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26.04.2024 07:00:40 - EQS-News: BB Biotech presents solid first-quarter -2-
DJ EQS-News: BB Biotech presents solid first-quarter results; biotech stock market impacted by shifting views on interest rates
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EQS-News: BB BIOTECH AG / Key word(s): Interim Report
BB Biotech presents solid first-quarter results; biotech stock market impacted by shifting views on interest rates
2024-04-26 / 07:00 CET/CEST
The issuer is solely responsible for the content of this announcement.
Media release as at April 26, 2024
Portfolio of BB Biotech AG as at March 31, 2024
BB Biotech presents solid first-quarter results; biotech stock market impacted by shifting views on interest rates
Investor sentiment in the biotech space continues to be shaped by the general interest rate environment. Biotechnology
stocks traded higher early in the year before retreating on worries of tighter monetary policy from the Federal
Reserve. Nevertheless, for BB Biotech investors, the first quarter of 2024 ended with a pleasing performance of 11.3%
in CHF and 7.6% in EUR including the dividend payout of CHF 2.00 per share. The portfolio's total return (NAV) stood at
11.2% in CHF, 6.3% in EUR, and 3.8% in USD, which was slightly ahead of BB Biotech's benchmark. BB Biotech's
performance was boosted by a weaker Swiss franc versus the US dollar. Net profit for the first quarter of 2024 amounted
to CHF 260 mn (net loss of CHF 254 mn in prior-year quarter). The investment level of 114.1% is at the high end of the
defined range, which reflects the investment management team's optimistic outlook for the sector.
Equity markets climbed to new record highs during the first quarter of 2024. The healthcare sector as a whole ended the
quarter in positive territory, bolstered by solid earnings announcements and the sustained momentum of companies
leading the fight against the obesity epidemic. The biotechnology sector was unable to keep pace with the broader
healthcare sector due to concerns that monetary policy would not be eased as early as expected. This underperformance
was slightly offset by several smaller M&A transactions and the ongoing recovery by small caps from their lows of last
year.
The BB Biotech share achieved a positive quarterly return of 11.3% in CHF and 7.6% in EUR, inclusive of a dividend
payment of CHF 2.00 per share. The portfolio's total return was 11.2% in CHF, 6.3% in EUR, and 3.8% in USD, surpassing
the NBI Index. The devaluation of the Swiss franc gave the portfolio a strong boost in the first quarter of 2024. Net
gain for the first quarter of 2024 amounted to CHF 260 mn, a stark contrast to a net loss of CHF 254 mn during the same
period in 2023.
At the Annual General Meeting Dr. Thomas von Planta was elected as the new Chairman of the Board of Directors, taking
over from Dr. Erich Hunziker, who after 13 years opted not to seek re-election. Camilla Soenderby was elected as a new
member of the Board. The shareholders also re-elected existing Board members Dr. Clive Meanwell, Laura Hamill, Dr.
Pearl Huang, and Prof. Dr. Mads Krogsgaard Thomsen for another one-year term.
First-quarter portfolio activity
In the first quarter, portfolio adjustments primarily involved capitalizing on gains from larger, established long-term
holdings. Profit-taking activities targeted mid-to-larger entities such as Vertex, Argenx, Ionis, Intra-Cellular,
Moderna, and Neurocrine, alongside minor tactical sales, generating a substantial cash influx of USD 166 mn. The
quarter's capital expenditures included CHF 110 mn for dividend payouts and USD 70 mn for bolstering existing smaller
positions and establishing a new stake in Annexon. Annexon, a clinical-stage company focused on developing therapeutic
candidates aimed at the complement system to tackle severe autoimmune disorders. BB Biotech engaged in capital
increases for Celldex and Esperion. Further portfolio enhancements involved additions to Sage and Generation Bio, and
profits from Crispr Therapeutics were reallocated to Beam Therapeutics.
Portfolio milestones for the first quarter 2024
Biotech markets remained volatile during the first quarter of 2024. Large portfolio positions such as Alnylam and Ionis
lost value due to delays in major clinical trial readouts. Alnylam pushed back the publication of results from its
HELIOS B trial of vutrisiran, which was met with mixed reactions. Similarly, Intra-Cellular Therapies shares were
marked down after the company postponed the publication of data from its Phase III trial of Caplyta in major depressive
disorder to April. The company finally announced positive Phase III topline results on April 16, which led to a
recovery of the short-term share price losses.
On the other hand, several smaller positions in the portfolio recovered from their previous lows as they reported
further progress towards significant milestones. Portfolio positions that are trading at a steep discount still offer
considerable upside. One example here is Macrogenics, which made a positive contribution to the increase in NAV during
the first quarter of 2024. It will soon publish pivotal Phase II data for vobra duo, an anti-B7-H3 ADC currently being
evaluated in patients with prostate cancer. There were also product approvals and label expansions during the period
under review. Casgevy was approved in the US for the treatment of transfusion-dependent beta-thalassemia, for example,
and Vyvgart's label in Japan was expanded to include primary immune thrombocytopenia.
Outlook for the remainder of 2024
Central bank interest rate decisions continue to be a pivotal short-term factor influencing biotech investments. As
demonstrated in the first quarter, any adjustment in the timelines and extent of potential rate cuts significantly
affects valuations, especially for small and mid cap companies poised to invest heavily in drug development, with
revenues and profits anticipated only a few years down the line, assuming everything proceeds as planned.
Despite the challenging environment, the companies in BB Biotech's portfolio are very sound and they continue to make
good progress. Significant news flow is expected over the course of the year: Alnylam will publish Phase III HELIOS-B
results for vutrisiran in TTR cardiomyopathy patients. Agios is expected to publish ENERGIZE-T results for Pyrukynd in
transfusion-dependent alpha- and beta-thalassemia patients. Macrogenics will give an update on its Phase II TAMARACK
trial of vobra duo in metastatic castration-resistant prostate cancer patients. Revolution Medicines is expected to
publish data on RMC-6236, a multi KRAS inhibitor. Moderna's RSV vaccine mRNA-1345 should be granted approval during the
second quarter of 2024, in time for the start of the fall vaccination season.
The US healthcare system's focus on cost control, particularly with the implementation of the Inflation Reduction Act
(IRA), will become more pronounced in fall 2024 as the negotiated discounts for the first ten drugs set for discounting
in 2026/27 are announced. Additionally, with the US presidential election approaching, new healthcare proposals are
expected to emerge.
Capital market conditions for biotech companies with attractive product pipelines have improved. Funding activity by
pipeline companies that have made significant progress on the R&D front has increased, for example. After the
challenges of the post-pandemic years, investors are once again willing to support pipeline companies, enabling them to
pursue their development independently. While activity in the secondary market has already picked up, there have been
few biotech IPOs so far this year.
The interim report as at March 31, 2024, is available under report.bbbiotech.ch/Q124 or www.bbbiotech.com.
For further information:
Investor Relations
Bellevue Asset Management AG, Seestrasse 16, 8700 Küsnacht, Switzerland, tel. +41 44 267 67 00
Dr. Silvia Siegfried-Schanz, ssc@bellevue.ch
Maria-Grazia Alderuccio, mga@bellevue.ch
Claude Mikkelsen, cmi@bellevue.ch
Media Relations
Bellevue Asset Management AG, Seestrasse 16, 8700 Küsnacht, Switzerland, tel. +41 44 267 67 00
Tanja Chicherio, tch@bellevue.ch
TE Communications AG, St. Leonhard-Strasse 45, 9001 St. Gallen, Switzerland, tel. +41 79 423 22 28
Thomas Egger, teg@te-communications.ch
www.bbbiotech.com
Company profile
BB Biotech AG is an investment company with its registered office in Schaffhausen/Switzerland and listed on the Swiss
and German stock exchanges. It has invested in innovative drug developers headquartered primarily in the US and Western
Europe. BB Biotech is one of the world's largest investors in this sector. The competent Board of Directors with its
long-standing experience set the investment strategy and guidelines. Investment decisions are taken by the experienced
investment management team of Bellevue Asset Management AG based on their extensive investment research.
Disclaimer
This release contains forward-looking statements and expectations as well as assessments, beliefs and assumptions. Such
statements are based on the current expectations of BB Biotech, its directors and officers, and are, therefore, subject
to risks and uncertainties that may change over time. As actual developments may significantly differ, BB Biotech and
its directors and officers accept no responsibility in that regard. All forward-looking statements included in this
release are made only as of the date of this release and BB Biotech and its directors and officers assume no obligation
to update any forward-looking statements as a result of new information, future events or other factors.
Composition of BB Biotech's portfolio as at March 31, 2024
(in % of securities, rounded values)
===
(MORE TO FOLLOW) Dow Jones Newswires
April 26, 2024 01:00 ET (05:00 GMT)
===
Radius Health - CVR 0.0%
Total securities CHF 2 822.2 mn
Net Asset Value CHF 2 474.0 mn ^1) Unlisted company
===
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2024-04-26 CET/CEST Dissemination of a Corporate News, transmitted by EQS News - a service of EQS Group AG. The issuer is solely responsible for the content of this announcement. The EQS Distribution Services include Regulatory Announcements, Financial/Corporate News and Press Releases. Archive at www.eqs-news.com
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Schwertstrasse 6
8200 Schaffhausen
Switzerland
End of News EQS News Service
===
1889677 2024-04-26 CET/CEST
Image link: https://eqs-cockpit.com/cgi-bin/fncls.ssp?fn=show_t_gif&application_id=1889677&application_name=news
END) Dow Jones Newswires
April 26, 2024 01:00 ET (05:00 GMT)
===
EQS-News: BB BIOTECH AG / Key word(s): Interim Report
BB Biotech presents solid first-quarter results; biotech stock market impacted by shifting views on interest rates
2024-04-26 / 07:00 CET/CEST
The issuer is solely responsible for the content of this announcement.
Media release as at April 26, 2024
Portfolio of BB Biotech AG as at March 31, 2024
BB Biotech presents solid first-quarter results; biotech stock market impacted by shifting views on interest rates
Investor sentiment in the biotech space continues to be shaped by the general interest rate environment. Biotechnology
stocks traded higher early in the year before retreating on worries of tighter monetary policy from the Federal
Reserve. Nevertheless, for BB Biotech investors, the first quarter of 2024 ended with a pleasing performance of 11.3%
in CHF and 7.6% in EUR including the dividend payout of CHF 2.00 per share. The portfolio's total return (NAV) stood at
11.2% in CHF, 6.3% in EUR, and 3.8% in USD, which was slightly ahead of BB Biotech's benchmark. BB Biotech's
performance was boosted by a weaker Swiss franc versus the US dollar. Net profit for the first quarter of 2024 amounted
to CHF 260 mn (net loss of CHF 254 mn in prior-year quarter). The investment level of 114.1% is at the high end of the
defined range, which reflects the investment management team's optimistic outlook for the sector.
Equity markets climbed to new record highs during the first quarter of 2024. The healthcare sector as a whole ended the
quarter in positive territory, bolstered by solid earnings announcements and the sustained momentum of companies
leading the fight against the obesity epidemic. The biotechnology sector was unable to keep pace with the broader
healthcare sector due to concerns that monetary policy would not be eased as early as expected. This underperformance
was slightly offset by several smaller M&A transactions and the ongoing recovery by small caps from their lows of last
year.
The BB Biotech share achieved a positive quarterly return of 11.3% in CHF and 7.6% in EUR, inclusive of a dividend
payment of CHF 2.00 per share. The portfolio's total return was 11.2% in CHF, 6.3% in EUR, and 3.8% in USD, surpassing
the NBI Index. The devaluation of the Swiss franc gave the portfolio a strong boost in the first quarter of 2024. Net
gain for the first quarter of 2024 amounted to CHF 260 mn, a stark contrast to a net loss of CHF 254 mn during the same
period in 2023.
At the Annual General Meeting Dr. Thomas von Planta was elected as the new Chairman of the Board of Directors, taking
over from Dr. Erich Hunziker, who after 13 years opted not to seek re-election. Camilla Soenderby was elected as a new
member of the Board. The shareholders also re-elected existing Board members Dr. Clive Meanwell, Laura Hamill, Dr.
Pearl Huang, and Prof. Dr. Mads Krogsgaard Thomsen for another one-year term.
First-quarter portfolio activity
In the first quarter, portfolio adjustments primarily involved capitalizing on gains from larger, established long-term
holdings. Profit-taking activities targeted mid-to-larger entities such as Vertex, Argenx, Ionis, Intra-Cellular,
Moderna, and Neurocrine, alongside minor tactical sales, generating a substantial cash influx of USD 166 mn. The
quarter's capital expenditures included CHF 110 mn for dividend payouts and USD 70 mn for bolstering existing smaller
positions and establishing a new stake in Annexon. Annexon, a clinical-stage company focused on developing therapeutic
candidates aimed at the complement system to tackle severe autoimmune disorders. BB Biotech engaged in capital
increases for Celldex and Esperion. Further portfolio enhancements involved additions to Sage and Generation Bio, and
profits from Crispr Therapeutics were reallocated to Beam Therapeutics.
Portfolio milestones for the first quarter 2024
Biotech markets remained volatile during the first quarter of 2024. Large portfolio positions such as Alnylam and Ionis
lost value due to delays in major clinical trial readouts. Alnylam pushed back the publication of results from its
HELIOS B trial of vutrisiran, which was met with mixed reactions. Similarly, Intra-Cellular Therapies shares were
marked down after the company postponed the publication of data from its Phase III trial of Caplyta in major depressive
disorder to April. The company finally announced positive Phase III topline results on April 16, which led to a
recovery of the short-term share price losses.
On the other hand, several smaller positions in the portfolio recovered from their previous lows as they reported
further progress towards significant milestones. Portfolio positions that are trading at a steep discount still offer
considerable upside. One example here is Macrogenics, which made a positive contribution to the increase in NAV during
the first quarter of 2024. It will soon publish pivotal Phase II data for vobra duo, an anti-B7-H3 ADC currently being
evaluated in patients with prostate cancer. There were also product approvals and label expansions during the period
under review. Casgevy was approved in the US for the treatment of transfusion-dependent beta-thalassemia, for example,
and Vyvgart's label in Japan was expanded to include primary immune thrombocytopenia.
Outlook for the remainder of 2024
Central bank interest rate decisions continue to be a pivotal short-term factor influencing biotech investments. As
demonstrated in the first quarter, any adjustment in the timelines and extent of potential rate cuts significantly
affects valuations, especially for small and mid cap companies poised to invest heavily in drug development, with
revenues and profits anticipated only a few years down the line, assuming everything proceeds as planned.
Despite the challenging environment, the companies in BB Biotech's portfolio are very sound and they continue to make
good progress. Significant news flow is expected over the course of the year: Alnylam will publish Phase III HELIOS-B
results for vutrisiran in TTR cardiomyopathy patients. Agios is expected to publish ENERGIZE-T results for Pyrukynd in
transfusion-dependent alpha- and beta-thalassemia patients. Macrogenics will give an update on its Phase II TAMARACK
trial of vobra duo in metastatic castration-resistant prostate cancer patients. Revolution Medicines is expected to
publish data on RMC-6236, a multi KRAS inhibitor. Moderna's RSV vaccine mRNA-1345 should be granted approval during the
second quarter of 2024, in time for the start of the fall vaccination season.
The US healthcare system's focus on cost control, particularly with the implementation of the Inflation Reduction Act
(IRA), will become more pronounced in fall 2024 as the negotiated discounts for the first ten drugs set for discounting
in 2026/27 are announced. Additionally, with the US presidential election approaching, new healthcare proposals are
expected to emerge.
Capital market conditions for biotech companies with attractive product pipelines have improved. Funding activity by
pipeline companies that have made significant progress on the R&D front has increased, for example. After the
challenges of the post-pandemic years, investors are once again willing to support pipeline companies, enabling them to
pursue their development independently. While activity in the secondary market has already picked up, there have been
few biotech IPOs so far this year.
The interim report as at March 31, 2024, is available under report.bbbiotech.ch/Q124 or www.bbbiotech.com.
For further information:
Investor Relations
Bellevue Asset Management AG, Seestrasse 16, 8700 Küsnacht, Switzerland, tel. +41 44 267 67 00
Dr. Silvia Siegfried-Schanz, ssc@bellevue.ch
Maria-Grazia Alderuccio, mga@bellevue.ch
Claude Mikkelsen, cmi@bellevue.ch
Media Relations
Bellevue Asset Management AG, Seestrasse 16, 8700 Küsnacht, Switzerland, tel. +41 44 267 67 00
Tanja Chicherio, tch@bellevue.ch
TE Communications AG, St. Leonhard-Strasse 45, 9001 St. Gallen, Switzerland, tel. +41 79 423 22 28
Thomas Egger, teg@te-communications.ch
www.bbbiotech.com
Company profile
BB Biotech AG is an investment company with its registered office in Schaffhausen/Switzerland and listed on the Swiss
and German stock exchanges. It has invested in innovative drug developers headquartered primarily in the US and Western
Europe. BB Biotech is one of the world's largest investors in this sector. The competent Board of Directors with its
long-standing experience set the investment strategy and guidelines. Investment decisions are taken by the experienced
investment management team of Bellevue Asset Management AG based on their extensive investment research.
Disclaimer
This release contains forward-looking statements and expectations as well as assessments, beliefs and assumptions. Such
statements are based on the current expectations of BB Biotech, its directors and officers, and are, therefore, subject
to risks and uncertainties that may change over time. As actual developments may significantly differ, BB Biotech and
its directors and officers accept no responsibility in that regard. All forward-looking statements included in this
release are made only as of the date of this release and BB Biotech and its directors and officers assume no obligation
to update any forward-looking statements as a result of new information, future events or other factors.
Composition of BB Biotech's portfolio as at March 31, 2024
(in % of securities, rounded values)
Ionis Pharmaceuticals 11.4% Argenx SE 9.7% Neurocrine Biosciences 9.0% Vertex Pharmaceuticals 7.7% Intra-Cellular Therapies 6.2% Moderna 5.8% Revolution Medicines 5.2%
Macrogenics 4.7% Alnylam Pharmaceuticals 4.3% Incyte 3.9%
===
(MORE TO FOLLOW) Dow Jones Newswires
April 26, 2024 01:00 ET (05:00 GMT)
===
Celldex Therapeutics 3.7% Agios Pharmaceuticals 3.7% Arvinas 3.1% Sage Therapeutics 2.7% Essa Pharma 2.1% Biohaven 2.0% Immunocore 2.0% Relay Therapeutics 1.6% Exelixis 1.4% Black Diamond Therapeutics 1.4% Crispr Therapeutics 1.3% Beam Therapeutics 1.3% Scholar Rock Holding 1.2% Fate Therapeutics 1.1% Esperion Therapeutics 0.9% Wave Life Sciences 0.8% Rivus Pharmaceuticals^1) 0.6% Generation Bio Co. 0.5% Annexon 0.5% Molecular Templates 0.1%
Radius Health - CVR 0.0%
Total securities CHF 2 822.2 mn
Other assets CHF 5.8 mn Other payables CHF (354.0) mn
Net Asset Value CHF 2 474.0 mn ^1) Unlisted company
===
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2024-04-26 CET/CEST Dissemination of a Corporate News, transmitted by EQS News - a service of EQS Group AG. The issuer is solely responsible for the content of this announcement. The EQS Distribution Services include Regulatory Announcements, Financial/Corporate News and Press Releases. Archive at www.eqs-news.com
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===
Language: English Company: BB BIOTECH AG
Schwertstrasse 6
8200 Schaffhausen
Switzerland
Phone: +41 52 624 08 45 E-mail: info@bbbiotech.com Internet: www.bbbiotech.ch ISIN: CH0038389992 WKN: A0NFN3 Listed: Regulated Market in Frankfurt (Prime Standard); Mailand, SIX EQS News ID: 1889677
End of News EQS News Service
===
1889677 2024-04-26 CET/CEST
Image link: https://eqs-cockpit.com/cgi-bin/fncls.ssp?fn=show_t_gif&application_id=1889677&application_name=news
END) Dow Jones Newswires
April 26, 2024 01:00 ET (05:00 GMT)
| Name | WKN | Börse | Kurs | Datum/Zeit | Diff. | Diff. % | Geld | Brief | Erster | Schluss | |
|---|---|---|---|---|---|---|---|---|---|---|---|
 |
BB BIOTECH NAM. SF 0,20 | A0NFN3 | Xetra | 41,000 | 28.05.24 17:35:45 | -0,250 | -0,61% | 0,000 | 0,000 | 40,900 | 41,250 |
