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IBT adds to Celgene, reduces Neurocrine in July rejig

IBT adds to Celgene, reduces Neurocrine in July rejig

IBT adds to Celgene, reduces Neurocrine in July rejig

International Biotechnology Trust (IBT) appears to have boosted its shareholding in Celgene – which has risen by one place and ~ two NAV  percentage points to become its top investee company, as part of a rejig of its largest investments in July. According to the trust’s latest factsheet, the holding in Celgene rose from 4.7% to 6.9% of NAV over the month, a move that would seem to be larger than could be accounted for by the 10% rise in the stock and the strengthening of the dollar over the month alone. The rise in Celgene’s stock was attributed to the positive Phase III data for luspatercept in myelodysplastic syndrome, and for positive data for Revlimid in lymphoma.

By contrast, IBT’s former top pick Neurocrine Biosciences, saw its share of NAV fell from 5.0% to 3.0% – and its ranking dropped from first place to ninth – in July, while its stock price broadly unchanged, suggesting shares have been sold. IBT’s shareholding in Neurocrine first appeared in the top ten in February this year, when its shares were ~ $80 and it looks as if the trust has been taking profits at the recent price of around $110.

Another major change evident last month was a three place rise in the rankings of US sequencing tools company Illumina, which now accounts for 5.1% of NAV (versus 3.9% at end June) – however, this may simply be accounted for by the ~22% rise in the share price over the month. The holding in Illumina was acquired by IBT in the second quarter and must rank as one of its top performers and highlights the manager’s stock picking skills. In other changes, Exelixis reappeared in, and Biogen dropped out, of the top 10 holdings, possibly simply on share price movements.

IBT’s NAV rose by 3.8% in July in sterling to £251m or 670p per share, compared with a rise of  6.7% (in sterling) in the NASDAQ Biotechnology Index. This relative under-performance probably reflects the trust’s long-term underweight position in Biogen. This stock, one of the top four US biotechs, rose by 13% in July on the back of excitement about potentially positive Phase II results for Alzheimer’s candidate BAN-2401.

IBT has separately reported an uplift in value of its private company investments. IBT’s interest in SV Fund VI has been revalued at $25m (£19.6m), a rise of $3.4m (£2.7m), which was included in the daily reported NAV from 14 August. The increase is equivalent to 7.2p per share. 

IBT’s top 10 shareholdings as of end July, with those of end June for comparison, are shown in the table below.

end Jun % of NAV end Jul % of NAV
Celgene 4.7% 6.9%
Illumina 3.9% 5.1%
Vertex 4.4% 4.4%
Genmab 3.6% 3.9%
Exelixis  – 3.7%
Regeneron 3.4% 3.5%
Morphosys 4.3% 3.4%
Alexion 3.2% 3.3%
Neurocine 5.0% 3.3%
Array Biopharma 3.6% 3.2%
Biogen 3.3%  –
Top 10  30.8% 28.7%

 

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