31st Mar 2014 14:02
LONDON (Alliance News) - Port Erin Biopharma Investments Ltd saw pretax profit rise as investment income jumped in the half-year ended December 31, 2013.
The investment company, which focuses on biotechnology and biopharmaceuticals, posted a pretax profit of GBP1.8 million, up from GBP9,866, as its investment income rose to GBP2.3 million from GBP72,881.
Port Erin said that it had amended its investing policy at its general meeting November 11, 2013, to allow for an in specie transfer of cash and assets, to acquire 324,174 shares in Magna Biopharma Investment Fund at EUR10 per share. Since its acquisition of a stake in the fund, it generated a net euro return of 6.1% in January 2014, outperforming its MSCI World Health Care Benchmark.
In February the fund posted a net euro return of 3.6%, under performing its benchmark that saw a 4.5% rise.
The investment company said that it believes "in the coming year, important positive announcements will be made for the treatment of currently difficult to treat cancers like melanoma and lung cancer, with immunotherapy and its combinations at big pharmaceutical companies." It believes the Magna Biopharma portfolio will provide investors with exposure to these developments, but mitigates the volatility inherent in smaller to medium sized companies in the sector.
Port Erin said it was considering other acquisitions in the sector, and was looking at a number of options that show "significant promise."
Shares in Port Erin last traded flat at 11.75 pence Monday.
By Hana Stewart-Smith; [email protected]; @HanaSSAllNews
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