BION, a Switzerland-based investment company, targets long-term capital growth from biotechnology companies developing and marketing innovative drugs. At least 90% of the portfolio is held in listed companies, primarily those that already have products on the market or promising drug candidates in advanced stages of development. BION is benchmarked against the Nasdaq Biotech index (in CHF) but managed on a bottom-up basis, with a focused c 20–35 stock portfolio.
Investment summary
BB Biotech (BION) provided a solid platform of growth for its investors in FY20, with Swiss franc share price and NAV total returns of 19.3% and 24.3% respectively, outperforming the Nasdaq Biotechnology index in NAV terms amid a weaker environment for the US dollar. While the fund’s investment in mRNA platform company Moderna (share price +509% over 12 months) was the standout story after the rapid development of its successful COVID-19 vaccine, the BION team has been focused on backing companies bringing new technologies to bear in a number of innovative areas. This included investments at IPO in companies such as Generation Bio and Relay Therapeutics. BION has declared a cash distribution of 5% (CHF3.60) for FY20, which equates to a current yield of 4.3%.
