25th May 2016 14:50
LONDON (Alliance News) - The Biotech Growth Trust PLC on Wednesday said its net asset value and its share price both declined heavily during the last financial year as the trust, suffering even more than its benchmark index.
Biotech Growth said its net asset value at the end of the financial year to the end of March stood at 627.9 pence, a 25% fall from 834.7p at the end of March 2015. The company's share price also fell at a similar rate, declining over 26% in the year.
The trust's benchmark index, the NASDAQ Biotechnology Index, fell 22% in the year.
It was the first year that Biotech Growth's NAV shrank, and it was also the first year that its share price ended the year lower than it did at the start of the year since at least 2011.
"The biotechnology sector's run of strong performance suffered a setback during the year, the sector having lost about one-third of its value since its high point in July 2015. This was due, in part, to some negative news flow and also investor concerns regarding the potential for regulatory policy changes that could affect drug pricing in the US market," the trust said.
Last autumn, Democratic presidential candidate Hillary Clinton outlined plans to clamp down on US drug prices, having lashed out against "price gouging" in the speciality drug market.
"In addition, there were also concerns over the prospects for the global economy," the trust added.
Like last year, Biotech Growth does not intend to pay a dividend.
Biotech Growth shares were down 0.3% to 602.0 pence per share on Wednesday afternoon and are down 19% since the start of 2016.
By Joshua Warner; [email protected]; @JoshAlliance
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