Cash in on the biotech sector with specialist trust BioPharma

BioPharma has an attractive niche in lending to asset-rich biotechnology companies, says Rupert Hargreaves

Life Science Investing
(Image credit: Getty Images)

BioPharma Credit (LSE: BPCR) is one of the more esoteric investment trusts listed in London. Biotech is a specialist sector that I usually wouldn’t touch with a barge pole. The risk of failure is very high, and even the experts are often wrong-footed by a surprising trial result, court case or even fatality. However, as is often the case, uncertainty and complexity create opportunities.

BioPharma lends money to small- and mid-sized life sciences companies. Most of the borrowers are public companies, and the trust is lending against their future cash flows, with the loans secured by asset values.

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Rupert Hargreaves
Contributor and former deputy digital editor of MoneyWeek

Rupert is the former deputy digital editor of MoneyWeek. He's an active investor and has always been fascinated by the world of business and investing. His style has been heavily influenced by US investors Warren Buffett and Philip Carret. He is always looking for high-quality growth opportunities trading at a reasonable price, preferring cash generative businesses with strong balance sheets over blue-sky growth stocks.

Rupert has written for many UK and international publications including the Motley Fool, Gurufocus and ValueWalk, aimed at a range of readers; from the first timers to experienced high-net-worth individuals. Rupert has also founded and managed several businesses, including the New York-based hedge fund newsletter, Hidden Value Stocks. He has written over 20 ebooks and appeared as an expert commentator on the BBC World Service.