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Swiss Exchange
BB BIOTECH AG is an investment
company and invests in biotech companies globally. BB BIOTECH has meanwhile
become one of the largest pure play biotech investors
Difficult
fourth quarter for BB BIOTECH
During
2007, most biotech stocks experienced a mixed and fluctuating share price
performance. The biotech market performed favorably until October, when
major companies, including a string of our core holdings, suffered significant
setbacks with depressed valuations for the last two months of the year.
Consequently, during the last quarter, BB BIOTECH experienced a significant
decline in share price, ending the year at CHF 89, down 6.8% (in CHF, including
dividend). We believe this sequence of "news events" represents an unusual
circumstance and the sector remains very attractive.
Operationally,
our portfolio companies once more delivered strong performances, including
commercial progress and important pipeline developments.
Our
core holding Actelion achieved an impressive growth rate of 30% for Tracleer.
Despite this strong performance, financial markets worried about the potential
threat of a new competitor. This triggered a substantial decline of Actelion's
share price. We do not agree with the negative sentiment. Given Tracleer's
proven long-term efficacy and safety record, we continue to expect Tracleer
revenues to grow and Tracleer to remain a cornerstone of therapy in Pulmonary
Arterial Hypertension (PAH). Furthermore, Actelion moved two important
development projects, Almorexant for insomnia and Actelion-1 for PAH, into
Phase III studies, the final stage of clinical development.
Gilead
continued strong performance, based on its market leading position in the
treatment of HIV. Furthermore, in June, Gilead received US marketing approval
for the new drug Letairis for treatment of PAH, and achieved significant
progress with several of its pipeline products.
Celgene
executed the launch of its key product Revlimid successfully. Strong clinical
data regarding the use of Revlimid in several hematological cancers were
presented at the annual meeting of the American Society of Hematology in
December, indicating unprecedented efficacy at 2-years as measured by the
survival of patients with Multiple Myeloma. However, due to competitor
data, Celgene's stock declined following the conference. Despite this,
we remain confident that Revlimid will become the gold standard for treatment
of various cancers, due to its efficacy, favorable safety profile, and
its convenience as an oral therapy for the patients. Also due to concerns
of regarding competition, our shares in Vertex declined in value, regardless
of the fact that Vertex's drug Telaprevir, for treatment of Hepatitis C,
is significantly ahead of all potential competitors in clinical development.
Biogen
Idec appreciated significantly during the year, driven by strong operational
performance, in particular strong demand for its product Tysabri for Multiple
Sclerosis. In October, Biogen Idec's board initiated a process to sell
the company. That process was concluded in December when Biogen Idec announced
their intention to go forward as an independent company.
The
industry's bellwether Genentech, one of our most important holdings, suffered
a setback when an advisory committee of the US Food and Drug Administration
(FDA) rejected the request for expanded approval of its blockbuster product
Avastin. The antibody Avastin is already approved for colorectal and lung
cancer. The advisory panel was ambivalent regarding treatment of metastatic
breast cancer, due to data gaps in the submitted clinical study, which
was conducted by independent oncologists. However, additional studies by
Genentech and Roche are ongoing, with clinical results expected in 2008,
which might be used as supplementary data for the FDA.
Of
the many existing biotech drugs in development, the new drugs for treatment
of Alzheimer's Disease (AD) promise outstanding potential, in medical,
social and economic respects. Our holding in Elan Pharmaceuticals performed
very well during 2007, following the announcement that its antibody for
treatment of AD will move into clinical development Phase III in December
2007.
During
2007, we invested in new positions, including NicOx, Optimer Pharmaceuticals
and Jerini. We divested holdings in Amgen, Genzyme, Basilea Pharmaceutica,
Anadys and Affymax.
BB
BIOTECH invested 9.5% of its portfolio in Biogen Idec
Last
Friday, Biogen Idec Inc. announced that its Board of Directors has authorized
management to evaluate whether third parties would have an interest in
acquiring the company. Until this process is completed, the company does
not intend to disclose any further information. In light of this announcement,
BB BIOTECH AG publishes per today the participation in Biogen Idec.
Per September 30th, BB BIOTECH invested 9.5% of its equity in
Biogen Idec. BB BIOTECH AG owns approximately 1.0% of the share capital
of Biogen Idec. Further details of the portfolio will be published with
the 3rd quarter results.
BB
BIOTECH sells 2.06 mn shares to Deutsche Bank
As
announced on May 14, 2007, BB BIOTECH AG has sold through its wholly-owned
subsidiary BIOTECH Target N.V., 2.06 mn treasury shares to Deutsche Bank,
London, as underlying for the emitted mandatory exchangeable bond. The
gross sales price is CHF 95.2901 and is calculated at the average of the
volume weighted average prices of the shares from May 14 and May 15, 2007.
The issue size of the mandatory exchangeable bond, issued by Deutsche Bank,
London, is CHF 200 mn, with a coupon of 3.0% p.a. The issue date will be
on May 18, 2007 with a maturity date of May 18, 2012.
BB
BIOTECH concludes third share buy-back program
On
March 26, 2007, BB BIOTECH has concluded its third share buy-back program
started on November 8, 2006. In this period, a total of 1.4 mn bearer shares
were purchased over the second trading line. At the ordinary Shareholders'
Meeting of March 26, 2007, it was decided to cancel 1.4 mn shares bought
under the third buy-back program.
BB
BIOTECH will again actively manage the discount over the first trading
line in order to limit the discount to a maximum of 10%. Should the discount
deteriorate contrary to our expectations, BB BIOTECH will evaluate further
measures.
Another
outstanding year for BB BIOTECH
During
2006, BB BIOTECH's share price increased by 19% (in CHF, including a dividend
paid of CHF 1.80), while the Net Asset Value (NAV) increased by 16% (in
CHF). This represents the fourth year in a row of double-digit performance,
and is well on track with the biotech industry's long-term 10% to 15% annualized
growth trajectory. The main contributor to the performance in 2005 was
strong performance of BB BIOTECH's core portfolio positions, out-weighting
a negative currency effect from the USD. In 2006, BB BIOTECH achieved an
out-performance of its NAV against the broad Nasdaq biotech index of 25%,
adding to the significant out-performance of the Company. Since its inception
in 1993, BB BIOTECH's share price has risen by 11.8% p.a. in CHF, and it's
NAV has increased by 14.3% p.a. in USD.
Our
portfolio companies once more delivered strong operational performances,
including commercial success as well as key pipeline developments. Our
core holding Actelion achieved stunning growth rates with its key product
Tracleer growing by over 40%. The company reported positive clinical trial
results for early use of Tracleer in pulmonary hypertension patients, what
should support Tracleer's franchise going forward. In December 2006, Actelion
disclosed initial efficacy and safety results for one of its pipeline products
called Actelion-1, which is already well progressed in clinical development
and could become an important drug for the treatment of a variety of cardiovascular
diseases. In summer, Actelion signed a landmark deal with Roche about another
pipeline product called S1P1, which demonstrated the company's quality
and success in its earlier stage drug development.
Our
second most important holding Celgene successfully launched its core product
Revlimid in multiple hematological indications, while its established product
Thalomid maintained a strong position in the market. We expect Revlimid
to become the dominant drug for a number of cancer therapies. Biogen Idec
and Elan Pharmaceuticals achieved the approval of their drug Tysabri in
Europe for treatment of multiple sclerosis and were allowed to re-launch
the drug in the USA for the same indication, reversing the surprising withdrawal
of the drug from the market in February 2005.
We
increased our holding in Vertex Pharmaceuticals, because we became increasingly
confident that Vertex' drug VX950 will become a very important drug for
the treatment of Hepatitis C.
Our
long term holding The Medicines Company enjoyed a very positive performance
based on strong revenue growth of its key product Angiomax and based on
the possibility of an extension of a patent covering Angiomax.
On
the flip side, our portfolio company Affymetrix experienced a difficult
year, mainly due to issues with the launch of a new generation of DNA arrays,
which allowed competitors to take market share from the company.
During
2006, we invested in several new positions including Zymogenetics, Roche,
Basilea Pharmaceutica, Arena Pharmaceuticals and Affymax. We divested holdings
in Sepracor, OSI Pharmaceuticals, Theravance and Auxilium Pharmaceuticals.
BB
BIOTECH launches its third share buy-back program
As
announced on November 2, 2006, BB BIOTECH AG is launching a new share buy-back
program for up to 10% of its shareholders' equity on November 8, 2006.
The company will purchase own shares over a second trading line at the
SWX Swiss Exchange as soon as BB BIOTECH's discount to the Net Asset Value
exceeds 10%. The Board of Directors will propose a capital reduction in
the amount of the repurchased shares.
Details
about the new share buy-back program will be published in "Neue Zürcher
Zeitung", in "Le Temps" and on the company's website (www.bbbiotech.com)
on November 8, 2006.
BB
BIOTECH concludes second share buy back and initiates a new program
On
November 1, 2006, BB BIOTECH AG has concluded its second share buy back
program started on April 3, 2006. In this period, a total of 2.57 mn bearer
shares, or 10% of the shareholders' equity, were redeemed over the second
trading line. At the Extraordinary Shareholders' Meeting of September 18,
2006, it was decided to cancel 1.8 mn shares. According to the advertisement
of April 3, 2006, the remaining 0.77 mn shares will either be proposed
for cancellation at a general meeting or replaced.
Shortly,
a third share buy back program of the same magnitude will be launched.
The company will again purchase own shares over a second trading line at
the SWX Swiss Exchange as soon as BB BIOTECH's discount to the Net Asset
Value exceeds 10%. The Board of Directors will propose a capital reduction
in the amount of the repurchased shares. Details about the new share buy
back program will be published in "Neue Zürcher Zeitung", in "Le Temps"
as well as on the company's website (www.bbbiotech.com).
BB
BIOTECH has commissioned Bank am Bellevue, Küsnacht/Zurich with the
share buy back.
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