BioPharma Credit - Now listed in the Premium Segment of LSE

BioPharma Credit (BPCR) delivered a 7.3% NAV total return (NAV TR) pa in the three-year period ending 30 September 2021 (Edison calculations), somewhat below its 8–9% target. We believe that this was partially due to cash drag from several loan prepayments (although partially offset by prepayment fees). In H121, BPCR invested US$150m in diagnostics company LumiraDx, and reduced its cash position to 18% at end-September 2021. BPCR has sustained its targeted dividend payout (7c per share pa, 7.4% yield currently), although we calculate it needs to deploy some of its cash to cover the payments from income alone in the long run. Until then, it may pay a portion of the dividend from capital.