LONDON: BioPharma Credit along with its subsidiary BioPharma-V has entered into a US$300 million definitive senior secured loan agreement with LumiraDx Investment Limited and LumiraDx Group Limited.

The Company will invest US$150 million and BioPharma-V will invest an additional US$150 million.

Based in the UK, LumiraDx is a next-generation point of care, or POC, diagnostic company addressing the current limitations of legacy POC systems by bringing lab-comparable performance 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 four diagnostic tests for use with its platform: a SARS-CoV-2 (“COVID-19”) antigen test commercially available under an Emergency Use Authorization in the United States, or EUA, and a CE Mark in the European Economic Area, as well as a SARS-CoV-2 antibody test, an International Normalized Ratio, or INR, test, and a D-Dimer test, all of which are CE Marked.

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 EUA.

During 2020 LumiraDx commenced commercial sales of its SARS-CoV-2 antigen test in Europe and the United States to customers, including the U.K. National Health Service, or NHS, and CVS Pharmacy, Inc., or CVS, and started roll out of a program to supply Instruments and a significant number of SARS-COV-2 antigen test strips to Africa as part of a collaboration with the Bill & Melinda Gates Foundation. LumiraDx is supported by institutional investors, including the Bill & Melinda Gates Foundation, Morningside Ventures, and U.S. Boston Capital Corporation.

Under the terms of the transaction, the Company will invest US$150 million in a single drawing and BioPharma-V will invest US$150 million in parallel, with the Company acting as collateral agent. The loan will mature in March 2024 and will bear interest at 8.00 per cent. per annum along with an additional consideration of 2.50 per cent. of the loan amount payable upon funding plus an additional 1.50 per cent. of the loan payable at maturity. The Lenders will also be receiving warrants as part of the financing.

“We are pleased to partner with LumiraDx in this transaction”, said Pedro Gonzalez de Cosio, CEO of Pharmakon Advisors, LP. “Led by a highly experienced management team, LumiraDx is ideally positioned to help meet the need for accurate and timely diagnostic information, starting with the immediate needs created by the COVID-19 pandemic and continuing with additional tests.”

BioPharma Credit PLC is London’s only specialist debt investor to the life sciences industry and joined the LSE in March 2017. www.bpcruk.com