Markets were subject to large swings in valuation during the first quarter of 2022. A broad sell-off during the first two months was followed by a strong rebound in March. The biotechnology sector came under more pressure than the MSCI World Health Care Index and retreated –11.7% versus –3.2% for the broader index (both figures in USD). As witnessed during previous down cycles, larger biotechnology companies with solid operating results and positive pipeline updates held up better than earlier stage companies. BB Biotech shares’ total return for the first quarter was –11.3% in CHF and –8.6% in EUR. As a consequence of the general sector correction the investment level increased to 113.0% (previous quarter: 110.9%). This adequately reflects the management team’s perspective of many biotech companies being attractively valued after the past twelve months of correction.