Biopharma Credit : Update on Investment

BIOPHARMA CREDIT PLC

UPDATE ON INVESTMENT

BioPharma Credit PLC (the 'Company') notes the announcement from Lexicon Pharmaceuticals, Inc. ('Lexicon') regarding the termination of its alliance with Sanofi for the development and commercialization of Zynquista (sotagliflozin) and the settlement of its related disputes with Sanofi, each effective 9 September 2019. In connection with the termination, Lexicon will regain all rights to Zynquista and assume full responsibility for the worldwide development and commercialization of Zynquista in both type 1 and type 2 diabetes. Under the terms of the settlement, Sanofi will pay Lexicon US$260 million, of which US$208 million is payable upfront and the remainder is payable within twelve months, and coordinate with Lexicon in the transition of responsibility for ongoing clinical studies and other activities.

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.

Pharmakon Advisors believes that the settlement announced by Lexicon further enhances the value of the collateral supporting the loan.

LEI: 213800AV55PYXAS7SY24

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Link Company Matters Limited

Company Secretary

11 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 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.