BioPharma Credit expects pipeline growth as net asset value edges down
BioPharma Credit PLC on Thursday said its net asset value edged lower in the first half of 2026, as the company continued to invest in new life sciences opportunities.
The London-based closed-ended investment company focused on the life sciences industry said net asset value per ordinary share decreased 0.4% to USD1.0148 at June 30 from USD1.0192 at December 31.
BioPharma Credit explained that the decrease primarily reflected the impact of a special dividend declared and paid during the period, which reduced reserves, as well as the timing and number of prepayments received.
The company's stock was up 0.4% at 97 US cents per share in London on Thursday.
The return after finance costs and taxation for the first half of 2026 was USD50.4 million, down 31% from USD72.8 million a year earlier.
The company made two dividend payments during the period totalling 4.95 US cents per share. After the second quarter ended, BioPharma Credit declared a further dividend of 1.75 cents per share, paid on July 31.
Net income per share was 4.47 cents at June 30, down 29% from 6.33 cents a year earlier.
BioPharma Credit made USD716.3 million in new commitments during the first half, with USD326.7 million deployed into new investments. This included senior secured loans to Esperion Therapeutics Inc of USD120.0 million, Idorsia Ltd of USD92.8 million, Mineralys Therapeutics Inc of USD150.0 million and Zenas BioPharma Inc of USD125.0 million. The commitments also included USD50.0 million to refinance the Paratek Pharmaceuticals Inc loan, USD125.0 million to refinance the UroGen Pharma Ltd loan and USD53.5 million in unsecured convertible debt positions.
Chief Executive Pedro Gonzalez de Cosio said: "The current portfolio has continued to deliver strong performance, and we are pleased to have made over USD760 million of new commitments in the first half of 2026. The company began the year with a large cash balance, but the life sciences industry will continue to have substantial capital needs in the immediate and long-term future, as the number of clinical trials continues to grow.
"Accordingly, we expect that our new investment pipeline will continue to be strong in the second half of 2026 and beyond, as new products and companies enter the market. Despite the macro headwinds, we remain confident of the company's ability to deliver its target dividend yield to our investors."
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