BB Biotech AG
New innovative drugs and technologies are powering sustainable momentum in the biotech sector
Focus on profitable companies and small and mid-cap companies with strong pipelines
Attractive dividend policy; Dividend payment of 5% p.a.
BB Biotech aims to achieve an average annual double-digit return over the long term, thus outperforming the broad market indices by a significant margin. BB Biotech invests worldwide in fast growing companies developing and marketing innovative biotech drugs.
Indexed performance (as at: 01.06.2023)
Share price: EUR 43.00 (01.06.2023)
NAV: EUR 42.25 (01.06.2023)
Rolling performance (01.06.2023)
|01.06.2022 - 01.06.2023||-17.11%||10.96%||11.82%|
|01.06.2021 - 01.06.2022||-20.00%||-27.00%||-10.09%|
|29.05.2020 - 01.06.2021||18.45%||6.99%||2.18%|
|31.05.2019 - 29.05.2020||14.12%||24.39%||36.36%|
Annualized performance (01.06.2023)
|Since Inception p.a.||6.29%||6.22%||4.61%|
Cumulative performance (01.06.2023)
Facts & Key figures
BB Biotech invests worldwide in fast growing companies developing and marketing innovative biotech drugs. At least 90% of its shareholdings must be in listed companies, while always holding more than 50% of its assets in equity investments. The target portfolio of BB Biotech will generally consist of 20 to 35 participations. Large positions will be taken in five to eight companies, the top holdings. Together they will account for no more than two-thirds of the portfolio and no single position will have a weighting greater than 25% of portfolio investments. Due to their substantial portfolio weighting, the top holdings should be generating both revenues and income. The portfolio’s smaller participations are companies with promising drug candidates in their R&D pipelines. Investments are selected according to a thorough, multi-level due diligence process, with a particular focus placed on the analysis of financial parameters, the respective competitive environment, the development pipeline, the patent portfolio, and end-client perception. ESG factors are taken into consideration while implementing the aforementioned investment objectives.Show moreShow less
Investment suitability & Risk
|Investment Manager||Bellevue Asset Management AG|
|Custodian||Bank Julius Bär AG|
|Fund Administrator||Bellevue Asset Management AG|
|Year end closing||31. Dec|
|Bloomberg||BION IM Equity|
|Legal form||Incorporate company|
|SFDR category||Article 8|
Key data (31.05.2023, base currency CHF)
|No. of positions||29|
Portfolio as at 31.03.2023
Breakdown by sector
Opportunities & Risks
- Unique opportunity for European investors to access the global biotech sector, a non-cyclical growth industry that is strongly supported by increasing demand, driven by demographic trends and life style changes.
- New innovative drugs and technologies are powering sustainable momentum in the biotech sector.
- Focus on a diversified portfolio of profitable companies as well as small and midcap companies with strong pipelines.
- Management Team with strong scientific and medical expertise. Renowned Board of Directors.
- Attractive dividend policy; Dividend payment of 5% p.a.
- BB Biotech invests in equities. Equities are subject to strong price fluctuations and so are also exposed to the risk of price losses.
- Biotech equities can be subject to sudden substantial price movements owning to market, sector or company factors.
- BB Biotech invests in foreign currencies, which means a corresponding degree of currency risk against the reference currency.
- The price investors pay or receive, like other listed shares, is determined by supply and demand and may be at a discount or premium to the underlying net asset value of the Company.
- BB Biotech may take a leverage of up to 15%, which may lead to even higher price movements compared to the underlying market.
Review / Outlook
BB Biotech reported its first quarter result on April 21 showing a net loss of CHF 254 mn, compared to a net loss of CHF 300 mn during the same period of 2022. A small number of portfolio adjustments were made during the first quarter. The Myovant Sumitomo Dainippon Pharma transaction was completed for USD 27 per share of Myovant. In addition, Kezar Life Sciences and Homology Medicines positions were exited. At the end of the quarter, BB Biotech’s portfolio comprised 28 positions – concentrated further on profitable companies which now represent more than 1/3 of BB Biotech’s portfolio. Well capitalized companies expected to reach sustainable profitability with their current balance sheet constitute more than 40% of the portfolio whereas smaller companies still needing capital make up less than 20% of the portfolio.
Please find below selected highlights from a few of BB Biotech´s portfolio companies:
Ionis (-1.0%, in USD) and its partner Biogen announced on April 25 that the FDA has approved QALSODY (tofersen) injection for the treatment of amyotrophic lateral sclerosis (ALS) in adults who have a mutation in the superoxide dismutase 1 (SOD1) gene. This indication is approved under accelerated approval. Continued approval for this indication may be contingent upon verification of clinical benefit from ongoing trial(s).
Relay Therapeutics (-31.0%, in USD) announced on April 18 initial clinical data for RLY-2608, the first known investigational allosteric, pan-mutant and isoform-selective inhibitor of P13Ka. The data support initial clinical proof of mechanism, demonstrating that RLY-2608 achieved selective target engagement at multiple predicted efficacious doses with a favorable initial safety and tolerability profile. The data were presented on April 18 at the American Association for Cancer Research Annual Meeting 2023.
Vertex Pharmaceuticals (+8.1%, in USD) and Crispr Therapeutics (+8.2%, in USD) announced April 2 the completion of the rolling Biologics License Applications (BLAs) to the FDA for the investigational treatment exagamglogene autotemcel (exa-cel) for sickle cell disease (SCD) and transfusion-dependent beta thalassemia (TDT). The BLAs include requests for Priority Review, which if granted, would shorten the FDA’s review of the application to eight months from the time of submission versus a standard review timeline of 12 months.
Past performance is not a reliable indicator of future results and can be misleading. Changes in the rate of exchange may have an adverse effect on prices and incomes. All performance figures reflect the reinvestment of dividends and do not take into account the commissions and costs incurred on the issue and redemption of shares, if any. The reference benchmark is used for performance comparison purposes only (dividend reinvested). No benchmark is directly identical to the investment company, thus the performance of a benchmark is not a reliable indicator of future performance of BB Biotech it is compared to. There can be no assurance that a return will be achieved or that a substantial loss of capital will not be incurred.Show moreShow less