HBM HEALTHCARE INVESTMENTS AG Quarterly Report 2022
June
At a Glance
Profile and Portfolio
HBM Healthcare Investments invests in the human medicine, biotechnology, medical technology and diagnostics sectors and related areas. The company holds and actively manages an international portfolio of promising 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).
HBM Healthcare Investments Ltd / Quarterly Report June 2022 | 2 |
Currency allocation of assets 1)
Emphasis on US dollar investments.
62% US dollar (USD) 2)
20% Renminbi (CNY)
9% Euro (EUR)
4% Other currencies
(CAD, DKK, GBP, HKD, SEK)
3% Indian rupee (INR)
2% Swiss franc (CHF) 2)
Allocation of assets 1)
Mainly invested in private companies or in companies originating from the private companies portfolio.
38% | Public (from private) | |||
companies | ||||
16% | Public companies | |||
29% | Private companies | |||
8% | Funds | |||
7% | Cash and cash equivalents | |||
2% | Other assets | |||
Development phase of portfolio companies 3)
Mainly invested in revenue generating companies or in companies with products at an advanced stage of development.
Investments by continents 3)
Global portfolio.
Western Europe 15%
North and South America 51%
Asia 34%
45% | Profitable | |
24% | Products on the market | |
5% | Phase III | |
14% | Phase II | |
5% | Phase I | |
7% | Preclinical | |
Therapeutic area of the lead product of portfolio companies 3)
Broadly diversified areas of activity.
22% | Synthetic Biology | ||
20% | Others | ||
18% | Central Nervous System | ||
16% | Oncology | ||
7% | Digital Health | ||
7% | Immunology / Inflammation | ||
5% | Orphan diseases | ||
4% | Medical technology / |
- Total consolidated assets as at 30.6.2022: CHF 2 230 million.
- Net of foreign currency hedge (USD/CHF): about USD 54 percent and CHF 10 percent respectively.
- Total investments as at 30.6.2022: CHF 2 021 million.
diagnostics |
1% Infectious diseases |
At a Glance | HBM Healthcare Investments Ltd / Quarterly Report June 2022 | 3 |
Key Figures and Performance |
Key Figures | 30.6.2022 | |
Net assets | CHF million | 2 038.0 |
Investments in private companies and funds | 820.2 | |
Investments in public companies | 1 200.7 | |
Cash and cash equivalents | ||
(net of liability from market hedging) | 166.7 | |
Net result for the period | CHF million | 51.6 |
Basic earnings per share | CHF | 7.41 |
Net asset value (NAV) per share | CHF | 292.94 |
Share price | CHF | 265.00 |
Premium (+) / discount (-) | % | - 9.5 |
Distribution per share | CHF | |
Distribution yield | % | |
Shares issued | Registered shares (m) | 7.0 |
Shares outstanding | Registered shares (m) | 7.0 |
31.3.2022 | 31.3.2021 | 31.3.2020 | 31.3.2019 |
1 986.5 | 2 151.5 | 1 448.8 | 1 318.3 |
790.3 | 662.8 | 706.4 | 542.1 |
1 130.2 | 1 404.2 | 629.9 | 688.2 |
223.7 | 327.0 | 224.2 | 176.2 |
- 78.0 | 756.3 | 182.7 | 209.1 |
- 11.22 | 108.71 | 26.26 | 30.05 |
285.53 | 309.25 | 208.25 | 189.48 |
276.00 | 332.50 | 190.00 | 168.80 |
- 3.3 | +7.5 | - 8.8 | - 10.9 |
9.70 | 12.50 1) | 7.70 | 7.50 |
3.5 | 3.8 | 4.1 | 4.4 |
7.0 | 7.0 | 7.0 | 7.0 |
7.0 | 7.0 | 7.0 | 7.0 |
- Thereof CHF 9.50 as ordinary distribution and CHF 3.00 as a special distribution to mark the 20th anniversary of the Company.
Performance (including distributions) | 2022/2023 | |||||
(3 months) | 2021/2022 | 2020/2021 | 2019/2020 | 2018/2019 | ||
Net asset value (NAV) | % | 2.6 | - 3.6 | 52.2 | 13.9 | 18.1 |
Registered share HBMN | % | - 4.0 | - 13.2 | 79.1 | 17.0 | 22.1 |
Indexed performance since launch in CHF (12.7.2001 = 100), dividends reinvested
560
500
HBM Healthcare Investments Share
440
380
320 | ||
NASDAQ Biotechnology Index | HBM Healthcare Investments NAV | |
260 | ||
200 | ||
140 | MSCI World Health Care Index | |
80
20 | ||||||||||
1.7.2012 | 30.6.2013 | 30.6.2014 | 30.6.2015 | 30.6.2016 | 30.6.2017 | 30.6.2018 | 30.6.2019 | 30.6.2020 | 30.6.2021 | 30.6.2022 |
Management Report | HBM Healthcare Investments Ltd / Quarterly Report June 2022 | 4 |
1 April to 30 June 2022 |
HBM Healthcare Investments achieved a net profit of CHF 52 million in the first quarter of the 2022/2023 financial year in an overall declining market environment. The net asset value per share rose by 2.6 percent, while the share price fell by 4 percent. The positive quarterly result is largely owed to three acquisitions from the portfolio of public companies. With an operationally successful portfolio and a high level of cash and cash equivalents, HBM Healthcare Investments is well positioned in an environment that continues to be characterised by volatility and uncertainty. The Company hedged one fifth of the US dollar Swiss franc currency risk.
Dear Shareholders
HBM Healthcare Investments closed the first quarter of the 2022/2023 financial year as at 30 June 2022 with a net profit of CHF 52 million. The net asset value per share (NAV) increased by 2.6 percent, while the share price declined by 4 percent. Overall, the equity markets in the healthcare sector recorded declining valuations (MSCI World Health Care Index - 3.9 percent, Nasdaq Biotechnology Index - 6.6 percent, SPDR S&P Biotech - 14.6 percent).
Three acquisitions of portfolio companies led to quarterly profit
Three acquisitions from the portfolio of public companies dominated the reporting quarter and contributed a total of CHF 70 million to quarterly profits. All companies were acquired at significant premiums of between 40 and 120 percent over the prices traded on the stock exchange.
- In mid-April, GlaxoSmithKline announced the acquisition of Sierra Oncology for USD 1.9 billion. HBM Healthcare Investments began building a small stake in Sierra in February 2021 and increased this investment to around CHF 17 million in the first quarter of 2022 following the publication of phase III trial results for momelotinib for the treatment of myelofibrosis patients. In total, the investment resulted in a gain of CHF 21 million. CHF 16 million of this is attributable to the current financial year.
Management Report | HBM Healthcare Investments Ltd / Quarterly Report June 2022 | 5 |
1 April to 30 June 2022 |
- In May, Pfizer announced the acquisition of Biohaven Pharmaceuticals for USD 11.6 billion. This followed a strategic partnership between the two companies at the end of 2021 for the marketing of Biohaven's migraine drug Nurtec® ODT by Pfizer outside the United States. In the wake of this partnership, Biohaven acquired all the shares not already held in its subsidiary Bioshin, which is developing Nurtec® ODT for the Chinese market. HBM Healthcare invested around CHF 34 million in Biohaven since 2019 and also took a CHF 7 million stake in Bioshin in 2020. The acquisitions of Biohaven and Bioshin resulted in a profit of around CHF 63 million for HBM Healthcare Investments. Thereof, CHF 14 million was generated in the quarter just ended.
- Lastly, at the beginning of June, Bristol-Myers Squibb signed an agreement to acquire Turning Point Therapeutics for USD 4.1 billion. HBM Healthcare Investments has held a stake in Turning Point since 2018, still a private company at the time, and invested around CHF 15 million before and at the time of the IPO. The position was actively managed after flotation. Overall, HBM Healthcare Investments generated a profit of CHF 65 million from the investment, of which CHF 40 million was generated in the current financial year.
The other assets were CHF 10 million lower in value overall.
High level of cash and cash equivalents
As of the balance sheet date at the end of June 2022, the company reported cash and cash equivalents of CHF 167 million. This does not include the proceeds of approximately CHF 125 million from the acquisitions of Turning Point Therapeutics and Biohaven Pharmaceuticals, which are expected to close in the third quarter of 2022 and early 2023, respectively.
No new investments were made in private companies during the quarter under review. CHF 18 million went to existing private companies as follow-on financing. Mineralys Therapeutics accounted for just under half of this. The company closed a USD 118 million financing round at a higher company valuation. The funds will be used for further clinical development of MLS-101, a novel treatment approach for patients with hypertension.
In the public companies' segment, new positions were selectively added to the portfolio and existing holdings were increased.
Overall, the composition of the portfolio changed little compared to the previous quarter. Due to the strong rise of the US dollar against the Swiss franc, about one fifth of the US dollar currency risk was hedged.
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Disclaimer
HBM Healthcare Investments AG published this content on 18 July 2022 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 22 July 2022 07:13:04 UTC.
