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 28 February 2017

Summary

IBT Portfolio NAV (m)£248
Number of Portfolio Companies87
Quoted Investments61
Unquoted Investments26

Investment Manager Comment

In February 2017, IBT’s NAV/share increased by 6.1% (GBP) while the NASDAQ Biotechnology Index was up 8.2% (GBP). The FTSE All-Share Index was up 3.1% (GBP) and the S&P 500 Index rose 5.3% (GBP). IBT’s share price increased 7.6% (GBP). The USD strengthened 1.6% vs the GBP.


The main positive contributors to NAV in February were Tesaro, Amgen and Biogen. Tesaro shares rose after speculation mounted that various companies, including Sanofi Aventis, were exploring an acquisition of the company to access their PARP inhibitor, currently filed with FDA for approval in recurrent epithelial ovarian cancer. Amgen shares rose after the company announced that their cholesterol lowering PCSK9 Rapatha reduced cardiovascular risk in an outcomes trial. Biogen shares showed strength during the month as investors grew more comfortable that their recently approved drug Sprinraza for a rare neuromuscular disorder (SMA) would achieve blockbuster status.


The main negative contributor to NAV in February was Gilead. Synergy and Innate shares were relatively weak. Gilead shares fell as investors became impatient with the management team’s ability to grow the company. Expectations have been that the company would allocate capital through an acquisition and return to growth. Shares in Synergy Pharmaceuticals reported weaker than expected results during their quarterly earnings update. Innate Pharmaceuticals announced disappointing phase two data for their drug lirilumab in leukemia.transactions over the past 3-4 years. That and the prospect of favourable tax changes in the US under the new administration, bodes well for further M&A this year.


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%
Incyte7.2%
Biogen7.0%
Alexion5.3%
Genmab4.3%
Amgen4.3%
Regeneron4.2%
Shire4.0%
Illumina3.3%
Vertex3.2%

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