Last close As at 05/08/2026
CHF50.80
▲ −0.10 (−0.20%)
Market capitalisation
CHF2,802m
Research: Investment Companies
BB Biotech (BION) invests in innovative, rapidly expanding biotech companies. BION’s portfolio company Wave Life Sciences (Wave) recently announced a significant milestone in the field of genetic medicine: the first successful therapeutic RNA editing in humans. This news lifted Wave’s share price by c 60%. It follows recent positive developments in three of BION’s largest holdings, Alnylam, Intra-Cellular Therapies and Agios, which all saw substantial improvements in their longer-term revenue prospects after positive Phase III readouts. Wave’s news adds to the recent positive momentum in BION’s NAV, which rose by 5.2% in the year ended 30 September 2024, after several years of annual declines, although this return lagged the Nasdaq Biotech Index’s 12.3% rise. Yet the company’s share price declined by 8.1% over this period and the share price discount to NAV is currently over 15%, in stark contrast to an average NAV premium of c 10% over the past 10 years. With interest rates falling and the outlook for the biotech sector potentially brightening accordingly, as we argued in our August 2024 update, this may represent an opportunity for investors to acquire access to the exciting opportunities offered by this industry at what may be an uncommonly wide discount.
BB Biotech |
A key milestone with significance for the sector |
Trading update |
Investment trusts |
21 October 2024 |
Fund objective
Analyst
BB Biotech is a research client of Edison Investment Research Limited |
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
BB Biotech (BION) invests in innovative, rapidly expanding biotech companies. BION’s portfolio company Wave Life Sciences (Wave) recently announced a significant milestone in the field of genetic medicine: the first successful therapeutic RNA editing in humans. This news lifted Wave’s share price by c 60%. It follows recent positive developments in three of BION’s largest holdings, Alnylam, Intra-Cellular Therapies and Agios, which all saw substantial improvements in their longer-term revenue prospects after positive Phase III readouts. Wave’s news adds to the recent positive momentum in BION’s NAV, which rose by 5.2% in the year ended 30 September 2024, after several years of annual declines, although this return lagged the Nasdaq Biotech Index’s 12.3% rise. Yet the company’s share price declined by 8.1% over this period and the share price discount to NAV is currently over 15%, in stark contrast to an average NAV premium of c 10% over the past 10 years. With interest rates falling and the outlook for the biotech sector potentially brightening accordingly, as we argued in our August 2024 update, this may represent an opportunity for investors to acquire access to the exciting opportunities offered by this industry at what may be an uncommonly wide discount.
Wave is a US-based clinical-stage biotechnology company that designs and develops ribonucleic acid (RNA) medicines through its discovery and drug development platform, PRISM. This platform combines multiple modalities, chemistry innovation and deep knowledge of human genetics, with the intention of delivering and commercialising scientific breakthroughs that treat both rare and prevalent disorders.
The announcement of Wave’s successful completion of the first therapeutic RNA editing in humans is part of the RestorAATion-2 clinical trial, which is focusing on treating Alpha-1 antitrypsin deficiency (AATD), a genetic disorder that can lead to severe lung and liver disease. The trial involved WVE-006, a novel therapeutic designed to edit RNA to restore the production of a specific protein that is lacking in patients with AATD. This therapeutic approach could transform treatment for AATD patients, who currently have limited options. There are an estimated 200,000 people living with AATD in the US and Europe, who may benefit.
Of even greater significance, the study showcases the broader potential of RNA editing technology, which could pave the way for new therapies targeting a range of genetic diseases. Wave plans to further investigate the long-term effects of WVE-006 and explore its potential across other genetic disorders. The company, which is listed on the Nasdaq, will also discuss further development with the US Food and Drug Administration (FDA).
GlaxoSmithKline (GSK) has the exclusive licence to commercialise WVE-006, and Wave is eligible to receive milestone payments of up to US$525m, as well as tiered royalties on net sales.
BION’s holding in Wave represented 0.7% of BION’s portfolio at end Q224, but the 60% share price gain triggered by news of Wave’s success means that its portfolio weighting has increased by approximately 120% since end Q224.
See our August 2024 update for more information on BION.
|
|
Research: TMT
1Spatial has announced the completion of a landmark deal for its key 1Streetworks application. Originally highlighted at the interims, the company has now revealed the client to be Surrey County Council. The deal is encouraging for two reasons. Firstly, the size of the deal (£1m over 12 months) indicates that the potential opportunity for this product is large. Secondly, the council’s plan to use the product as a collaboration tool with contractors and utility companies should help stimulate wider adoption within the industry.