Monthly Valuation Update, December Factsheet
LEI: 549300Q7EXQQH6KF7Z84
15 January 2024
RTW Biotech Opportunities Ltd
Monthly Valuation Update, December Factsheet
+15.0% NAV movement for the month
RTW Biotech Opportunities Ltd (the "Company") announces that the unaudited net asset value attributable to the ordinary shares of the Company at the close of business on 31st December 2023 (the "NAV") was US$399.3 million, or US$1.90 per ordinary share, +15.0% from the previous month.
The monthly factsheet is available on the Company's website:
https://www.rtwfunds.com/rtw-biotech-opportunities-ltd/factsheets-letters/
Developments in the quarter:
· NAV per share returned +19.1% versus +24.0% for the Russell 2000 Biotech Index and +10.5% for the Nasdaq Biotech Index (NBI).
· On 1st November, the Company announced that the boards of RTW Bio and Arix Bioscience had agreed to the terms of a recommended all-share acquisition of Arix's assets by RTW Bio, to be affected through a scheme of reconstruction and the voluntary winding-up of Arix. The scheme will enhance RTW Bio's position as a leading UK-listed life sciences fund by adding significant scale.
· The Federal Reserve's interest rate pivot and a flurry of takeouts helped the biotech sector avert an historic three down years in a row with a sharp rally in the last two months of the year.
· Flows have been consistently negative all year, with total outflows the highest in three decades. Generalists have remained on the sidelines, but should the pivot hold, could return to the space.
· The list of investible biotech assets has declined significantly in the past year with the acquisitions of Seagen, Horizon, Karuna, Prometheus, Immunogen, Cerevel, Reata, Televant, Iveric, Mirati, and Rayze having totalled over $150bn. which amounts to about a third of acquirable US market cap in the post-mega merger FTC era. Investors will compete with large pharma companies for the sector's remaining marquee assets.
· In total, the FDA approved 61 novel drugs, the highest in history. Drugs from new modalities represented 14, one more than last year. We continue to expect more new highs to be set in the coming years.
· Rocket Pharmaceuticals, Immunocore and Cargo Therapeutics were the largest contributors in the quarter. Rocket and Immunocore were largely driven by market moves with only small company specific updates. Cargo successfully debuted on Nasdaq in November raising $281m. The shares subsequently rallied from an offering price of $15 to finish the year at $23.15.
· Milestone Pharmaceuticals was the only material detractor in the quarter, having received a refusal letter from the FDA to file for a New Drug Application for Etripamil for the treatment of PSVT. The FDA did not express concerns about the nature or severity of adverse events. Milestone will seek clarification and is in the process of planning a meeting with the FDA.
For Further Information:
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RTW Investments, LP |
+44 20 7959 6361 |
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Woody Stileman, Managing Director, Business Development Krisha McCune, Director, Investor Relations |
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Buchanan |
+44 20 7466 5107 |
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Charles Ryland |
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Henry Wilson |
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George Beale |
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Numis |
+44 20 7260 1000 |
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Freddie Barnfield |
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Nathan Brown |
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Euan Brown |
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BofA Securities |
+44 20 7628 1000 |
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Edward Peel |
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Kieran Millar
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Cadarn Capital |
+44 73 6888 3211 |
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David Harris |
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Elysium Fund Management Limited Joanna Duquemin Nicolle, Chief Executive Officer Sadie Morrison, Managing Director
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+44 (0) 14 8181 0100 |
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Morgan Stanley Fund Services USA LLC |
+1 914 225 8885 |
About Biotech Opportunities Ltd:
RTW Biotech Opportunities Ltd (LSE: RTW & RTWG) is an investment fund focused on identifying transformative assets with high growth potential across the biopharmaceutical and medical technology sectors. Driven by a long-term approach to support innovative businesses, RTW Biotech Opportunities Ltd invests in companies developing next-generation therapies and technologies that can significantly improve patients' lives. RTW Biotech Opportunities Ltd is managed by RTW Investments, LP, a leading healthcare-focused entrepreneurial investment firm with deep scientific expertise and a strong track record of supporting companies developing life-changing therapies.
Visit the website at www.rtwfunds.com/rtw-biotech-opportunities-ltd for more information.
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