Portfolio Analysis

SV Health Managers LLP was appointed Investment Manager of the Company on 1 January 2005 and Alternative Investment Fund Managers (‘AIFM’) on 21 July 2014. SV Health Managers LLP provides life sciences focused Investment Management services to publicly listed investment funds and venture capital funds.

As at 30 June 2017

Summary

IBT Portfolio NAV (m)£240
Number of Portfolio Companies91
Quoted Investments65
Unquoted Investments26

Investment Manager Comment

In June 2017, IBT’s NAV/share rose by 5.7% (GBP) while the NASDAQ Biotechnology Index was up 7.6% (GBP). The FTSE All-Share Index decreased by 2.5% (GBP) and the S&P 500 Index fell 0.3% (GBP). IBT’s share price rose 5.1% (GBP). The USD strengthened by 0.5% vs the GBP.

 

The main positive contributors to NAV in June were Celgene, Regeneron and Biogen. Celgene was strong in the month due to incrementally positive news from EHA (European Haematology Association) that showed encouraging data for a development stage drug in lymphoma. Regeneron shares were strong on the back of the Dupixent launch for Atopic Dermatitis and the prospects of label expansion into asthma (data due 4Q17). Biogen shares continued to show strength on the back of strong sales of their lead asset Spinraza and hints of a new strategic direction for the company.

 

The main negative contributors to NAV in June were Seattle Genetics, Shire and Aerie Pharmaceuticals. Seattle Genetics reported data at EHA for their marketed drug Adcetris in lymphoma. Although the trial met the end point, investors were uncertain as to the commercial viability of the label expansion. Shire shares continued to be weak as investors anticipated data from competitor Roche which could impact sales of Shire’s haemophilia franchise. Aerie shares traded down after a strong move last month on positive data from their glaucoma asset in phase 3 trials.

 

A draft executive order on drug pricing was leaked to the press in late June. The biotechnology sector moved up on the leak as it appeared the administration might be changing tack from comments made earlier in the year by the President. The draft executive order indicated a more industry friendly stance with regards to pricing of drugs.


Performance

 (NAV, Share Price Change, 5 years)

Source: Bloomberg, mid-mid (share price), quoted in sterling and SVLSM. Past performance is not a guide to future performance
Note: All performance data are quoted net of all costs to the Company.


Top Ten Investments by NAV %

 

Regeneron7.6%
Celgene7.4%
Vertex5.6%
Biogen5.3%
Genmab5.3%
Alexion 3.8%
Biomarin3.5%
Incyte3.1%
Amgen2.8%
Gilead2.8%

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