BB Biotech AG
ISIN-Nr.
CH0038389992
Valoren-Nr.
3838999
«We invest in genuine innovation, not in "me too" medicine»
Dallas Webb
Analyst/Portfolio Manager
Dallas Webb Analyst/Portfolio Manager
Felicia Flanigan Senior Analyst/Portfolio Manager
Dr. Daniel Koller Head Biotech
Dr. Tazio Storni, CFA Portfolio Manager
Five Reasons to Invest
Strong growth driven by innovative, high-margin new therapies
Attractive valuations for fast-growing companies
Long-term track record of 18 years with above average performance
Long-term outperformance to industry benchmarks
Experienced management with strong Board
of Directors
Performance
| YTD | 1 Month | 1 Year | 3 Years | Since Inception | |
|---|---|---|---|---|---|
| Switzerland: BION SW Equity |
17.42% | 16.67% | 12.87% | 1.39% | 206.53% |
| Germany: BBZA GY Equity |
17.69% | 15.37% | 19.25% | 24.95% | 117.88% |
| Italy: BB IM Equity |
18.43% | 17.84% | 20.51% | 26.29% | -49.28% |
Investment Focus
BB Biotech's objective is to generate an average return of 15% per annum with a long-term investment horizon. The investment company participates selectively in firms operating in the growth market of innovative medications and diagnostics based on modern biotechnology, with companies listed in the stock markets accounting for at least 90% of the portfolio value.
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Investment Focus
BB Biotech's objective is to generate an average return of 15% per annum with a long-term investment horizon and to substantially outperform the relevant indices in the process. BB BIOTECH participates selectively in firms operating in the growth market of innovative medications and diagnostics based on modern biotechnology, with companies listed in the stock markets
accounting for at least 90% of the portfolio value. Our task is to have an in-depth knowledge of the businesses conducted by our holdings, which includes key financial ratios, also of the prevailing competitive environment, the product pipeline, the portfolio of patents and the perception of the products and services by the end customers, to name just a few aspects. The target portfolio of BB BIOTECH consists of approximately 20 to 30 holdings, no more than 5 of which account for more than 10% of equity and the largest of which should not exceed 25%. In the course of selecting its holdings, BB BIOTECH relies on the well-established experience of its Board members and the fundamental analyses by the experienced management team of Bellevue Asset Management Group, with access to a network of physicians and specialists for the sectors in question. In doing so, a detailed financial model is created for each holding, which guarantees a compelling illustration of the potential for doubling asset values in a period of four years.
accounting for at least 90% of the portfolio value. Our task is to have an in-depth knowledge of the businesses conducted by our holdings, which includes key financial ratios, also of the prevailing competitive environment, the product pipeline, the portfolio of patents and the perception of the products and services by the end customers, to name just a few aspects. The target portfolio of BB BIOTECH consists of approximately 20 to 30 holdings, no more than 5 of which account for more than 10% of equity and the largest of which should not exceed 25%. In the course of selecting its holdings, BB BIOTECH relies on the well-established experience of its Board members and the fundamental analyses by the experienced management team of Bellevue Asset Management Group, with access to a network of physicians and specialists for the sectors in question. In doing so, a detailed financial model is created for each holding, which guarantees a compelling illustration of the potential for doubling asset values in a period of four years.
General Information
| Board of Directors | Prof. Dr. Thomas Szucs Dr. Clive Meanwell Dr. Erich Hunziker |
| Investment Advisor | Bellevue Research Inc., Boston |
| Year end Closing | 31. December |
| Market Capitalisation | EUR 979.8 Mio. (Feb 7, 2012) |
| ISIN Number | CH0038389992 |
| Valor Number | 3838999 |
| Bloomberg | BBZA GY |
Risk
low
high
Investment Suitability
The investment company’s objective is to generate attractive and competitive capital growth in the long term. It is therefore particularly suited to investors with an investment horizon of at least 5 years who want to selectively diversify their portfolio with investments in the biotechnology sector and who are willing to accept the equity risks typical of this sector.
Share Facts
| Legal Form | AG |
| Listing | SIX Swiss Exchange, Xetra Frankfurt, Milan Stock Exchange |
| Foundation | Nov 16, 1993 |
| Share Type | Equity |
| Shares Floating | 16,402,500 |
| Authorised Capital | CHF8,200,000.00 |
| Conditional Capital | CHF8,200,000.00 |
Historical Prices
Key Data (Sep 30, 2011, Base Currency CHF)
| Beta | 0.63 |
| Volatility | 26.70 |
| Tracking Error | 23.50 |
| Jensen's Alpha | -5.39 |
| TER | n.a. |
| Correlation | 0.66 |
| Share Ratio | 0.19 |
| Information Ratio | -0.18 |
| No. of Positions | 29 |
Source: Bellevue Asset Management, Sep 30, 2011
Market Review
In the month of December, the general markets recovered slightly with the S&P 500 Index ending the session +1.02%, while the biotechnology sector continued its positive performance ending up +2.0%. BB Biotech’s share price was up +7.4% in CHF respectively +7.8% in EUR closing the year with a positive YTD performance of +5.6% in CHF respectively +8.6% in EUR. In the biotechnology sector, the month was highlighted by the positive and encouraging news flow coming from the medical meeting American Society
of Hematology (ASH). The key areas of focus at the meeting for our portfolio were myelofibrosis, multiple myeloma and leukemia.
Incyte (+9.0%, in USD) Regarding myelofibrosis, there was a great deal of excitement at the meeting about Incyte’s Jakafi, a JAK2 inhibitor which was approved and launched in the US in November 2011. As this is the first product approved for the disease, physicians greeted the positive Phase III data with much enthusiasm. While results were presented on other JAK2 inhibitors, these compounds are in early stages of development and it is not yet clear if they will offer any advantages over Jakafi. Therefore, we expect
Jakafi to remain the dominant product in the class for many years to come.
Celgene (+7.2%, in USD) Multiple myeloma was another therapeutic area which garnered a lot of attention at ASH. There was some important progress from Celgene on its key product Revlimid. In particular, updated results from several Phase III trials in newly diagnosed multiple myeloma, as well as feedback from physicians, appear to have put the concern about Revlimid’s ability to cause secondary malignancies to rest. New data on Pomalidomide, a product from Celgene that is in development for patients with more advanced myeloma, were positive and we expect this drug to supplement the company’s hematology portfolio when approved.
Micromet (+17.3%, in USD) Also in the area of leukemia, a very high response rate was reported with Micromet’s Blinatumomab (MT 103) in adult patients with relapsed or refractory ALL (acute lymphoblastic leukemia), and we believe this will be an important product if future data support this result. Blinatumomab is the first of a new class of agents called BiTE antibodies, designed to harness the body’s T cells to kill cancer cells.
of Hematology (ASH). The key areas of focus at the meeting for our portfolio were myelofibrosis, multiple myeloma and leukemia.
Incyte (+9.0%, in USD) Regarding myelofibrosis, there was a great deal of excitement at the meeting about Incyte’s Jakafi, a JAK2 inhibitor which was approved and launched in the US in November 2011. As this is the first product approved for the disease, physicians greeted the positive Phase III data with much enthusiasm. While results were presented on other JAK2 inhibitors, these compounds are in early stages of development and it is not yet clear if they will offer any advantages over Jakafi. Therefore, we expect
Jakafi to remain the dominant product in the class for many years to come.
Celgene (+7.2%, in USD) Multiple myeloma was another therapeutic area which garnered a lot of attention at ASH. There was some important progress from Celgene on its key product Revlimid. In particular, updated results from several Phase III trials in newly diagnosed multiple myeloma, as well as feedback from physicians, appear to have put the concern about Revlimid’s ability to cause secondary malignancies to rest. New data on Pomalidomide, a product from Celgene that is in development for patients with more advanced myeloma, were positive and we expect this drug to supplement the company’s hematology portfolio when approved.
Micromet (+17.3%, in USD) Also in the area of leukemia, a very high response rate was reported with Micromet’s Blinatumomab (MT 103) in adult patients with relapsed or refractory ALL (acute lymphoblastic leukemia), and we believe this will be an important product if future data support this result. Blinatumomab is the first of a new class of agents called BiTE antibodies, designed to harness the body’s T cells to kill cancer cells.
Positioning and Outlook
For 2012, we believe recent drug launches will exit the very early stage of the launch and will begin to show strength, which should continue to increase investor interest in the sector and support several companies in our portfolio. News flow around key regulatory decisions, clinical milestones and a
continued M&A trend are expected to last throughout 2012.
continued M&A trend are expected to last throughout 2012.
Top 10 Positions
Celgene
16.9%
Actelion
12.5%
Vertex Pharmaceut.
10.7%
Gilead Sciences
8.9%
Novo-Nordisk
6.1%
Incyte
5.7%
Immunogen
3.9%
Isis Pharmaceuticals
3.3%
Pharmasset Inc
2.9%
Micromet
2.8%
Breakdown by Sector
Oncology
33.3%
Cardiovascular
26.2%
Infectious disease
12.5%
Others
28.0%
Geographic Breakdown
Others
100.0%