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Biotech Growth Trust PLC on Wednesday said biotech firms have shown ‘remarkable resilliance’ as the firm highlighted the varied impact of macroeconomic factors on its half-year trading. The biotechnology-focused investor said its net asset value per share grew by 2.7% to 1,107.9 pence at September 30 from 1,078.9p at March 31, outperforming its benchmark the Nasdaq Biotechnology Index which only realised a 1.4% gain. However, it said a 6.2% improvement in GBP against USD in the six months to September 30 dragged on its NAV return since USD is the currency in which the majority of its investments are denominated. Over the period, the investment trust said its share price grew by 3.1%, but its shares fell 0.4% to 929.68p each on Wednesday morning in London. The firm said its performance throughout the period continued to be influenced by macroeconomic factors, with changing expectations around US interest rates serving as a headwind in the first half but shifting to a tailwind in the second, adding that an interest rate cutting cycle over the next several months would be beneficial for the sector. Chair Roger Yates said: ‘For the past few years, biotech companies have had to show remarkable resilience in the face of significant macro-economic challenges, focusing on innovation while also adapting to a shifting economic landscape. There are signs that the long-awaited recovery in market conditions has begun, at least in the US where the majority of our portfolio companies are based.’ Yates continued: ‘There are a great many promising developments on the horizon and an exciting range and pace of innovation in the biotech sector: recent advancements in cutting-edge areas such as gene therapy and immuno-oncology highlight the potential for groundbreaking innovations, while the ongoing integration of technology into biopharmaceutical processes and drug discovery offers new avenues for efficiency and growth.’ Copyright 2024 Alliance News Ltd. All Rights Reserved
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