Bellevue Biotech (CH)

Global equity markets were negative in June, with the MSCI World Index falling 0.7% (in USD). Healthcare outperformed the broader market, with the MSCI World Health Care Index up 5.0% in the month. The biotechnology segment (NBI; 9.7% in USD) significantly outperformed broader healthcare in June. The Bellevue Biotech (CH) Fund (ADGLBII shares; 9.3% in CHF) underperformed its NBI benchmark (+13.5% in CHF) by 420 bps.

A US-Iran ceasefire agreement – still pending final ratification – dominated headlines in June, sending oil prices down nearly 20% from 2026 highs on hopes of reopening the Strait of Hormuz. Initial relief to risk sentiment was, however, offset by a more hawkish-than-expected Federal Reserve, which held rates unchanged but saw nine of eighteen officials now projecting a hike in 2026, pushing yields higher and weighing on global equities. The MSCI World ended the month modestly lower. Healthcare sector performance over the month was driven by Healthcare IT (+9.9%), Biotech (+8.7%), Healthcare Services (+8.1%), Pharma (+4.9%), Life Science Tools (+3.3%), offset by Medtech (-0.5%). Within healthcare, geographic performance was led by the US (+6.4%), Europe (+2.3%), Emerging Markets (+0.1%), while Asia (-2.7%) lagged.

At the American Society of Clinical Oncology (ASCO), Akeso and Summit's ivonescimab demonstrated an overall survival benefit in first-line squamous NSCLC. The FDA approved Ionis' olezarsen for severe hypertriglyceridemia, Gilead's Trodelvy in first-line triple-negative breast cancer, and Viridian's Lumvoa for thyroid eye disease. BridgeBio published positive Phase III achondroplasia data in the New England Journal of Medicine. GSK acquired Nuvalent for USD 10.6 bn – a positive read-across for Royalty Pharma – and AbbVie acquired Apogee Therapeutics for USD 10.9 bn. FDA leadership remained in flux with an interim commissioner following the May departures of Commissioner Makary and the head of CDER.

Top absolute performers in the fund included Structure Therapeutics (+36.4%; M&A speculation), MANE (+28.0%; investor interest in female data eneration), and Alkermes (+24.2%; orexin M&A momentum).

Top relative positive contributors included Alkermes (overweight; +87 bp; orexin M&A momentum), Protagonist (overweight; +81 bp; rusfertide data at EHA), and Vera Therapeutics (overweight; +53 bp; supportive competitor data on 2-year eGFR). Top relative negative contributors included Moderna (not invested; -76 bp), Mineralys Therapeutics (overweight; -50 bp), and Incyte (underweight; -27 bp; sector rotation).

Biotechnology may be entering a more durable phase of growth after several years of structural, regulatory, and capital-market headwinds. The sector is transitioning from a speculative, capital-intensive model toward sustainable, cash-generative growth, driven by premium pricing, leaner cost structures, and disciplined capital allocation. Fundamentals are stabilizing, and investor confidence is returning as the industry demonstrates consistent profitability.

Long-term structural growth drivers remain compelling. Aging populations, expanding access to healthcare in emerging markets, and accelerating innovation in AI-enabled drug discovery, precision medicine, and advanced biologics continue to broaden the opportunity set.

The fund maintains a selective, high-conviction strategy focused on late-stage, de-risked assets, proven pricing power, and scalable platforms capable of generating sustainable free cash flow.