Portfolio Analysis

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

As at 31 May 2017

Summary

IBT Portfolio NAV (m)£227
Number of Portfolio Companies91
Quoted Investments65
Unquoted Investments26

Investment Manager Comment

In May 2017, IBT’s NAV/share fell by 4.6% (GBP) while the NASDAQ Biotechnology Index was off 3.4% (GBP). The FTSE All-Share Index increased by 4.4% (GBP) and the S&P 500 Index rose 1.9% (GBP). IBT’s share price fell 2.4% (GBP). The USD strengthened 0.5% vs the GBP.

 

The main positive contributors to NAV in May were Regeneron, Incyte and Supernus. Regeneron shares were helped by news that their newly launched psoriasis drug, Dupixent, had beaten analyst expectations by some margin. Incyte shares jumped after the company announced encouraging ‘first look’ data for their IDO inhibitor in combination with Merck’s Keytruda to treat various solid tumours. Supernus shares were up during the month as sales of their Trokendi XR drug were helped with the expansion of the label to include a larger population of migraine patients, strengthening the prospects of growth in this franchise.

 

The main negative contributors to NAV in May were Alexion, Acadia and Acceleron. Alexion shares fell after the new CEO announced major changes to the management team. Acadia shares were weak after investors were unimpressed with the launch of its Parkinson’s disease psychosis drug, Nuplazid. Acceleron shares were down due to some concern regarding its lead asset’s, Luspatercept, safety profile.

 

graph The fund is heavily weighted to companies which develop oncology drugs with 34% of the fund invested in this area. Recent data from FDA show that this area is growing as companies discover new and effective therapies.

 

Since 2011, the industry has launched at least ten blockbuster drugs per annum. A ‘blockbuster’ drug is one that is expected to sell greater than USD1BN in sales per year, at peak (see figure on left). The average peak sales potential per new molecular entity was USD1.4BN in 2016. Since 2012 there has been a notable uptick in the approval of drugs to treat cancer. From 2007 to 2011, 24 drugs were approved for cancer which increased to 50 new drugs in the years 2012 to 2016.


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 %

 

Celgene7.6%
Regeneron7.6%
Genmab5.6%
Vertex5.5%
Biogen5.2%
Shire4.0%
Alexion 3.6%
Incyte3.4%
Aerie2.9%
Biomarin2.8%

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