NEW INVESTMENT OF UP TO US$137.5 MILLION

11 May 2023

BIOPHARMA CREDIT PLC

(THE "COMPANY") 

NEW INVESTMENT OF UP TO US$137.5 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 Reata Pharmaceuticals, Inc. ("Reata"). The Company will invest up to US$137.5 million and BioPharma-V will invest up to an additional US$137.5 million in parallel, with the Company acting as collateral agent.

Based in the US, Reata is a publicly traded biopharmaceutical company with a current market capitalization of ~US$3.04 billion (Ticker: RETA - NASDAQ). On 28 February 2023, Reata received approval in the US for SKYCLARYS (omaveloxolone), the first approved medication indicated for the treatment of Friedreich's ataxia, a rare genetic disease affecting the nervous system in adults and adolescents aged 16 years and older. Reata anticipates launching SKYCLARYS in the US later this year.

Under the terms of the transaction, the Company will invest up to US$137.5 million across four tranches:

· Tranche A of US$37.5 million will be drawn on 12 May 2023;

· Tranche B of US$25.0 million will be drawn after achieving certain performance-based milestones;

· Tranche C of US$37.5 million will be drawn after achieving certain performance-based milestones;

· Tranche D of US$37.5 million will be available after achieving certain sales-based milestones.

The loan will mature in May 2028 and will bear interest at 3-month SOFR plus 7.50 per cent. per annum subject to a 2.50 per cent. floor, along with an additional consideration of 2.00 per cent. The additional consideration with respect to Tranche A will be paid at funding and will be due and payable with respect to the remaining tranches at the funding of those tranches.

Martin Friedman, Managing Member of Pharmakon Advisors, LP, the Company's investment adviser said:

"We are excited to partner with Reata as it continues to advance in its mission. Led by a highly experienced management team, Reata continues to focus on developing and commercializing novel therapeutics for patients with serious or life-threatening diseases by targeting molecular pathways involved in the regulation of cellular metabolism and inflammation."

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.