International Biotechnology’s results for the six months ended 28 February 2015 are out and they show that the fund had a fantastic time with the net asset value rising by 44.5%. The share price was up 57.4% over this period as they bought back 23% of the company to cut the discount from 21.5% to 13.8%. The managers have accrued a £2m performance fee for generating this performance.
Within the portfolio, the quoted portion was up 38% and the unquoted (private equity) portion was up 43% (most of the balance of the return came from the uplift provided by buying back shares at a discount). Six companies that they held were taken over in the year, three from the quoted portfolio (Cubist Pharmaceuticals, NPS Pharmaceuticals and Salix Pharmaceuticals), with a fourth deal (AbbVie’s acquisition of quoted company Pharmacyclics) announced shortly after the half year end, and three from the unquoted portfolio. Celerion was acquired in October 2014, Oncoethix in December 2014 and Convergence in January 2015. In addition, the unquoted company Entellus was floated on the NASDAQ in January 2015 and the Company received further contingent payments from previously exited companies, ESBATech and Affinium.
A number of companies also did well on the back of positive clinical trials.
IBT : M&A activity produces great results for International Biotechnology