4. Financial assets

Fair values

The following table presents the Group’s assets that are measured at fair value through profit and loss at December 31 (in CHF 1 000):

There were no transfers between level 1, 2 and 3 during the reporting period.

The fair value of financial instruments traded in active markets is based on quoted market prices at the balance sheet date. A market is regarded as active if quoted prices are readily and regularly available and those prices represent actual and regularly occurring market transactions on an arm’s length basis. The quoted market price used for financial assets held by the Group is the closing price. These instruments are included in level 1.

The fair value of financial instruments that are not traded in an active market is determined by using valuation techniques. These valuation techniques maximize the use of observable market data where it is available. The options are valued on the basis of the Black-Scholes model which is based on market conditions existing at each balance sheet date. These instruments are included in level 2.

If one or more of the significant inputs is not based on observable market data, the instrument is included in level 3. The valuation of level 3 instruments is quarterly reviewed. As soon as new or adjusted parameters are available the valuation of unlisted shares is adjusted accordingly (e.g. earnings multiple model, round of financing). As of December 31, 2024, the Company holds two level 3 instruments (December 31, 2023: two), whereas the value of one is zero.

The table below summarizes the transactions in level 3 instruments (in CHF 1 000):

The fair value of level 3 instruments at initial recognition represents the transaction price (purchase of preferred stocks of Rivus Pharmaceuticals in August 2022 for TCHF 16 875 and August 2024 for TCHF 15 139), which was paid in financing rounds together with other investors. For the valuation as at December 31, 2024, it is deemed to be appropriate to use the latest transaction price in USD, as it is a reasonable approximation of fair value at the valuation date given the fact that no events occurred which significantly impact the fair value.

In August 2022, 8 733 538 Radius Health – Contingent Value Rights were allocated from a corporate action. The valuation as of December 31, 2024, is CHF 0 (December 31, 2023: CHF 0).

For assets and liabilities carried at amortized cost, their carrying values are a reasonable approximation of fair value.

Key assumptions for the valuation of the level 3 financial instrument vary from investment to investment. The following table shows the effect on the valuation when these assumptions are changed:

Securities

The changes in value of securities by investment category are as follows (in CHF 1 000):

Securities comprise the following:

Securities are deposited with Bank Julius Baer & Co. Ltd., Zurich.