Interim Results

Intl. Biotechnology Trust PLC
16 April 2002


Strictly embargoed for publication until 00.01 on Tuesday 16th April 2002

                      INTERNATIONAL BIOTECHNOLOGY TRUST PLC

The Board of International Biotechnology Trust Plc today announces its unaudited
Interim Results for the half-year ended 28 February 2002.

Highlights

  • Net asset value per share fell by 23.3% to 155.9p
  • NASDAQ Biotech Index fell 13.0% (sterling adjusted) and the Bloomberg UK
    Biotech Index fell by 29.4%
  • Write downs in inherited unquoted companies led to a reduction in net
    assets of £6.5 million - equivalent to 6.6% of net assets at 31 August 2001
  • Total net assets at 28 February 2002: £75.8 million (31 August 2001: £98.7
    million)
  • New investments in four quoted companies: Essential Therapeutics, Crucell,
    Alexion and 3-Dimensional Pharmaceuticals
  • Sales of five quoted companies: Aviron, Biocompatibles, CeNeS
    Pharmaceuticals, Onyx Pharmaceuticals and Vernalis Group
  • New investment in one unquoted company, CancerVax, since period-end
  • Sales of two unquoted companies: Delsys Pharmaceuticals and Netgenics

Andrew Barker, Chairman, commented:

'IBT is well placed to take advantage of the current weak market sentiment and
has cash available to build positions in attractively valued companies with a
strong management team, scientific capability and growth prospects. The timing
of a sustained recovery in the biotech market is difficult to predict but
industry fundamentals remain strong - company balance sheets are generally very
healthy and pipelines continue to broaden and mature. Nevertheless, the
continuing volatility of the biotech market means that the importance of taking
a long term view when investing in the sector, must be emphasised.'

For further information, please contact:

International Biotechnology Trust plc, Andrew Barker, Chairman    020 7658 3206

Schroder Ventures Life Sciences, Kate Bingham/ Jodie Van Elst     020 7421 7070

GCI Financial, Emily Morris/ Annabel O'Connor                     020 7072 4200

Website: www.internationalbiotrust.com


CHAIRMAN'S STATEMENT
 
PERFORMANCE

During the six months to 28 February 2002, the share price of International
Biotechnology Trust plc ('IBT') fell by 25.5% from 176.5p to 131.5p, alongside a
fall in the net asset value ('NAV') per share of 23.3% from 203.1p to 155.9p.
This compares to a fall in the NASDAQ Biotechnology Index of 13.0% in sterling
terms and a fall in the Bloomberg UK Biotechnology Index of 29.4% during the
same period.

Whilst the fall in the NAV during the period under review was largely due to the
continuing correction in the biotech market, a significant element of the fall
in the NAV was due to write-downs in value of some of the inherited unquoted
companies in the portfolio. The net effect of the change in the valuations of
unquoted companies was a reduction in net assets of £6.5 million during the
period under review, equivalent to 6.6% of net assets at 31 August 2001.

SHARE BUY-BACK FACILITY

To date, the Directors have not utilised the authority given to them during the
year ended 31 August 2001 to purchase shares for cancellation, and no purchases
have been made. Your Board will, however, continue to consider opportunities to
purchase shares for cancellation in appropriate market conditions, at prices
that would usefully enhance the net asset value for remaining shareholders.

DIRECTOR

Mr Howard Greene indicated in December last year that he did not wish to stand
for re-election at the Annual General Meeting. Mr Greene had been a Director of
the Company since its launch, and his knowledge of the biotech industry has been
invaluable. He leaves with the thanks of all the Board for his significant
contribution over the life of the Company.

OUTLOOK

IBT is well placed to take advantage of the current weak market sentiment and
has cash available to build positions in attractively valued companies with a
strong management team, scientific capability and growth prospects. The timing
of a sustained recovery in the biotech market is difficult to predict but
industry fundamentals remain strong - company balance sheets are generally very
healthy and pipelines continue to broaden and mature. Nevertheless, the
continuing volatility of the biotech market means that the importance of taking
a long term view when investing in the sector, must be emphasised.

Andrew Barker
Chairman



INVESTMENT REVIEW

MARKET OVERVIEW AND OUTLOOK

While the biotech market rallied towards the end of 2001, the first months of
2002 have seen investors moving money out of biotech and into cyclical and
technology stocks. One of the most notable trends during the period under review
was the increased level of consolidation within the industry. The fourth quarter
of 2001 saw several large deals including Amgen/Immunex, Millennium/Cor
Therapeutics and Medimmune/Aviron. However, sentiment has been dampened more
recently by a number of high profile product setbacks including ImClone's cancer
drug, which was not accepted for filing by the FDA. Only one biotech company,
Zymogenetics, has gone public this year and the IPO window looks likely to
remain closed for some time.

The disappointing news from the biotech sector in the first quarter of 2002 was
largely company-specific and should not detract from the strong potential of the
industry. The fundamentals of the biotech sector continue to improve with
interesting product pipelines, increasing demand from large pharmaceutical
companies for biotech products and compelling economics for companies launching
new drugs to tackle unmet clinical needs. However, it is not clear when share
prices within the sector will start to pick up and the market is likely to
remain volatile.

INVESTMENT ACTIVITY

SUMMARY

During the period under review, new investments were made in four quoted
companies and five existing quoted holdings were increased in size. Five quoted
holdings were sold in their entirety and partial sales were made in two quoted
holdings.

In the unquoted portfolio one new investment was made (subsequent to the end of
the reporting period) and a follow-on investment was made in an existing
unquoted holding. Two unquoted companies were sold - one for cash and the other
for stock in a German biotech company, LION Bioscience.

The net effect of the change in the valuations of unquoted companies was a
reduction in net assets of £6.5 million during the period under review. This
included write-ups of Axxima Pharmaceuticals, Micromet and Delsys
Pharmaceuticals (sold for £1.2m following a write-down to nil at the last year
end) and write-downs of Entigen, ValiGen and Netgenics (sold resulting in a
write-down of £3.7m).

QUOTED COMPANIES

New Investments

Following the commitment made in August 2001, IBT invested £5.3m in Essential
Therapeutics in October 2001, as detailed in the Annual Report. Kate Bingham of
Schroder Ventures Life Sciences has a seat on the Board of the company.

In March 2002 Essential announced the acquisition of Maret Pharmaceuticals.
Maret has programs in haematology, oncology and infectious disease and brings
Essential a small molecule, Phase I stage compound which may have clinical uses
in the prevention of thrombocytopenia, anemia and infection in patients
following chemotherapy or bone marrow transplantation. This acquisition is a
very positive step, moving Essential further towards becoming a clinical-stage
company.

New investments were also made in Crucell (£1.9m), Alexion Pharmaceuticals
(£0.8m) and 3-Dimensional Pharmaceuticals (£0.9m).

Crucell is a Dutch biotechnology company focused on the discovery and
development of novel antibodies and vaccines. The Company uses a technology
called MAbstracta to discover very subtle differences between healthy and
diseased cells, and antibodies that target these differences. Crucell has an
agreement with Centocor (a Johnson & Johnson company) for an antibody designed
for use in cancer indications. Crucell also have a proprietary human cell line,
which can be used to produce human antibodies, vaccines, therapeutic proteins
and gene therapy products. Merck & Co. has an exclusive licence to the cell line
for the production of HIV vaccines and a vaccine candidate is in clinical
trials. These two exciting platform technologies should allow Crucell to sign
further attractive deals, driving investor interest.

Alexion Pharmaceuticals is a US-based company focused on the development of a
novel class of anti-inflammatory compounds known as complement inhibitors.
Alexion's lead compound is an antibody in Phase III clinical trials to reduce
the risk of complications during coronary artery bypass graft surgery with
cardiopulmonary bypass, and Phase II clinical trials in myocardial infarction.
Another antibody is in clinical trials for rheumatoid arthritis and kidney
disease. At the time of writing, given the late stage nature of the clinical
programs and the strong cash position, Alexion's valuation appears compelling.
Subsequent to the end of the reporting period a further £0.7m was invested in
the company, increasing the total invested to £1.5m.

3-Dimensional Pharmaceuticals (3DP) is a chemistry-focused drug discovery
company based in the USA. 3DP uses its drug discovery platform DiscoverWorksa to
translate drug targets into orally available small molecule drug candidates and
to provide discovery services to partners. The Company has a very interesting,
early stage pipeline including an oral thrombin inhibitor partnered with
Centocor and a thrombopoetin mimetic peptide intended to stimulate the
production of platelets for the treatment of thrombocytopenia, a consequence of
many cancer treatments. The valuation of the company is expected to re-rate with
time as an increasing number of 3DP's compounds enter the clinic and move into
later stage clinical trials.

Follow-on Investments

In December 2001, IBT participated in a PIPE (public investment in private
equity) in Epimmune, increasing its investment by £1.4m to £6.2m. Mike Ross of
Schroder Ventures Life Sciences has joined the Board of the company. Epimmune
has designed therapeutic drug candidates to treat disease by stimulating the
body's immune system to respond aggressively to infections such as HIV,
hepatitis C and B and certain tumour types. The company has also designed
preventative drug candidates to protect against disease by teaching the immune
system to react quickly when exposed to infectious agents. Epimmune hopes to
move HIV and lung cancer vaccines into human clinical trials in 2002. This is an
early stage company, with a market capitalisation of $22m and just under $20m in
cash at the time of writing. The technology and early stage programs are
expected to translate into a very interesting clinical portfolio over time.

A further £2.7m was invested in Aspect Medical (total investment £3.4m), £1.1m
in AnorMED (total investment £5.8m), £0.7m in Novuspharma (total investment
£2.6m), and £0.6m in Atrix Laboratories (total investment £2.0m).

Sales

The holding in Biocompatibles was sold in its entirety during the period, along
with the remaining holdings in CeNeS Pharmaceuticals, Onyx Pharmaceuticals and
Vernalis Group. In December 2001, Medimmune acquired Aviron, which resulted in a
net gain of £1.1m for IBT.

Partial sales of the holdings in OSI Pharmaceuticals and Corvas International
were made in order to reduce the size of the largest quoted holdings in the
portfolio.

UNQUOTED COMPANIES

New Investments

In March 2002, subsequent to the end of the reporting period, IBT invested £2.1m
in CancerVax, an unquoted US-based company, as part of a £35m fundraising round.
Mike Carter of Schroder Ventures Life Sciences is on the Board of the company.
CancerVax's patented, core technology is based on the development of allogeneic,
whole cell vaccines that express multiple antigens associated with melanoma and
other tumors. The lead candidate is a therapeutic cancer vaccine called
Canvaxina, which contains at least 20 known tumor and melanoma-associated
antigens. Unlike chemotherapy, CanvaxinTM does not directly kill cancer cells,
but instead activates immune system responses to cancer. CanvaxinTM has been
administered to over 2,000 patients in Phase II clinical trials and is currently
in Phase III clinical trials for melanoma. Advanced stage melanoma is a disease
for which there are few effective or well-tolerated treatments. The incidence of
melanoma is increasing at an annual rate of approximately 3% to 5% worldwide,
faster than any other cancer.

Follow-on Investments

In October 2001 a follow-on investment of £0.3m was made in the German company,
Axxima Pharmaceuticals, as part of a £21m financing round. This increased IBT's
total investment in Axxima to £1.4m. Axxima is an unquoted infectious disease
drug discovery company focused on small molecule compounds. These compounds
block signal transduction pathways, for example those required by pathogens for
survival. This novel drug discovery strategy aims to generate a new spectrum of
drugs with a reduced chance of resistance. Axxima is focusing its activities on
HIV, hepatitis B and C, flu and tuberculosis.

Sales

During the six months under review, two of the unquoted US-based companies in
the portfolio were sold to trade buyers, however the returns on both investments
were disappointing.

In August 2001, Elan announced that Delsys Pharmaceuticals would merge with one
of its subsidiaries. The transaction realised £1.2m for IBT. Delsys was an
investment made in April 2000 at a cost of £6.3m. The holding was written down
to zero at the last year-end due to concerns about the future of the company.
The sale resulted in a write-up of £1.2m during the period under review.

In January 2002, Netgenics was sold to the German company LION Bioscience, and
IBT received stock worth £1.1m at the time of the transaction. IBT invested
£3.0m in Netgenics in March 1998, with follow-on investments of £0.3m in August
2000 and £0.3m in August 2001 - a total investment of £3.6m. The sale resulted
in a write-down of £3.7m during the six months under review.

PORTFOLIO SUMMARY AT 28 FEBRUARY 2002

IBT has investments in 32 companies - 24 quoted companies (making up 66% of the
NAV) and eight unquoted companies (making up 20% of the NAV). The remaining 14%
of the NAV is made up of cash, money market instruments and other net current
assets.

Of the 24 quoted investments, seven were made by the previous Manager, and these
make up 27% of the NAV. They include holdings in AnorMED and Epimmune, both of
which were increased in size during the period under review. The other five
holdings are Corvas International, OSI Pharmaceuticals, Targeted Genetics,
Inflazyme Pharmaceuticals and Ribozyme Pharmaceuticals. These holdings represent
good value at current share price levels and all (excluding Inflazyme) have been
reduced in size in order to diversify the portfolio into new holdings. It should
be noted that IBT does own a large number of shares in some of these companies,
which makes these holdings in particular, very illiquid.

In terms of the unquoted portfolio, four of the eight current investments were
made by the previous Investment Manager - Sunesis Pharmaceuticals, Axxima
Pharmaceuticals, Entigen and ValiGen. Sunesis is held at cost, Axxima has been
written up and Entigen and ValiGen have both been written down. Of the four
other investments, Aderis Pharmaceuticals, Affibody and Eyetech Pharmaceuticals
are held at cost and Micromet has been written up.

In terms of the geographical split of the portfolio, 61% of the NAV is invested
in the US, 6% in Canada, 6% in the UK/Ireland and 14% in Europe. By sub-sector,
66% of the NAV is invested in biopharmaceuticals, 9% in drug delivery, 4% in
medtech, 8% in other areas. The remaining 14% of the NAV is made up of cash,
money market instruments and other net current assets.

A member of SVLS is on the Board of seven of the portfolio companies - Aderis
Pharmaceuticals, Affibody, CancerVax (investment made subsequent to the end of
the reporting period), Epimmune, Essential Therapeutics, Eyetech Pharmaceuticals
and Micromet.

Ten Largest Equity Holdings

                         Value of            % of
Company                  Holdings   Shareholders'   Country    Business Activity
                            £'000           Funds

Essential Therapeutics      4,520            5.97     USA      A drug discovery and development company focused
                                                               on small molecules in the anti-infective,
                                                               hematology/oncology markets.

Corvas International        4,420            5.83     USA      A biopharmaceutical company focused on the
                                                               development of drugs that target serine
                                                               proteases, the largest human protease gene
                                                               family, for the treatment of cardiovascular
                                                               disease and cancer.

OSI Pharmaceuticals         4,035            5.33     USA      A leading drug discovery company with a
                                                               substantial pipeline focused on small molecules.
                                                               Lead compound is a cancer drug in Phase lll
                                                               trials.

Targeted Genetics           3,740            4.94     USA      A leader in gene delivery technology and in the
                                                               development of therapeutic products based on
                                                               gene delivery.

Aderis                      3,535            4.67     USA      A biopharmaceutical company with product
 Pharmaceuticals *                                             candidates in development for five indications
                                                               with a number of development and
                                                               commercialisation partnerships. Focus on within
                                                               CNS, cardiovascular and renal diseases.

Sunesis                     3,535            4.67     USA      Sunesis has developed and implemented novel
Pharmaceuticals *                                              technologies that reproducibly deliver
                                                               high-affinity, small-molecule, non-peptidic
                                                               ligands to important drug targets in a rapid
                                                               time frame.

Micromet *                  3,223            4.25    Germany   Micromet develops novel drugs to empower the
                                                               patients' immune system to tackle
                                                               life-threatening and severe chronic diseases.

Aradigm                     3,005            3.97     USA      A drug delivery company that develops novel,
                                                               liquid formulation based, pulmonary systems
                                                               designed to enhance the delivery and
                                                               effectiveness of existing and development-stage
                                                               drugs.

Aspect Medical Systems      2,958            3.90     USA      A consciousness monitoring company whose core
                                                               technology provides a direct measure of the
                                                               effects of anaesthetic and sedative agents on
                                                               the brain.

AnorMED                     2,412            3.18    Canada    The company's core strength involves the
                                                               application of chemistry, biochemistry and
                                                               biology to the discovery and development of
                                                               small molecule therapeutics for the treatment of
                                                               diseases including inflammation, cancer and HIV.

                           35,383           46.70

 * Unquoted investments



International Biotechnology Trust plc
As at 28 February 2002

Investments by Stage

                                                       % NAV

            Quoted                                     66.1
            Unquoted                                   20.1
            Net cash                                   13.8

                                                      100.0

Investments by Sub Sector

                                                       % NAV

Biopharmaceuticals                                     66.3
Drug delivery                                           8.5
Medtech                                                 3.9
Other                                                   7.5
Net cash                                               13.8

                                                      100.0

Investments by Geographical Sector

                                                       % NAV

USA                                                    61.4
Canada                                                  5.7
UK/Ireland                                              5.6
Europe                                                 13.5
Net cash                                               13.8

                                                      100.0

International Biotechnology Trust plc

Unaudited Interim Results

Unaudited Statement of Total Return (incorporating the Revenue Account)


                                For the half-year end 28 February 2002    For the half-year end 28 February 2001

                                     2002          2002          2002         2001          2001          2001
                                  Revenue       Capital         Total      Revenue       Capital         Total
                                    £'000         £'000         £'000        £'000         £'000         £'000

Realised (losses)/gains                 -      (12,309)      (12,309)            -        49,813        49,813

Performance fee
  and termination costs                 -             -             -            -       (2,160)       (2,160)

(Decrease)/increase
  in unrealised
  appreciation
  on investments                        -      (10,201)      (10,201)            -     (138,774)     (138,774)

Net profit/(loss) on
currency                                -           169           169            -       (1,147)       (1,147)

Income                                147             -           147        2,348             -         2,348
Administrative
  Expenses                          (777)             -         (777)      (2,990)             -       (2,990)

Net (deficit)/return
  on ordinary
  activities before
  finance costs and
  taxation                          (630)      (22,341)      (22,971)        (642)      (92,268)      (92,910)

Interest payable                        -             -             -         (15)             -          (15)

(Deficit)/return on
  ordinary activities
  before taxation                   (630)      (22,341)      (22,971)        (657)      (92,268)      (92,925)

Tax on ordinary
  activities                            -             -             -            -             -             -

(Deficit)/return on
  ordinary activities
  after taxation                    (630)      (22,341)      (22,971)        (657)      (92,268)      (92,925)

Transfer (from)/to
  reserves                          (630)      (22,341)      (22,971)        (657)      (92,268)      (92,925)

(Deficit)/return per
  ordinary share                  (1.30)p      (45.95)p      (47.25)p      (0.84)p     (117.93)p     (118.77)p


The revenue column of this statement is the profit and loss account of the
Company.

All revenue and capital items in the above statement derive from continuing
operations.


International Biotechnology Trust plc

Unaudited Balance Sheet

                                                               28 February                             31 August
                                                                      2002                                  2001
                                                                     £'000                                 £'000

Fixed assets
Investments                                                         65,291                                88,524

Current assets
Debtors                                              86                                   219
Investments                                       7,786                                 4,677
Cash at bank                                      3,005                                 7,157
                                                 10,877                                12,053
Current liabilities
Creditors: amounts falling due
  within one year                                   400                                 1,838

Net current assets                                                  10,477                                10,215

Net assets                                                          75,768                                98,739

Capital and reserves
Called up share capital                                             12,154                                12,154
Capital redemption reserve                                          10,843                                10,843
Share purchase reserve                                              67,083                                     -
Share premium account                                                    -                                67,083
Capital reserve                                                    (6,959)                                15,382
Revenue reserve                                                    (7,353)                               (6,723)
Equity shareholders' funds                                          75,768                                98,739

Net asset value per share                                          155.85p                               203.10p



International Biotechnology Trust plc

Unaudited Cash Flow Statement

                                                      For the half-year ended                  For the year ended
                                                             28 February 2002                      31 August 2001
                                                                        £'000                               £'000

Operating activities
Dividend income received                                                    -                                   2
Current asset investment income received                                   63                               2,639
Deposit interest received                                                  16                                 504
Management fee paid                                                     (389)                             (3,043)
Performance fee                                                             -                             (4,440)
Other cash payments                                                     (387)                             (2,138)

Net cash outflow from operating
  Activities                                                            (697)                             (6,476)

Servicing of finance
Interest paid                                                               -                                (15)

Cash outflow from servicing of finance                                      -                                (15)

Taxation
UK income tax suffered                                                      -                                (67)

Tax paid                                                                    -                                (67)

Capital expenditure and financial
  Investment
Purchase of investments                                              (15,654)                            (49,124)
Disposal of investments                                                15,076                             101,152

Net cash (outflow)/inflow from capital
expenditure  and financial investment                                   (578)                              52,028
                                                                        
Net cash (outflow)/inflow before management
of liquid resources and financing                                     (1,275)                              45,470
                                                                      
Management of liquid resources                                        (3,046)                              85,319

Financing
Repurchase of shares following Tender
  Offer                                                                     -                           (121,828)
Stamp duty                                                                  -                               (609)

Net cash outflow from
  Financing                                                                 -                           (122,437)

Net cash (outflow)/inflow                                             (4,321)                               8,352


Notes

The Interim Report will be mailed to registered shareholders in May 2002 and
from the date of release copies of the Interim Report will be made available to
the public at the Company's Registered Office at 31 Gresham Street, London EC2V
7QA.

This announcement is prepared on the basis of the accounting policies as set out
in the most recently published set of annual financial statements.


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