BB BIOTECH's share price performed positively through the first
quarter, increasing by 6% and closing the quarter at CHF 97.50. The
discount to the Net Asset Value (NAV) decreased to 1.6%. We are
pleased that our important goal of having BB BIOTECH's share price
trading close to its Net Asset Value has been achieved.
Overall, the share price performance of BB BIOTECH's holdings during
first quarter 2007 was in line with biotech market developments.
Growth was driven in part by compelling data reported by our core
holding Gilead, once again demonstrating their leadership position in
the commercialization of new treatments for AIDS. Another portfolio
company, Affymetrix, benefited from increased market share for its
molecular biology-based research products and from an affirmative
court ruling regarding associated intellectual property.
However, Amgen, one of the largest biotech companies and one of our
smaller positions, experienced several setbacks, particularly
concerning their erythropoietin franchise. During the first quarter,
reports from several studies indicated that the dosage of
erythropoietin substituting agents (ESAs) should be limited to a
narrow window, to achieve the maximum benefit for the patient without
inducing the risk of adverse side effects. These restrictions are
expected to limit the use of Amgen's drugs for these indications and
are expected to reduce the growth rates of Amgen's ESAs franchise
going forward.
During the reporting period, we invested in two new companies: NicOx
and Optimer Pharmaceuticals. NicOx is a leader in the development of
new drugs based on nitric oxide donating technology. In our view,
NicOx's lead drug may offer significant advantages over existing
drugs in pain management. Our second new investment, Optimer
Pharmaceuticals, develops new drugs for infectious diseases,
including a new agent to treat Clostridium difficile-associated
diarrhea. The initial public offering (IPO) of Optimer was one of the
best-performing IPOs seen during the first quarter of the year.
Looking forward to the second quarter 2007, we anticipate important
clinical results from a number of our portfolio companies. Assuming
positive data from these studies, treatment options for severe
diseases such as Hepatitis C or certain cancers may improve
significantly. In the overall biotech market, flat share prices do
not yet reflect continued strong revenue and earnings growth and we
believe several companies currently carry attractive valuations.
Consequently, we anticipate valuations and share prices to appreciate
during the remainder of the 2007.
This is the composition of BB BIOTECHs' Portfolio as at March 31,
2007:
CORE HOLDINGS
Actelion 23.6%
Celgene 16.3%
Gilead 11.8%
Genentech 11.5%
SMALL PARTICIPATIONS
Roche Holding GS 6.7%
Biogen Idec 6.6%
Vertex Pharmaceuticals 4.2%
Genzyme 3.3%
Affymetrix 2.9%
Elan 2.5%
Basilea Pharmaceutica 2.2%
Zymogenetics 2.1%
Amgen 1.3%
The Medicines Company 1.3%
BioXell 0.9%
NicOx 0.9%
Arena Pharmaceuticals 0.5%
Rigel Pharmaceuticals 0.5%
Keryx Biopharmaceuticals 0.5%
Incyte 0.3%
Epigenomics 0.3%
Optimer Pharmaceuticals 0.2%
Anadys Pharmaceuticals <(0.1%)
Basilea Pharmaceutica call options (short) (0.2%)
Total securities CHF 2 570 mn
Treasury shares (in % of company) 5.2%
Liquid funds (net) CHF (177.8) mn
Other payables CHF (133.4) mn
The quarterly report is available on www.bbbiotech.com.
For further information please contact:
Bellevue Asset Management AG, Seestrasse 16, 8700 Küsnacht,
Switzerland
Dr. Christian Lach, Alexandre Müller or Alexandra Avila, Tel. +41 44
267 67 00
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BB BIOTECH AG
Vordergasse 3 Schaffhausen Switzerland
WKN: 888509;
ISIN: CH0001441580; Index: SBIOM, IGSP, SLIFE;
Listed: Investment Companies in SWX Swiss Exchange;
