Quarterly Report of BB BIOTECH as at March 31, 2010
(Thomson Reuters ONE) -
BB BIOTECH AG / Quarterly Report of BB BIOTECH as at March 31, 2010 processed and transmitted by Hugin AS. The issuer is solely responsible for the content of this announcement.
Press Release of April 29, 2010
Passage of US healthcare reform brings clarity for investors
* US healthcare reform will have little effect on the biotech industry
* BB BIOTECH shares unable to keep pace with the broad biotech index, closes
quarter 4.1% lower
* Positive newsflow from a number of portfolio companies, such as Celgene and
Novo Nordisk
* New and promising participations added to the portfolio: Bavarian Nordic,
Intercell and Immunogen
* Dividend of CHF 3.70 and continuation of share buyback program
The passage of the healthcare reform bill in the US gave the biotech sector a
strong boost towards the end of the quarter but European biotech stocks were
unable to benefit from greater investor demand, resulting in a sub-par
performance, also for BB BIOTECH AG. Its share price ended the first quarter of
2010 4.1% lower (in CHF, including dividends) despite the positive underlying
sentiment and the positive newsflow from many of the companies in its investment
portfolio. The Net Asset Value (NAV) of BB BIOTECH shares increased by 3.2% (in
CHF, incl. dividends). Celgene and Novo Nordisk performed well but Actelion and
Vertex Pharmaceuticals, two core holdings, were unable to keep pace with the
broader biotech index.
Celgene delivered a positive performance of 11.3% (in USD), driven by increased
expectations regarding Revlimid's growth potential in the coming years. The
company's anticipated above-average revenue and earnings growth is based on the
assumption that more patients will be prescribed Revlimid as its label is
broadened.
Gilead (+5.1%, in USD) presented positive clinical Phase II data on its quad
pill, a novel once daily pill for the treatment of AIDS that combines four of
the company's own drugs. Investor concern regarding the expiry of the Viread
patent in 2017 could not be completely dispelled, however, and Gilead's share
price therefore made an only slight gain in the first quarter of 2010.
Actelion retreated after negative clinical study results for Tracleer in the
treatment of idiopathic pulmonary fibrosis (IPF) were published. In view of the
large commercial potential associated with Tracleer in the treatment of IPF,
this news resulted in a significant reduction in Actelion's short-term growth
prospects. Although the company's valuation was already quite low before this
news was announced, the stock was marked down another 13.1%. BB BIOTECH had
reduced its large holding in Actelion shares before the said announcement and
built up its position at significantly lower prices afterwards.
Vertex (-4.6%, in USD) will present multiple key clinical data this year. The
current standard of therapy for most patients infected with the hepatitis C
virus (HCV) is expected to soon include Telaprevir, the HCV protease inhibitor
developed by Vertex. After its scheduled launch in 2011, Telaprevir is expected
to become the gold standard of HCV therapy.
Novo Nordisk (+28.8%, in DKK) has achieved a major milestone with the approval
of Victoza in both the US and Japan. Initial market uptake has been very
promising and the product is expected to achieve blockbuster status. The
company's diabetes pipeline is expected to produce convincing data in 2010 on
both its novel long acting insulin as well as on a new mixed (long and short
acting) insulin formulation.
The top performers among BB BIOTECH's mid-sized and smaller participations
included Incyte (+52.9%, in USD) and Micromet (21.3%, in USD). Incyte, which is
expected to present Phase III data for its lead product candidate, a JAK-1/2
inhibitor for the treatment of myelofibrosis (MF), in the months ahead, has
gained substantially in value and now represents 3% of BB BIOTECH's NAV. BB
BIOTECH participated in the capital increases of Micromet and Zymogenetics.
Three new portfolio investments
* Bavarian Nordic is a Danish biotechnology company with a biodefense
second-generation smallpox vaccine program as well as an interesting
therapeutic prostate cancer vaccine.
* Intercell is an Austrian vaccine manufacturer that recently received
approval to begin commercial production of its Japanese Encephalitis Vaccine
(JEV). The company has also acquired an interesting patch delivery
technology now key to many promising preventive vaccines in clinical
development.
* Immunogen presented promising data for refractory breast cancer patients in
a study conducted jointly with Roche. Immunogen's technology of linking
toxins to known targeted therapies should improve both efficacy and the side
effect profile of these therapies.
Proposed dividend approved by AGM
On March 29, 2010, the shareholders of BB BIOTECH approved the proposed dividend
of CHF 3.70. This corresponds to a 5.1% yield on the closing share price of
March 29, 2010, the date of the annual general meeting. The sixth share buyback
program is currently underway and 3.9% of outstanding shares had been
repurchased by the end of the first quarter of 2010. Up to 10% of outstanding
share capital may be repurchased under the current share buyback program.
Effects of US healthcare reform
The recently approved healthcare reform in the US will give more than 32 million
uninsured Americans gain access to the healthcare system; there will be no
direct government-dictated price controls and biotech drugs were given a
12-year period of data exclusivity. These are clearly positive points for drug
makers. In return the industry is obligated to pay approximately USD 80 bn over
a 10-year period to help fund the reform and to offer greater Medicare
discounts. According to industry estimates, the net effect of the reform on
sales generated in the US will range from -2% to +1%. The initial quarterly
reports just published by biotech companies confirm this forecast.
Composition of BB BIOTECH's portfolio as at March 31, 2010
(in % of securities, rounded values)
CORE HOLDINGS
Actelion 22.0%
Celgene 18.9%
Gilead 17.9%
Vertex Pharmaceuticals 13.8%
SMALL PARTICIPATIONS
Novo Nordisk 4.7%
Incyte 2.9%
Micromet 2.8%
Zymogenetics 2.8%
Amgen 2.1%
Genzyme 1.8%
Roche Holding GS 1.7%
Arena Pharmaceuticals 1.2%
Basilea Pharmaceutica 1.1%
Affymetrix 1.0%
Optimer Pharmaceuticals 0.9%
Bavarian Nordic 0.8%
Elan 0.8%
Biogen Idec 0.7%
NicOx 0.6%
Immunogen 0.3%
Intercell 0.2%
Cosmo Pharmaceuticals(1)) 0.1%
Keryx Biopharmaceuticals 0.1%
Probiodrug(2)) 0.5%
3% Convertible Bond Deutsche Bank London (-18.05.2012)(3)) 0.2%
SWAP agreement on treasury shares <0.1%
Cosmo Pharmaceuticals put option (long)(1)) <0.1%
Biogen Idec call option (short) <(0.1%)
Total securities CHF 1 504.3 mn
Liquid funds (net) CHF 22.8 mn
Other assets CHF 11.7 mn
Other payables CHF (67.4) mn
Total shareholder's equity CHF 1 471.4 mn
Treasury shares (in % of company)( 4)) 11.9%
1) Exchange from shares BioXell due to the acceptance of the public tender offer
of Cosmo Pharmaceuticals
2) Unlisted company
3) Convertible into registered shares BB BIOTECH AG
4) Correspond to the total of all own shares held in Switzerland, Germany and
Italy including the second trading line
The complete Quarterly Report as at March 31, 2010, is available on
www.bbbiotech.com
For further information:
Bellevue Asset Management AG, Seestrasse 16, 8700 Küsnacht/Zurich
Thomas Egger, Phone +41 44 267 67 09, teg(at)bellevue.ch
Company profile
BB BIOTECH invests in companies in the fast growing market of biotechnology and
is one of the world's largest investors with CHF 1.5 bn asset under management
in this sector. BB BIOTECH is listed in Switzerland, Germany and Italy. Its
investments are focused on listed companies that are developing and
commercializing novel medical treatments and cures. BB BIOTECH's investment
selection process is guided by the fundamental research and analysis of
physicians and molecular biologists. Its Board of Directors has many years of
experience in industry and science.
[HUG#1409451]
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BB BIOTECH AG
Vordergasse 3 Schaffhausen Switzerland
WKN: AONFN3;ISIN: CH0038389992;
Press Release April 29,2010 (PDF): http://hugin.info/130285/R/1409451/361980.pdf
Datum: 29.04.2010 - 07:30 Uhr
Sprache: Deutsch
News-ID 19907
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Town:
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Kategorie:
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