BB Biotech AG

February was an overall negative month for the biotech sector. The Nasdaq Biotech Index was negative by 6.4% (in USD) in February, while BB Biotech´s share price was negative by 7.0% (in CHF) and Net Asset Value was negative by 9.6% (in USD) during the same period.

Several of BB Biotech’s portfolio companies reported full year results in February. In general the portfolio companies are delivering financial results according to expectations and we saw significant sales growth in some of the companies with products on the market.

On January 20 it was announced that the Board of Directors will propose a regular dividend of CHF 2.85 per share at the annual general meeting on March 23 corresponding to 5% of the average share price of December 2022, consistent with the dividend policy introduced in 2013.

We have highlighted some of the latest news from our portfolio companies below.
 
Celldex Therapeutics (-2.9%, in USD) announced on February 26 updated data from the company’s Phase Ib clinical trial of barzolvolimab in patients with moderate to severe chronic spontaneous urticaria (CSU) refractory to antihistamines. Barzolvolimab is a humanized monoclonal antibody that specifically binds the receptor tyrosine kinase KIT with high specificity and potently inhibits its activity, which is required for the function and survival of mast cells. The data are encouraging and were presented at the American Academy of Allergy, Asthma & Immunology Annual Meeting. Treatment options for patients with CSU are limited and there are no approved therapies for patients who do not respond to omalizumab.

Revolution Medicines (+0.1%, in USD) announced in February that early findings have shown that RMC-6236 is orally bioavailable in patients, exhibiting pharmacokinetics consistent with the company’s preclinical data. 36 patients were evaluable for initial safety and tolerability in the study as of the cut-off date of February 17, 2023. As of this data cut-off, RMC-6236 was generally well tolerated in this group. 12 patients – three with non-small cell lung cancer and nine with pancreatic cancer – treated with RMC-6236 at doses 40 mg, 80 mg or 120 mg daily were efficacy evaluable as of the data cut-off date. All 12 patients exhibited stable disease or better as their best response. 10 of the patients had reductions in tumor volumes.

Moderna (-21.2%, in USD) announced in February 16 interim results from its pivotal Phase III trial of mRNA-1010, an mRNA based seasonal flu vaccine candidate in adults. The Phase III trial was designed to evaluate the safety and immunogenicity of mRNA-1010 in adults 18 years and older in the Southern Hemisphere. mRNA-1010 encodes for hemagglutinin glycoproteins of the four influenza strains recommended by WHO to prevent influenza. Interim results indicate that mRNA-1010 achieved superiority on seroconversion rates for A/H3N2 and A/H1N1, as well as superiority on geometric mean titer ratios for A/H3N2 and non-inferiority on geometric mean titer ratios for A/H1N1. Non-inferiority was not met for either endpoints for the influenza B/Victoria- and B/Yamagata-lineage strains.

Despite a challenging stock market in February we continue to believe that 2023 will include multiple catalysts for the sector and for BB Biotech’s portfolio companies, including product launches, important clinical trial results, licensing deals and M&A activity. We remain optimistic about the long-term development for BB Biotech*s portfolio companies.