DGAP-News: BB Biotech weathers a challenging past year - portfolio performs well in in the volatile fourth quarter of 2016
DGAP-News: BB BIOTECH AG / Key word(s): Quarterly / Interim Statement
BB Biotech weathers a challenging past year - portfolio performs well in in the
volatile fourth quarter of 2016 (news with additional features)
20.01.2017 / 07:00
The issuer is solely responsible for the content of this announcement.
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Media release as of January 20, 2017
Portfolio of BB Biotech AG as of December 31, 2016
BB Biotech weathers a challenging past year - portfolio performs well in in the
volatile fourth quarter of 2016
5% dividend yield maintained - BB Biotech management is very confident about the
sector's prospects in 2017
With a total return of 0.3% in CHF and 1.9% in EUR, BB Biotech weathered the
storm of a challenging 2016 for biotechnology investors. Share price performance
was substantially influenced by the discount resolution. The portfolio closed
the year at -19.1% in CHF, at -17.6% in EUR and -20.6% in USD - slightly ahead
of the Nasdaq Biotech Index. The fourth quarter 2016 was buffeted by initial
positive moves following the US presidential election before the focus turned
back to the topic of healthcare costs and drug price inflation. Despite all
this, BB Biotech continued to strengthen its market position and is proposing a
regular dividend of CHF 2.75 per share.
The US presidential election added to the volatility in the biotech equity
markets
While broad benchmarks extended 2016 gains in the fourth quarter, the Nasdaq
Biotech Index (NBI) lost ground in the same period. Gyrations before and
immediately after the US presidential election led to market volatility and the
year closed with large cap biotechnology companies trading close to an all-time
price/earnings multiple low, mid caps and small caps suffering even more value
depreciation. None of these events bore any relationship to technology or
company fundamentals.
The fourth quarter reflected the whole of 2016. Fourth quarter total returns for
the NBI was -8.3% vs the S&P 500 at +3.8% and the Dow Jones Index at +8.7%. Full
year 2016 total returns looked similar, with the Nasdaq Biotech Index (NBI)
closing at -21.3%, the S&P 500 Index at +11.9% and the Dow Jones Index at +16.5%
(in USD).
BB Biotech's development in the fourth quarter and FY 2016
BB Biotech's share price rebounded in the fourth quarter (+ 10.4% in CHF, +12.8%
in EUR and +5.5% in USD). This was driven by a combination of US dollar
appreciation and discount resolution. For the full year 2016, BB Biotech's total
return was +0.3% in CHF, +1.9% in EUR and -1.4% in USD.
During the fourth quarter of 2016, the portfolio (-0.8% in CHF, +1.4% in EUR and
-5.5% in USD) showed less decline than the NBI. For the full year, the portfolio
total return was -19.1% in CHF, -17.6% in EUR and -20.6% in USD. Consolidated
but not yet audited fourth quarter data for BB Biotech record a net loss of CHF
24 mn versus last year's quarter gain of CHF 511 mn. Consolidated but not yet
audited full year 2016 data, showed a net loss of CHF 802 mn versus a full year
net profit of CHF 653 mn for 2015.
A proposed dividend of CHF 2.75 per share
The Board of Directors will propose a regular dividend of CHF 2.75 per share at
the general assembly on 16 March 2017. This is consistent with a 5% dividend
yield applied to the average share price in December 2016, as described in the
dividend policy introduced in 2013.
Portfolio adjustments in the fourth quarter
In the fourth quarter, the position in Actelion was trimmed as the shares showed
strong price performance associated with the Johnson & Johnson interactions. In
the large cap holdings, positions in Alexion and Novo Nordisk were increased.
Positions in smaller cap companies such as Intra-Cellular, Macrogenics, Juno and
Agios were also increased. Shareholdings in Cempra were sold following the
disappointing FDA advisory panel which discussed Solithromycin's liver toxicity.
The company subsequently received a complete response letter. A position was
opened in Myovant, a company developing the GnRH receptor antagonist, Relugolix
for endometriosis, uterine fibroids and advanced prostate cancer.
Outlook - exciting 2017 as storms subside
2017 will bring an acceleration of important product approvals and milestone
read-for the industry and BB Biotech's portfolio. The launch of Spinraza for SMA
patients, Niraparib for ovarian cancer patients and targeted cell-based cancer
therapies are key examples in BB Biotech's portfolio.
With biotechnology valuations at very attractive levels, more acquisitions by
large players, including pharmaceutical firms, are expected. Actions of the
incoming presidential administration in the US may accelerate this likely trend
- and BB Biotech expects investors to follow suit. Repeal and rework of the
Affordable Care Act (ACA) will be front and center throughout the year, and
there may be choppy reactions to possible drug price controls or moderation in
the US.
Despite these transitional events which will be attentively followed as always,
BB Biotech remains strongly convinced that the future of the biotechnology
industry is bright. The sector will further demonstrate its strength as a source
of innovation - and notwithstanding short-term uncertainties from political
changes, the Investment Team believes these sources will be converted into
substantial value for patients, care providers, the healthcare system at large
and, of course, investors which includes BB Biotech shareholders. BB Biotech
looks forward to an exciting 2017 and remains dedicated to finding, analyzing
and investing in leading-edge biotechnology firms with exciting news flow and
robust growth prospects.
The complete annual report as of December 31, 2016 will be published onFebruary
17, 2017.
For further information:
Investor Relations
Bellevue Asset Management AG, Seestrasse 16, 8700 Küsnacht, Switzerland, tel.
+41 44 267 67 00
Dr. Silvia Schanz,ssc@bellevue.ch
Maria-Grazia Iten-Alderuccio,mga@bellevue.ch
Claude Mikkelsen,cmi@bellevue.ch
Media Relations
Bellevue Asset Management AG, Seestrasse 16, 8700 Küsnacht, Switzerland, tel.
+41 44 267 67 00
Tanja Chicherio,tch@bellevue.ch
b-public AG, Pfingstweidstrasse 6, 8005 Zürich, Switzerland, tel. +41 79 423 22
28
Thomas Egger,teg@b-public.ch
www.bbbiotech.com
Company profile
BB Biotech invests in companies in the fast growing market of biotechnology and
is one of the world's largest investors in this sector. BB Biotech is listed in
Switzerland, Germany and Italy. Its investments are focused on listed companies
that are developing and commercializing novel medical treatments and cures. BB
Biotech's investment selection process is guided by the fundamental research and
analysis of physicians and molecular biologists. Its Board of Directors has many
years of experience in industry and science.
Disclaimer
This release contains forward-looking statements and expectations as well as
assessments, beliefs and assumptions. Such statements are based on the current
expectations of BB Biotech, its directors and officers, and are, therefore,
subject to risks and uncertainties that may change over time. As actual
developments may significantly differ, BB Biotech and its directors and officers
accept no responsibility in that regard. All forward-looking statements included
in this release are made only as of the date of this release and BB Biotech and
its directors and officers assume no obligation to update any forward-looking
statements as a result of new information, future events or other factors.
Composition of BB Biotech's portfolio as of December 31, 2016
(in % of securities, rounded values)
Celgene 12.7%
Incyte 12.4%
Ionis Pharmaceuticals 10.5%
Actelion 8.1%
Gilead 6.3%
Radius Health 5.3%
Alexion Pharmaceuticals 4.8%
Tesaro 4.2%
Neurocrine Biosciencies 3.9%
Agios Pharmaceuticals 3.7%
Novo Nordisk 3.5%
Vertex Pharmaceuticals 3.3%
Regeneron Pharmaceuticals 2.9%
Halozyme Therapeutics 2.4%
Swedish Orphan Biovitrum 1.7%
Sage Therapeutics 1.7%
Alnylam Pharmaceuticals 1.4%
Myovant Sciences 1.3%
Macrogenics 1.2%
Kite Pharma 1.1%
Juno Therapeutics 1.1%
Alder Biopharmaceuticals 1.1%
Intercept Pharmaceuticals 0.9%
Intra-Cellular Therapies 0.8%
Probiodrug 0.6%
Prothena Corp. 0.5%
AveXis 0.5%
Esperion Therapeutics 0.5%
Cidara Therapeutics 0.3%
Novavax 0.3%
PTC Therapeutics 0.2%
Puma Biotechnology 0.2%
Achillion Pharmaceuticals 0.2%
Radius Health warrants 04/23/2018 0.1%
Radius Health warrants 02/19/2019 0.1%
Merck & Co Inc Contingent Value Rights - ex Trius/Cubist 0.0%
Total securities CHF 3 205.9 mn
Other assets CHF 20.4 mn
Other payables CHF (223.2) mn
Total shareholders' equity CHF 3 003.0 mn
Treasury shares (in % of company) 1) 0.0%
1) Corresponds to the total of all own shares held including the second trading
line
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Additional features:
Document:http://n.eqs.com/c/fncls.ssp?u=CDFNRVHHBK
Document title: Media release
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20.01.2017 Dissemination of a Corporate News, transmitted by DGAP - a service
of EQS Group AG.
The issuer is solely responsible for the content of this announcement.
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Language: English
Company: BB BIOTECH AG
Schwertstrasse 6
8200 Schaffhausen
Switzerland
Phone: +41 52 624 08 45
Fax: +41 1 267 67 01
E-mail: info@bbbiotech.com
Internet: www.bbbiotech.ch
ISIN: CH0038389992
WKN: A0NFN3
Listed: Regulated Market in Frankfurt (Prime Standard); Regulated Unofficial
Market in Berlin, Dusseldorf, Hamburg, Hanover, Munich, Stuttgart; SIX
End of News DGAP News Service
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537873 20.01.2017
DGAP-Ad-hoc: BB BIOTECH AG / Key word(s): Profit Warning BB Biotech AG with loss in the business year 2016 13-Jan-2017 / 18:10 CET/CEST Disclosure of an inside information acc. to Article 17 MAR, transmitted by DGAP - a service of EQS Group AG. The issuer is solely responsible for the content of this announcement. 536365 13-Jan-2017 CET/CEST ...