RTW Biotech Opportunities Ltd on Monday said it underperformed its benchmarks during 2024, while total net asset value climbed following the takeover of Arix Bioscience PLC.
RTW Biotech is an investment fund managed by RTW Investments LP that specialises in acquiring assets across the life sciences sector.
The company said its ordinary share net asset value increased 52% to $606.9 million on December 31 from $399.3 million at the start of January, largely due to the acquisition of the assets of Arix Bioscience.
NAV per ordinary share fell 4.7% to $1.81 at the end of the period from $1.90.
The total return to shareholders was a loss of 4.6% during 2024, down from a gain of 23.5% in 2023. This compared to a gain of 2.5% in the benchmark Russell 2000 Biotech index during 2024, while the fellow benchmark Nasdaq Biotech index fell 1.4%.
Chair William Simpson said: ‘This is the first year that the group’s NAV per share has underperformed, but it remains markedly ahead of sector indices over three years, five years and since admission. Like many listed investment companies, particularly those with private exposure, the company’s share price has lagged NAV per share growth, although the discount narrowed modestly in 2024.’
The chair said he was looking forward with confidence.
‘The market environment for the biotech sector continues to show signs of improvement and whilst the sector’s recovery is still in its infancy, there are a number of catalysts on the horizon that we expect will be rewarding both for shareholders and the patients that our products and therapies treat,’ said Roderick Wong, managing partner and chief investment officer for the investment manager.
‘We look ahead to 2025 with growing optimism and are excited by the prospects of the biotech sector. The company is in a strong position to deliver on its targets with a number of near-term catalysts for its portfolio investments that we look forward to reporting on as the year progresses.’
Shares in RTW Biotech Opportunities were up 1.6% to $1.23 in London on Monday afternoon.
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