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- Biotech Growth’s NAV shrinks by a quarter
Over the year to 31 March 2016, Biotech Growth Trust’s net asset value per share fell by 24.8% during the year, underperforming the Company’s benchmark, the NASDAQ Biotechnology Index, measured in sterling terms, which fell by 21.8%. The Company’s share price fell further, by 26.3%, as the discount of the Company’s share price to the net asset value per share widened from 4.9% at the beginning of the year to 6.8% as at 31 March 2016.
The Chairman’s statement says the company’s negative performance during the year was due in part to the performance of holdings in biotechnology company Biogen and biopharmaceutical companies Esperion Therapeutic and GW Pharmaceuticals. Our modest level of gearing of 11.1% also had a negative effect on performance. Positive performance came from holdings in biopharmaceutical companies Ono Pharmaceutical, Synageva BioPharma and Anacor Pharmaceuticals.
The manager’s report goes into more detail on these stocks. Shares of Japanese company Ono Pharmaceutical appreciated due to the continued clinical and commercial success of Opdivo, a novel immunotherapy for cancer. The launch of Opdivo has been robust since its initial approval for melanoma in 2014. In 2015, Opdivo received regulatory approvals in four additional cancer indications in the U.S. and two in Japan, which have further expanded the drug’s sales potential. Bristol-Myers Squibb, Ono’s U.S. partner, has also reported positive data from multiple clinical trials of Opdivo, providing the opportunity for further label expansion.
Biogen, Esperion Therapeutics, GW Pharmaceuticals, Puma Biotechnology, and Bluebird Bio were the principal detractors from performance in the portfolio during the fiscal year.
BIOG : Biotech Growth’s NAV shrinks by a quarter
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