Optimistic about biotech's long-term prospects

During 2024 and early this year, the biotech sector began to show signs of a structural recovery, supported by positive clinical data, regulatory approvals, lower interest rates, commercial execution and Johnson & Johnson’s acquisition of Intra-Cellular Therapies, one of BION’s core holdings. However, more recently, the sector has been hit by uncertainties about the macroeconomic outlook, US tariffs and the regulatory policies of the new US administration. This has increased market volatility, especially in the small- and mid-cap companies that BION favours, and the company’s performance has declined accordingly, even though BION’s portfolio holdings are performing well, with several delivering regulatory and clinical milestones. BION’s...