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PRESS RELEASE: Solid second quarter for the biotech industry - BB Biotech raised its allocation to promising small and mid caps

07/23/2021 | 01:01am
DGAP-News: BB BIOTECH AG / Key word(s): Half Year Report/Interim Report 
Solid second quarter for the biotech industry - BB Biotech raised its allocation to promising small and mid caps 
2021-07-23 / 07:00 
The issuer is solely responsible for the content of this announcement. 
Media release of July 23, 2021 
Interim report of BB Biotech AG as at June 30, 2021 
Solid second quarter for the biotech industry - BB Biotech raised its allocation to promising small and mid caps 
Inflation moved higher during the second quarter as the economic recovery gathered steam, triggering temporary outflows 
of investor capital from growth sectors. Central banks signaled that the rise in inflation would be short-lived, after 
which capital began to flow back into tech and healthcare stocks. BB Biotech shares returned 5.8% in CHF and 6.1% in 
EUR in the second quarter of 2021. Their total return for the first half of 2021 including the dividend payout was 
22.2% in CHF and 21.3% in EUR. BB Biotech took profits in Alexion, Biogen, Moderna, Agios and other positions during 
the second quarter and reinvested the proceeds in more recently established positions such as Fate Therapeutics, 
Revolution Medicines, Relay Therapeutics, Essa Pharma and Molecular Templates. The biotech sector's prominent role in 
developing solutions to the pandemic continues to fuel general momentum, which could lead to further stock listings and 
rights issues, as well as take-overs at attractive prices. Major regulatory decisions for several companies in BB 
Biotech's portfolio are also expected in the second half of the year. 
During the second quarter, most indices' total returns reached high single digits such as the S&P 8.6%, the Dow Jones 
5.1% and the Nasdaq Composite Index 9.7% (all values in USD). Some European markets indexes such as the EuroStoxx 50 
(+5.3%, in EUR) and the Dax (+3.5%, in EUR) were slightly less up, with the Swiss SPI Index (+9.5%, in CHF) in line to 
the US markets. 
Healthcare markets rebounded from the April sell-off to close the second quarter in positive territory. Driven by the 
SARS-CoV-2 vaccine players, the controversial approval of Aduhelm to treat Alzheimer's disease and substantial value 
appreciations for many gene editing companies, the broad MSCI World Healthcare Index (+9.3%, in USD), and Nasdaq 
Biotech Index (+9.2%, in USD) posted impressive gains. 
BB Biotech's second quarter and half year 2021 performance 
BB Biotech's share price was 5.8% in CHF and 6.1% in EUR during the second quarter 2021. The Net Asset Value (NAV) grew 
3.3% in CHF, 4.2% in EUR and 5.3% in USD. Consequently, net profit for the second quarter was CHF 129 mn compared to 
the extraordinary net profit of CHF 1.18 bn for the same period in 2020. 
For the first half of 2021, the total share price return was 22.2% in CHF and 21.3% in EUR, including the dividend. 
This was ahead of the Net Asset Value appreciation of 8.9% in CHF, 7.3% in EUR and 4.1% in USD. This resulted in a net 
profit of CHF 349 mn for the first half of 2021 compared to the CHF 422 mn figure reported for the same period of last 
year. Exchange-rate fluctuations in the USD/CHF currency pair contributed first half 2021 performance by approximately 
Change to the Board of Directors of BB Biotech 
AstraZeneca has announced that Dr. Susan Galbraith will be promoted to lead worldwide Oncology Research & Development 
from initial discovery through late-stage development, consequently, Dr. Galbraith informed 
BB Biotech that she will resign from the Board of Directors of BB Biotech AG with immediate effect. While the Board 
regrets the loss of Dr. Galbraith who has already made great contributions as a Board member, the Board fully 
understands her need to focus on her remarkably consequential new assignment and congratulates her on the new role and 
wishes Dr. Galbraith all the best in future endeavors. BB Biotech will launch a search for a new candidate for election 
to the Board of Directors at its next Annual General Meeting. 
Second quarter 2021 portfolio activity 
The investment management team focused on our existing smaller and mid cap companies and on the volatile situations 
such as the SARS-CoV-2 vaccine updates, the controversial approval of Biogen's Aduhelm and the many clinical trial 
updates from within our existing portfolio, and no additions were made to the portfolio. After the US Federal Trade 
Commission cleared AstraZeneca's acquisition of Alexion, Alexion shares traded within the range of the takeover price, 
after which the investment team sold its entire position in Alexion, locking in the significant profits. Capital 
released from the Alexion position together with continued profits from Halozyme were allocated to build on our newer 
portfolio positions such as Fate Therapeutics, Revolution Medicines, Relay Therapeutics, Essa Pharma and Molecular 
Additional capital was generated after gains in the Biogen share price following the Aduhelm approval, Moderna's 
continued rally to become the second largest market cap company in the biotech universe, and from Agios following the 
oncology division sale to Servier. These funds were re-deployed - adding to positions in companies with depressed 
prices consequent to certain short-term setbacks such as Vertex. Other capital was invested into innovative smaller and 
mid cap companies with substantial pipeline and growth opportunities including Sage, Macrogenics, Black Diamond and 
Ionis who each presented buying opportunities associated with pipeline updates or short-term clinical trial results. 
Overall, actively managing 33 positions in the portfolio, the investment level decreased slightly from 109.2% to 107.5% 
during the second quarter 2021. This offers sufficient capital flexibility for the investment team to continue to 
identify and invest in novel opportunities within the boundaries of the established investment guidelines - an 
investment level of 95% to 115% and a maximum of 35 positions. 
Outlook for second half 2021 
In the second half of 2021, investors will likely monitor the launch of Aduhelm for treating Alzheimer's disease 
patients from Biogen. Some providers have already declared their dissatisfaction with the data. The strategic 
implications of FDA's controversial decision remain to be seen and the Agency has commissioned an investigation of its 
own conduct by the Office of the Inspector General. This story has further chapters to play out. Besides Aduhelm, 
investors will track other drugs expected to rebound in a post pandemic scenario include Neurocrine's Ingrezza, 
Esperion's Nexlizet/Nexletol franchise or Radius' Tymlos for women with osteoporosis. 
More recently high expectations from Wall Street for genome editing companies have been reflected in valuations in the 
wake of initial in vivo clinical data from Intellia Therapeutics. The portfolio management team sees attractive 
valuations in other subsectors and expects to allocate further capital to attractive companies for superior mid and 
longer-term returns. 
The second half of 2021 will continue to be dominated by the SARS-CoV-2 pandemic, with scientists and health experts 
carefully monitoring the emergence of virus variants. Vaccines already approved and widely used will be tested for 
their efficacy against new strains. Most importantly, booster injections are developed consisting of a third injection 
to boost the immune system of already vaccinated subjects or to be tailored specifically to address the challenging 
emergent strains. 
Major regulatory decisions concerning several stocks in BB Biotech's portfolio are also expected. These include 
decisions on Argenx's filing for approval of efgartigimod, Agios filing for mitapivat and a label expansion for 
Caplyta, a drug developed by Intra-Cellular, for which an approval date for the treatment of depressive episodes 
associated with bipolar I or II disorder is set towards the end of 2021. 
And lastly, an acceleration of data has been witnessed in biopharma and other life sciences industries. BB Biotech's 
investment team intends to take advantage of this trend and is therefore expanding its competency in advanced analytics 
and artificial intelligence. In particular, the democratizing force of cloud computing of recent years is enabling the 
team to leverage huge volumes of patient-centered data in its investment process. Machine learning and AI will enhance 
the team's proprietary investment processes and expand its investment universe. 
The quarterly report of BB Biotech AG as at June 30, 2021 can be downloaded at or 
For further information: 
Investor Relations 
Bellevue Asset Management AG, Seestrasse 16, 8700 Küsnacht, Switzerland, Tel. +41 44 267 67 00 
Dr. Silvia Schanz, 
Maria-Grazia Iten-Alderuccio, 
Claude Mikkelsen, 
Media Relations 
Bellevue Asset Management AG, Seestrasse 16, 8700 Küsnacht, Switzerland, Tel. +41 44 267 67 00 
Tanja Chicherio, 
TE Communications AG, Bleichestrasse 11, 9000 St. Gallen, Switzerland, Tel. +41 79 423 22 28 
Thomas Egger, 
Company profile 
BB Biotech AG is an investment company registered in Schaffhausen/Switzerland and listed on the Swiss, German and 
Italian stock exchanges. It has invested in innovative drug developers headquartered primarily in the US and Western 
Europe. BB Biotech is one of the world's largest investors in this sector. BB Biotech relies on the long-standing 
experience of its distinguished Board of Directors and the investment research skills of the experienced investment 
management team of Bellevue Asset Management AG when making its investment decisions. 
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 

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July 23, 2021 01:00 ET (05:00 GMT)

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