RTW Biotech Opportunities Ltd on Friday said its half-year results demonstrated the company’s strength despite ‘challenging markets’, as net asset value rises.

RTW Biotech is an investment fund, managed by RTW Investments LP, that specialises in acquiring transformative assets across the life sciences sector.

It reported its net asset value per share on June 30 was $1.95, up 16% on-year from $1.68. Its net asset value return was 3.0%, in comparison to 9.3% at the same time last year.

The company outperformed the benchmark Russell 2000 Biotech index which returned 1.7% during the period, however, it underperformed the Nasdaq Biotech index which returned 4.0%.

Performance was driven primarily by Avidity Biosciences, the company’s largest holding, which reported a 15.6% net asset value contribution.

Managing Partner & Chief Investment Officer Roderick Wong said: ‘This has been an intense period of activity for the group, with 14 new core positions initiated, an [initial public offering] for Kyverna Therapeutics and a reverse merger involving Lenz Therapeutics and Graphite Bio. We have also seen some very encouraging scientific data from the group’s largest holding, Avidity Biosciences and other core positions including Apogee Therapeutics and Tarsus Pharmaceuticals. Elsewhere, the group has participated in a number of financings including JIXING which also saw the concurrent announcement of a new strategic collaboration with Bayer.

‘The market environment for the biotech sector is improving, and the opportunity set for stock picking is encouraging. The sector’s recovery is still early and changes in interest rate expectations are adding periods of volatility, but good data and good products are being rewarded. As we look out to the second half of 2024, we are excited by prospects for the biotech sector and opportunities that the group’s scale presents.’

Shares in RTW Biotech were up 0.7% at $1.53 each in London on Friday morning.

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