ENP Newswire - 21 February 2014
Release date- 20022014 - Buoyed by the positive performance of its portfolio investments, BB Biotech AG achieved strong results in 2013.
It closed the fourth quarter with a net profit of CHF 100.4 mn, raising the bottom-line number for the full year to CHF 931.8 mn (2012: CHF 367.8 mn). This result is also reflected in the company's share price, which surged 66% (in CHF, incl. cash distribution), making 2013 one of the best years in the company's history. As already announced earlier, BB Biotech is maintaining its previous dividend policy and will propose a tax-efficient cash distribution of CHF 7.00 per share at the upcoming annual general meeting of shareholders. That corresponds to a yield of 5%.
The positive momentum produced further share price gains during the last quarter. BB Biotech earned a profit of CHF 100.4 mn in the fourth quarter of 2013 compared to a net loss of CHF 134.6 mn for the same period of the previous year. The entire portfolio contributed to the positive performance, ranging from the long-term core holdings to the more recently taken positions in mid-cap stocks. The strong performance in 2013 resulted in a net profit of CHF 931.8 mn. Full-year profit for 2012 was CHF 367.8 mn. Last year's performance was fuelled by the top holdings Celgene, Gilead and Actelion, as well as by Isis and Incyte, whose share prices surged in the wake of positive news flow on their product pipelines. The latter two stocks now rank among the portfolio's top 5 positions.
In 2013 the Nasdaq Biotech Index (NBI) rose 66.0% - twice as much as the S&P Index (in USD, incl. dividends). BB Biotech shares recorded an annual performance of 66.0% in CHF, 65.6% in EUR and 70.2% in USD. The Net Asset Value (NAV) of BB Biotech significantly increased 77.0% in CHF, 74.1% in EUR and 81.4% in USD (all values account for the cash distribution of CHF 4.50 per share).
A tax-efficient cash distribution of CHF 7.00 per share will be proposed at the annual general meeting on March 19, 2014. This corresponds to a 5% yield on the weighted volume average share price in December 2013. Going forward, the cash distribution will be calculated the same way.
2014 will be another exciting year for the biotech industry punctuated by the publication of a large number of important clinical trial results, further product approvals and, presumably, further sector consolidation. Despite the valuation re-rating over the past two years, the BB Biotech Management Team considers the sector to still be attractively valued. The fundamental strength behind the biotech industry will gain increasing momentum on the back of new and innovative products now moving through the clinical pipeline. This should make further double-digit returns possible.
The annual report for the year ended December 31, 2013, is available at www.bbbiotech.com.
For further information:
Bellevue Asset Management AG, Seestrasse 16, 8700 Kusnacht, Switzerland, Tel. +41 44 267 67 00 Dr. Silvia Schanz, email@example.com
Maria-Grazia Iten-Alderuccio, firstname.lastname@example.org
Claude Mikkelsen, email@example.com
b-public AG, Pfingstweidstrasse 6, 8005 Zurich, Switzerland, Tel. +41 79 423 22 28
Thomas Egger, firstname.lastname@example.org
Bellevue Asset Management AG, Seestrasse 16, 8700 Kusnacht, Switzerland, Tel. +41 44 267 67 00 Tanja Chicherio, email@example.com
Company profile BB Biotech invests in companies in the fast growing market of biotechnology and is one of the world's largest investors in this sector with more than CHF 2.1 bn in assets under management. BB Biotech is listed in Switzerland, Germany and Italy. Its investments are focused on listed companies that are developing and commercializing novel medical treatments and cures. BB Biotech's investment selection process is guided by the fundamental research and analysis of physicians and molecular biologists. Its Board of Directors has many years of experience in industry and science.