Frequently Asked Questions

Overview HBM Healthcare Investments

Who we are

HBM Healthcare Investments actively invests in the human medicine, biotechnology, medical technology and diagnostics sectors and related areas. The company holds and 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 Healthcare Investments has an international shareholder base and is listed on SIX Swiss Exchange (ticker: HBMN).

Investment Strategy

How is HBM Healthcare Investments organised?

HBM Healthcare Investments is a Swiss holding company based in Zug, Switzerland. Its Board of Directors consists of six members with extensive experience in various relevant disciplines. HBM Healthcare Investments is advised by HBM Partners, one of the leading investment-advisory companies in the field of human medicine. It has about 15 investment experts, all of them with operational experience in pharmaceutical or biotech companies, the venture-capital field or finance. For its advisory services HBM Partners receives a management fee from HBM Healthcare Investments, plus a performance-related fee if applicable.

What is HBM Healthcare Investments' corporate form?

HBM Healthcare Investments is a Swiss joint-stock company domiciled in Zug, Switzerland. Its shareholders, which number over 1'700, enjoy the same codetermination and information rights as shareholders in any other Swiss joint-stock company.

To what extent is HBM Healthcare Investments an active investor?

HBM Healthcare Investments does not simply invest capital in its portfolio companies. The HBM Partners advisory team actively collaborates also with company managements – putting them in touch with their comprehensive network of sector experts, for example. To this end, a representative of HBM Partners usually takes a seat on the portfolio company’s Board of Directors and becomes actively involved in its work. Given this active level of involvement, each of the HBM Partners investment experts is actively involved with an average of no more than 3-5 portfolio companies.

 

HBM Healthcare Investments portfolio

What is the composition of the portfolio?

HBM Healthcare Investments concentrates most of its investment in private companies. Most portfolio companies are active in the field of pharmaceutical development. The medical technology and diagnostics sectors are also strongly represented. Some companies are operating profitably, while others are already selling their products on the market.

How is the portfolio of private companies structured?

The private portfolio has some 25 holdings. In general the more mature the company, the larger the holding. In line with the HBM Healthcare Investments investment strategy, a carefully considered initial investment is built up over several years – as long as the profit potential of the company concerned is intact. Experience has shown that this development and investment cycle takes an average of five to seven years, from the initial investment to the harvest phase.

How are investments in private companies valued?

In strict compliance with the IFRS accounting standards and the valuation guidelines of the International "Private Equity and Venture Capital Valuation Guidelines", investments in private companies are valued at acquisition cost unless (i) the company has been valued differently in a more recent financing round, or (ii) the company is evidently performing less well than expected, or (iii) the company is generating sustained profits (see also more detailed information on the valuation guidelines).

How is the portfolio of public companies structured?

A significant number positions in the portfolio of listed companies were originally in the HBM Healthcare Investments portfolio of private companies. These investments are very closely monitored. They are only retained in the portfolio as long as their growth potential is high.

How are investments in public companies valued?

Holdings in listed shares are valued at their market prices.

How is HBM Healthcare Investments positioned geographically? In which currencies is the portfolio invested?

HBM Healthcare Investments invests globally. See also portfolio structure.

 

The investor viewpoint

Share buy-back programme

Detailed information on the current share buy-back programme are to be found here

Where can I find information about HBM Healthcare Investments?

Go to the website – www.hbmhealthcare.com – for comprehensive information on the company, and to register  to be sent information by e-mail.

Who are the investors in HBM Healthcare Investments?

HBM Healthcare Investments has a broad shareholder base. About 1000 shareholders are registered, some of them large institutions. Private investors range from large to small. Regarding the reporting of significant shareholders' holdings, refer to the information of SIX Swiss Exchange.

With which indices and investment products should HBM Healthcare Investments be compared?

HBM Healthcare Investments actively invests in the human medicine, biotechnology, medical technology and diagnostics sectors and related areas. The company holds and manages an international portfolio of some twenty five 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.

Its performance can therefore be compared with indices or investment products that represent the global healthcare sector, such as the MSCI World Healthcare Index (see also performance).

What is the minimum capital investment in HBM Healthcare Investments?

The minimum investment is the price of one share. The shares are listed on the SIX Swiss Exchange.

How is the fee structure?

Do I have to pay issue commission when I buy HBM Healthcare Investments shares? Will I be charged redemption commission when I sell the shares?

No issue or redemption commission is charged on the purchase or sale of HBM Healthcare Investments shares.

 

The investment sector

How is the human medicine sector defined?

HBM Healthcare Investments divides the human medicine sector into three parts: biotechnology, medical technology and diagnostics, the company’s three main investment segments.

What is biotechnology?

Biotechnology refers to the use of knowledge gained in the fields of biology and chemistry to devise technical processes or products. Biotechnology is principally concerned with the development and manufacture of enzymes, proteins, antibodies and other biological agents for medical and other purposes. Biopharmaceutical products, which are usually manufactured in a bioreactor with the help of micro-organisms, today make a vital contribution to the treatment of many different diseases.

What is medical technology?

Medical technology applies the principles and rules of engineering science in the field of medicine. It combines expertise in the field of technology with specialist medical knowledge in order to identify, prevent, monitor, treat or relieve wounds and disabilities.

What is diagnostics?

Diagnostics denotes the various methods of medical and therapeutic diagnosis. Companies that are active in diagnostics develop new diagnostic techniques or improve existing ones.

What is the "clinical development" of products? How are phases I, II and III defined?

“Clinical development” is an important, capital-intensive stage in the development of new drugs. It follows the stage known as pre-clinical development, i.e. the search for a suitable active compound. Once an compound has successfully completed a series of comprehensive pre-clinical tests, it generally embarks on the clinical research stage. Phase I studies investigate how the compound functions in the human organism, using volunteers, and whether it has any side effects. The most suitable form of administration is developed on the basis of these results. In phase II of clinical development the compound is used on patients as a drug for the first time. This phase concentrates mainly on investigating the nature and gravity of any side effects and on establishing the dose. Phase III consists of final studies to generate information on the mechanism of action of the compound. This is crucial for its approval by the authorities. Randomised double-blind studies are conducted to establish whether the compound is superior to a placebo, and whether it has effects comparable with those of other drugs. Once the first three phases of clinical development have been completed, the drug generally embarks on the process of obtaining official approval.

 

Financial Reports

Quarterly Report June 2017

Company Presentation

Share Price

Aktienkurs

SIX Swiss Exchange Ticker
HBMN

Key Figures

as at 15 October 2017 CHF
NAV per share 154.89
Net assets Mio. 1'083
 
 

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