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one of the leading biotech investors

SHAREHOLDER LETTER

End of year biotech equity market rally – M&A and end of rate hike cycle

In 2023, global equity performed better than anticipated by many. The US central bank moderated and then paused interest rate hikes. These developments resulted in a year-end bond market rally and encouraged equity markets further – but led to a noticeable devaluation of the USD, particularly relative to the CHF. Additionally, the year witnessed an uptick in takeover activities. The biotech sector made strong gains as the year closed. BB Biotech achieved significant gains in the fourth quarter.

Performance

BB BIOTECH (SIX)

CHF 42.75

31.12.2023

Share Price Performance YTD

-18.1%

Market capitalisation

CHF 2.4 bn

Net Asset Value (NAV)

CHF 42.35

BB BIOTECH (XETRA)

EUR 45.50

31.12.2023

Share Price Performance YTD

-15.2%

Market capitalisation

EUR 2.5 bn

Net Asset Value (NAV)

EUR 45.60

Biotech Outlook
2024: Rebuilding investor trust by translating fundamental progress into capital returns

Heading into 2024, BB Biotech AG finds itself in a swiftly changing environment, shaped by pivotal shifts in capital markets, technological breakthroughs and healthcare regulations. Our strategy aims to respond adeptly to these dynamics, refining our investment approaches and seizing new opportunities that arise. We will closely track the market reception of innovative products like Casgevy, the pioneering gene editing therapy, and anticipate key proof of concept results from cutting-edge technologies, including in vivo gene editing. Moreover, the surge in M&A activities observed in 2023 is poised to continue, playing a crucial role in driving biotech industry growth and delivering value to investors.

ESG
Sustainability Report

Sustainability is an important factor in BB Biotech’s business strategy. It is a key component in ensuring our long-term success while creating added value for all our shareholders and other stakeholders. We seek to achieve growth while also taking into account the needs of the environment and society. As an investment company, we are in a position to promote sustainable development for the benefit of all our stakeholders.

Portfolio

Ionis Pharmaceuticals

13.9%

31.12.2023

Neurocrine Biosciences

10.1%

31.12.2023

Argenx SE

10.0%

31.12.2023

Vertex Pharmaceuticals

8.3%

31.12.2023

Intra-Cellular Therapies

7.0%

31.12.2023

Moderna

6.0%

31.12.2023

Alnylam Pharmaceuticals

5.3%

31.12.2023

Revolution Medicines

4.6%

31.12.2023

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Further information

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