BB Biotech AG

In May geopolitical issues were once again a focus for investors. The month of May was another volatile month for biotech stocks with the Nasdaq Biotech Index starting the month at 3760.64 hitting its low of 3382.44 on May 11 and ending the month at 3711.03. BB Biotech’s share price declined by 3.1% (in CHF) in May.

In the biotech sector we saw one significant M&A deal announced on May 10 with Pfizer acquiring Biohaven Pharmaceuticals for USD 11.6 bn in cash. Biohaven is a company with an oral migraine medication that is currently approved and marketed.

Many of BB Biotech’s portfolio companies reported first quarter results in May and in general their development both scientifically and financially are going according to plan.

Please find below selected highlights from a few of BB Biotech´s portfolio companies:
 
Sage Therapeutics (-0.8%, in USD) and its partner Biogen announced on May 2 that they have initiated a rolling submission of a New Drug Application (NDA) to the FDA for zuranolone in the treatment of major depressive disorder (MDD). Zuranolone is an investigational two-week, once-daily oral drug being developed for MDD and postpartum depression (PPD). The companies have submitted the nonclinical module of the NDA to the FDA and plan to submit the remaining components for the MDD filing in the second half of 2022.

Argenx (+7.7%, in USD) announced on May 5 positive data from the Phase III ADVANCE trial of VYVGART (efgartigimod alfa-fcab) in adults with primary immune thrombocytopenia (ITP). ADVANCE met its primary endpoint demonstrating that a higher proportion of chronic ITP patients receiving VYVGART achieved a sustained platelet count response compared to placebo. ADVANCE is the first Phase 3 clinical trial of a neonatal Fc receptor (FcRn) blocker in ITP.

Vertex (-1.7%, in USD) announced on May 2 updates on its Phase 1/2 clinical trial of VX-880, an investigational stem cell-derived, fully differentiated pancreatic islet cell replacement therapy for people with type 1 diabetes (T1D) with impaired hypoglycemic awareness and severe hypoglycemia. Two patients in Part A received VX-880 at half the target dose. The first patient dosed in Part A of the study achieved insulin independence at day 270, with a HbA1c of 5.2%. The second patient dosed in Part A has shown robust increases in fasting and stimulated C-peptide, and reductions in exogenous insulin requirements through day 150. Taken together, the data from the first two patients in Part A established proof-of-concept for VX-880. Per the study protocol, the Independent Data Monitoring Committee reviewed the totality of the safety and efficacy data from the first two patients dosed in Part A of the study and recommended advancement to Part B, where patients receive the full target dose of VX-880. 

We are still seeing very attractive investment opportunities in the biotech sector. The investment team will continue to seek investments in biotech companies that deploy novel approaches to create breakthrough clinical benefits for patients and society.