International Biotechnology Trust (IBT) announced its results for the year ended 31 August 2023. The share price total return rose by 3% over the financial year to the end of August 2023, while the benchmark NASDAQ Biotechnology Index (NBI) fell by 1.4% over the same period. The company’s Net Asset Value rose by 2.7%. Most of the outperformance during the financial year was due to careful selection of mid cap revenue-generating biotech opportunities, which became acquisition targets. IBT benefited from being overweight in six companies which were subject to M&A activity. During the period, the company also selected a new fund manager for IBT, Schroders, following an independent review, with the transition due to occur on November 20, 2023.
Discussing the performance and outlook, chair Kate Cornish-Bowden added:
“It has been a volatile year for all investors as markets have swung from facing the reality of global inflation and the threat of recession to the belief that the interest rate cycle may be nearing a peak and the worst may be over. At the time of writing, the devastating news of a resurgence of the conflict in the Middle East has shaken market confidence. The continuing war in Ukraine and the increasingly tense relations between the US and China have further exacerbated the uncertainty within the investment environment.
“Nevertheless, the board shares the investment managers’ views that there are grounds for optimism. Whilst higher costs of capital have had a substantial effect on the funding environment for early stage drug discovery companies, the fundamentals of the sector remain very much intact: namely a growing elderly population, a rising middle class, and an increasing demand for treatments to cure disease and enhance the quality of our lives. This spend is, to a large degree, non-discretionary.
“Furthermore, scientific innovation in areas such as personalised targeted therapies and the application of artificial intelligence has led to faster, positive outcomes from clinical trials and better prospects for patients.
“I would like to take this opportunity to thank my fellow directors, the investment management team, and our professional advisers, all of whom have worked hard this year to ensure that we achieved the optimum outcome for our shareholders. We are excited about the opportunities for IBT within the Schroders stable and are looking forward to the future with confidence.”
IBT : Another steady year for International Biotechnology