Monthly Valuation Update and Factsheet

RTW Biotech Opportunities Ltd

14 October 2026

 

LEI: 549300Q7EXQQH6KF7Z84

14 October 2026

RTW Biotech Opportunities Ltd

Monthly Valuation Update and Factsheet

RTW Biotech Opportunities Ltd (the "Company") announces that its monthly factsheet and quarterly letter as at 30 September 2026 is now available at https://www.rtwbio.com/factsheets-letters/.

The Company’s unaudited net asset value attributable to its ordinary shares as at 30 September 2026 was US$2.70 per share, a decrease of -7.7% from the previous month vs -0.1% for the Nasdaq Biotech Index and -5.3% for the Russell 2000 Biotech Index. The Company has delivered +14.2% annualised NAV per ordinary share performance since launch in October 2019. 

Top 10 Positions

Holding	Public / Private	% NAV
CG Oncology	Public “CGON”	8.4%
argenx	Public “ARGX”	6.0%
Corxel	Private	5.3%
Oruka	Public “ORKA”	5.2%
UroGen	Public “URGN”	4.5%
Tango	Public “TNGX”	4.2%
Spyre	Public “SYRE”	3.8%
Xencor	Public “XNCR”	3.7%
Erasca	Public “ERAS”	3.7%
Zai Lab	Public “ZLAB”	3.4%

Top YTD Contributors and Detractors

Holding	% NAV	Contribution
UroGen	4.5%	+4.7%
Oruka	5.2%	+2.9%
Spyre	3.8%	+2.9%
Ultragenyx	1.5%	(1.7%)
Ensoma	0.2%	(1.7%)
Celcuity	3.0%	(1.5%)

Note: % NAV as at period end reflects gross economic exposure as a percentage of NAV.

COMPANY  UPDATE

On 14 September, the Company published its interim results for the six months ended 30 June 2026, where the NAV per Ordinary Share rose +16.5%. The presentation and webinar recording are available in the Results and Presentations section of the website.

On 19 August, the Company appointed Jefferies International Limited as joint corporate broker, alongside BofA Securities.

As outlined in the Company’s Capital Allocation Plan updated in October 2025, should a significant cash inflow (e.g. through a portfolio position being acquired) be received, it remains the Board’s intention to consider returning a portion of the realised gains to shareholders through NAV-accretive share buybacks.

In light of the material uptick seen in sector M&A, over the twelve months 30 September 2026, RTW Bio repurchased 6.2 million shares, equivalent to $13.4 million (8.4 million shares, equivalent to $10.8 million, for the twelve months to 30 September 2025). The Company continues to apply a disciplined evaluation framework to determine the optimal capital allocation framework.

PERFORMANCE UPDATE

Over the third quarter, the Company’s NAV per share returned -5.6% vs –2.8% for the Russell 2000 Biotech Index (R2kB), +8.5% for the Nasdaq Biotech Index (NBI), and -1.1% for the AIC Biotechnology and Healthcare sector.

The discount to NAV at which RTW Bio’s Ordinary Shares trade closed from 27.5% to 11.8% over the twelve months to 30 September 2026.

The Company’s NAV per share has delivered an annualised return of 14.2% per annum since launch on 30 October 2019, compared with the R2kB 9.7% p/a, the NBI 12.5% p/a, and the AIC Biotechnology and Healthcare sector 3.7% p/a.

SECTOR UPDATE

Biotech indices were broadly flat over the third quarter (SPDR S&P Biotech ETF (XBI) –0.36%), but the headline masked wide dispersion beneath the surface. Many therapeutic names weakened during August and September, while a small group of large constituents supported the index.

Moderna, a popular short position, was the main driver of sector performance. The shares rose more than 170% in August on pivotal Phase 3 melanoma data for intismeran, which many specialist investors had not anticipated. Moderna is now the fourth largest biotech company by market capitalisation. Losses on the move led a number of managers to reduce exposure. A short-covering rally in heavily shorted names followed, and in September multi-strategy funds cutting risk added further selling pressure on widely held positions. Moderna, together with a handful of diagnostics and drug discovery supply companies (including CareDx, Grail, Twist and Natera), contributed over 4% to the XBI’s return over the quarter. These companies now represent roughly 9% of the index. In September, commercial-stage names, which account for around 57% of XBI weight, finished the month up approximately 1%, while the index fell 3%.

Pharma M&A is tracking towards its strongest year since 2019, and the sector remains in the middle of the patent expiry cycle which underpins our investment case. Late-stage pipeline failures at several large pharma companies, including Novartis, have widened the pool of motivated acquirers. Capital markets remained open. Nine IPOs priced in the quarter, the busiest third quarter since 2021, bringing the year-to-date total to 22 against eight in the whole of 2025, albeit much of this was concentrated in the beginning of the quarter and September was the slowest month for biotech capital raising since August 2025.

The regulatory picture steadied. In September the acting heads of CDER and CBER, Michael Davis and Karim Mikhail, were appointed permanently. Heidi Overton, nominated as FDA Commissioner in August, has appeared before Senate hearings, and confirmation is expected in early November. CMS finalised GLOBE, the administration’s most favoured nation drug pricing demonstration for Medicare Part B, at the end of September. The final version was significantly narrower than proposed and will affect only a small number of drugs.

The US Federal Reserve raised rates by 25bps in September, its first increase since 2023, and the 10-year Treasury yield moved above 5% for the first time since 2007. RTW expects tightening to matter less for biotech than it did in the recent bear market for several reasons. The size of the move is small relative to that multi-year cycle, and the one-year correlation between the XBI and Treasury yields has turned positive (+0.84), indicating that M&A, clinical catalysts and earnings have become larger drivers of the sector than rates alone.

PORTFOLIO UPDATE – SEPTEMBER

On 2 September rare disease gene therapy company Ultragenyx’s Phase 3 clinical trial in Angelman Syndrome missed both the primary and key secondary endpoints and shares subsequently traded down 44%.

On 29 September, UniQure announced incremental data from the ongoing study of their Huntington’s disease gene therapy. Shares were down -54%. The three-year data remained strong and statistically significant, but the new four-year data on the primary endpoint lost significance.

On 11 September, RTW Bio invested a further $4.1 million in private portfolio company Encoded Therapeutics, as part of a $275 million Series F financing. Encoded is developing ETX101, a one-time gene therapy for Dravet syndrome, a severe childhood epilepsy for which no approved therapy addresses the underlying genetic cause. Proceeds are expected to fund pivotal and expansion studies, the scale-up of Encoded’s manufacturing facility and its wider neurology pipeline. RTW Bio first invested in Encoded’s Series D in June 2020. As at 30 September 2026, Encoded represented 0.6% of RTW Bio’s NAV.

Enquiries: RTW Investments, LP – Investment Manager Oliver Kenyon Krisha McCune (Investor Relations)	[phone] [e-mail]
Cadarn Capital – PR & IR Partner Lucy Clark (PR) David Harris (Distribution)	[phone] / [e-mail] [phone] / [e-mail]
Jefferies International Limited – Joint Corporate Broker Gaudi Le Roux Harry Randall-Knowles	[phone]
BofA Securities – Joint Corporate Broker Edward Peel Alex Penney	[phone]
Altum (Guernsey) Limited Joanna Duquemin Nicolle Sadie Morrison	[phone]

About RTW Biotech Opportunities Ltd:

RTW Biotech Opportunities Ltd (LSE: RTW) 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.rtwbio.com for more information.

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The information in this announcement may include forward-looking statements, which are based on the current expectations and projections about future events, and in certain cases can be identified by the use of terms such as "may", "will", "should", "expect", "anticipate", "project", "estimate", "intend", "continue", "target", "believe" (or the negatives thereon) or other variations thereon or comparable terminology. These forward-looking statements, as well as those included in any related materials, are subject to risks, uncertainties and assumptions about the Company and/or its underlying investments, including, among other things, the development of the applicable entity’s business, trends in its operating industry, expected use of financing proceeds and future capital expenditures and acquisitions. In light of these risks, uncertainties and assumptions, the events in the forward-looking statements may not occur.

The information contained in this announcement is given at the date of its publication (unless otherwise marked). No reliance may be placed for any purpose whatsoever on the information or opinions contained in this announcement or on its completeness, accuracy or fairness.

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