FAQ

Who is BB BIOTECH?

The investment company BB BIOTECH was founded in 1993 in Schaffhausen and invests in promising companies in the interesting growth sector of the biotech industry. BB BIOTECH holds stakes in companies that have an excellent management, a solid science and technology base and a healthy financial structure. BB BIOTECH shares are traded on the Swiss Stock Exchange, on the Prime Standard (TecDax) in Germany and the Nuovo Mercato in Italy.

Why should I invest in BB BIOTECH?

The biotech industry is developing complex and technologically sophisticated products and so BB BIOTECH falls back on a global network of molecular biologists, doctors, scientists, patent lawyers and financial specialists for fundamental analysis. The administrative boards, including a Nobel prize winner, have years of experience in biotechnology and the pharmaceutical industry.

What makes up the investment portfolio?

BB BIOTECH pursues a focused investment policy. The portfolio ideally comprises of 5 to 8 core positions (which make up 2/3 of the portfolio) and 15 to 25 smaller positions. Up to 10% of the portfolio can also include holdings in companies that are still non-listed. This diversification offers BB BIOTECH shareholders the possibility of benefiting from the good growth prospects of the biotechnology industry and a comparatively low risk.

How will I be informed about changes to the portfolio?

BB BIOTECH publishes the structure of the portfolio in detail in the last week of the month following each quarter within the framework of quarterly reporting. The publications are listed in the calendar

How is the BB BIOTECH team remunerated?

Remuneration for the asset management company (Bellevue Asset Management) and the Board of Directors is share price and performance-related. They consist of a management fee and a performance-related fee, which are paid every three months. The baseline (hurdle rate) for profit-related remuneration increases after each quarter to the value for which such a remuneration was last paid out; at least by 5% p.a. and to a maximum of 20% p.a.. Thus, the interests of the management team and the shareholders are brought into line. A detailed outline of the remuneration structure is located in the annual report.

Does BB BIOTECH pay out dividends?

No dividends were distributed until the year 2003. In 2004, the Company's dividend policy has been modified: in future, a dividend is to be paid out which will be linked to the discount of the share price to the Net Asset Value. The following model is to be used to this end:

if the discount amounts to 5 - 10%: 1% of the Net Asset Value at year-end
>10 - 15%: 2% of the Net Asset Value at year-end
>15 - 20%: 3% of the Net Asset Value at year-end
>20%: 4% of the Net Asset Value at year-end

The discount on which the resolution is based is calculated according to the average discount of daily closing prices from January 1 through December 31 of the respective fiscal year, starting in the fiscal year from January 1 through December 31, 2003. The dividend will be paid out in cash and will be paid out on the day after the general meeting.

 

How can I claim back tax withheld at source?

Shareholders resident outside Switzerland are eligible to claim back 35% of tax levied on dividends in Switzerland which is withheld at source. Corresponding double taxation agreements also exist, particularly with Germany and Italy. An appropriate application must be submitted to the Swiss Federal Tax Administration in Bern/Switzerland. You can request the required form at your local bank, order it via the website of the Swiss Federal Tax Administration (www.estv.admin.ch, Anticipatory Tax area).

What is meant by premium and discount or price premium and reduction?

The performance of BB BIOTECH shares follows the development of the Net Asset Value of the company. This, in turn, reflects the share performance of its holdings. If the share price lies above the Net Asset Value, this corresponds to a premium and if the opposite is the case, one talks about a discount. As the non-listed holdings are only valued at cost price, a small premium can be justified, although this should not be more than 5-10%.

Why does the company trade with its own shares?

BB BIOTECH provides the liquidity of the security through active market making, thereby attempting, at the same time, to keep the discount or the premium of the share price in relation to the Net Asset Value as small as possible. In doing so, the securities are preferably purchased when a discount exists and resold later with a premium. BB BIOTECH can retain up to a maximum of 10% of its own shares. The transaction volumes are published daily on the website of the German stock exchange.

How can I become a BB BIOTECH shareholder?

Private investors appoint their house bank or their investment advisor to buy BB BIOTECH shares. The registered shares of BB BIOTECH are listed on the Swiss stock exchange (security number 3 838 999), in Germany on the Prime Standard (TecDax) and in Italy on the Nuovo Mercato (security number for Germany and Italy: AONFN3).

How can I keep myself informed?

The company publishes its Net Asset Value (total of all investments and liquid funds) every day via the main stock market information services (Reuters and Bloomberg) and on this website. It informs you on a monthly basis about the most important events relating to your holdings - by post or by e-mail. The structure of the portfolio is published every three months within the scope of quarterly reports. We report on important changes and developments in our Monthly News and press releases. Accounting is subject to IAS standards. Place yourself on the mailing list.