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08.05.2024 18:37:46 - dpa-AFX: EQS-Adhoc: HBM Healthcare Investments achieves a balanced result in the 2023/2024 financial year (english)
HBM Healthcare Investments achieves a balanced result in the 2023/2024
financial year
HBM Healthcare Investments AG / Key word(s): Annual Results
HBM Healthcare Investments achieves a balanced result in the 2023/2024
financial year
08-May-2024 / 18:37 CET/CEST
Release of an ad hoc announcement pursuant to Art. 53 LR
The issuer is solely responsible for the content of this announcement.
---------------------------------------------------------------------------
* Slight loss of CHF 1 million
* Net asset value per share (NAV) 0.3% higher after share buy-backs
* Mixed portfolio performance
* Unfavourable currency developments reduce annual result by around 2.5%
HBM Healthcare Investments almost broke even in the 2023/2024 financial year
with a slight loss of CHF 1 million. The net asset value per share (NAV)
rose by 0.3 percent as the number of shares outstanding was reduced by share
buy-backs. The share price fell by 6.0 percent.
The performance of the portfolio was mixed. The following investments
contributed the most to the NAV development:
Mixed market environment
The market environment for HBM Healthcare's portfolio companies was
challenging and uneven during the year under review. The biotech sector
recovered in the United States and to some extent in Europe, and M&A
activity increased in the second half of 2023. Most of HBM Healthcare's
public investments in the US benefited from the overall positive market
sentiment. In Asia, the markets in China continued to decline, while the
Indian healthcare market was in strong shape.
Volatile investment currencies
HBM Healthcare's investment currencies were subject to strong exchange rate
fluctuations. Swiss National Bank's unexpectedly early interest rate cut
towards the end of the first quarter of 2024 corrected the strong
appreciation of the Swiss franc somewhat. Nevertheless, all investment
currencies lost ground against the Swiss franc in the reporting year (US
dollar -1.5 percent, Chinese yuan -6.3 percent, euro -2.0 percent and Indian
rupee -3.0 percent). Overall, the currency effects weighed on our
performance by around 2.5 percent.
Developments in the portfolio of public companies
With a total increase in value of CHF 69 million or 3.9 percent, the
portfolio of public companies made the largest positive contribution to
earnings. This was despite negative currency effects totalling CHF -32
million.
The public companies originating from the private portfolio depressed the
result by a total of CHF -44 million despite the positive contributions from
Y-mAbs Therapeutics (CHF 33 million), Longboard Pharmaceuticals (CHF 19
million) and Ambrx Pharmaceuticals (CHF 10 million), the latter due to the
acquisition by Johnson & Johnson for USD 2 billion.
In contrast, Cathay Biotech's share price fell by 28 percent, resulting in a
book loss of CHF
-98 million. However, the company's key operating metrics, which had
declined in 2023, showed a significant improvement again in the first
quarter of 2024. As a leader in the field of synthetic biology, Cathay's
positioning for the future remains excellent.
The investments in the portfolio of other public companies, which were built
up directly on the market, contributed a total of CHF 113 million to the
annual result. Four acquisitions - ImmunoGen, CymaBay, Chinook Therapeutics
and Prometheus Biosciences - took centre stage, contributing CHF 39 million
to the result. Biohaven (CHF 21 million), Cytokinetics (CHF 15 million),
Merus (CHF 14 million) and various Indian companies (totalling CHF 24
million) also developed positively.
Developments in the portfolio of private companies
Private companies recorded a net value reduction of CHF -60 million. CHF -10
million of this is attributable to unfavourable currency developments. This
corresponds to a negative contribution to earnings of 3.4 percent.
Upstream Bio (CHF 12 million) and Swixx BioPharma (CHF 11 million) were
revalued upwards; larger value impairments were necessary at Farmalatam (CHF
-26 million) and ConnectRN (CHF -24 million). Value adjustments totalling
CHF -33 million were made to thirteen other private companies due to
financing rounds or disappointing operating performance.
The portfolio was selectively supplemented with two new investments in US
companies. An investment commitment of USD 5 million (of which USD 2.5
million was paid in) was made to Alumis for the development of oral
therapies for the treatment of immune disorders. ADARx Pharmaceuticals
received USD 4 million. ADARx is developing a promising siRNA platform. A
further CHF 29 million was invested in existing private companies as part of
follow-up financing.
Funds and other assets
The funds' portfolio reported an impairment loss of CHF -10 million (of
which CHF -2 million due to currency movements).
Other assets and liabilities made a positive contribution to earnings
totalling CHF 24 million.
Asset allocation
The portfolio remains well balanced, with public companies accounting for 42
percent of consolidated total assets (of which 22 percent were previously
private companies), private companies 35 percent, funds 10 percent, cash and
cash equivalents 11 percent and other assets 2 percent.
Par value repayment and share buy-backs
HBM Healthcare Investments endeavours to maintain a balance between new
investments and returns to shareholders in the form of cash distributions
and share buy-backs.
The Board of Directors is therefore proposing to the Annual General Meeting
a repayment of par value of CHF 7.50 per share, unchanged from the previous
year. This corresponds to a yield of 3.9 percent on the share price at the
end of March 2024.
As part of the current share buy-back programme approved by the Annual
General Meeting in June 2022, around 89 000 treasury shares totalling CHF
15.6 million were acquired via the 2nd trading line in the reporting year.
This corresponds to 1.3 percent of outstanding shares.
Outlook
The macroeconomic and geopolitical environment is likely to remain
challenging. With a carefully constructed portfolio of private and public
companies and liquidity of 11 percent of total assets, HBM Healthcare
Investments is well positioned to take advantage of any opportunities that
arise. In view of the fundamentally favourable performance of the industry
and many portfolio companies, HBM Healthcare Investments looks to the future
with confidence.
The full 2023/2024 Annual Report is available on the Company's website at
www.hbmhealthcare.com/en/investors/financial-reports.
Contact
For further information, please contact Dr Andreas Wicki on +41 41 710 75
77, or at andreas.wicki@hbmhealthcare.com.
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End of Inside Information
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End of Announcement EQS News Service
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1899149 08-May-2024 CET/CEST
financial year
HBM Healthcare Investments AG / Key word(s): Annual Results
HBM Healthcare Investments achieves a balanced result in the 2023/2024
financial year
08-May-2024 / 18:37 CET/CEST
Release of an ad hoc announcement pursuant to Art. 53 LR
The issuer is solely responsible for the content of this announcement.
---------------------------------------------------------------------------
* Slight loss of CHF 1 million
* Net asset value per share (NAV) 0.3% higher after share buy-backs
* Mixed portfolio performance
* Unfavourable currency developments reduce annual result by around 2.5%
* Portfolio selectively supplemented with investments in two private
companies
* Board of Directors proposes unchanged par value repayment of CHF 7.50
per share
HBM Healthcare Investments almost broke even in the 2023/2024 financial year
with a slight loss of CHF 1 million. The net asset value per share (NAV)
rose by 0.3 percent as the number of shares outstanding was reduced by share
buy-backs. The share price fell by 6.0 percent.
The performance of the portfolio was mixed. The following investments
contributed the most to the NAV development:
Winner NAV Loser NAV
Y-mAbs Therapeutics 1.9% Cathay Biotech -5.6%
Biohaven 1.2% Farmalatam (private) -1.5%
Longboard Pharmaceuticals 1.1% ConnectRN (private) -1.4%
ImmunoGen 1.1% Travere -0.5%
Cytokinetics 0.8% Mineralys Therapeutics -0.5%
Mixed market environment
The market environment for HBM Healthcare's portfolio companies was
challenging and uneven during the year under review. The biotech sector
recovered in the United States and to some extent in Europe, and M&A
activity increased in the second half of 2023. Most of HBM Healthcare's
public investments in the US benefited from the overall positive market
sentiment. In Asia, the markets in China continued to decline, while the
Indian healthcare market was in strong shape.
Volatile investment currencies
HBM Healthcare's investment currencies were subject to strong exchange rate
fluctuations. Swiss National Bank's unexpectedly early interest rate cut
towards the end of the first quarter of 2024 corrected the strong
appreciation of the Swiss franc somewhat. Nevertheless, all investment
currencies lost ground against the Swiss franc in the reporting year (US
dollar -1.5 percent, Chinese yuan -6.3 percent, euro -2.0 percent and Indian
rupee -3.0 percent). Overall, the currency effects weighed on our
performance by around 2.5 percent.
Developments in the portfolio of public companies
With a total increase in value of CHF 69 million or 3.9 percent, the
portfolio of public companies made the largest positive contribution to
earnings. This was despite negative currency effects totalling CHF -32
million.
The public companies originating from the private portfolio depressed the
result by a total of CHF -44 million despite the positive contributions from
Y-mAbs Therapeutics (CHF 33 million), Longboard Pharmaceuticals (CHF 19
million) and Ambrx Pharmaceuticals (CHF 10 million), the latter due to the
acquisition by Johnson & Johnson for USD 2 billion.
In contrast, Cathay Biotech's share price fell by 28 percent, resulting in a
book loss of CHF
-98 million. However, the company's key operating metrics, which had
declined in 2023, showed a significant improvement again in the first
quarter of 2024. As a leader in the field of synthetic biology, Cathay's
positioning for the future remains excellent.
The investments in the portfolio of other public companies, which were built
up directly on the market, contributed a total of CHF 113 million to the
annual result. Four acquisitions - ImmunoGen, CymaBay, Chinook Therapeutics
and Prometheus Biosciences - took centre stage, contributing CHF 39 million
to the result. Biohaven (CHF 21 million), Cytokinetics (CHF 15 million),
Merus (CHF 14 million) and various Indian companies (totalling CHF 24
million) also developed positively.
Developments in the portfolio of private companies
Private companies recorded a net value reduction of CHF -60 million. CHF -10
million of this is attributable to unfavourable currency developments. This
corresponds to a negative contribution to earnings of 3.4 percent.
Upstream Bio (CHF 12 million) and Swixx BioPharma (CHF 11 million) were
revalued upwards; larger value impairments were necessary at Farmalatam (CHF
-26 million) and ConnectRN (CHF -24 million). Value adjustments totalling
CHF -33 million were made to thirteen other private companies due to
financing rounds or disappointing operating performance.
The portfolio was selectively supplemented with two new investments in US
companies. An investment commitment of USD 5 million (of which USD 2.5
million was paid in) was made to Alumis for the development of oral
therapies for the treatment of immune disorders. ADARx Pharmaceuticals
received USD 4 million. ADARx is developing a promising siRNA platform. A
further CHF 29 million was invested in existing private companies as part of
follow-up financing.
Funds and other assets
The funds' portfolio reported an impairment loss of CHF -10 million (of
which CHF -2 million due to currency movements).
Other assets and liabilities made a positive contribution to earnings
totalling CHF 24 million.
Asset allocation
The portfolio remains well balanced, with public companies accounting for 42
percent of consolidated total assets (of which 22 percent were previously
private companies), private companies 35 percent, funds 10 percent, cash and
cash equivalents 11 percent and other assets 2 percent.
Par value repayment and share buy-backs
HBM Healthcare Investments endeavours to maintain a balance between new
investments and returns to shareholders in the form of cash distributions
and share buy-backs.
The Board of Directors is therefore proposing to the Annual General Meeting
a repayment of par value of CHF 7.50 per share, unchanged from the previous
year. This corresponds to a yield of 3.9 percent on the share price at the
end of March 2024.
As part of the current share buy-back programme approved by the Annual
General Meeting in June 2022, around 89 000 treasury shares totalling CHF
15.6 million were acquired via the 2nd trading line in the reporting year.
This corresponds to 1.3 percent of outstanding shares.
Outlook
The macroeconomic and geopolitical environment is likely to remain
challenging. With a carefully constructed portfolio of private and public
companies and liquidity of 11 percent of total assets, HBM Healthcare
Investments is well positioned to take advantage of any opportunities that
arise. In view of the fundamentally favourable performance of the industry
and many portfolio companies, HBM Healthcare Investments looks to the future
with confidence.
The full 2023/2024 Annual Report is available on the Company's website at
www.hbmhealthcare.com/en/investors/financial-reports.
Contact
For further information, please contact Dr Andreas Wicki on +41 41 710 75
77, or at andreas.wicki@hbmhealthcare.com.
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End of Inside Information
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Language: English
Company: HBM Healthcare Investments AG
Bundesplatz 1
6300 Zug
Switzerland
Phone: +41438887171
Fax: +41438887172
E-mail: info@hbmhealthcare.com
Internet: https://www.hbmhealthcare.com
ISIN: CH0012627250
Valor: 1262725
Listed: SIX Swiss Exchange
EQS News ID: 1899149
End of Announcement EQS News Service
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1899149 08-May-2024 CET/CEST
