ENP Newswire - 18 October 2013
Release date- 17102013 - BB Biotech continues its strong performance - third-quarter profit CHF 338.8 mn / share price up more than 50% since beginning of the year 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.