BB Biotech has confirmed the preliminary figures presented at the end of January. After three consecutive years of losses, the company achieved a profit of 76 million francs in 2024 (previous year: -207 million). The lion’s share of the annual profit, amounting to 60 million francs, was generated in the fourth quarter, according to the newly released audited figures.

The total return on BB Biotech shares in 2024 was -13,5 percent in francs and -14,1 percent in euros. The net asset value (NAV) performed more robustly, increasing by 3,0 percent in francs and 1,7 percent in euros, while it declined by 4,6 percent in US dollars.

At the end of the year, the discount on NAV stood at -15,2 percent. By February 18, 2025, the discount had narrowed to -10,9 percent. In response, the Board of Directors implemented a combination of share buybacks and enhanced marketing measures to sustainably increase shareholder value.

A dividend of 1,80 francs per share—20 centimes lower than the previous year—is being proposed to shareholders. This corresponds to a dividend yield of 5 percent.

Positions Reduced

In the fourth quarter, the company fully exited five investments. As of the end of 2024, the portfolio comprised 26 positions. The valuation model and investment process have been further developed to allocate capital even more efficiently.

The focus remains on a high-conviction portfolio with a long-term investment horizon. At the same time, the investment management team has been strategically strengthened to enhance analytical depth and, above all, increase operational effectiveness in the core US market. Several positions achieved significant clinical and regulatory milestones in the fourth quarter.

The company anticipates a structural recovery in the biotech sector. Mergers and acquisitions (M&A) are expected to be the key driver in the current year, as many major biopharmaceutical companies need to replenish their pipelines.

Trump 2.0 and Its Consequences

However, uncertainties remain regarding US politics and potential changes to regulatory conditions. The US presidential election has led to significant market fluctuations. Donald Trump’s comeback sparked optimism among investors, while the appointment of Robert F. Kennedy Jr. as Secretary of Health has raised concerns.

The reason is his skepticism towards vaccines and regulation, which could impact future decisions by key agencies such as the FDA, CDC, and CMS, posing risks related to drug approvals and reimbursements, BB Biotech wrote. The Inflation Reduction Act (IRA) and Medicare negotiations on drug prices will continue to affect biotech valuations. Therefore, maintaining a disciplined and flexible investment strategy remains crucial.