(Alliance News) - The Biotech Growth Trust PLC on Tuesday said it has beaten the benchmark in the first half of its current financial year despite weak performance.
The stock was trading 1.2% higher in London at midday at 742.96 pence a share.
The investment company said it has outperformed its benchmark during the first half of its current financial year, despite net asset value per share falling by 5.6% to 743.1 pence on September 30 and the share price by 4.9% to 698.0p.
Biotech Growth trust's shares were trading at 6.1% discount to NAV at the end of the period.
In comparison, the company reported a fall of 5.9% in its benchmark, the NASDAQ Biotechnology Index, measured in sterling terms.
The trust attributed sector weakness to general macro concerns about the economic outlook and concerns about the potential for drug pricing regulation, particularly in light of the upcoming 2020 US presidential election.
"As we have previously highlighted, the biotechnology industry is at an important inflection point as new platform technologies spur innovation and make more diseases amenable to treatment," said Portfolio Managers Geoff Hsu and Richard Klemm.
"Although the backdrop of election year politics may continue to hurt sentiment for biotechnology and healthcare stocks in general, we believe over the longer term, the fundamental strength of the biotechnology industry will drive strong returns," added Hsu and Klemm.
By Evelina Grecenko; evelinagrecenko@alliancenews.com
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Biotech Gwth (BIOG)