skyclarys activates the transcription factor Nrf2 to normalize mitochondrial function, restore redox balance, and resolve inflammation.

FA is an inherited, debilitating, and degenerative neuromuscular disorder that is typically diagnosed during adolescence and can ultimately lead to premature death. Patients with FA experience progressive loss of coordination, muscle weakness, and fatigue, which commonly progresses to motor incapacitation, wheelchair reliance, and eventually death. FA affects approximately 6,000 patients in the United States and 22,000 individuals globally.

Skyclarys received US FDA approval on 28 February 2023 and is indicated for the treatment of Friedreich's Ataxia in adults and adolescents 16 years and older.

Reata also has submitted a Marketing Authorization Application for omaveloxolone for the treatment of FA to the EMA in Europe and the application is under review. Reata is also developing cemdomespib, the lead product candidate from the Company's Hsp90 modulator program, in neurological indications.

PHARMAKON ADVISORS' ESG POLICY

Pharmakon Advisors' ESG Policy can be found set out on pages 16 to 19 of the full Half-Yearly report.

STATEMENT OF DIRECTORS' RESPONSIBILITIES

INTERIM MANAGEMENT REPORT

The important events that have occurred during the period under review, the key factors influencing the financial statements and the principal factors that could impact the remaining six months of the financial year are set out in the Chairman's Statement and the Investment Manager's report above.

The Directors and the Investment Manager have considered the adverse impact of potential changes in law, regulation and taxation and the matter of foreign exchange risk.

The Directors have considered the principal risks facing the Company and there have not been any material changes to the principal risks and uncertainties and approach to mitigating these risks since the publication of the Annual Report and Financial Statements for the year ended 31 December 2022, and expect that, for the remainder of the year ending 31 December 2023, these will continue to be as set out on pages 26 to 32 of that report.

Risks faced by the Company include, but are not limited to:

• Failure to achieve target returns;

• The success of the Company depends on the ability and expertise of the Investment Manager;

• The Company may from time to time commit to make future investments that exceed the Company's current liquidity;

• The Investment Manager's ability to source and advise appropriately on investments;

• There can be no assurance that the Board will be able to find a replacement investment manager if the Investment Manager resigns;

• Concentration in the Company's portfolio may affect the Company's ability to achieve its investment objective;

• Life sciences products are subject to intense competition and various other risks;

• Investments in debt obligations are subject to credit and interest rate risks;

• Risk that a counterparty is unable to honour its obligation to the Company;

• Sales of life sciences products are subject to regulatory actions that could harm the Company's ability to make distributions to investors;

• Net asset values published will be estimates only and may differ materially from actual results;

• Changes in taxation legislation or practice may adversely affect the Company and the tax treatment for shareholders investing in the Company;

• Global pandemics may affect the operation and performance of the Company; and

• Changes to accounting regulation may require the Company to make a change in accounting policy that could have a material impact on its reported results including its net asset value, net income and distributable reserves.

GOING CONCERN

The financial statements continue to be prepared on a going concern basis. The Directors have reviewed areas of potential financial risk and cash flow forecasts.

No material uncertainties have been detected which would influence the Company's ability to continue as a going concern for at least 12 months from the date of this report. Accordingly, the Board of directors continue to adopt the going concern basis in preparing the financial statements. The important events that have occurred during the period under review, the key factors influencing the financial statements and the principal factors that could impact the remaining six months of the financial year are set out in the Chairman's statement and the Investment Manager's report above.

DIRECTORS' RESPONSIBILITY STATEMENT

The Directors confirm that to the best of their knowledge:

• this set of condensed financial statements has been prepared in accordance with UK adopted International Accounting Standard ("IAS") 34, 'Interim Financial Reporting', and gives a true and fair view of the assets, liabilities, financial position and profit of the Company; and

• this Half-Yearly Report includes a fair review of the information required by:

(a) DTR 4.2.7R of the Disclosure Guidance and Transparency Rules, being an indication of important events that have occurred during the first six months of the financial year and their impact on the condensed set of financial statements; and a description of the principal risks and uncertainties for the remaining six months of the year; and

(b) DTR 4.2.8R of the Disclosure Guidance and Transparency Rules, being related party transactions that have taken place during the first six months of the financial year and that have materially affected the financial position or performance of the Company during that period; and any changes in the related party transactions that could do so.

This Half-Yearly Report was approved by the Board of Directors on 26 September 2023 and the above responsibility statement was signed on its behalf by Harry Hyman, Chairman.

On behalf of the Board

Harry Hyman

Chairman

26 September 2023

DIRECTORS, ADVISERS AND OTHER SERVICE PROVIDERS

DIRECTORS

Harry Hyman (Chairman)

Duncan Budge

Colin Bond

Stephanie Léouzon

Rolf Soderstrom

Sapna Shah

INVESTMENT MANAGER AND AIFM

Pharmakon Advisors, LP

110 East 59th Street #3300

New York, NY 10022

USA

ADMINISTRATOR

Link Alternative Fund Administrators Limited

Broadwalk House

Southerhay West

Exeter

EX1 1TS

COMPANY SECRETARY AND REGISTERED OFFICE

Link Company Matters Limited

6th Floor

65 Gresham Street

London

United Kingdom

EC2V 7NQ

Tel: +44 (0) 333 300 1950

COMPANY WEBSITE

www.bpcruk.com

CUSTODIAN

Bank of New York Mellon

One Canada Square

London

E14 5AL

FINANCIAL AND STRATEGIC COMMUNICATIONS

Buchanan Communications Limited

107 Cheapside

London

EC2V 6DN

INDEPENDENT AUDITOR

Ernst & Young

Harcourt Centre

Harcourt Street

Dublin

DO2 YA40

Ireland

JOINT BROKERS

J.P. Morgan Cazenove

25 Bank Street

London

E14 5JP

Goldman Sachs International

Peterborough Court

133 Fleet Street

London

EC4A 2BB

LEGAL ADVISER

Herbert Smith Freehills LLP

Exchange House

Primrose Street

London

EC2A 2EG

REGISTRAR

Link Group

10th Floor

Central Square

29 Wellington Street

Leeds

LS1 4DL

COMPANY INFORMATION

The Company is a closed-ended investment company incorporated on 24 October 2016. The Ordinary Shares were admitted to trading on the Specialist Fund Segment of the Main Market of the LSE and TISE on 27 March 2017.

The Company's shares were transferred to the premium segment of the Main Market on 5 October 2021. The Company introduced a GBP quote to appear alongside its USD quote on this date.

The Company delisted from the TISE on 8 October 2021.

The Company intends to carry on business as an investment trust within the meaning of Chapter 4 of Part 24 of the Corporation Tax Act 2010 and an investment company within the meaning of Section 833 of the Companies Act 2006.

INVESTMENT OBJECTIVE

The Company aims to generate long-term Shareholder returns, predominantly in the form of sustainable income distributions from exposure to the life sciences industry.

SUMMARY OF INVESTMENT POLICY

The Company will seek to achieve its investment objective primarily through investments in debt assets secured by royalties or other cash flows derived from sales of approved life sciences products. Subject to certain restrictions and limitations, the Company may also invest in unsecured debt and equity issued by companies in the life sciences industry.

The Investment Manager will select investment opportunities based upon in-depth, rigorous analysis of the life sciences products backing an investment as well as the legal structure of the investment. A key component of this process is to examine future sales potential of the relevant product which is affected by several factors, including but not limited to; clinical utility, competition, patent estate, pricing, reimbursement (insurance coverage), marketer strength, track record of safety, physician adoption and sales history.

The Company will seek to build a diversified portfolio by investing across a range of different forms of assets issued by a variety of borrowers. In particular, no more than 30 per cent. of the Company gross assets will be exposed to any single borrower.

SHAREHOLDER INFORMATION

KEY DATES

March Annual results announced

Payment of fourth interim dividend

May Annual General Meeting

June Company's half-year end

Payment of first interim dividend

September Half-yearly results announced

Payment of second interim dividend

December Company's year end

Payment of third interim dividend

FREQUENCY OF NAV PUBLICATION

The Company's NAV is released to the LSE on a monthly basis and is published on the Company's website.

ANNUAL AND HALF-YEARLY REPORT

Copies of the Company's Annual and Half-yearly Reports, stock exchange announcements and further information on the Company can be obtained from the Company's website www.bpcruk.com.

IDENTIFICATION CODES

SEDOL: BDGKMY2

ISIN: GB00BDGKMY29

TICKER: BPCR

LEI: 213800AV55PYXAS7SY24

CONTACTING THE COMPANY

Shareholder queries are welcomed by the Company. While any queries regarding your shareholding should be directed to the Registrar, shareholders who wish to raise any other matters with the Company may do so using the following contact details:

Company Secretary - biopharmacreditplc@linkgroup.co.uk

Chairman - chairman@bpcruk.com

Senior Independent Director - sid@bpcruk.com

FURTHER INFORMATION 

BioPharma Credit PLC's full Half Yearly Report for the period ended 30 June 2023 will be available today on https://bpcruk.com/

It has also been submitted in full unedited text to the Financial Conduct Authority's National Storage Mechanism and is available for inspection at data.fca.org.uk/#/nsm/nationalstoragemechanism in accordance with DTR 6.3.5(1A) of the Financial Conduct Authority's Disclosure Guidance and Transparency Rules.

Neither the contents of the Company's website nor the contents of any website accessible from hyperlinks on the Company's website (or any other website) is incorporated into, or forms part of this announcement.