BioPharma Credit PLC

20 October 2022

BIOPHARMA CREDIT PLC

(THE "COMPANY")

NEW US$140.0 MILLION INVESTMENT

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 Insmed Incorporated ("Insmed"). The Company invested US$140.0 million and BioPharma-V invested an additional US$210.0 million for a total US$350.0 million, with the Company acting as collateral agent. The Company's total investment was limited to a 40 per cent. share of the transaction by its requirement to hold cash for purposes of its discount control mechanism.

Based in the US, Insmed is a publicly traded biopharmaceutical company with a current market capitalization of ~US$2.5 billion (Ticker: INSM - NASDAQ).  Insmed, a commercial stage biopharmaceutical company, reported trailing twelve-months net sales of US$221 million during the period ending 30 June 2022. ARIKAYCE® (amikacin liposome inhalation suspension), Insmed's first commercial product, is a first-in-disease therapy approved in the United States, Europe, and Japan to treat a chronic, debilitating lung disease. Insmed is also progressing a robust pipeline of investigational therapies targeting areas of serious unmet need, including neutrophil-mediated inflammatory diseases and rare pulmonary disorders. Concurrently with this transaction, Insmed announced raising US$150 million through a synthetic royalty sale and US$275 million through a follow-on equity offering and indicated that these financings will increase cash, cash equivalents and marketable securities to approximately $1.3 billion.

The loan will mature in October 2027 and will bear interest at a rate based upon the secured overnight financing rate (SOFR), subject to a SOFR floor of 2.5 per cent., and a margin of 7.75 per cent. per annum.  A one-time additional consideration of 2.0 per cent. of the total loan amount is also payable upon funding of the loan.

Pedro Gonzalez de Cosio, CEO of Pharmakon Advisors, LP, the Company's investment adviser said:

"We are excited to partner with Insmed as it advances its mission. Led by a highly experienced management team, Insmed strives to improve the lives of patients suffering from debilitating diseases and is investing meaningfully in additional therapies which address significant unmet needs."

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.

-Ends-