BB Biotech Q3 net profit falls, NAV underperforms biotech index

Overview

• Switzerland investment firm's Q3 net profit fell yr/yr as NAV underperformed biotech index

• Three portfolio companies received US drug approvals during the quarter

• Proceeds from two M&A deals were redeployed into twelve new positions

Outlook

• BB Biotech expects further clinical and regulatory milestones across its portfolio in Q4

• Company sees selective opportunities in companies with share price declines but unchanged clinical prospects

• BB Biotech says sustained NAV performance relative to benchmark remains its investment progress measure

Result Drivers

• CLINICAL PROGRESS - Three portfolio companies received US drug approvals in Q3, with additional positive clinical trial results reported across the portfolio

• PORTFOLIO REDEPLOYMENT - Proceeds from two M&A transactions totaling CHF 280 mln were reinvested into twelve new positions spanning commercial-stage, clinical-stage and private companies

• ACTIVE POSITION MANAGEMENT - Higher portfolio activity reflected completed acquisitions and valuation-driven adjustments, with eight positions exited and rebuilding of selected holdings at lower valuations

Company press release:

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 3 "strong buy" or "buy", no "hold" and no "sell" or "strong sell"

• The average consensus recommendation for the investment management & fund operators peer group is "buy"

• The stock recently traded at 35 times the next 12-month earnings vs. a P/E of 23 three months ago

Reuters Recommended Reads

• Oct 22 - Roche beats revenue estimates, shares slip as copycats eat into Xolair sales

• Oct 22 - Galderma lifts outlook for second quarter in a row after sales jump

• Oct 22 - Netherlands' Argenx Q3 sales jump on strong VYVGART demand

For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.

(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)