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International Biotechnology Trust PLC on Thursday said its portfolio continued to outperform the sector benchmark as the company reported full-year results. The trust said its net asset value total return rose 0.7% for the year ended August 31, compared with a 6.0% fall in the Nasdaq Biotechnology index, which serves as its reference benchmark. The share price total return increased 3.5%, extending the trust’s record of outperforming the benchmark over one, three, five and ten years on an annualised basis. Chair Kate Cornish-Bowden said the biotechnology sector performed well in the latter half of the financial year, adding there are ‘good reasons to expect this to continue.’ ‘The need for cash-rich pharmaceutical companies to maintain growth and adapt to potential regulatory changes has led to a surge in M&A activity in recent months,’ Cornish-Bowden said. ‘The convergence of scientific innovation, the impact of artificial intelligence on trials and approvals, and increasing demand for treatments should make biotechnology a lucrative investment for shareholders in the years to come.’ During the year, the trust made five new investments in late-stage businesses with approved assets, taking the total since 2020 to 29, and continued to benefit from strong performance in its unquoted holdings, including SV Fund VI and SV BCOF. The board said it would maintain its 5%15% allocation to unquoted early-stage biotech, starting with a £10 million commitment (around 4% of assets) to a new Schroders Capital fund. The company reaffirmed its dividend policy of distributing 4% of NAV, paying 15.56 pence and 16.17 pence per share in 2025, equivalent to a 4.7% yield as at August 31. The policy will be proposed again at the December 2025 annual general meeting. Shares in International Biotechnology Trust closed higher at 1.3% at 836.50 pence in London on Thursday. Copyright 2025 Alliance News Ltd. All Rights Reserved.
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