Mission Statement, Vision, & Core Values (2026) of BioPharma Credit PLC.

Discover how BioPharma Credit PLC, established in 2017 and listed in the FTSE 250, leverages specialist expertise from manager Pharmakon Advisors to deliver predictable income through a diversified portfolio of loans and royalty-backed cash flows-having committed over US$10 billion across 62 transactions to date-while targeting a 7% annual dividend yield and a medium-term net total return on NAV of 8-9% per annum, backed by core values of integrity, accountability, innovation, diversity & inclusion, sustainability and collaboration; with $164 million of cash available for new investments as of 30 June 2025, the company positions investors to access established, revenue-generating life sciences assets and seeks to convert secured royalty cash flows from approved products into long-term shareholder value.

BioPharma Credit PLC (BPCP.L) - Intro

• Founded: 2017
• Listing: London Stock Exchange (Ticker: BPCP.L)
• Index: FTSE 250
• Manager: Pharmakon Advisors, LP

• Target annual dividend yield: 7% (company target)
• Target net total return on NAV: 8-9% p.a. (medium term)
• Committed across transactions since inception: > US$10 billion
• Number of transactions completed: 62
• Cash available for new investments (as of 30 June 2025): US$164 million

• Primary focus on senior secured or structured debt tied to royalties/cash flows from approved or revenue-generating life-sciences products.
• Credit-oriented, yield-generating investments designed to deliver predictable cash distributions to shareholders.
• Diversification across therapeutic areas, geographies and counterparties to manage idiosyncratic risk.
• Active portfolio management and diligence by Pharmakon to monitor revenue streams and clinical/regulatory risk.

• Average deal size (indicative): multi‑million to several hundred million USD per transaction (reflecting aggregate >US$10bn across 62 transactions).
• Portfolio cash flow sources: royalties, milestone-linked payments, product sales royalties.
• Liquidity cushion: US$164m (30 Jun 2025) to support new originations and opportunistic transactions.

BioPharma Credit PLC (BPCP.L) - Overview

• BioPharma Credit PLC (BPCP.L)'s mission is to provide investors with an opportunity to gain exposure to the fast-growing life sciences industry through a diversified portfolio of loans and other instruments backed by royalties or other cash flows derived from sales of approved life sciences products.
• This mission reflects the company's commitment to offering investors access to the dynamic and expanding life sciences sector by targeting revenue-linked instruments rather than equity exposure alone.
• By focusing on loans and instruments secured by royalties, BioPharma Credit aims to deliver stable and predictable income streams to its shareholders, reducing correlation with equity market volatility.
• The emphasis on approved life sciences products ensures that investments are tied to commercially successful and scientifically validated assets, supporting downside protection and cash-flow visibility.
• This approach aligns with the company's goal of generating long-term value for investors while supporting the growth and commercialization of life sciences innovations.
• The mission underscores BioPharma Credit's dedication to bridging the gap between capital providers and the life sciences sector, facilitating mutual growth and success.

• Target instruments: royalty-backed loans, revenue-participation financing, milestone-backed loans, and other structured credit tied to product sales.
• Sponsor and borrower profile: commercial-stage biopharma and specialty pharmaceutical companies with approved products or near-term commercialization.
• Return objective: current income with capital preservation and downside protection through product-linked cash flows.
• Risk management: diversification across therapeutic areas, geographies, and product lifecycle stages; contract-level covenanting and royalty waterfall structures.

• Priority on revenue-backed instruments: contracts structured to collect royalties or fixed revenue shares from sales of approved products, aligning cash flows with real-world commercial performance.
• Capital preservation via contractual protections: first-priority payment waterfalls, step-in rights, covenants tied to commercialization milestones and reporting.
• Diversification to smooth cash flows: across indications (oncology, rare disease, CNS, immunology), geographies (US, EU, RoW), and sponsor types (small cap biotechs, specialty pharma partners).
• Active monitoring and value realization: regular revenue reporting, milestone-triggered repayments, and secondary market exits where appropriate.

• Income-focused exposure to life sciences with lower equity beta through royalty- and revenue-linked lending.
• Access to late-stage/approved product cash flows that offer visibility and predictability compared with early-stage R&D equity risk.
• Potential inflation hedge-product sales-based cash flows can be correlated with pricing dynamics of underlying therapies.

• Governance: investment committee oversight, independent directors with life sciences and credit experience, and regular reporting to shareholders.
• Alignment: co-investment by management and the board in instruments alongside external investors where possible, and fee structures oriented toward realized returns and preservation of capital.
• Capital deployment: primary use of funds for originating and acquiring royalty-backed loans, with allocation guided by yield, security of cash flows, and downside protections.

BioPharma Credit PLC (BPCP.L) - Mission Statement

• Deliver consistent, risk‑adjusted returns through secured and structured debt instruments tailored to life sciences developers.
• Apply deep sector expertise to originate, structure and monitor investments that bridge the funding gap between R&D milestones and commercialization.
• Maintain rigorous credit risk controls and active portfolio oversight to protect downside while capturing upside linked to product development and sales.
• Provide transparent communication and predictable distributions that reflect underlying cashflow generation.

• Be the partner of choice for private and public biopharma companies seeking non‑dilutive, milestone‑linked financing.
• Build a reputation for predictable income generation and capital preservation through conservative structuring and collateral protection.
• Continuously refine credit and valuation frameworks to adapt to shifting regulatory, clinical and commercial landscapes.

• Scientific and Commercial Rigor - investment decisions grounded in clinical proof‑points and realistic commercial forecasts.
• Capital Preservation - prioritize downside protection through secured structures, covenants and milestone‑based repayment triggers.
• Transparency - clear reporting on portfolio performance, NAV drivers and income generation.
• Alignment - structuring terms that align borrower incentives with shareholder outcomes.
• Stewardship - active engagement with portfolio companies to de‑risk programs and accelerate value creation.

• Origination excellence - deepen direct relationships with biotech management teams and advisors to secure proprietary deal flow.
• Risk management - enhance credit analytics and stress testing for clinical, regulatory and commercial scenarios.
• Portfolio diversification - balance exposures across therapeutic areas, geographies and repayment drivers (royalties, milestone payments, revenue shares).
• Shareholder alignment - pursue capital allocation and distribution policies that reflect sustainable income generation and NAV growth.

BioPharma Credit PLC (BPCP.L) - Vision Statement

• Transparent governance framework with independent board oversight and quarterly reporting cadence.
• Full adherence to FCA listing rules and disclosure best practices to maintain investor trust.

• Clear investment mandate and measurable KPIs for portfolio performance, credit quality, and ESG adherence.
• Regular performance reviews and external audit of financial statements and valuation processes.

• Industry-focused origination leveraging proprietary networks in biotech, medtech, and specialty pharma.
• Custom credit structures (royalty-linked loans, milestone financings, convertible facilities) to match R&D risk profiles.

• Commitment to diverse hiring and inclusive decision-making to capture a broader range of scientific and commercial perspectives.
• Supplier diversity expectations extended across third-party service providers and co-lenders.

• Integration of environmental, social, and governance criteria into credit assessment and portfolio monitoring.
• Expectation of sustainable practices from borrowers and counterparties, aligned with long-term value creation.

• Cross-functional teamwork internally (investment, clinical, legal, risk) and negotiated partnerships with co-lenders, VCs, and strategic pharma.
• Active engagement with shareholders and stakeholders to align strategy and reporting priorities.

• Integrity and Accountability: Rigorous due diligence, independent valuation oversight, and transparent reporting underpin every credit decision and post-investment monitoring protocol.
• Innovation: Structures are tailored-milestone tranches and revenue-participating features align lender returns with clinical and commercial progress while capping downside risk.
• Diversity & Inclusion: Investment committees incorporate diverse scientific and commercial expertise to assess candidate credits across modalities and geographies.
• Sustainability: ESG screening is embedded in borrower selection and covenants; expected ESG disclosures from portfolio companies inform ongoing monitoring.
• Collaboration: Co-lending and syndication are used to optimize capital efficiency and share underwriting expertise while preserving control over covenant design.

• Patients & science: Financing that de-risks development pathways helps accelerate first-in-human and pivotal studies.
• Investors: A stable income profile with downside-protective structures aims to deliver predictable distributions and capital preservation.
• Partners & suppliers: Expectation of ethical conduct, sustainability practices, and collaborative engagement across the financing lifecycle.