HBM Healthcare Investments AG

  • ISIN: CH0012627250
  • Land: Schweiz

Nachricht vom 07.05.2021 | 07:05

HBM Healthcare Investments reports a profit of CHF 756 million for the 2020/2021 financial year; Increase of the proposed cash distribution to a total of CHF 12.50 per share.

HBM Healthcare Investments AG / Key word(s): Annual Results

07-May-2021 / 07:05 CET/CEST
Release of an ad hoc announcement pursuant to Art. 53 KR
The issuer is solely responsible for the content of this announcement.


Media Release

Follow us on  @HbmHealthcare

Zug, 7 May 2021

In the 2020/2021 financial year, HBM Healthcare Investments recorded a profit of CHF 756 million, the highest since it was founded 20 years ago. The net asset value (NAV) rose by more than half (+52 percent) in the reporting year and the HBMN shares advanced 79 percent including distribution.

The profit can mainly be attributed to IPOs and takeovers from the portfolio of private companies and is clear evidence of the success of HBM Healthcare's investment strategy. Over the past 20 years, HBM Healthcare Investments has channelled some CHF 2 billion in more than 160 private companies and supported the development of numerous medical innovations as a result. 

Based on the excellent financial results, the Board of Directors is proposing a considerably higher cash distribution of CHF 12.50 per share. Of this, CHF 9.50 is for the ordinary payout (previously CHF 7.70) and CHF 3.00 for a one-off anniversary payment.

Record profit of CHF 756 million

In the 2020/2021 financial year, HBM Healthcare Investments achieved a profit of CHF 756 million, the largest since the Company was founded. In the reporting year, net asset value (NAV) rose by 52 percent. Including distributions, Shareholders achieved an impressive return of 79 percent.

The private companies portfolio (including the public companies originating from the portfolio of private companies) increased by a total of CHF 662 million. The increase in value was largely the result of 12 IPOs (BioAtla CHF 94 million, Harmony Biosciences CHF 79 million, Cathay Biotech CHF 76 million, ALX Oncology CHF 49 million, Instil Bio CHF 36 million, others CHF 76 million) and seven acquisitions in the reporting year (Viela Bio, Forbius and Corvidia CHF 22 million each and others CHF 18 million). The total gains from the other revaluations came to CHF 168 million. Of this, CHF 123 million was from changes in market prices of public companies (SpringWorks CHF 49 million, Pacira BioSciences CHF 30 million and others CHF 44 million) and CHF 45 million from write-ups in relation to private companies in line with valuation rules. This figure includes write-downs of CHF 16 million relating to a few smaller investments owing to unsatisfactory trial results. 

The increase in the value of fund investments amounted to CHF 49 million. This was primarily attributable to two funds: HBM Genomics (CHF 23 million, primarily driven by the IPO of Seer) and 6 Dimensions Capital (CHF 19 million, various IPOs and takeover of Viela Bio).

The portfolio of public companies grew by CHF 276 million. The largest contribution of CHF 68 million came from the takeover of Immunomedics by Gilead. Gains were also made by Argenx (CHF 38 million), Rocket Pharmaceuticals and Biohaven Pharmaceuticals (CHF 21 million  each).

The hedging positions for market and foreign currency risks burdened the result with CHF 57 million and CHF 12 million respectively, while the other assets lowered the result by CHF 1 million net.

The management fees of CHF 26 million reflected the increase in net assets and market capitalisation. The large increase in value above the high water mark achieved during the reporting year triggers performance fees of CHF 121 million to the investment advisor and CHF 8 million variable compensation to the Board of Directors. Other operating and financial expenses were stable and came in below CHF 6 million.

Net assets exceed CHF 2 billion

Net assets increased by CHF 0.7 billion to CHF 2.15 billion in the reporting year. Of the overall assets of CHF 2.4 billion1), 18 percent were allocated to private companies, 9 percent to funds, 58 percent to public companies and 1 percent to other assets. Around two-thirds of the public companies originate from the private companies portfolio. The proportion of cash and cash equivalents1) amounted to 14 percent of net assets.

Market hedging was reduced in the first calendar quarter and, as at the end of March, represented around 7 percent of the portfolio of listed companies. The extent of currency hedging of the US dollar against the Swiss Franc was around 53 percent.

CHF 270 million invested in private companies

In the reporting year, HBM Healthcare Investments invested a total of CHF 211 million in 24 new private companies. CHF 176 million of this total was paid in and CHF 35 million booked as investment commitment. An additional CHF 59 million was invested in existing private companies as follow-on financings.

Six new investments were made in private companies in the first calendar quarter of 2021.

  • IO Biotech based in Copenhagen, Denmark, received an investment commitment of EUR 20 million (EUR 8 million paid in). The company has a pipeline of immunotherapies for the treatment of cancer.
  • Mineralys Therapeutics in Philadelphia, USA, received an investment commitment of USD 10 million (USD 6.7 million paid in). Mineralys is testing a molecule to treat high blood pressure in phase II of clinical development.

Further investments of between USD 5 and 7.5 million each were made in Visen Pharmaceuticals (development and marketing of endocrinology treatments for rare diseases for Ascendis Pharma in China), eGenesis Bio (gene editing technology used in xeno transplantation), Pyxis Oncology (portfolio of potent biologics for difficult-to-treat cancers) and FogPharma (development platform based on cell-penetrating mini proteins (CPMPs) for innovative cancer treatments).

Details on the new investments made in previous quarters can be found in the respective quarterly reports.

In addition to direct investments, new investment commitments were made to two funds which are primarily active in China. USD 25 million is allocated to 120 Capital (formerly 6 Dimensions Capital) and USD 15 million to C-Bridge Healthcare Fund V.

Substantial increase in cash distribution to CHF 12.50 per share

Thanks to excellent business results and a positive outlook, the cash distribution can be significantly increased. The Board of Directors is proposing to the Shareholders' Meeting to raise the ordinary distribution from the previous CHF 7.70 per share to CHF 9.50 per share.

In addition, shareholders are to benefit from a one-off anniversary payment of CHF 3.00. The proposed payout therefore amounts to a total of CHF 12.50 per share in the form of a withholding tax-exempt par value repayment.

Outlook

The HBM Healthcare Investments' portfolio has been carefully assembled and is very well balanced. The major investments are in quality companies with excellent market positions in their fields. These companies are therefore interesting candidates for takeovers, but can also remain independently and create substantial added value on their own.

The Company also holds smaller investments in promising companies in earlier development phases which therefore have high value-creation potential. These investments are carefully monitored and will be increased over time if their potential continues to be considered intact.

In the reporting year, a range of promising new investments was added to the portfolio.

The fundamental outlook for the healthcare sector remains positive. The innovation developed by the companies and the still untapped demand for medical treatments offer numerous attractive investment opportunities. We still rate the environment for finance, public offerings and company takeovers as good. All this favours the Company's investment strategy, which should continue to generate considerable added value in the years to come.

In the appendix to this media release you will find the balance sheet and income statement in accordance with IFRS, the portfolio details and an overview of the consolidated financials including a translation to the IFRS Financial Statements. The detailed Annual Report will be published on 27 May 2021 and will be available on the Company's website from that date onwards.

1) After deduction of the liability from market hedging amounting to CHF 0.1 billion.

Contact
For further information, please contact Dr Andreas Wicki on +41 41 710 75 77, or at andreas.wicki@hbmhealthcare.com.

About HBM Healthcare Investments

HBM Healthcare Investments invests in the healthcare sector. The Company holds and manages an international portfolio of promising companies in the human medicine, biotechnology, medical technology and diagnostics sectors and related areas. Many of these companies have their lead products already available on the market or at an advanced stage of development. The portfolio companies are closely tracked and actively guided in their strategic direction. This is what makes HBM Healthcare Investments an interesting alternative to investments in big pharma and biotechnology companies. HBM Healthcare Investments has an international shareholder base and is listed on SIX Swiss Exchange (ticker: HBMN).

Disclaimer

The publication is for information purposes only and does not constitute an offer to sell or a solicitation to buy or subscribe for securities. This news release does not constitute a prospectus within the meaning of Art. 35ff FinSA, or securities prospectus in the sense of the German securities prospectus law. This news release and the information contained therein is not intended for distribution to the United States of America (USA) or within the USA and may not be distributed or forwarded to US persons (including legal persons) or to publications with a general distribution in the USA. This news release is not an offer or solicitation to buy securities in the United States. HBM Healthcare Investments AG's securities were not issued in accordance with the U.S. U.S. securities laws, and may not be sold, offered for sale, or delivered in the U.S. or to U.S. individuals without prior registration or without a registration exemption. Some information quoted was obtained from external sources HBM considers to be reliable. HBM cannot guarantee the adequacy, accuracy, timeliness or completeness of or be held responsible or liable for errors of fact regarding such data and information obtained from third parties, and this data may change with market conditions.
 

HBM Healthcare Investments AG

Bundesplatz 1 CH-6300 Zug | Tel: +41 41 710 75 77 | Fax: +41 41 710 75 78 | info@hbmhealthcare.com

www.hbmhealthcare.com

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