BB BIOTECH AG

Outlook for the biotech sector remains positive despite sell-off

BB BIOTECH AG / BB BIOTECH AG: Outlook for the biotech sector remains positive despite sell-off . Processed and transmitted by NASDAQ OMX Corporate Solutions. The issuer is solely responsible for the content of this announcement.

Publication of BB Biotech AG's Annual Report 2015

Further significant increase in dividend of 25% to CHF 14.50 per share, five-for-one share split proposed  

Amid last year's volatile market environment, the Nasdaq Biotech Index (NBI) advanced 11.8% in USD while BB Biotech's share price gained 28.2% in CHF, 41.2% in EUR and 27.1% in USD over the year. The outperformance of the benchmark index is attributable to BB Biotech's successful stock-picking. Major performance drivers were new product launches, regulatory approvals, positive clinical data and M&A activity. In line with the distribution policy established in 2013, the Board of Directors will propose a dividend of CHF 14.50 per share at the Annual General Meeting, which represents a significant increase of 25% compared to the previous year. BB Biotech will also propose a five-for-one share split. In its outlook for 2016, the Investment Management Team expects stock markets to remain highly volatile. In view of the growing number of biotech products reaching the market and the expected clinical data from late-stage drug candidates, the fundamentals for the biotech sector remain positive. Moreover, the stock-market valuations of many companies have subsided to attractive levels in the wake of the recent sell-off, which has made them even more attractive takeover candidates for prospective buyers in the pharmaceutical and biotech industries.

The Nasdaq Biotech Index (NBI) advanced 11.8% in USD in 2015, while the S&P 500 Index treaded water and ended the year with a gain of 1.4% in USD. European stock markets, the Euro Stoxx 600 or the DAX, for example, gained approximately 10% in EUR, buoyed by the significantly weaker currency. The SMI's total return in 2015 was a slim +1.2% in CHF.

BB Biotech AG's shares clearly outperformed the benchmark index, rising by 28.2% in CHF, 41.2% in EUR and 27.1% in USD. BB Biotech's Net Asset Value (NAV) rose by 19.0% in CHF, 31.6% in EUR and 18.0% in USD over the year. This good performance was driven by several factors: the positive sector developments, strong stock selection and ongoing high M&A activity. BB Biotech AG closed 2015 with an after-tax profit of CHF 653 mn (previous year: profit of CHF 1470 mn).