LONDON: BioPharma Credit PLC, a leading debt investment trust listed on the London Stock Exchange (LSE: BPCR), has declared a substantial financial agreement through its wholly owned subsidiary and in conjunction with BioPharma Credit Investments V (Master) LP. The partnership has secured a senior loan agreement with Novocure Luxembourg S.a.r.l., a subsidiary of the NASDAQ-listed oncology firm Novocure Limited (Ticker: NVCR).
The agreement outlines an investment of up to $200 million from ioPharma Credit PLC and an additional \$200 million from BioPharma-V, totaling a $400 million commitment to Novocure. This strategic investment positions BioPharma Credit PLC as the collateral agent in the transaction.
Novocure, headquartered in Switzerland, is renowned for its innovative Tumor Treating Fields (TTFields) technology, a novel treatment modality that disrupts cancer cell division. The company boasts a robust product portfolio with Optune Gio and Optune Lua, approved across multiple regions including the U.S., European Union, and Japan for various cancer treatments. Novocure’s market capitalization stands at approximately $1.38 billion, reflecting its significant impact on the global oncology market, underscored by net sales reaching $509 million in the year ending December 2023.
The financing structure is divided into four tranches, with the first tranche of $50 million already drawn as of May 1, 2024. The subsequent tranches are contingent upon meeting specific milestones and revenue targets, with the full investment to be completed by March 2026.
The loan carries a maturity date of May 2029 and features an interest rate tied to the 3-month SOFR, with a 6.25% annual premium above a 3.25% SOFR floor. An additional 2.50% consideration is applicable to each tranche, with the initial payment already settled during the funding of Tranche A.
This landmark deal not only underscores BioPharma Credit PLC’s commitment to fostering growth in the life sciences industry but also solidifies Novocure’s financial foundation as it continues to advance cancer treatment technologies globally.
Pedro Gonzalez de Cosio, CEO of Pharmakon Advisors, LP, the Company’s investment adviser said: “We are excited to once again partner with Novocure as it continues to advance in its mission. This transaction marks the third investment in Novocure made by entities managed by Pharmakon Advisors. BioPharma III invested US$100m in 2015 which was repaid in 2018, in part with proceeds from a US$150 million loan made by the Company in 2018 and repaid in 2020.”
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