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: 03.12.2021)

Share price: CHF 76.85 (02.12.2021)


Fonds (Brutto)
01 Jan 2010 - 01 Jan 2010
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Rolling performance (02.12.2021)

BB Biotech AG (SIX)-CHFBenchmark
02.12.2020 - 02.12.202112.55%6.71%
02.12.2019 - 02.12.202010.76%11.43%
02.12.2018 - 02.12.201911.42%8.27%
02.12.2017 - 02.12.20181.60%5.73%

Annualized performance (02.12.2021)

BB Biotech AG (SIX)-CHFBenchmark
1 year12.55%6.71%
3 years11.54%8.76%
5 years13.06%9.27%
10 years26.10%16.57%
Since Inception p.a.13.12%10.14%

Cumulative performance (02.12.2021)

BB Biotech AG (SIX)-CHFBenchmark
1M-5.71%-7.16%
YTD7.92%3.41%
1 year12.55%6.71%
3 years38.90%28.74%
5 years84.77%55.82%
10 years918.91%363.88%
Since Inception3'082.15%1'402.84%

Annual performance

BB Biotech AG (SIX)-CHFBenchmark
202019.35%15.80%
201918.55%23.02%
2018-5.21%-8.00%
201722.91%16.42%

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

SRRI

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
BloombergBION SW 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
No. of positions34

Breakdown by sector

Orphan diseases
Oncology
Neurological diseases
Other
Metabolic diseases
Cardiovascular diseases
Others
37.8%
25.3%
24.6%
14.2%
6.1%
2.9%
0.3%

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.

On October 22 BB Biotech published its third quarter results. The investment team continued to reshape the portfolio in the third quarter. Moderna´s inclusion in the S&P 500 and the evolving SARS-CoV-2 global patterns in August 2021 propelled its share price to all-time highs and allowed BB Biotech to realize some further profits from this long-term investment. Another long-term investment cycle with Halozyme allowed the investment team to exit the position with substantial profits over the 11-year term. The capital gained from Moderna and Halozyme was reinvested into three subsectors. Most was allocated to oncology-focused companies such as Revolution Medicines, Relay Therapeutics, Fate Therapeutics, Essa Pharma, Macrogenics, Molecular Templates and Mersana Therapeutics. The investment team also took on more exposure in the CNS space, increasing the positions in Sage Therapeutics and Intra-Cellular Therapies. Positions in smaller commercial stage companies such as Radius and Myovant were also increased.
 
Below we have highlighted some of the developments in October from three of our portfolio companies:
 
Radius (+74.1% in USD) announced on October 18 positive topline results form the ATOM study evaluating abaloparatide for use in male patients with osteoporosis. The ATOM study met its primary endpoint compared with placebo. On October 20 the company announced – together with its partner Menarini – positive topline results from the EMERALD study, meeting both primary endpoints. The study was designed to evaluate elacestrant as a monotherapy versus the standard of care for the treatment of ER+/HER2- advanced or metastatic breast cancer. Menarini and Radius plan on proceeding with regulatory submissions in both the US and Europe in 2022.

Alnylam (-15.5% in USD) announced on October 27 that the HELIOS-A Phase III study of vutrisiran for the treatment of polyneuropathy met all secondary endpoints measured at 18 months. Alnylam had previously announced that the study met both its primary and secondary endpoints after nine months. On October 28 the company announced the planned CEO transition of John Maraganore to Yvonne Greenstreet at the end of this year. Dr Maraganore has been CEO of Alnylam since 2002.

Moderna (-10.3% in USD) announced a number of positive news items during October. However, on October 31 Moderna communicated that the FDA had notified them of the need for additional time to complete their assessment of company’s emergency use authorization request for the use of the COVID-19 vaccine in adolescents 12 to 17 years of age.

For the remainder of 2021 we are expecting a number of important regulatory decisions for our portfolio companies including for Argenx, Intra-Cellular, Moderna and Alnylam. We will continue to invest in companies developing treatments in areas of high unmet medical need and remain positive for the future of our portfolio companies.

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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