International Biotechnology Trust is in line for a big jump in its net asset value as its largest holding has been bid for. The trust owned 200,000 shares in Seagen Inc on 10 March, valued at $34.5m, making it the largest position in the trust, accounting for about 10.2% of the portfolio.
On 13 March 2023, Pfizer Inc announced a bid for Seagen at $229 per share – a 32.7% premium to the closing share price on 10 March. That implies an $11.3m uplift in the value of the holding, adding about 22.7p to the NAV or 3.3%.
Seagen is a global biotechnology company dedicated to revolutionising cancer care. It is a pioneer in antibody-drug conjugates (ADCs) and its research efforts are dedicated to advancing a pipeline of innovative therapies for solid tumors and blood-related cancers. Seagen is commercialising ADCETRIS® for the treatment of several types of CD30-expressing lymphomas, PADCEV® for the treatment of locally advanced or metastatic urothelial cancer, TUKYSA® for the treatment of certain HER2-positive metastatic breast cancers, and TIVDAK® for recurrent or metastatic cervical cancer. It is also advancing a pipeline of novel therapies for solid tumors and blood-related cancers designed to address unmet medical needs and improve treatment outcomes for patients. Many of its programmes, including ADCETRIS, PADCEV and TIVDAK, utilise the targeting ability of monoclonal antibodies to deliver cell-killing agents directly to cancer cells.
[As you may remember, the management team and the fund are both looking for a new home, hopefully together. This news extends the trust’s performance lead over its main competitor, Biotech Growth Trust, which can’t but help.]
IBT : Great result for International Biotech as Seagen gets bid