Last close As at 15/08/2026
CHF53.10
▲ −0.60 (−1.12%)
Market capitalisation
CHF2,929m
Research: Investment Companies
BB Biotech (BION) delivered a resilient set of Q126 results, with a share price total return of +4.1% in Swiss francs, +5.2% in euros and +3.2% in US dollars, outperforming the Nasdaq Biotechnology Index across all three currencies. NAV was broadly stable, down just 0.6% in Swiss franc terms. Encouragingly, the discount to NAV also narrowed to 6.9% at 31 March 2026 (from 10.8% at end 2025), suggesting improved market recognition of the portfolio reset. The quarter was defined by one of the most active periods of portfolio repositioning in recent years. BION initiated 11 new investments, expanded the portfolio from 24 to 30 holdings and broadened its investment guidelines to 20–50 listed positions (from 20–35 positions previously). The rapid acquisition of new holding, Terns Pharmaceuticals, by Merck reinforces the continuing strategic appetite for differentiated biotech assets, and validates BION’s stock-picking approach. With a broader portfolio, new large cap exposure, strengthened analytical resources and a dense 2026 catalyst calendar, BION enters Q226 with multiple potential value drivers.
Q126 marked a clear continuation of the improving trend highlighted in our February 2026 review note. After a strong FY25, BION has moved quickly to reshape the portfolio for a more complex macroeconomic environment, adding stability through Regeneron, Gilead and Amgen, while retaining exposure to mid- and small-cap innovation. These additions provide liquidity and commercial resilience, without diluting the company’s focus on clinically differentiated biotech assets.
Portfolio activity was substantial. New positions included Crinetics, Enliven, Vaxcyte, Disc Medicine, Ultragenyx, Monte Rosa and Oruka, alongside the large cap additions. In parallel, capital was recycled from Neurocrine, Wave and Maze, while Amicus and Avidity were exited following completed takeovers and realisation of gains. Revolution Medicines and Ionis (previously high-weight, long-standing holdings) were reduced after strong performances, reflecting disciplined position sizing, rather than reduced strategic relevance.
The Terns acquisition by Merck, announced shortly after BION’s initial investment, provides an immediate validation point for BION’s stock selection process. It also supports the broader sector thesis that large pharmaceutical companies remain active buyers of external innovation, particularly as they seek to address approaching patent expiries and pipeline gaps.
BION’s near-term catalyst calendar remains full. Key events include regulatory decisions for Viridian, argenx, Ionis and Scholar Rock, further Revolution Medicines data in pancreatic cancer, continued Alnylam commercial momentum and additional readouts from Krystal, Jade, Edgewise, Relay and Oruka.
The CHF2.25 dividend paid in March 2026 and BION’s inclusion in the SPI Select Dividend 20 Index add further support to the shareholder return profile. For more information on BION, see our February 2026 review note.
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Research: TMT
Freelancer saw a mixed performance in Q126, with strong volume and revenue growth for Escrow.com which was more than offset by weaker volumes in the Freelancer core marketplace. Measures are underway to remedy the causes of the volume decline, including adapting the platform for generative AI-related changes to search. We have revised our forecasts to reflect weaker than expected Q1 performance, reducing our revenue forecasts by 8.1% in FY26 and 7.7% in FY27.