RTW Biotech Opportunities (RTW) has reported strong full-year results for the year ended 31 December 2024. Its NAV rose from US$399m to US$607m, marking a year of substantial portfolio growth, positive clinical milestones, and a number of key capital markets events.
Despite a -4.6% NAV per share movement over the year (due to share issuance from the Arix merger and broader market headwinds), the company has achieved +73.8% NAV growth since IPO, significantly outperforming the Nasdaq Biotech Index and Russell 2000 Biotech Index, which it says returned 27.6% and 7.4% respectively over the same period.
Portfolio momentum and key events
Over the course of 2024, RTW added 21 new core portfolio companies, bringing the total to 54, while successfully exiting several names through IPOs and M&A. Notable events included:
- Three IPOs (Kyverna, Artiva, BioAge) and one reverse merger (Lenz), generating an average MOIC of 1.3x.
- Numab’s lead asset was acquired by Johnson & Johnson for $1.25bn, resulting in a 2.6x uplift in RTW’s holding value.
- Strong contributions from Avidity Biosciences (+221%) and Tarsus Pharmaceuticals (+173%) helped drive NAV performance on the public side.
Post-period, Akero’s share price doubled following strong Phase 2b data in NASH patients, and Beta Bionics completed a successful Nasdaq IPO, raising US$204m.
M&A outlook and sector recovery
Chairman and CIO Roderick Wong struck an optimistic tone, citing early signs of a sector recovery, a strengthening M&A environment, and increased dealmaking interest from big pharma in light of patent cliffs and subdued biotech valuations. He highlighted the near-term catalysts expected across the portfolio in 2025 and reaffirmed RTW’s focus on unearthing transformative life sciences companies.
“We are pleased with the progress made during 2024 and enter 2025 with growing optimism. Our strategy of identifying high-growth biotech and medtech assets continues to deliver and we are well-positioned for the opportunities ahead.”
Financial summary
- NAV at year-end: US$606.9m
- NAV per share: US$1.81 (vs. US$1.90 in 2023)
- Share price: Flat at US$1.40 (total shareholder return -0.6%)
- Core portfolio: 67% of NAV; 33 private, 19 public
- Other public holdings: 31% of NAV
- Royalty positions: 3% of NAV, contributing +2.4% to NAV in 2024
Strategic expansion and alignment
The merger with Arix Bioscience completed in February 2024, bringing six new positions and materially increasing the scale and liquidity of the company. RTW also appointed Baroness Nicola Blackwood as a new NED, leveraging her deep expertise in life sciences policy and innovation. Roderick Wong increased his personal stake in the company to 15% post-period.
Outlook
Looking ahead, RTW expects continued momentum in portfolio exits, particularly via M&A. The manager is also closely monitoring opportunities across next-generation obesity therapeutics (including Kailera) and high-potential assets across the clinical and commercial spectrum.
With improved market sentiment, a strengthening capital markets environment, and a growing wave of late-stage innovation, RTW says it is well positioned to continue outperforming and delivering value for shareholders in 2025.
