New Investment

BIOPHARMA CREDIT PLC

("BIOPHARMA CREDIT" OR THE "COMPANY")

NEW INVESTMENT

BioPharma Credit PLC (LSE: BPCR), the specialist life sciences debt investor, is pleased to announce that it has entered into a definitive senior secured note purchase agreement for the issuance and sale of senior secured notes in an aggregate original principal amount of up to US$150 million by OptiNose US, Inc. alongside BioPharma Credit Investments V (Master) LP  ("BioPharma-V"), a private fund also investing in life sciences debt managed by Pharmakon Advisors launched in June 2019. OptiNose US, Inc. is a wholly-owned subsidiary of OptiNose, Inc. (Nasdaq: OPTN), a commercial-stage specialty pharmaceutical company with a current market capitalisation of approximately US$280 million ("Optinose"). As described below, the Company's share of the transaction will be up to US$82.5 million and the Company will initially invest US$44.0 million.

Optinose's leading product, XHANCE® (fluticasone propionate), is a nasal spray approved by the U.S. Food and Drug Administration (FDA) in September 2017 for the treatment of nasal polyps in patients 18 years or older. XHANCE® utilizes a novel and proprietary exhalation delivery system to deliver drug high and deep into the sinuses, targeting areas traditional intranasal spray are not able to reach. 

During the quarter ended 30 June, 2019 Optinose reported XHANCE® revenue of US$6.7 million, a 68% sequential increase from the previous quarter. As of 30 June 2019, Optinose had US$144.0 million of cash and liquid investments.  Proceeds from the issuance and sale of the first tranche of senior secured notes, along with available cash on hand, were used to repay and retire Optinose's existing term loan with Athyrium Opportunities III Acquisition, LP, which had an outstanding balance of US$75.0 million and a maturity date of June 2023.

"We are pleased to partner with Optinose", said Pedro Gonzalez de Cosio, CEO of Pharmakon Advisors, LP. "Led by an excellent management team, Optinose's Xhance is an important medicine for the many patients suffering from nasal polyps."

Senior secured notes in an aggregate original principal amount of up to US$150 million will be issued and sold in up to four tranches, each maturing in September 2024 and bearing interest at 10.75 percent per annum along with a one-time additional consideration of 0.75 percent of the aggregate original principal amount of senior secured notes which the Company and BioPharma-V are committed to purchase under the facility and approximately 800,000 warrants exercisable into common stock of OptiNose, Inc.

·    Senior secured notes in an aggregate original principal amount of US$80 million will be immediately issued, sold and purchased.

·    Following this, senior secured notes in an aggregate original principal amount of US$30 million will be issued, sold and purchased by February 2020, subject to the achievement of a certain sales milestone.

·    Two additional tranches of senior secure notes, in an aggregate original principal amount of US$20m each, will be available for issuance and sale at Optinose's option, subject to the achievement of certain sales milestones, prior to August 2020 and February 2021.

The loan is secured by substantially all of Optinose's assets.

Link Company Matters Limited

Company Secretary

13 September 2019

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 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 this objective primarily through investments in debt assets secured by royalties or other cash flows derived from the sales of approved life sciences products.