BB Biotech continues its strong performance - third-quarter profit CHF 338.8 mn / share price up more than 50% since beginning of the year
(Thomson Reuters ONE) -
BB BIOTECH AG /
BB Biotech continues its strong performance - third-quarter profit CHF 338.8 mn
/ share price up more than 50% since beginning of the year
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The issuer is solely responsible for the content of this announcement.
Interim Report of BB Biotech AG as of September 30, 2013
The biotech sector continues its strong upward trend. Since the beginning of the
year it has outperformed the broad S&P 500 index by more than 30% (in USD). BB
Biotech shares ended the third quarter with a gain of 12.3% in CHF and 11.8% in
EUR. The interim results released by biotech firms impressed investors and
confirmed the sector's good growth prospects. Capital resulting from the
acquisition of several portfolio companies was invested by the Management Team
in five promising companies during the course of the third quarter.
The strong upward trend of the biotech sector continued in the third quarter of
2013 with the Nasdaq Biotech Index (NBI) gaining 20.8% (in USD), once again
clearly outperforming the broader S&P 500, which gained 5.2% in the same time.
In the first nine months of 2013, the NBI gained an impressive +53.3% (in USD)
compared to the S&P 500 with a plus of 19.8%.
The strong upward move in the third quarter was driven by further progress
across multiple clinical programs, H1 2013 financial results demonstrating the
continued strong growth trajectory of many biotechnology companies, as well as
further M&A transactions in the sector. With the biotech sector offering one of
the most attractive growth profiles, further flow of funds has entered the
biotech sector.
BB Biotech performance and profit for Q3 and first 9 months 2013
The performance of BB Biotech was driven by growth across the portfolio. Stock
selection and the portfolio structure extended the outperformance against both
the NBI and the broader equity indices.
The share price of BB Biotech gained a further 12.3% in CHF in the third
quarter, contributing to a YTD 2013 share price increase of 52.1% in USD, 50.3%
in CHF and 49.0% in EUR (including the cash distribution of CHF 4.50 per share).
Net Asset Value (NAV) increased 25.2% in USD, 19.8% in CHF and 20.5% in EUR in
the third quarter - and year-to-date, NAV increased 70.3% in USD, 68.2% in CHF,
and 66.1% in EUR (including the cash distribution of CHF 4.50 per share). The
increase in NAV resulted in a profit of CHF 338.8 mn for the third quarter 2013
compared to CHF 148.6 mn in Q3 2012. For the first nine months of 2013, BB
Biotech achieved a net profit of CHF 831.5 mn compared to CHF 502.4 mn for the
same period in 2012.
In the third quarter, turn-over in investments was higher than usual consequent
to M&A activity, including Onyx receiving an offer from Amgen and both Trius and
Optimer being taken over by Cubist. Strides' transaction with Mylan is expected
to be completed in the fourth quarter. In addition to M&A related exits, BB
Biotech realized profits in BioMarin and The Medicines Company - and sold out of
a minor position. The Management Team made five new investments in the third
quarter.
BB Biotech continued the share repurchase program in the third quarter acquiring
137'500 shares through the second trading line for CHF 17.17 mn. To date, a
total of 285'000 of the 1'185'000 total shares approved for buybacks by the
Annual General Meeting on March 18, 2013, was repurchased. With the difference
between the book value and the share price widening in the later stages of the
third quarter, the program will continue as planned.
Change in management fee as of January 1, 2014
In order to enable the portfolio manager to maintain its investment activities
in line with the growth strategy of the investment company, the Board of
Directors has decided to revise the management fee. The fee cap which had been
set at a market cap of CHF 1 bn will be removed, with the all-in fee being
reduced from 1.2% to 1.1% p.a. in return. With this change the Board of
Directors is bringing the interests of the company's shareholders into better
balance with those of its portfolio manager. This change will take effect on
January 1, 2014.
The investments include in particular the continual build-up and optimization of
its research and portfolio management capabilities with the US footprint
recently increased. Ongoing efforts to enhance its resources, strengthen the
current shareholder structure and attract new investors in established and new
markets will also be intensified.
Existing portfolio continues to perform well
Third quarter performance was driven by key progress for several portfolio
holdings. Celgene's Revlimid met the primary endpoint for the MM-020 study in
newly diagnosed multiple myeloma patients. Detailed results will be presented at
ASH in December 2013. Regulatory approval for such newly diagnosed patients will
be significant as Revlimid is likely to become first line therapy, driving
Celgene's future revenue growth. Competitive oral therapies could soon impact
the other frequently diagnosed lymphoid cell malignancies. These may include
Pharmacyclics' BTK inhibitor Ibrutinib, and PI3 kinase inhibitors currently
being developed by Gilead and Infinity.
Alnylam presented first clinical data for its novel sugar-linked RNA-
interference molecule (ALN-TTRsc) in a subcutaneous delivery form. Dosing of
ALN-TTRsc significantly reduced serum transthyretin (TTR) levels in ATTR
patients. Patients with high serum TTR levels suffer from peripheral nerve and
heart damage, shortening life expectancy.
Halozyme reported two product approvals in Q3 2013 for another platform
technology, designed to deliver large molecules in a subcutaneous (sc) form. The
Halozyme share price increased when partner Baxter announced EMA approval for
HyQivia, in primary immunodeficiency. Another Halozyme partner, Roche, announced
regulatory approval for a novel sc formulation of their blockbuster drug
Herceptin for breast cancer patients. In the coming months, Roche is expected to
receive EMEA approval for the sc formulation of its blockbuster lymphoma drug,
Rituxan.
Swedish Orphan Biovitrum (SOBI) and its US partner, Biogen Idec, are moving
towards improved patient convenience in severe and chronic disease, hemophilia,
a market with annual sales reaching USD 6 bn. Their longer acting factor VIII
and factor IX replacements are expected to reach the market soon. Increasing
investor confidence in this potential market opportunity has led to a
substantial increase in the valuation of SOBI.
BB Biotech now has two new mid-cap portfolio companies within its top five
holdings. Isis established further partnerships and made progress with pipeline
candidates, such as ApoC3. The company announced significant triglyceride
lowering activity in patients with very high triglyceride levels treated with
ApoC3. Incyte's share price also rose following promising results in a Phase II
clinical study testing Jakafi as a treatment for patients with pancreatic
cancer.
As an investment company, BB Biotech is ideally structured to capture
significant valuation appreciation by investing into small and mid-cap companies
which over time become major core holdings.
Five new attractive entries into portfolio in Q3 2013
Following the announcement of four M&A transactions involving portfolio
companies (Trius, Optimer, Onyx and Strides) in the second quarter of 2013, the
funds that have so far been released through sales or settlements have been
invested in five new promising holdings. Pharmacyclics (2.3% of the portfolio),
a company focused on hematologic malignancies, is currently applying for
regulatory approval of Ibrutinib, a BTK inhibitor for chronic lymphocytic
leukemia and multiple forms of lymphoma. Regeneron Pharmaceuticals (1.3%) which
has already reached large-cap status due to the successful launch of Eylea for
the treatment of acute macular degeneration (AMD), has further anticipated
valuation upside driven by their leading late stage antibody pipeline. Investors
are particularly focused on the upcoming data read out for the PCSK-9 antibody
as treatment for high LDL cholesterol.
Neurocrine Biosciences (0.9%) focused on women's health, has a promising lead
compound Elagolix in clinical Phase III development for endometriosis and in
Phase II for uterine fibroids. Clovis Oncology (1.0%) has an appealing anti-
cancer agent, a covalent EGFR inhibitor for non-small cell lung cancer (NSCLC),
which targets the mutant receptor but spares the wild type form. Tesaro (0.6%)
is developing Rolapitant, a NK-1 receptor antagonist in Phase III trials for the
prevention of chemotherapy induced nausea and vomiting.
Outlook
BB Biotech believes that its investment strategy can bring significant benefit
to patients, the healthcare system and investors. BB Biotech will continue to
build and mold the portfolio around innovative new drugs which have the
potential to become the treatments of choice.
Further results from clinical studies and new product approvals are anticipated
in the coming months - including for Sofosbuvir (Gilead) and Opsumit (Actelion).
BB Biotech expects the momentum in the biotech market to continue into 2014
driven by positive fundamental developments across the portfolio and the sector
as a whole.
The complete interim report as of September 30, 2013 and a webcast with Dr.
Daniel Koller, Head Management Team BB Biotech, can be viewed at
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 Schanz, ssc(at)bellevue.ch
Maria-Grazia Iten-Alderuccio, mga(at)bellevue.ch
Claude Mikkelsen, cmi(at)bellevue.ch
Media Relations
b-public AG, Pfingstweidstrasse 6, 8005 Zürich, Switzerland, tel.
+41 79 423 22 28
Thomas Egger, teg(at)b-public.ch
Bellevue Asset Management AG, Seestrasse 16, 8700 Küsnacht, Switzerland, tel.
+41 44 267 67 00
Tanja Chicherio, tch(at)bellevue.ch
www.bbbiotech.com
Company profile
BB Biotech invests in companies in the fast growing market of biotechnology and
is one of the world's largest investors in this sector with CHF 2.0 bn in assets
under management. 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.
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 of September 30, 2013
(in % of securities, rounded values)
Celgene 13.0%
Isis Pharmaceuticals 11.4%
Actelion 10.4%
Gilead 9.6%
Incyte 7.7%
Vertex Pharmaceuticals 4.5%
Alexion Pharmaceuticals 3.7%
Novo Nordisk 3.7%
Medivation 3.7%
Ariad Pharmaceuticals 2.9%
Swedish Orphan Biovitrum 2.6%
Halozyme Therapeutics 2.6%
Immunogen 2.4%
Pharmacyclics 2.3%
Synageva BioPharma 1.9%
Onyx Pharmaceuticals 1.8%
Theravance 1.5%
Regeneron Pharmaceuticals 1.3%
Glenmark Pharmaceuticals 1.3%
Endocyte 1.3%
Alnylam Pharmaceuticals 1.3%
Lupin 1.1%
Clovis Oncology 1.0%
Infinity Pharmaceuticals 1.0%
Neurocrine Biosciences 0.9%
Ipca Laboratories 0.9%
Optimer Pharmaceuticals 0.8%
Bavarian Nordic 0.7%
Tesaro 0.6%
Probiodrug (1)) 0.6%
Radius Health (1) ) 0.6%
Strides Arcolab 0.4%
Idenix Pharmaceuticals 0.3%
Achillion Pharmaceuticals 0.2%
Valneva 0.2%
Cubist Pharmaceuticals Contingent Value Rights 0.0%
Radius Health Warrants 0.0%
Total securities CHF 2 138.7 mn
Other assets CHF 44.9 mn
Other payables CHF (149.4) mn
Total shareholder's equity CHF 2 034.2 mn
Treasury shares (in % of company) (2)) 2.9%
1) Unlisted company
2) Correspond to the total of all own shares held including the second trading
line
Media Release (PDF):
http://hugin.info/130285/R/1736163/581782.pdf
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other applicable laws; and
(ii) they are solely responsible for the content, accuracy and
originality of the information contained therein.
Source: BB BIOTECH AG via Thomson Reuters ONE
[HUG#1736163]
Datum: 17.10.2013 - 07:00 Uhr
Sprache: Deutsch
News-ID 306594
Anzahl Zeichen: 17448
contact information:
Town:
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Kategorie:
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