HBM HEALTHCARE INVESTMENTS AG Half-Year Report2021
September
At a Glance
Profile and Portfolio
2
HBM Healthcare Investments invests in the human medicine, biotechnology, medical techno logy and diagnostics sectors and related areas. The company holds and actively manages an international portfolio of prom
Currency allocation of assets 1)
Emphasis on US dollar investments.
Other currencies (CAD, DKK, GBP, HKD, SEK)
5%
Euro (EUR) 8%
Renminbi (CNY) 23%
US dollar (USD) 2) 59%
Indian rupee (INR)
4%
Swiss franc (CHF) 2)
1%
100/9
85/64
Ltd / Half-Year Report September 2021
ising companies.
Many of these companies have their lead products already available on the market or at an advanced stage of development. The portfolio companies are closely tracked and actively guided on their strategic directions. This is what makes HBM Healthcare Investments an interesting alternative to investing in big pharma and biotech companies. HBM Health care Investments has an international shareholder base and is listed on SIX Swiss Exchange (ticker: HBMN).
Allocation of assets 1)
Mainly invested in private companies or in companies originating from the private companies' portfolio.
Cash and cash equivalents | Funds |
10% | 9% |
Private | Other assets |
companies | |
19% | 1% |
Public | |
companies | |
61% |
Development phase of portfolio companies 3)
Mainly invested in revenue generating companies or in companies with products at an advanced stage of development.
Phase III | Profitable |
9% | 37% |
Phase II | Products on |
the market | |
13% | |
26% | |
Phase I | Preclinical |
9% | 6% |
HBM Healthcare Investments
Investments by continents 3)
International portfolio focusing on North America.
Western Europe | |
13% | |
North | Asia |
and South | |
40% | |
America | |
47% |
Therapeutic area of the lead product of portfolio companies 3)
Broadly diversified areas of activity.
Infectious diseases | |
2% | Synthetic Biology |
Medical technology/ | 28% |
diagnostics | |
3% | Oncology |
Digital Health | 22% |
5% | Central |
Orphan | |
Nervous System | |
diseases | 16% |
5% | |
Immunology / | Others |
14% | |
Inflammation | |
5% |
- Total consolidated assets as at 30.9.2021: CHF 2 574 million.
- Net of foreign currency hedge (USD/CHF): about USD 45 percent and CHF 15 percent respectively.
- Total investments as at 30.9.2021: CHF 2 296 million.
At a Glance
Key Figures and Performance
Key Figures | 30.9.2021 | |
Net assets | CHF million | 2 335.1 |
Investments in private companies and funds | 718.2 | |
Investments in public companies | 1 577.8 | |
Cash and cash equivalents | ||
(net of liability from market hedging) | 244.5 | |
Net result for the period | CHF million | 270.6 |
Basic earnings per share | CHF | 38.89 |
Net asset value (NAV) per share | CHF | 335.64 |
Share price | CHF | 340.00 |
Premium (+) / discount (-) | % | + 1.3 |
Distribution per share | CHF | |
Distribution yield | % | |
Shares issued | Registered shares (m) | 7.0 |
Shares outstanding | Registered shares (m) | 7.0 |
Performance (including distributions) | 2021/2022 | |
(6 months) | ||
Net asset value (NAV) | % | 12.6 |
Registered share HBMN | % | 6.0 |
31.3.2021 | 31.3.2020 | 31.3.2019 | 31.3.2018 |
2 151.5 | 1 448.8 | 1 318.3 | 1 157.9 |
662.8 | 706.4 | 542.1 | 413.9 |
1 404.2 | 629.9 | 688.2 | 750.0 |
327.0 | 224.2 | 176.2 | 72.4 |
756.3 | 182.7 | 209.1 | 115.9 |
108.71 | 26.26 | 30.05 | 16.55 |
309.25 | 208.25 | 189.48 | 166.43 |
332.50 | 190.00 | 168.80 | 144.00 |
+ 7.5 | - 8.8 | - 10.9 | - 13.5 |
12.50 | 7.70 | 7.50 | 7.00 |
3.8 | 4.1 | 4.4 | 4.9 |
7.0 | 7.0 | 7.0 | 7.0 |
7.0 | 7.0 | 7.0 | 7.0 |
2020/2021 | 2019/2020 | 2018/2019 | 2017/2018 |
52.2 | 13.9 | 18.1 | 11.1 |
79.1 | 17.0 | 22.1 | 34.5 |
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HBM Healthcare Investments Ltd / Half-Year Report September 2021
Indexed performance since launch in CHF (12.7.2001 = 100), dividends reinvested
560
500 | HBM Healthcare Investments Share |
440
380
320 | HBM Healthcare Investments NAV |
260
200NASDAQ Biotechnology Index
140 | MSCI World Health Care Index |
80
20
1.10.2011 30.9.2012 | 30.9.2013 | 30.9.2014 | 30.9.2015 | 30.9.2016 | 30.9.2017 | 30.9.2018 | 30.9.2019 | 30.9.2020 | 30.9.2021 |
Management Report
1 April to 30 September 2021
HBM Healthcare Investments generated a profit of CHF 135 million in the second quarter of the 2021/2022 financial year. The net asset value per share rose by
5.9 percent. Together with the almost identical result of the previous quarter, this translates into a profit of CHF 271 million for the first half of the year. The main drivers were positive changes in the value of private companies and of public companies originating from the portfolio of private companies, respectively. The investment in Cathay Biotech, which is subject to a lock-up period, increased to approximately 23 percent of total assets. Two new investments in private com panies complement the portfolio. After profit-taking in public companies, cash and cash equivalents amount to around 10 percent of assets, thus offering scope for new investments and buying opportunities. Currency hedging was reduced to around 25 percent of the US dollar portfolio.
Dear Shareholders
HBM Healthcare Investments closed the second quarter of the 2021/2022 financial year with a profit of CHF 135 million. The net asset value per share (NAV) increased by 5.9 percent during this period.
For the first half of the financial year from 1 April to 30 September 2021, profit amounts to CHF 271 million while NAV increased by 12.6 percent to CHF 335.64. The share price rose 6.0 percent to CHF 340.00.
Main drivers were changes in the value of investments totalling CHF 315 million. The biggest share is accounted for by private companies, including public companies originating from the portfolio of private companies, which recorded a total increase in value of CHF 272 million.
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HBM Healthcare Investments Ltd / Half-Year Report September 2021
Management Report
1 April to 30 September 2021
Cathay Biotech achieved a particularly pleasing performance. The share price has doubled since the end of March, bringing the shareholding to around 23 percent of total assets. The company published convincing half-year figures and in mid-year announced the start of production of
1,5-diaminopentane and polyamides at its new plant in Wusu based on the biotechnological manufacturing process developed by Cathay using renewable resources. In addition, the company was included in the index of the fifty most important companies on the STAR Market of the Shanghai Stock Exchange. HBM Healthcare's investment in Cathay will remain subject to a lock-up period for a further two years, which is why the shareholding is valued at a discount of
11.3 percent to the market price. This lock-up discount will be reduced on a straight-line basis over the remaining term of the lock-up period.
Fund investments increased in value by CHF 17 million and also resulted in a net cash inflow of CHF 12 million: Repayments reached CHF 27 million while capital calls amounted to CHF 15 million.
Investments in various public companies resulted in a small profit of CHF 4 million amid a mixed market environment where the large biotech companies clearly outperformed the small- and mid-cap companies (NASDAQ Biotechnology Index +7 .1 percent vs. SPDR S&P Biotech ETF - 8.3 percent).
Hedging transactions contributed a total profit of over CHF 27 million (CHF 21 million from foreign currency transactions and CHF 6 million from general market hedging). Other assets reduced the result by CHF 5 million. The forward contracts that had expired during the last reporting quarter were only partially renewed, further reducing the level of currency hedging of the US dollar against the Swiss franc to just under 25 percent of the USD exposure.
Two new investments in private companies
The acquisitions of Alydia Health by Organon and of a majority stake in 1mg by Tata Digital, for which the agreements had already been signed in March 2021, were completed in the past quarter. This resulted in a cash inflow of CHF 20 million. These proceeds were invested in two new private companies:
- An investment commitment of USD 10 million (first tranche of USD 5 million paid in) was made to the US company Odyssey Therapeutics. Odyssey is developing a platform of novel antibodies (V-bodies) for the treatment of cancer and autoimmune diseases.
- A further USD 10 million (first tranche of USD 2 million paid in) was awarded to the Chinese company C Ray Therapeutics. The company, which was founded last year, is aiming for a leading position in the Chinese healthcare market in the field of nuclear medicine.
In addition, around CHF 11 million were invested in existing portfolio companies as follow-on financing.
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HBM Healthcare Investments Ltd / Half-Year Report September 2021
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HBM Healthcare Investments AG published this content on 22 October 2021 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 22 October 2021 04:23:02 UTC.
