BB Biotech AG

The share price of BB Biotech increased by 13.4% in CHF in October, while the company’s net asset value (NAV) rose by 10.4% in USD. The Nasdaq Biotechnology Index (NBI) closed 10.0% higher in USD.

In October, the biotech sector extended its upward trajectory, benefiting from improving market sentiment and continued investor appetite for innovation-driven growth. The NBI advanced further following September’s strong performance, as lower interest rate expectations and positive company-specific developments sustained momentum. BB Biotech once again outperformed the benchmark, reflecting the strength and quality of its focused portfolio.

Monetary policy continued to provide a constructive backdrop for growth-oriented investments. Following the US Federal Reserve’s 25 basis point rate cut in September, market participants increasingly priced in the possibility of further easing measures in 2026. The resulting decline in financing costs supported renewed capital flows into the biotechnology sector, with particular interest in late-stage and commercial-stage innovators.

Strategic M&A activity remained an important driver of sentiment. Large pharmaceutical companies continued to pursue differentiated pipeline assets to bolster long-term growth, often offering substantial acquisition premiums for clinically validated programs. This trend underscores the enduring attractiveness of innovation and the high strategic value of differentiated biotech platforms.

Regulatory developments also contributed to the positive market sentiment. The US Food and Drug Administration (FDA) maintained a steady pace of reviews despite personnel changes earlier in the year. Particularly the third quarter of 2025 proved to be one of the most active periods in recent years, with an above-average number of approvals. Overall, the number of novel drug approvals since the beginning of the year has remained roughly in line with the previous year, underscoring the sector’s continued innovative strength and a constructive regulatory environment for breakthrough therapies.

Overall, October confirmed that both the monetary and regulatory environments are turning more supportive for biotechnology. With solid fundamentals, increasing deal activity and a healthy flow of clinical progress, investor confidence in the sector’s long-term growth trajectory continues to strengthen.

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

Argenx (+11%, in USD) reported strong third-quarter results, driven by the continued commercial expansion of VYVGART and VYVGART Hytrulo across multiple autoimmune indications. The company saw accelerating demand in both the US and international markets and highlighted progress toward label expansions for additional autoimmune diseases. Robust revenue growth and sustained pipeline momentum underline Argenx’s position as one of the most dynamic innovators in the field of immunology.

Revolution Medicines (+26%, in USD) continued to advance its novel oncology programs targeting the RAS pathway, a key driver in many hard-to-treat cancers including pancreatic and lung cancer. During the month, the company received an FDA Priority Review voucher for its lead RAS(ON) inhibitor, underscoring the potential of this approach to transform treatment options for patients with RAS-mutant tumors. Recent clinical data further strengthened investor confidence in Revolution Medicines as an emerging leader in precision oncology.

Avidity Biosciences (+60%, in USD) announced that it will be acquired by Novartis, marking one of the most notable strategic transactions of the year. The deal, agreed at a significant premium, validates Avidity’s proprietary antibody-oligonucleotide conjugate (AOC) platform, which combines targeted tissue delivery with RNA-based gene modulation. The acquisition highlights renewed M&A interest in innovative RNA technologies and confirms the strategic relevance of Avidity’s pipeline.

Akero Therapeutics (+14%, in USD) likewise attracted industry attention with the announcement of its acquisition by Novo Nordisk. Akero’s lead candidate efruxifermin, a long-acting FGF21 analog for non-alcoholic steatohepatitis (NASH), will enhance Novo Nordisk’s growing metabolic and liver-disease portfolio. The transaction underscores the strong appetite of major pharmaceutical companies for differentiated, late-stage biotech assets and represents a further validation of BB Biotech’s investment focus on breakthrough science and clinical value creation.