BB Biotech AG

In April BB Biotech´s share price declined by 9.0% (in CHF) and the Net Asset Value rose by 0.4% (in USD). The Nasdaq Biotech Index was up by 1.5% (in USD) in April.  
 
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.

Despite a challenging start to the year, BB Biotech remains focused on value growth and is optimistic about fundamental progress achieved by innovative biotech companies in the large-, mid- and small-cap segments. We continue to believe that these companies are attractive investments; not only due to the currently depressed valuation but also because development, regulatory and commercialization milestones can boost shareholder returns.