BB BIOTECH AG
- WKN: A0NFN3
- ISIN: CH0038389992
- Land: Switzerland
Nachricht vom 18.10.2019 | 07:00
BB BIOTECH AG: Political factors weigh on biotech equity markets
DGAP-News: BB BIOTECH AG
/ Key word(s): Interim Report
Media release as of October 18, 2019
Interim report of BB Biotech AG as at September 30, 2019
Political factors weigh on biotech equity markets
After trending higher during the first half of the year, healthcare markets reversed direction in the third quarter. The MSCI World Healthcare Index retreated 1.1% and the Nasdaq Biotech Index shed 8.6%. BB Biotech was unable to shrug off the general headwinds and its shares ended the quarter 8.9% lower (all performance data in USD). Primary election campaigns in the US pressured the sector given all the talk of government intervention to lower drug prices. Similar trends had already been observed prior to the 2016 presidential election. Cash outflows from biotech investment funds continue to be balanced by inflows from M&A transactions. The FDA's stated commitment to promoting innovation and shortening regulatory pathways has been supportive.
Portfolio highlights for the third quarter 2019
New portfolio position
Arvinas is a biopharmaceutical company focused on developing first-in-class protein degradation therapeutics for cancers and other difficult-to-treat diseases.
Positions in in Intra-Cellular and Myovant and the oncology companies Agios, Nektar and Macrogenics were increased. The Investment Team also repurchased some of the shares of Ionis which it had sold at substantially higher levels in the first quarter 2019. Adjusting for positions to be sold near term, the end of third quarter investment level of 112% resides de facto closer to 105%.
Outlook up to early 2020
The Investment Team will closely monitor the increasing valuation gaps between biotechnology and other sectors of the healthcare industry and the broader stock market. BB Biotech believes the significant scientific, medical and commercial progress the biotechnology sector is making will continue to provide attractive investment opportunities for the benefit of the shareholders.
Political and policy wrangling will continue to have a considerable impact - particularly with respect to drug pricing and reimbursement. The numerous trade conflicts between the US and its trade partners and the 2020 US presidential election race will both remain front and center. Pricing legislation, healthcare policies and possible executive orders will remain of interest - even though some aspects may turn out to be just electioneering rhetoric.
BB Biotech will continue to monitor the short-term gyrations on Wall Street and eschew risky strategies that follow momentum more than fundamental approaches to investment in biotechnology. The Investment Team will remain focused on authentic innovation, value for patients and payers, and real-world valuation methodologies to pinpoint investment targets that offer attractive returns over the long term.
The interim report for the period ended September 30, 2019 can be downloaded at www.bbbiotech.com.
For further information:
TE Communications AG, Bleichestrasse 11, 9000 St. Gallen, Switzerland, tel. +41 79 423 22 28
Composition of BB Biotech AG's portfolio as at September 30, 2019
|Company:||BB BIOTECH AG|
|Phone:||+41 52 624 08 45|
|Listed:||Regulated Market in Frankfurt (Prime Standard); Regulated Unofficial Market in Berlin, Dusseldorf, Hamburg, Hanover, Munich, Stuttgart; SIX|
|EQS News ID:||891807|
|End of News||DGAP News Service|
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