In October 2016, IBT’s NAV/share fell 5.5% (GBP) while the NASDAQ Biotechnology Index was down 6.0% (GBP). The FTSE All-Share Index was up 0.6% (GBP) and the S&P 500 Index rose 4.1% (GBP). IBT’s share price fell 2.4% (GBP). The USD strengthened by 5.6% vs the GBP.


The main positive contributors to NAV in October were Alexion, Tesaro and Alkermes. Alexion shares rose after reporting a strong third quarter and promising data regarding their next generation Soliris. Tesaro announced impressive data for their drug niraparib in ovarian cancer patients. The company plans to complete the NDA submission to FDA in 4Q16 where the drug has fast-track designation. Alkermes released positive data from their phase 3 anti-depression drug ALKS-5461 after previous trials had failed to show efficacy. The position was exited on this news.


The main negative contributors to NAV in October were from Illumina and Regeneron. Illumina had a profit warning sending shares down 25% on the day. Regeneron shares slid on incrementally negative news flow from their pipeline, with one asset put on clinical hold by FDA and another asset was hit with manufacturing concerns.


Since the end of October, the sector has had a strong rally on the news of the Republican party winning the elections in the US, instead of the expected Hillary Clinton win and gridlock on Capitol Hill. This bodes well for biotechnology stocks since investors perceive that drug pricing has moved further down the political agenda.


There was a material change to the fund’s unquoted exposure in October as the first drawdown (£7.6M) into SV Fund VI was made, increasing the weight of unquoted to 14% of NAV.


Download PDF


  • You are seeing this because you are accessing IBT’s website for the first time.


  • The information on this website may only be suitable for certain types of investors and is not intended to be used or relied upon by any other person.


  • An investment with IBT may contain significant risks and is intended only for sophisticated investors who meet certain eligibility criteria.


  • The material on this website is intended to be viewed only by persons resident in the EEA.


  • The information on this website is not an offer to sell or a solicitation of an offer and does not constitute investment advice.


  • No representation, warranty or undertaking, express or implied, is given as to the accuracy or completeness of the information or opinions contained therein.


  • The information on this website may constitute financial promotion for the purposes of the Financial Services and Markets Act 2000 (“FSMA”).