BB Biotech AG

The share price of BB Biotech decreased by 0.2% in CHF in December, while the company’s net asset value (NAV) rose by 0.6% in USD. The Nasdaq Biotechnology Index (NBI) closed 1.9% lower in USD.

In December, US macroeconomic data and monetary policy communication highlighted increased uncertainty around the economic outlook, with the Federal Reserve pointing to risks of a moderation in economic activity amid a mixed data picture. The Fed cut interest rates by 25 basis points, citing contained inflationary pressures while maintaining a data-dependent approach. Against this backdrop, expectations for further monetary easing moved more into focus, particularly with regard to 2026. Declining US Treasury yields during the month supported growth-oriented sectors, including healthcare and biotechnology.

Strategic activity remained a key theme. Large pharmaceutical companies continued to emphasise the importance of external innovation to address upcoming patent expiries. Together with more stable financing conditions and still depressed biotech valuations, this supported expectations for a selective recovery in M&A activity, particularly focused on late-stage assets with defined regulatory and commercial profiles.

Capital market conditions showed further signs of stabilisation. While IPO activity remained limited, funding activity increasingly shifted toward private-public transactions, structured financings and milestone-based agreements, reflecting a more selective but functional financing environment for advanced development programs.

BB Biotech focuses on a concentrated portfolio of innovative companies with differentiated scientific platforms, advanced clinical development and increasing regulatory visibility, aligned with current strategic priorities and capital allocation trends in the biotech sector.

Selected highlights in December from BB Biotech’s portfolio companies:

Wave Life Sciences (+119%, in USD) rose sharply in December following positive Phase I interim data for WVE-007, a novel RNA-based therapy in obesity. A single subcutaneous dose led to a meaningful improvement in body composition, including reductions in visceral and total body fat alongside an increase in muscle mass, without evidence of muscle loss. The data also showed durable target engagement with a favourable safety profile, supporting the potential for infrequent dosing.
Based on these results, Wave plans to advance WVE-007 into Phase II development, including monotherapy and combination approaches. The share price reaction reflected a reassessment of the program’s clinical potential and the broader pipeline opportunity.

Alnylam Pharmaceuticals (-12%, in USD) declined during December despite the company’s continued strong fundamental positioning. The share price weakness reflected investor caution around near-term growth expectations and profit-taking after a period of solid performance earlier in the year, rather than any deterioration in the underlying business. Market attention focused on the pace of commercial uptake across Alnylam’s marketed RNAi therapies and on longer-term pipeline execution, leading to a temporary reassessment of valuation levels. The move highlighted broader sensitivity within large-cap biotechnology to earnings visibility and sentiment shifts toward year-end.