5th Nov 2024 14:06
(Alliance News) - International Biotechnology Trust PLC on Tuesday said profit soared five times higher during its most recent financial year, as the biotechnology sector begins to shows signs of recovery.
The biotechnology and healthcare sector-focused alternative investment fund managed by Schroders PLC said pretax profit for the financial year that ended August 31 was GBP39.0 million, multiplying more than five times higher from GBP6.9 million last year.
Total income nearly quadrupled to GBP44.5 million from GBP12.1 million.
Net asset value per share on August 31 was 766.30 pence, up 11% from 687.51p the year before. Net asset value total return for the year was 15.9%, in comparison to the NASDAQ biotechnology reference index of 15.3%.
The group said that merger & acquisition activity was increasing, as "large, cash-rich pharmaceutical companies seek solutions to impending drug patent expiries". It also noted that investors "seem sanguine in the face of a rapid escalation of hostilities in the Middle East, but ongoing conflict in the region may well impact investor confidence".
Chair Kate Cornish-Bowden said: "We share our portfolio managers' optimism that the recovery in the biotechnology sector is just beginning. Relative valuations are compelling, and the potential rewards for investors in innovative companies developing future treatments look more attractive than ever."
Shares in International Biotechnology were flat at 684.00 pence each in London on Tuesday afternoon.
By Emily Parsons, Alliance News reporter
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