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: 11.08.2022)
Share price: CHF 62.90 (11.08.2022)
NAV: CHF 52.70 (11.08.2022)
Rolling performance (11.08.2022)
|Share price||NAV||XNBI CHF|
|11.08.2021 - 11.08.2022||-25.21%||-21.90%||-16.69%|
|11.08.2020 - 11.08.2021||34.89%||31.31%||27.71%|
|09.08.2019 - 11.08.2020||17.59%||12.52%||18.42%|
|10.08.2018 - 09.08.2019||-3.83%||-6.16%||-11.52%|
Annualized performance (11.08.2022)
|Share price||NAV||XNBI CHF|
|Since Inception p.a.||12.23%||11.48%||9.58%|
Cumulative performance (11.08.2022)
|Share price||NAV||XNBI CHF|
|Share price||NAV||XNBI CHF|
Facts & Key figures
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. At least 90% of its shareholdings must be in listed companies. Positions in emerging-market biotech companies will be taken on a selective basis.
BB Biotech invests in fast-growing biotechnology companies that are developing and marketing innovative drugs. It focuses on biotech companies whose products address areas of significant unmet medical needs and that are generating above-average sales and profit growth. With an aggregate weighting of more than 90%, listed companies account for most of its portfolio investments. BB Biotech has also taken a stake in the structural growth opportunities that emerging markets offer.
We seek a thorough understanding of the activities pursued by our participations, i.e., not only the purely financial aspects of the business, but also the respective competitive environment, the innovation pipeline, patent portfolios and the market perception of each company’s products and services, to name only a few other aspects.
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, in general the top holdings should be generating both revenues and income. The portfolio’s smaller participations are companies with promising drug candidates in their pipelines. BB Biotech has deliberately chosen not to construct a portfolio of statistical relevance as it attaches importance to the depth of sector and company expertise and seeks personal access to the management of our equity interests.
The asset classes BB Biotech can invest in are stocks, equity interests in unlisted companies, corporate bonds and options on a range of underlying assets.
BB Biotech invests its capital in stocks for liquidity and risk/reward reasons. Investments in private companies can account for up to 10% of the portfolio. These positions will have a higher weighting when stock market performance is positive over a prolonged period.
Corporate bonds are a suitable investment when stock market trends are negative. Options on the stocks of portfolio companies are bought and sold at opportune times and as a means of hedging currency exposure.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 SW Equity|
Key data (29.07.2022, base currency CHF)
|No. of positions||31|
Portfolio as at 30.06.2022
Breakdown by sector
Opportunities & Risks
- Unique opportunity for European investors to access the global biotech sector, a noncyclical 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 threemember 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
It was mentioned that the portfolio has been concentrated, such that two thirds is invested in eight revenue-generating companies, four of which have shown sustained profits for years, while the others have strong balance sheets and will soon be cash flow positive. The portfolio exposure is led by the rare disease category followed by oncology and neurology/psychiatry. Celldex was announced as a new position in the portfolio. The company is a clinical-stage biotech developing treatments for inflammatory and allergic conditions. Its lead product candidate, CDX-0159, is a monoclonal antibody against wild type c-KIT receptor and leads to depletion and/or inhibition of mast cell activation. The compound is currently in dose finding studies in patients with urticaria and other mast cell-driven diseases.
Please find below selected highlights from a few of BB Biotech´s portfolio companies:
Incyte (+2.3%, in USD) announced on July 18 that FDA has approved Opzelura (ruxolitinib) cream 1.5% for the topical treatment of nonsegmental vitiligo in adult and pediatric patients 12 years of age and older. Opzelura is the first and only FDA-approved treatment for repigmentation in patients with vitiligo, and the only topical formulation of a Janus kinase (JAK) inhibitor approved in the United States. Vitiligo is a chronic autoimmune disease characterized by depigmentation of skin.
Ionis Pharmaceuticals (+1.5%, in USD) announced on July 28 positive topline results of the Phase IIb RE-THINK ESRD study of fesomersen in patients with end-stage renal disease on hemodialysis. In the study, fesomersen achieved its primary outcome measure of no increase in incidence of major bleeding and clinically relevant non-major bleeding compared to placebo. Data from the study show that fesomersen was safe and well-tolerated. Fesomersen also demonstrated substantial and statistically significant reductions in Factor XI activity levels.
Macrogenics (+6.1%, in USD) announced on July 8 that effective as of July 7, 2022, the company closed the Phase II study (CP-MGA271-06) evaluating the investigational regimen of enoblituzumab (Fc-optimized B7-H3-directed monoclonal antibody) in combination with either retifanlimab (anti-PD-1 monoclonal antibody) or tebotelimab (PD-1 × LAG-3 bispecific DART® molecule) in the first-line treatment of patients with recurrent or metastatic squamous cell carcinoma of the head and neck (SCCHN). The decision to discontinue the study was based on an internal review of safety data.
We are still seeing very attractive investment opportunities in the biotech sector. On August 3 BB Biotech´s portfolio company Alnylam reported positive topline results from the long awaited APOLLO-B Phase III study of patisiran in patients with ATTR amyloidosis with cardiomyopathy. This is very positive news for Alnylam and other RNA interference companies – and seen as positive inflection point for the biotech sector as a whole. The investment team will continue to seek investments in biotech companies that deploy novel approaches to create breakthrough clinical benefits for patients and society.
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