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: 05.07.2022)
Share price: CHF 57.00 (04.07.2022)
NAV: CHF 47.10 (04.07.2022)
Rolling performance (04.07.2022)
|Share price||NAV||XNBI CHF|
|02.07.2021 - 04.07.2022||-30.87%||-30.86%||-22.32%|
|03.07.2020 - 02.07.2021||31.00%||16.53%||16.91%|
|04.07.2019 - 03.07.2020||9.64%||18.68%||20.43%|
|04.07.2018 - 04.07.2019||5.52%||4.57%||-0.14%|
Annualized performance (04.07.2022)
|Share price||NAV||XNBI CHF|
|Since Inception p.a.||11.89%||11.09%||9.33%|
Cumulative performance (04.07.2022)
|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 (30.06.2022, base currency CHF)
|No. of positions||31|
Portfolio as at 31.03.2022
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
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.
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