Edison issues review on Intl. Biotechnology Trust
London, UK, 15 December 2015
Edison issues research review on International Biotechnology Trust
International Biotechnology Trust (IBT) is an established investor in the high-growth area of biotechnology. It is differentiated from peers by including unquoted companies (<10% of assets) alongside quoted holdings. The biotech sector seems largely to have shrugged off recent criticism over excessive pricing in some areas and long-term performance has been impressive, with the benchmark NASDAQ Biotech Index up 304% over five years compared with a return of 45% for the FTSE All-Share. IBT has outperformed the benchmark over one and two years under new manager Carl Harald Janson and is top of its peer group for one-year NAV total returns; the discount to NAV, while in line with averages, remains wider than peers, suggesting a relative valuation opportunity.
At 10 December IBT's shares stood at an 11.6% discount to cum-income net asset value. This is broadly in line with the one-, three- and five-year averages of 10.9%, 13.7% and 13.7%. Following a large share buyback in November 2014 (5.9m or 13.4% of shares) to facilitate the exit of a major shareholder, the board has continued with ad hoc buybacks; so far in 2015, 2.6m shares have been repurchased at a cost of £13.0m. The willingness of the board to act as a marginal buyer should give reassurance that material widening in IBT's discount is unlikely except in the event of market dislocation.
Click here to view the full report
All reports published by Edison are available to download free of charge from its website. www.edisoninvestmentresearch.com
About Edison: We are an international equity advisory firm. We enable our client companies to achieve their capital market objectives. The team is made up of more than 80 analysts and investment professionals with many decades of experience. Our extensive company knowledge and industry expertise spans 10 business sectors and more than 700 listed companies globally. We give our corporate clients and investors privileged insight into global investment trends. Our distribution capability is key to ensuring that a global investor audience can access our investment knowledge. Edison is authorised and regulated by the Financial Conduct Authority.
Edison is not an adviser or broker-dealer and does not provide investment advice. Edison's reports are not solicitations to buy or sell any securities.
Contact details: Learn more at www.edisongroup.com and connect with Edison on:
|
|
|
|
|
|
|
YouTube |
|
|
Google+ |
This information is provided by RNS
Latest directors dealings
- 4 hours ago Marlowe
- 4 hours ago Haleon
- 4 hours ago TUI AG Reg Shs (DI)
- 4 hours ago Georgia Capital
- 4 hours ago Weir Group