BB BIOTECH : up 14.9% in 2009 - Portfolio broadened
January 28, 2010 at 01:35 am
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BB BIOTECH AG / BB BIOTECH AG up 14.9% in 2009 - Portfolio broadened processed and transmitted by Hugin AS. The issuer is solely responsible for the content of this announcement.
Portfolio as at December 31, 2009
In 2009, BB BIOTECH's share price increased by 14.9% in CHF and 13.9% in EUR
(incl. dividends), in line with the strong performance of Nasdaq Biotech Index
(NBI), and general stock market indices. BB BIOTECH's share price closed the
year at CHF 76.65 (EUR 50.76). BB BIOTECH's Net Asset Value (NAV) increased by
5.8% (in USD incl. dividends) during 2009. During the year, we strengthened our
efforts to close the discount between BB BIOTECH's share price and NAV. On July
6 2009, BB BIOTECH shareholders confirmed the resolution to initiate a share
buyback program that corresponds to 10% of total share capital over the next
three years. As a result, the discount decreased from 25.4% to 17.0% (in CHF) at
the end of the year. Since inception in 1993, BB BIOTECH's NAV achieved a total
performance of 543.5% (in USD, incl. dividends), outperforming the NBI's
performance of 316.1% during that time period, as well as many other industry
benchmarks. Consistent with BB BIOTECH's dividend policy that was introduced in
2004, the Board of Directors will propose at the annual shareholders' meeting in
2010 to pay a dividend of CHF 3.70.
BB BIOTECH's core holdings all showed advancements in terms of clinical
development and commercial success. Vertex was the best performer amongst them,
yielding a 41% share performance during 2009. The company reported further
strong results for its novel drug Telaprevir, supporting our belief that the
drug will cure a significant number of hepatitis C patients and become the gold
standard of care in this disease.
Roche's acquisition of the minority stake of Genentech in March 2009 was a
historic event within the biotech sector, and once again validated the
innovative biotech business model and its attractiveness to pharma companies. As
a long-term investor in Genentech, BB BIOTECH generated significant value to its
shareholders with this transaction.
Actelion continued showing strong sales growth from its lead drug Tracleer for
the treatment of pulmonary arterial hypertension (PAH). The company also
announced positive top-line results from its first Phase III trial testing
Almorexant, a novel therapy for insomnia. Further Phase III studies are planned
to begin in the US in 2010.
Celgene announced positive clinical results showing that newly diagnosed
multiple myeloma patients that are both eligible and ineligible for stem cell
transplantation benefit significantly from the use of maintenance Revlimid
treatment. These results bode well for increased use of the company's flagship
product Revlimid, as an earlier and continuous treatment in multiple myeloma.
During 2009, BB BIOTECH initiated six new investment positions: Novo Nordisk,
Micromet, Amgen, Genzyme, Clinuvel, and Probiodrug. Novo Nordisk, a worldwide
leader in diabetes care, continued showing strong sales growth and advances in
its product pipeline. We are excited about Micromet's technology platform to
generate bi-specific antibodies and its lead program, which has yielded positive
preliminary results in the treatment of lymphoma. Probiodrug is a privately held
company we made an investment this year. The company impressed us with its
pioneering scientific approach and novel target to treat Alzheimer's disease. In
2009, we reduced our position in Biogen Idec and added to our investments in
Incyte, Arena, and Zymogenetics. We divested our holdings in Rigel and The
Medicines Company. Having made an early private investment in The Medicines
Company, BB BIOTECH realized a significant gain over the entire investment
period.
We look forward to the finalization of US health care reform in 2010 as
legislators appear close to a resolution. Coverage of the currently uninsured
population in the US should increase demand for new medicines and services
provided by biotech companies. We are not overly concerned about economic/cost
pressures on innovative drugs, because new drugs that are differentiated (i.e.
safety/efficacy) from existing therapies should be reimbursed and command
premium pricing. Thus, we believe the innovation that is inherent in the biotech
sector will yield many blockbuster therapies in the future. The combination of
novel products and continuing strong growth of revenues and profits underlies
our investment hypothesis in the biotech industry in the coming years.
This is the composition of BB BIOTECH's Portfolio as at December 31, 2009 (in %
of securities, rounded values):
CORE HOLDINGS
Actelion 28.3%
Celgene 17.2%
Gilead 17.2%
Vertex Pharmaceuticals 14.6%
SMALL PARTICIPATIONS
Novo Nordisk 4.2%
Zymogenetics 2.7%
Amgen 2.0%
Roche Holding 1.8%
Incyte 1.7%
Genzyme 1.4%
Micromet 1.4%
Arena Pharmaceuticals 1.4%
Biogen Idec 0.9%
Basilea Pharmaceutica 0.9%
Affymetrix 0.8%
Optimer Pharmaceuticals 0.7%
Elan 0.7%
NicOx 0.6%
Epigenomics 0.3%
BioXell 0.3%
Keryx Biopharmaceuticals 0.1%
Clinuvel <0.1%
Probiodrug* 0.5%
3% Convertible Bond Deutsche Bank (-18.05.2012)** 0.2%
Basilea Pharmaceutica put option (short) as <(0.1%)
SWAP agreement on treasury shares 0.1%
Total securities CHF 1 463.0 mn
Liquid funds (net) CHF 44.4 mn
Other assets CHF 13.0 mn
Other payables CHF (4.2) mn
Total shareholder's equity CHF 1 516.2 mn
Treasury shares (in % of company) 9.9%
* Unlisted company
** Convertible into registered shares BB BIOTECH AG
The Annual Report as at December 31, 2009 is available on March 4, 2010 under
www.bbbiotech.com
For further information please contact:
Bellevue Asset Management AG, Seestrasse 16, CH-8700 Kusnacht, Switzerland
Nafida Bendali or Maria-Grazia Iten-Alderuccio, Phone +41 44 267 67 00
Company profile:
BB BIOTECH acquires holdings in companies in the biotechnology growth market and
is currently one of the world's largest investors in the sector. BB BIOTECH is
listed in Switzerland, in Germany and in Italy. The focus of the holdings is on
quoted companies that are concentrating on the development and marketing of
innovative medicines. For the selection of holdings, BB BIOTECH relies on
fundamental analysis by physicians and molecular biologists. The Board of
Directors has many years of industrial and scientific experience.
[HUG#1377932]
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BB BIOTECH AG
Vordergasse 3 Schaffhausen Switzerland
WKN: AONFN3;ISIN: CH0038389992;
Press Release_BB BIOTECH_28.01.2010: http://hugin.info/130285/R/1377932/338603.pdf
BB Biotech AG is a Switzerland-based investment company, which principal activity is to invest in companies active in the biotechnology industry. BB Biotech AG invests mainly in companies operating in such sectors as oncology, infectious diseases, cardiovascular diseases, metabolic diseases and autoimmune diseases. The Companyâs portfolio comprises between 20 and 35 companies and includes such companies as Celgene, Actelion, Vertex Pharmaceuticals, Gilead, Novo Nordisk, Incyte, Isis Pharmaceuticals, Immunogen, Halozyme Therapeutics, Ariad Pharmaceuticals, Biomarin Pharmaceutical, Alexion Pharmaceuticals, Optimer Pharmaceuticals, Achillion Pharmaceuticals, Swedish Orphan Biovitrum, Dendreon, Bavarian Nordic, Lupin, Glenmark Pharmaceuticals, Strides Arcolab, Endocyte, Probiodrug, and Idenix Pharmaceuticals.