BioPharma Credit (BPCR) H1 2024 earnings summary

Executive summary

• Net revenue per share of 6.15 cents in H1 2024 nearly covers the 7 cent annual dividend target, with total dividends for the year to date at 7.29 cents per share.

• Share buybacks totaled $76.1 million in H1 and $94.9 million year to date, with 104 million shares repurchased.

• The company is debt free after terminating its revolving credit facility in April 2024.

• LumiraDx investment largely resolved, with 96% of invested capital expected to be recovered following asset sale to Roche.

• Two new transactions announced in H1 2024: $100 million loan to Tarsus and $200 million loan to Novocure.

Financial highlights

• Net assets at 30 June 2024 were $1,228.1 million, down from $1,340.9 million at year-end 2023.

• NAV per share was $1.0074, compared to $1.0293 at 31 December 2023.

• Share price remained flat at $0.84; discount to NAV per share narrowed to 16.6% from 18.4%.

• Investment returns increased 1.3% in H1 2024 compared to H1 2023.

• 96% of the portfolio is in floating rate senior secured loans, benefiting from higher interest rates.

Outlook and guidance

• $258.4 million in cash available for new investments at period end.

• Management expects the investment pipeline to grow as new products enter the market in H2 2024.

• Interest rate floors in the portfolio provide protection as rates are expected to decrease.

• Continued focus on delivering high income and attractive returns to investors.