With a total return for BB Biotech’s shareholders of 23.1% in CHF and 13.1% in EUR buoyed by the euro’s substantial appreciation against the dollar, BB Biotech delivered a strong performance in 2017. The underlying portfolio performed well, ending the year up 23.4% in CHF, 12.5% in EUR and 29.2% in USD – which is 7.5% ahead of the Nasdaq Biotech Index .Consolidated, but not yet audited, full year 2017 data showed a net gain of CHF 688 mn.. Continuing the 5% dividend policy based on the average December 2017 share price, BB Biotech will propose a record regular dividend of CHF 3.30 per share at the AGM.
The US FDA approved 12 new drugs in the fourth quarter 2017, bringing the total number of approvals for the year to 46, more than in any of the previous 20 years. The majority of these approvals were granted to biotechnology companies.
The Board of Directors will propose a record regular dividend of CHF 3.30 per share at the general assembly on March 13, 2018. This is computed as a 5% dividend yield applied to the average share price during December 2017 – consistent with the dividend policy introduced in 2013.
BB Biotech believes that 2018 will continue to bring important product approvals and milestones for the sector and for its portfolio. BB Biotech anticipates continued debate around the US Affordable Care Act.
As predicted, concerns around drug pricing restrictions by the US government are sporadic more than systematic. But BB Biotech continues to monitor potential changes.
Biotechnology valuations are attractive at current levels. The financial aspects of the US tax reform bill – including lower corporate tax rates and allowances for repatriation of ex-US cash may presage both improved and simplified balance sheets for US large cap pharma and perhaps an uptick in M&A activities in biotechnology.
More fundamentally and therefore importantly, BB Biotech expects the biotechnology sector to grow based on its ever increasing strengths of innovation and an increasing share of novel drugs in 2018 and beyond.
Disclaimer
Bellevue Advisors LLP is an appointed representative of Mirabella Advisers LLP, which is authorised and regulated by the Financial Conduct Authority. This advertisement is directed at professional clients and eligible counterparties as defined by the FCA in the UK only. Past performance is not indicative of future results.
