LONDON (Alliance News) - International Biotechnology Trust PLC said Tuesday that it had seen its net asset value per share rise in the half-year to February 28, 2014, although it under-performed the NASDAQ Biotechnology Index.
The trust posted a total return on net asset value per share of 21.5%, under-performing The NASDAQ Biotechnology Index which rose 26.6%. However it out-performed the S&P 500 and the FTSE All-Share index which rose 6.5% and 8.8%, respectively.
Its quoted portfolio rose 25.7%, and its unquoted portfolio grew 4.2%, although both were hit by currency movements resulting in an overall loss of GBP17.1 million.
The quoted portfolio was boosted by strong drug launches from Gilead Sciences Inc and Biogen Idec Inc.
However, Aegerion Pharmaceuticals Inc's launch of LDL-Cholesterol reducing treatment Juxtapid failed to meet expectations and Ariad Pharmaceuticals Incs' oncology drug Iclusig was suspended by the US Food and Drug administration over concerns of serious side effects.
The unquoted portfolio was boosted by the initial public offering of Ophthotech Corp on the NASDAQ in September, and the merger between TransEnterix Inc and SafeStitch Medical Inc to form a new over the counter drug company.
The trust said that concerns that the biotechnology sector would "grow too big and suffer the problems of the innovators of two decades ago, the pharmaceuticals sector, are fair." However, it noted that large biotech names have shifted towards acquiring new research and development innovations instead of expecting to continue generating new drugs from their internal research and development efforts.
"As these larger companies seek new innovative drugs from smaller, more nimble and often more innovative companies, we believe investors will benefit as the Company gives them exposure to the whole industry including private companies," the company said in a statement.
Shares in International Biotechnology Trust were trading up 5.7% at 270.53 pence Tuesday morning.
By Hana Stewart-Smith; hanassmith@alliancenews.com; @HanaSSAllNews
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Int.biotech. (IBT)