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SHAREHOLDER LETTER

2021 was a difficult year for biotech equity markets

The year 2021 was a volatile market environment for all involved in biotechnology investing, including BB Biotech. The biotech and pharmaceutical sector adapted to the SARS-CoV-2 virus pandemic cycling through Delta and now Omicron variants with offers of booster vaccines, therapeutic antibodies and most recently new antiviral drugs. For human health overall, new modalities such as genetic medicines, cell-based therapies and RNA-based drugs continue to make positive strides and are expected to improve the prognosis of severe and chronic diseases in the coming years.

Performance

BB BIOTECH (SIX)

CHF 77.15

31.12.2021

Market capitalisation

CHF 4.3 bn

Net Asset Value (NAV)

CHF 59.40

Premium

29.9%

BB BIOTECH (XETRA)

EUR 74.05

31.12.2021

Market capitalisation

EUR 4.1 bn

Net Asset Value (NAV)

EUR 57.25

Premium

29.3%

BB BIOTECH (STAR)

EUR 74.40

31.12.2021

Market capitalisation

EUR 4.1 bn

Net Asset Value (NAV)

EUR 57.25

Premium

30.0%

Video Interview
Genetic medicines as future standard of care

Under what conditions will the biotech sector as a whole return to the investor spotlight – regardless of when the corona pandemic is under control? Is a new wave of takeovers coming in 2022? Which new technologies and therapies are particularly exciting for BB Biotech? These and other questions are explored in an interview with Dr. Daniel Koller, Head of the Investment Team.

Biotech Outlook
The focus is shifting

Biotech companies often specialize in rare disease treatments but, as a result of the pandemic, they have displayed a greater interest in applying their cutting-edge technologies to treat disease indications that are significantly more prevalent. Meanwhile chronic and serious diseases are attracting more investor attention again.

ESG
Sustainability Report

Taking environmental, social and governance (“ESG”) factors into consideration is an integral part of BB Biotech´s investment approach. The investment process evaluates ESG in the context of risk and opportunities as a core part of the due diligence procedure that underpins every investment decision. The most important ESG aspect of the medical development process is the potential positive impact novel therapeutics can have on society: the aspiration of the biotech companies in which we invest is to develop drugs that address unmet medical needs.

Portfolio

Moderna

10.6%

31.12.2021

Argenx SE

8.5%

31.12.2021

Ionis Pharmaceuticals

7.8%

31.12.2021

Neurocrine Biosciences

6.4%

31.12.2021

Vertex Pharmaceuticals

5.7%

31.12.2021

Fate Therapeutics

5.4%

31.12.2021

Incyte

5.3%

31.12.2021

Alnylam Pharmaceuticals

4.7%

31.12.2021

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Further information

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