BIOPHARMA CREDIT PLC
UPDATE ON INVESTMENT
BioPharma Credit PLC (the 'Company') notes the announcement from Lexicon Pharmaceuticals, Inc. ('Lexicon') regarding Sanofi's notice of termination in relation to its collaboration and license agreement with Lexicon for the development and commercialization of Zynquista. Sanofi's actions do not impact XERMELO® which is marketed by Lexicon in the US and is partnered outside the US with Ipsen. Lexicon and Sanofi have not yet finalized the details of the termination and this process might take several weeks or months.
The Company funded US$124.5 million of a US$150.0 million loan to Lexicon that matures in December 2022. The loan is secured by substantially all of Lexicon's assets, including its rights to XERMELO® as well as sotagliflozin (Zynquista).
XERMELO® was approved by the U.S. Food and Drug Administration on 28 February 2017 and by the European Commission on 19 September 2017 for the treatment of carcinoid syndrome diarrhea in combination with SSA therapy in adults inadequately controlled by SSA therapy. On 26 April 2019, Zynquista was approved in the European Union (EU) for use as an adjunct to insulin therapy to improve blood sugar (glycemic) control in adults with type 1 diabetes with a body mass index ≥ 27 kg/m2, who could not achieve adequate glycemic control despite optimal insulin therapy. Outside of such approval in the EU, Zynquista is investigational and not approved by any other regulatory authority for type 1 or type 2 diabetes.
At this time, Pharmakon Advisors believes that there continues to be excess collateral value to fully support the loan. Pharmakon Advisors is actively monitoring the situation and will provide any updates in due course.
LEI: 213800AV55PYXAS7SY24
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Link Company Matters Limited
Company Secretary
30 July 2019
Enquiries:
Buchanan
David Rydell / Mark Court / Jamie Hooper / Henry Wilson
+44 (0)20 7466 5000
[email protected]
Notes to Editors:
BioPharma Credit PLC is London's only listed specialist investor in debt from the life sciences industry and joined the LSE on 27 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.
