Outlook for 2020 – biotech sector stands to gain in prominence
Together with the Board of Directors, the investment management team is now evaluating challenges and opportunities resulting from the current global crisis: it is unlikely that societies around the globe will soon return to “business as usual”. In fact, the crisis could lead to totally new behaviors:
- The progression and eventual end of the Covid-19 pandemic is likely to prompt a careful re-evaluation of global health risks and healthcare systems.
- The social, health and economic disruptions experienced worldwide may result in a shift of priorities, regulations, technology focus and investment flows.
BB Biotech believes the biotech sector could gain in prominence as a result. Share price appreciation of many portfolio companies in the first weeks of April provide initial evidence and have led to NAV recovery to levels of the beginning of the year. The investment management team will continue to seek investments in biotechnology firms that deploy novel approaches to create breakthrough clinical improvements and economic value. During this presumably short-to medium-term pandemic, the team will be carefully monitoring the portfolio investments with respect to:
- Growth of launched commercial products
- Resilience of drug manufacturing and supply chains
- Financial strength and access to financial markets to support development of promising pipeline candidates
- Pace, conduct and quality of clinical trials
- Regulatory developments
- Licensing agreements and M&A activities
Despite Covid-19, BB Biotech expects its portfolio companies to make further, albeit perhaps slower, progress towards significant milestones in 2020. The team sees investment opportunities in the large, mid and small cap segments of the biotechnology sector and will remain vigilant and focused during these volatile and challenging times. BB Biotech intends to adapt to the emerging new reality in an optimal manner.
The interim report as of March 31, 2020 can be downloaded here.
