BB Biotech AG

New innovative drugs and technologies are powering sustainable momentum in the biotech sector     

Focus on profitable companies and small and mid-cap companies with strong pipelines  

Attractive dividend policy; Dividend payment of 5% p.a.

Investment Focus

ISIN-No. CH0038389992

BB Biotech aims to achieve an average annual double-digit return over the long term, thus outperforming the broad market indices by a significant margin. BB Biotech invests worldwide in fast growing companies developing and marketing innovative biotech drugs.

Indexed performance (as at: 22.10.2021)

Share price: EUR 75.95 (21.10.2021)


Fonds (Brutto)
01 Jan 2010 - 01 Jan 2010
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Rolling performance (21.10.2021)

BB Biotech AG (Xetra)-EURBenchmark
21.10.2020 - 21.10.202136.53%20.75%
21.10.2019 - 21.10.202010.81%22.15%
21.10.2018 - 21.10.2019-3.80%-3.05%
21.10.2017 - 21.10.20189.10%2.86%

Annualized performance (21.10.2021)

BB Biotech AG (Xetra)-EURBenchmark
1 year36.53%20.75%
3 years13.29%12.63%
5 years16.26%11.21%
Since Inception p.a.15.07%12.38%

Cumulative performance (21.10.2021)

BB Biotech AG (Xetra)-EURBenchmark
1M-5.94%-6.11%
YTD16.25%10.08%
1 year36.53%20.75%
3 years45.55%43.00%
5 years112.46%70.13%
Since Inception2'729.99%1'513.03%

Annual performance

BB Biotech AG (Xetra)-EURBenchmark
202018.06%16.12%
201923.38%27.60%
2018-2.15%-4.33%
201712.93%6.71%

Investment Focus

BB Biotech aims to achieve an average annual double-digit return over the long term, thus outperforming the broad market indices by a significant margin. BB Biotech invests worldwide in fast growing companies developing and marketing innovative biotech drugs. At least 90% of its shareholdings must be in listed companies. Positions in emerging-market biotech companies will be taken on a selective basis.
BB Biotech invests in fast-growing biotechnology companies that are developing and marketing innovative drugs. It focuses on biotech companies whose products address areas of significant unmet medical needs and that are generating above-average sales and profit growth. With an aggregate weighting of more than 90%, listed companies account for most of its portfolio investments. BB Biotech has also taken a stake in the structural growth opportunities that emerging markets offer.
We seek a thorough understanding of the activities pursued by our participations, i.e., not only the purely financial aspects of the business, but also the respective competitive environment, the innovation pipeline, patent portfolios and the market perception of each company’s products and services, to name only a few other aspects.
The target portfolio of BB Biotech will generally consist of 20 to 35 participations. Large positions will be taken in five to eight companies, the top holdings. Together they will account for no more than two-thirds of the portfolio and no single position will have a weighting greater than 25% of portfolio investments.
Due to their substantial portfolio weighting, in general the top holdings should be generating both revenues and income. The portfolio’s smaller participations are companies with promising drug candidates in their pipelines. BB Biotech has deliberately chosen not to construct a portfolio of statistical relevance as it attaches importance to the depth of sector and company expertise and seeks personal access to the management of our equity interests.
The asset classes BB Biotech can invest in are stocks, equity interests in unlisted companies, corporate bonds and options on a range of underlying assets.
BB Biotech invests its capital in stocks for liquidity and risk/reward reasons. Investments in private companies can account for up to 10% of the portfolio. These positions will have a higher weighting when stock market performance is positive over a prolonged period.
Corporate bonds are a suitable investment when stock market trends are negative. Options on the stocks of portfolio companies are bought and sold at opportune times and as a means of hedging currency exposure.
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Investment suitability & Risk

Low risk

High risk

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.

General Information

Investment ManagerAsset Management BaB N.V., Curaçao
CustodianBank am Bellevue, Luzerner Kantonalbank, Credit Suisse und Deutsche Bank
Fund AdministratorBellevue Asset Management Gruppe
AuditorPriceWaterhouseCoopers
Launch date09.11.1993
Year end closing31. Dec
Management Fee1.10%
ISIN numberCH0038389992
Valor number3838999
BloombergBBZA GY Equity
WKNA0NFN3

Legal Information

Legal formAG

Key data (30.09.2021, base currency CHF)

Beta1.19
Volatility35.20
Tracking error13.17
Active share77.74
Correlation0.94
Share ratio0.51
Information ratio0.29
Jensen's alpha1.73

Opportunities

  • Unique opportunity for European investors to access the global biotech sector, a noncyclical growth industry that is strongly supported by increasing demand, driven by demographic trends and life style changes.
  • New innovative drugs and technologies are powering sustainable momentum in the biotech sector.
  • Focus on a diversified portfolio of profitable companies as well as small and midcap companies with strong pipelines.
  • Management Team with strong scientific and medical expertise. Renowned threemember Board of Directors.
  • Attractive dividend policy; Dividend payment of 5% p.a.

Risks

  • BB Biotech invests in equities. Equities are subject to strong price fluctuations and so are also exposed to the risk of price losses.
  • Biotech equities can be subject to sudden substantial price movements owning to market, sector or company factors.
  • BB Biotech invests in foreign currencies, which means a corresponding degree of currency risk against the reference currency.
  • The price investors pay or receive, like other listed shares, is determined by supply and demand and may be at a discount or premium to the underlying net asset value of the Company.
  • BB Biotech may take a leverage of up to 15%, which may lead to even higher price movements compared to the underlying market.

September was another volatile month for biotech stocks and the Nasdaq Biotech Index was down by by approximately 5% in USD for the month. BB Biotech´s share price also ended the month down by approximately 5% in USD.

While takeovers during recent months in the biotech industry have been scarce, we take welcome note of Merck´s acquisition of biotech company Acceleron for USD 11.5 bn. Acceleron is not part of BB Biotech´s portfolio, but we are hopeful that this will kick start further transactions in the biotech space.

BB Biotech’s portfolio company Moderna found itself in a rare negative spotlight just after the month’s end as we saw the share price decline in the first few trading days in October. One of the reasons for this is likely attributable to the Phase III clinical trial success of Merck and Ridgeback´soral antiviral Molnupiravir, which showed a reduced risk of hospitalization or death by approximately 50% compared to placebo for patients with mild or moderate COVID-19. We see this potential drug as another tool in the armamentarium in the pandemic response and view these interventions as complimentary and not alternatives to vaccines.
 
Below we have highlighted some of the recent developments in a few of our portfolio companies:
 
Incyte (-10.1% in USD) announced on September 21 that FDA has approved Opzelura (ruxolitinib) cream for the short-term and non-continuous chronic treatment of mild to moderate atopic dermatitis (AD) in non-immunocompromised patients 12 years of age and older whose disease is not adequately controlled with topical prescription therapies, or when those therapies are not advisable. Opzelura is the first and only topical formulation of a JAK inhibitor approved in the US.

Intra-Cellular Therapies (+12.3% in USD) announced on September 20 the publication of four manuscripts that report on the mechanism of action of lenrispodun (ITI-214) and the potential cardiovascular therapeutic effects of Phosphodiesterase Type I (PDE1) inhibition. On September 27 the company also announced the publication of results from its lumateperone monotherapy Phase III clinical trial (ITI-007-404) in bipolar disorder.

Moderna (+2.2% in USD) announced on September 1 that the company has initiated submission to FDA its application of a booster dose of the Moderna COVID-19 vaccine (mRNA-1273) at the 50 µg dose level. The company expects to submit data to the European Medicines Agency (EMA) and other regulatory authorities as well. The company held its annual R&D day on September 9 and announced significant advances across its portfolio of mRNA pipeline programs.

We have a long-term view and are seeing positive progress in our portfolio companies. We will continue to invest in companies developing treatments in areas of high unmet medical need and remain optimistic about the future for this sector in general and our portfolio companies in particular.

Past performance is not a reliable indicator of future results and can be misleading. As the subfund is denominated in a currency that may differ than an investor’s base currency, changes in the rate of exchange may have an adverse effect on prices and incomes. Performance is shown net of fees and expenses for the relevant share class over the reference period. All performance figures reflect the reinvestment of dividends and do not take into account the commissions and costs incurred on the issue and redemption of shares, if any. The reference benchmark of this class is used for performance comparison purposes only (dividend reinvested). No benchmark is directly identical to a subfund, thus the performance of a benchmark is not a reliable indicator of future performance of the subfund it is compared to. There can be no assurance that a return will be achieved or that a substantial loss of capital will not be incurred.Show moreShow less

  • Lead Portfolio Manager

    Daniel Koller

    Dr. Daniel Koller joined Bellevue Asset Management in 2004 and is senior portfolio manager in the biotechnology segment specialized in cardiovascular diseases. Since 2010 he is head management team of the listed investment company BB Biotech AG . Before joining the company he spent four years in the financial sector, initially as an equity analyst at UBS Warburg and then as a private equity investor at equity4life. Dr. Daniel Koller studied biochemistry at the Swiss Federal Institute of Technology and earned a doctorate in biotechnology while working at Cytos Biotechnology.
  • Portfolio Manager

    Felicia Flanigan

    Felicia Flanigan is a Senior Portfolio Manager and expert in infectious diseases and oncology. Before joining the team in 2004 she worked as a research analyst with Adams, Harkness & Hill. Previously she worked at SG Cowen in healthcare research. Felicia Flanigan received her MBA from Suffolk University, Boston, and her BA in communications from Boston College.
  • Portfolio Manager

    Stephen Taubenfeld

    Dr. Stephen Taubenfeld joined BB Biotech AG as an expert for neurologic and psychiatric diseases. He previously worked as an analyst at Iguana Healthcare Partners, of which he was a co-founder, and as a consultant for MerlinBioMed Group. Dr. Stephen Taubenfeld studied neurosciences at Brown University
  • Portfolio Manager

    Dallas Webb

    Dallas Webb is portfolio manager of the trust BB Biotech since 2006. Previously, he worked as an equity analyst first at Sterling Financial Investment Group for 2 years and then at Stanford Group from 2004 onwards. His first stop as a biotechnology analyst was at Adams, Harkness & Hill, Boston. Dallas Webb holds an MBA from Texas Christian University of Fort Worth and a BA in Microbiotechnology and Zoology from Louisiana State University, Baton Rouge/Los Angeles.
  • Portfolio Manager

    Christian Koch

    Dr. Christian Koch joined BB Biotech as an analyst and portfolio manager in 2014. Prior to joining BB Biotech, he was a sell-side equity analyst in the Pharma & Biotech department of Bank am Bellevue. Christian Koch has a Master in Bioinformatics from the Goethe University of Frankfurt am Main and the Louis Pasteur University in Strasbourg, and a PhD in Cheminformatics & Computational Drug Design, which he completed at the Institute of Pharmaceutical Sciences of the Swiss Federal Institute of Technology in Zurich.
  • Portfolio Manager

    Maurizio Bernasconi

    Dr. Maurizio Bernasconi joined BB Biotech as analyst and portfolio manager in 2017. Prior he was a sell-side equity analyst in the Pharma & Biotech department of Bank am Bellevue. Maurizio Bernasconi has a master's degree in chemistry at Swiss Federal Institute of Technology (ETH), Zurich, a PhD in organic chemistry at the University of Basel and an MBA in International Healthcare Management from the Frankfurt School of Finance.
  • Portfolio Manager

    Samuel Croset

    Samuel Croset joined Bellevue Asset Management as Portfolio Manager and Digital Transformation Lead in 2020. He previously worked for Roivant Sciences from 2018-2020 as data scientist supporting investment decisions in drug projects as well as leading a team focused on the analysis of real-world data. Prior to that, he started his professional career at Roche as data scientist in the research department (2014-2018). Samuel holds a Ph.D. in Bioinformatics from the University of Cambridge, a MS in Bioinformatics and a MS in Biochemistry from the University of Geneva.
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