BB Biotech

Solid fundamental progress in the first quarter 2014

BB BIOTECH AG / BB Biotech: Solid fundamental progress in the first quarter 2014 . Processed and transmitted by NASDAQ OMX Corporate Solutions. The issuer is solely responsible for the content of this announcement.

Interim Report of BB Biotech AG as of March 31, 2014

  

BB Biotech's portfolio reflects strong drug launches and key clinical events

The Nasdaq Biotech Index advanced 4.3% (in USD) in the first quarter. After increased momentum in January and February, the market showed pronounced volatility in March, driven by macroeconomic events and attention to drug pricing. Yet, the fundamentals of the sector remain strong and positive regulatory and clinical newsflow remains robust. Consequently, BB Biotech AG's shares ended the first quarter up 15.0% (in CHF), 15.5% (in EUR) and 16.1% (in USD), 11.8% higher than the benchmark index (in USD). Gilead's Sovaldi, for hepatitis C, is set to be the most financially rewarding drug launch in history and Actelion's Opsumit for PAH continues to perform well in the early days of its launch. Medivation presented convincing Phase III data for its prostate cancer drug Xtandi. Endocyte reported positive results for its personalized medicine Vintafolide for lung cancer, while also gaining a positive CHMP vote for conditional approval in Europe for ovarian cancer. Implementing the policy established in 2013, BB Biotech AG executed a cash distribution of CHF 7.00 per share corresponding to a yield of 5% of the average share price in December 2013.

Sector in positive territory but more trading volatility in the first quarter
The upward trend of the biotech sector continued in the first quarter 2014 with the Nasdaq Biotech Index (NBI) gaining 4.3%, performing better than the broader S&P 500 Index, which gained 1.8% in the same timeframe (in USD). The first two months of the quarter represented strong continued growth as in 2013, driven by successful drug launches, strong fourth quarter 2013 numbers, and key data read-outs.

However, in March the sector pulled back on concerns around pricing of Gilead's Sovaldi, which had a spill-over effect on the sector. Gilead appears to be in a good position for pricing negotiations given the efficacy and advantages of HCV cures to the healthcare system. Gilead has expressed confidence that this issue can be resolved.

BB Biotech's performance for the first quarter 2014
BB Biotech's performance was driven mainly by the mid-cap holdings. In contrast, larger-cap names traded side-ways or down after a very strong 2013.