LONDON (ShareCast) - (Sharecast News) - Specialist life sciences debt investor BioPharma Credit has entered into two separate loan agreements, where it will invest $52.5m now and up to an additional $32.5m over the next 12 months, it announced on Wednesday.
The London-listed specialist fund said that on 4 November, it entered into a definitive senior secured term loan agreement for up to $70m with Nasdaq-listed Epizyme, which it described as a late-stage biopharmaceutical company developing novel epigenetic therapies, with a current market capitalisation of about $1.4bn.

It said the investment was made alongside BioPharma-V - a private fund also investing in life sciences debt managed by Pharmakon Advisors.

The company said its share of the transaction would be up to $35m, or 50% of the overall financing, with it initially investing $12.5m.

In addition, the loan facility was expandable by up to $300m, subject to mutual agreement between BioPharma Credit and Epizyme.

The loan would mature in November 2024, and would bear interest at LIBOR plus 7.75% per annum, along with a one-time additional consideration of 2% of the total loan amount.

Epizyme's lead product, tazemetostat, was described by the company as a first-in-class, oral EZH2 inhibitor in clinical development for certain oncology indications, including epithelioid sarcoma and follicular lymphoma.

Prior to tazemetostat obtaining FDA approval, the loan would be overcollateralised with cash.

Epizyme had filed for accelerated approval for tazemetostat with the FDA in the US, with that application receiving a 'priority review' designation and a target action date of 23 January.

As at 30 September, Epizyme had $292.9m in cash, cash equivalents and marketable securities.

On 4 November, Royalty Pharma - an affiliate of Pharmakon Advisors - announced an agreement to purchase future royalties on tazemetostat net sales outside of Japan owned by Eisai for $330m, and a separate $100m equity investment directly in Epizyme.

Pablo Legorreta, a principal of Pharmakon and Royalty Pharma management, was named to the Epizyme board of directors.

Meanwhile, on 11 November, BioPharma Credit entered into a definitive senior secured term loan agreement for up to $100m with Nasdaq-listed Akebia, which it said is a fully integrated biopharmaceutical company focused on the development and commercialisation of therapeutics for people living with kidney disease, with a current market capitalisation of about $460m.

That investment was also made alongside BioPharma-V.

It said its share of the transaction would be up to $50m, or 50% of the overall financing, with the company initially investing $40m.

The loan would mature in November 2024, and would bear interest at LIBOR plus 7.5% per annum, along with a one-time additional consideration of 2% of the total loan amount.

Akebia currently markets 'Auryxia' (ferric citrate), which is approved in the US for hyperphosphatemia, or elevated phosphorus levels in blood serum, in adult patients with chronic kidney disease on dialysis, and iron deficiency anemia in adult patients with chronic kidney disease not on dialysis.

BioPharma Credit said Akebia was developing a late-stage product candidate called vadadustat, which was being studied for anemia due to chronic kidney disease in both dialysis and non-dialysis patients.

During the quarter ended 30 June, Akebia reported Auryxia revenue of $29.1m, which was a 26% sequential increase from the previous quarter.

As at 30 June, Akebia had $136.8m of cash and liquid investments.

"We are pleased to partner with Epizyme and Akebia," said Pharmakon Advisors chief executive officer Pedro Gonzalez de Cosio.

"Both companies are led by excellent management teams and manufacture products that are life-saving therapies."

At 1033 GMT, shares in BioPharma Credit were up 1% at 1.02 US cents in London.

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