19th Nov 2015 17:09
LONDON (Alliance News) - The Biotech Growth Trust PLC on Thursday reported a fall in net asset value per share in the first half of its financial year, missing its benchmark, as biotechnology companies underperformed due to concerns over stricter drug pricing in the US.
The trust said its net asset value per share fell 19% to 679.5 pence as at September 30, from 834.7p as at March 31, while its benchmark the NASDAQ Biotechnology Index reported a 14% fall.
Biotech Growth Trust said the half year was challenging for the healthcare sector, and for biotechnology companies in particular due to concerns over the potential for stricter regulation of drug pricing in the US, which caused the sector to underperform the wider market.
US presidential candidate Hillary Clinton sparked volatility in the pharmaceuticals sector after she outlined in September plans to clamp down on US drug pricing.
Biotech Growth Trust said, however, that it doubts any fundamental change will be brought about from drug pricing discussions.
"Despite recent well-publicised headwinds our portfolio manager remains confident both in the fundamentals and for the future performance of the biotechnology sector. Their focus remains on the selection of stocks with strong prospects for capital enhancement and we reiterate our belief that the long-term investor in the sector will be well rewarded," Biotech said in a statement.
Shares in Biotech Growth closed down 0.4% at 697.50 pence on Thursday.
By Karolina Kaminska; [email protected] @KarolinaAllNews
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