HealthCare Royalty Trust, an investment company that targets healthcare royalties has announced it will float on the London Stock Exchange, aiming to for a dividend yield of six per cent and hoping to raise £200m.
The net total return, including share price appreciation is planned to increase to 10 per cent in the medium term.
The firm has 10 royalty streams from the likes of Pfizer and GlaxoSmithKline currently but intends to expand that to a “diversified portfolio of healthcare royalty assets”.
HealthCare Royalty is currently managing $3bn of capital across five private vehicles and managed accounts.
Other healthcare assets include products used to treat conditions such as infertility, "hard to manage" pain, HIV and vaccines.
Bryan Morton, chairman, said:
This will be the only UK listed investment vehicle to provide pure exposure to this asset class which is not correlated to the broader market; this should be appealing given the current volatility that is being experienced across global markets.
Global pharmaceutical sales, of which royalties are essentially a derivative, exceeded $1 trillion in 2014, according to the IMS Institute for Healthcare Informatics.