Sep 21, 2026 · 26 min · 11 segments
BPCR is a specialist London-listed investment company that provides debt financing to emerging life sciences companies with approved or late-stage pharmaceutical products. Managed by Pharmakon…
Pedro Gonzalez de CosioGuest
John HughmanHost
Why do pharmaceutical companies come to you for debt financing rather than choosing equity financing?
Equity financing is, let's say, the safest form of financing from a company's perspective.
But at the same time, it's the most expensive because when things go well, you gave up a piece of the company.
And as share prices appreciate, the dilution that comes from issuing equity can be extreme.
We made a loan to a company called Innsmed that had a one product approved and a market cap of around two and a half billion dollars.
Since then, they had a second drug approved that's doing really well.
They're going to sell over a billion and a half dollars this year alone.
So had they issued equity, had they funded that $350 million with equity at a market cap of $2.5 billion, right? um today the market cap is 30 billion so it would have been extremely expensive so that's that's why they want that because it's the the non-dilutive aspect
indeed let's talk about the kind of the kind of product that you're investing in the kind of companies you're investing in um and sort of how you go about that so so you know you're providing credit so there's obviously a you know very important sort of financial aspect to this but you're also presumably trying to identify those those companies with with the products that have the greatest potential.
Why do pharmaceutical companies come to you for debt financing rather than choosing equity financing?
Equity financing is, let's say, the safest form of financing from a company's perspective.
But at the same time, it's the most expensive because when things go well, you gave up a piece of the company.
And as share prices appreciate, the dilution that comes from issuing equity can be extreme.
We made a loan to a company called Innsmed that had a one product approved and a market cap of around two and a half billion dollars.
Since then, they had a second drug approved that's doing really well.
They're going to sell over a billion and a half dollars this year alone.
So had they issued equity, had they funded that $350 million with equity at a market cap of $2.5 billion, right? um today the market cap is 30 billion so it would have been extremely expensive so that's that's why they want that because it's the the non-dilutive aspect
indeed let's talk about the kind of the kind of product that you're investing in the kind of companies you're investing in um and sort of how you go about that so so you know you're providing credit so there's obviously a you know very important sort of financial aspect to this but you're also presumably trying to identify those those companies with with the products that have the greatest potential.
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