BB Biotech, 2nd quarter NAV down fractionally

BB Biotech 2nd quarter NAV down fractionally

(Tiper Stock Exchange) – The first half of 2023 has been disappointing so far for investors of biotechnology sector: Strong rotation out of the sector put pressure on equity prices. This is what BB Biotech underlines in presenting the first half results, expressing confidence in the chances of finding fresh capital.

In the second quarter of 2023 the Nasdaq Biotech Index (-1% in USD) it was unable to keep pace with major global stock indexes such as the Dow Jones or the Euro Stoxx 50, which closed the period up 5%. The first half of 2023 therefore closed in negative territory with a drop in the NBI of -2.8% in USD.

In the second quarter of 2023 the portfolio of BB Biotech scored a modest gain of 1.6% in USD, doing slightly better than the Nasdaq Biotech Index. However, the devaluation of the dollar US versus Swiss franc translated by intrinsic value (NAV) in a small decline of 0.6% in CHFequal to one net loss of CHF 13 millioncompared to a net loss of CHF 233 million for the same period in 2022.

In stark contrast to the performance of the portfolio, the BB Biotech share price suffered in the second quarter a correction of 21.8% in CHF. After trading for quite an extended period at a double-digit premium, BB Biotech’s shares were trading at a 5% discount to the NAV at the end of the second quarter.

For the first half of 2023 the total return of BB Biotech’s NAV was negative 9.8% in CHF, 8.6% in EUR and 6.9% in USD (all values ​​include the dividend payment of CHF 2.85 per share paid on March 29, 2023). The result was one net loss of CHF 267 million compared to a net loss of CHF 533 million a year earlier.

“In the light of the recent milestone events, which have translated into both positive and negative share movements – he underlines – we look forward to the achievement of important clinical milestones for the equity investments in the portfolio by the end of 2023.

The BoD already has requested in June the delisting from the Milan Stock Exchange given the subtle exchanges that characterize this title.

tlb-finance