HBM Healthcare Investments generated a profit of CHF 156 million in the final quarter of the 2023/24 financial year as at the end of March. This largely made up for the loss from the first nine months. The net asset value per share (NAV) rose by 10.3 per cent to CHF 248.10.  

Positive currency effects accounted for around two thirds of the quarterly performance. Following a marked appreciation in the first nine months of the financial year, the Swiss franc weakened again significantly in the quarter under review. Listed investments also made a positive contribution to the result, while value adjustments at private companies had a slightly negative impact on overall performance.

Balanced result for the 2023/2024 financial year

A balanced result was achieved for the 12 months of the 2023/2024 financial year. While the net asset value per share (NAV) rose by 0.3 per cent, a small annual loss of around CHF 1 million is to be expected. The positive NAV performance can be explained by the compression effect of the share buyback programme. As part of the share buy-back programme, around 89,000 treasury shares worth CHF 15.6 million were acquired via the second trading line (average discount to net asset value of 30 percent). The shares will be proposed for cancellation at an upcoming Annual General Meeting.

Public companies contributed +5.7 per cent to the positive annual performance of +0.3 per cent. This was despite the renewed disappointing stock price performance of Cathay Biotech, the largest listed investment in the portfolio. Private companies and funds as well as negative currency effects had a adverse impact on performance in the financial year of -3.2 per cent and -2.5 per cent respectively.

Of the net assets of CHF 1.7 billion as at 31 March 2024, 12% is attributable to cash and cash equivalents, 45% to listed companies, 38% to private companies, 10% to fund investments and 2% to other assets.

These figures are the preliminary and unaudited results based on the current status of the financial closing process. The definitive annual result will be published on Wednesday, 8 May 2024 (after close of trading).

Contact
For further information, please contact Dr Andreas Wicki on +41 41 710 75 77, or at andreas.wicki@hbmhealthcare.com.

• Quarter under review closes with a loss of CHF 87 million. For the nine-month period, the loss totalled CHF 158 million
• Unfavourable currency developments were the decisive factor
• Performance is in line with relevant market indices 

Unfavourable currency developments drag HBM Healthcare into the red

HBM Healthcare Investments closed the third quarter of the 2023/2024 financial year as at 31 December with a loss of CHF 87 million. The net asset value per share (NAV) fell by 5.1 percent to CHF 225.03. For the first nine months, the loss totalled CHF 158 million, with the NAV down 8.7 percent.

The main reason for the negative performance was an unfavourable development in all relevant investment currencies. In the nine-month period to the end of 2023, these totalled around -8.5 percent. Against the Swiss franc, the US dollar lost -8.1 percent, the Chinese yuan -11.0 percent and the euro -6.4 percent.

Developments in the portfolio of public companies

Public companies had a negative impact of CHF -30 million on the 9-month result. Market price increases totalling CHF +48 million net at constant exchange rates compare to adverse currency movements of CHF -78 million.

• The acquisitions of ImmunoGen (by AbbVie), Chinook Therapeutics (by Novartis) and Prometheus Biosciences (by Merck) resulted in added value of CHF 27 million. Biohaven (CHF 12 million), Cytokinetics (CHF 11 million) and ALX Oncology (CHF 10 million) recorded positive value developments based on clinical trial data.
• In India, portfolio companies benefited from the strong local market momentum and increased in value by CHF 17 million despite the sharp depreciation of the Indian rupee against the Swiss franc.
• Although there were no significant company-specific news, Cathay Biotech (CHF -63 million) and Mineralys Therapeutics (CHF -18 million) suffered decreases in value. Still, profit taking in Cathay Biotech with one seventh of the position, has so far led to initial gains.

Developments in the portfolio of private companies

Private companies added a loss of CHF -96 million to the 9-month result. Of this, CHF -49 million was attributable to losses in value due to new financing or unachieved operating targets and CHF -47 million to unfavourable currency developments.

Value adjustments were made to ConnectRN (CHF -22 million), Farmalatam (CHF -18 million), Sphingotec (CHF -9 million) and Adrenomed, Odyssey Therapeutics and Valcare (CHF -4 million each). In most cases, however, HBM Healthcare considers the companies' potential to be intact and assumes that the value corrections will be of a temporary nature. A positive value adjustment resulted for Upstream Bio (CHF +10 million).

Funds and other assets

The fund portfolio had a negative impact of CHF -22 million on the result. Of this, CHF -8 million is attributable to value adjustments and CHF -14 million to currency changes.

Other assets made a net positive contribution to earnings of CHF 9 million.

Asset allocation

The portfolio remains well balanced, with public companies accounting for 46 percent of consolidated total assets (of which 23 percent were previously private companies), private companies 36 percent, funds 9 percent, cash and cash equivalents 7 percent and other assets 2 percent.

Cash and cash equivalents amount to CHF 115 million. This does not include approx. CHF 30 million that is expected when the acquisition of ImmunoGen by AbbVie is finalised in the first quarter of 2024.

Around CHF 8 million was used for share repurchases within the current share buy-back programme.

Outlook

The 2024 calendar year got off to a pleasing start for HBM Healthcare Investments:

• Ambrx Biopharma agreed to a takeover by Johnson & Johnson at the beginning of January. The USD 2 billion offer represents a premium of more than 100 percent. HBM Healthcare will participate with USD 23 million and sees the transaction as a further indicator that takeover activity in the healthcare sector will remain at a high level in 2024.
• Longboard Pharmaceuticals published initial clinical data on bexicaserin for the treatment of patients with developmental disorders and epileptic encephalopathies (DEES). Based on this data, the company's market capitalisation quadrupled. This illustrates how low stock market valuations have fallen for companies active in early clinical development. HBM Healthcare assumes that the valuation level of these companies will normalise again over time, which would also benefit numerous portfolio companies.
• From the portfolio of private companies, ArriVent Biopharma has published the IPO prospectus for its intended listing on the Nasdaq stock exchange. This raises hopes that the market environment for IPOs will improve again.

Overall, there are signs of a brightening market environment. At the same time, however, volatility is likely to persist in the current year.

The Quarterly Report December 2023 is available on the Company’s website at www.hbmhealthcare.com/en/investors/financial-reports.

Contact
For further information, please contact Dr Andreas Wicki on +41 41 710 75 77, or at andreas.wicki@hbmhealthcare.com.

HBM Healthcare Investments closed the 2023 calendar year with a negative performance due to unfavourable currency developments. The net asset value per share (NAV) fell by 8.3 percent to CHF 225.03. The share price declined by 5.4 percent to CHF 182.60. Currency developments had a negative impact of around 9.5 per cent on performance in 2023 (USD -9.0%, CNY -11.6%, EUR -6.2%, INR -14.0%)

The relevant market indices in the healthcare sector also declined in Swiss franc terms. The broad-based MSCI World Health Care Index fell by 5.1 per cent. The biotech companies segment, as measured by the Nasdaq Biotechnology Index (NBI) and the SPDR S&P Biotech (XBI), fell by 4.8 per cent and 2.1 per cent respectively.

Performance for the nine months of the 2023/2024 financial year

For the first nine months of the 2023/2024 financial year ending 31 March, the NAV fell by 8.7 per cent. A net loss of around CHF 158 million is therefore expected for this period.

Currency developments also had a negative impact of around 8.5 per cent on the 9-month performance. The main investment currencies, the US dollar, Chinese yuan and Euro, weakened against the Swiss franc by 8.1 per cent, 11.0 per cent and 6.4 per cent respectively during this period.

In addition to the currency losses, the 9-month result also includes value adjustments on investments in private companies totalling CHF 49 million. These were necessary due to completed or imminent financing events at lower valuations. Due to the operating activities of the companies concerned, these are likely to be of a temporary nature in the majority of cases. The value adjustments on the private companies were offset by the positive market development of the listed companies.

HBM Healthcare Investments continues to have a solid balance sheet with cash and cash equivalents of CHF 115 million and a portfolio of promising private and listed companies. The cash position does not include a further CHF 30 million that is expected to be received when AbbVie completes its acquisition of ImmunoGen in the first quarter of 2024.

These figures are the preliminary result based on the current status of the closing process. The December 2023 quarterly report will be published on 22 January 2024.

Contact
For further information, please contact Dr Andreas Wicki on +41 41 710 75 77, or at andreas.wicki@hbmhealthcare.com.

The discount of the share price to the reported net asset value per share (NAV) has widened in recent days to an extent that the Board of Directors and the Management of HBM Healthcare Investments are convinced does not reflect the fundamental development and future prospects of the Company. For this reason, HBM Healthcare Investments has brought forward the publication of the Half-Year Report as at 30 September 2023 by a few days to today. The half-year results and NAV per share of CHF 237.22 as at 30 September 2023, which were already published at the beginning of October, were confirmed.

The Board of Directors and the Management are of the opinion that the carefully assembled portfolio is of high quality and its value potential is currently not adequately reflected in the Company's market capitalisation. The Company will therefore use a portion of the available cash to implement the current share buyback programme.

The share buybacks will be carried out via the second trading line on the SIX Swiss Exchange in compliance with regulatory volume restrictions and within the possibilities of freely available liquidity. Careful management of the available funds will continue to be a high priority in order to secure the financing of the existing portfolio companies and to take advantage of investment opportunities as they arise.

Further information on the share buyback programme can be found on our website at https://www.hbmhealthcare.com/en/investors/information.

Contact
For further information, please contact Dr Andreas Wicki on +41 41 710 75 77, or at andreas.wicki@hbmhealthcare.com.

• Quarter under review closes with loss of CHF 59 million. For the first six months, the loss adds up to CHF 70 million
• Net asset value per share (NAV) of -4 percent in the first half-year is in line with the general performance in the biotechnology sector
• Many companies in the well-diversified portfolio are growing successfully, gradually creating added value that is not immediately reflected in the NAV

Performance in line with the general performance of the biotechnology sector

HBM Healthcare Investments reports a loss of CHF 59 million for the second quarter of the 2023/2024 financial year as at 30 September. The net asset value per share (NAV) declined by 3.4 percent. For the first six months, the loss totalled CHF 70 million, with NAV down 4.0 percent.

HBM Healthcare Investments' performance in the first half of the year is thus in line with the general performance of the biotechnology sector which continues to be characterised by significant investor restraint and few developments with relevance to valuation. The Nasdaq Biotechnology Index lost 3.7 percent in the same period and the S&P SPDR Biotech declined 4.1 percent. The more broadly based MSCI World Health Care Index was more stable, down 0.1 percent.

Developments in the portfolio of private companies

The portfolio of private companies burdened the half-year result with CHF 10 million. Of this, CHF 4 million was due to unfavourable currency developments and CHF 6 million net to value adjustments.

A positive revaluation was made for the investment in Upstream Bio (CHF +13 million), which was acquired only about one and a half years ago. Value adjustments were made for Farmalatam (CHF -8 million), Adrenomed (CHF -4 million), Valcare (CHF -3 million), Odyssey Therapeutics (CHF -3 million) and other companies (CHF -1 million, net).

Developments in the portfolio of public companies

HBM Healthcare's half-year result was mainly influenced by the CHF 58 million decline in market valuation of public companies. The picture is not homogeneous though:

• While a few public, formerly private companies depressed the result by a total of CHF 70 million, primarily Cathay Biotech with CHF -44 million and Mineralys Therapeutics with CHF -15 million, the other public companies increased in value by a total of CHF 12 million.
• The market environment in China in particular is challenging. Here, Cathay Biotech's share price gave back some of the gains the company had made following the announcement of the advantageous strategic agreement with China Merchants Group. Nevertheless, after a holding period of more than 15 years and the expiry of the 3-year lock-up period, HBM Healthcare was able to realise its first gains on the investment.
• Indian biopharma companies, on the other hand, benefited from good local growth prospects.

Developments in the fund portfolio

The fund portfolio burdened the result in the reporting period by CHF 5 million. Investment committments of CHF 6 million were called, while repayments from realisations amounted to CHF 2 million.

Positive revaluation of other assets

Other assets increased by CHF 16 million net, primarily due to the revaluation of milestone and royalty claims from previous company sales. The focus is on an asset of the former private portfolio company Surface Logix. The first licence payment of CHF 2 million received from these claims underlines the substance of the revaluation.

Asset allocation

The portfolio remains well balanced with public companies accounting for 44 percent of total consolidated assets (24 percent were formerly private companies), 39 percent private companies, 10 percent funds, 5 percent cash and cash equivalents, and 2 percent other assets.

In the first six months of the financial year, HBM Healthcare Investments provided CHF 18 million in follow-on financing to existing portfolio companies. In addition, a new investment of USD 4 million was made in the private company ADARx Pharmaceuticals. ADARx has developed a promising siRNA platform designed to generate differentiated clinical data from multiple programmes. For now, the company is focusing on three therapeutic areas: genetic diseases, cardiometabolic diseases and central nervous system diseases.

Outlook

Market sentiment towards growth companies in the biotechnology sector is currently characterised by a great deal of pessimism. This is reflected not least in the valuation of the HBM Healthcare share, which is again trading at a high discount to its net asset value.

Regardless of this, however, the value creation of many companies is progressing, which should lead to corresponding added value in the coming years. Portfolio companies with strong operations such as Cathay Biotech or Swixx BioPharma as well as digital healthcare platforms such as Fangzhou (Jianke), Tata 1mg or ConnectRN are growing successfully and continue to have excellent prospects. We also see progress as planned in many portfolio companies focusing on clinical development, such as Upstream Bio, NiKang Therapeutics, Dren Bio or ArriVent Biopharma. They are all gradually creating value potential which, however, is not directly reflected in HBM Healthcare's NAV.

Due to expiring patents at large pharmaceutical and biotech companies, takeover activity in the sector is expected to pick up further. The best example of this is the takeover bid of up to USD 5.8 billion made after the balance sheet date by Bristol Myers Squibb for HBM Healthcare's portfolio company Mirati Therapeutics, which is active in cancer research.

HBM Healthcare Investments continues to look to the future with confidence and is convinced that significant value can be realised from its portfolio as soon as market conditions begin to improve.

The Half-Year Report September 2023 is available on the Company’s website http://www.hbmhealthcare.com/en/investors/financial-reports.

Contact
For further information, please contact Dr Andreas Wicki on +41 41 710 75 77, or at andreas.wicki@hbmhealthcare.com.

The net asset value per share (NAV) fell by 4.0 per cent to CHF 237.22 in the first six  months of the 2023/2024 financial year. The performance thus is in line with the performance of the biotechnology sector as measured by the Nasdaq Biotechnology Index  (-3.7 per cent) and the S&P SPDR Biotech (-4.1 per cent). The more broadly based MSCI World Health Care Index was more stable, down -0.1 per cent.

Based on the reported NAV, HBM Healthcare Investments expects a loss of CHF 70 million for the first half of the year. The main contributors to the negative result were the declining market valuations of the listed, formerly private companies. These impacted the result by a total of CHF 69 million (Cathay Biotech CHF -44 million, Mineralys Therapeutics CHF -15 million, Various CHF -10 million).

The figures presented here are the preliminary result based on the current status of the financial closing process. The definitive result will be published with the half-year report on 20 October 2023.

Contact

For further information, please contact Dr Andreas Wicki on +41 41 710 75 77, or at andreas.wicki@hbmhealthcare.com.

• Decline of net asset value per share (NAV) by 0.6 percent in the quarter under review due to unfavourable currency developments
• Despite the dampened market environment, attractive exits are still possible, as exemplified by several portfolio companies
• Portfolio remains well balanced and the value creation potential intact

Unfavourable currency developments push quarterly result into the red

HBM Healthcare Investments closed the first quarter of the 2023/2024 financial year as at 30 June 2023 with a loss of CHF 11 million. The net asset value per share (NAV) declined by 0.6 percent during this period, while the share price fell by 5.6 percent.

In investment currency, the portfolio recorded a positive result in the three months ending 30 June 2023. However, unfavourable currency developments against the Swiss franc (US dollar -2.2 percent, Chinese yuan -7.3 percent and euro -1.5 percent) reduced the NAV by a total of 3.2 percent in the reporting quarter resulting in a small loss overall.

Developments in the portfolio of private companies

Private companies burdened the quarterly result with a net CHF 6 million. This includes negative currency developments of CHF 13 million.

The following events stood out:

• Upstream Bio raised USD 200 million in new capital. HBM Healthcare Investments participated in this financing with a total of USD 10 million in tranches. Due to the revaluation, the value of the existing investment increased by CHF 12 million.

• Further value adjustments due to completed or pending financing rounds were made at 1000Farmacie (CHF +2.4 million), Farmalatam (CHF -6.9 million) and Fore Biotherapeutics (CHF -2.4 million).

Developments in the portfolio of public companies

The value of public companies increased by CHF 9 million net, even though currency developments burdened the quarterly result with CHF 37 million.

• Cathay Biotech, the largest position, announced a strategic collaboration with China Merchants Group (CMG) which will invest up to RMB 6.6 billion (approx. CHF 800 million) in the company. Furthermore, CMG commits to purchasing large quantities of bio-based polyamides from Cathay and cooperate in the area of research and development. Although Cathay's share price increased slightly in the quarter under review, the negative currency development resulted in an overall net value reduction of just under CHF 17 million.

• Prometheus Biosciences was acquired by Merck & Co. in April for USD 11 billion. Prometheus develops therapies to treat the inflammatory bowel diseases ulcerative colitis and Crohn's disease. Moreover, Chinook Therapeutics agreed to a USD 3.5 billion takeover bid by Novartis in June. Chinook develops therapies for chronic kidney disease. The two acquisitions resulted in a total profit contribution of CHF 11 million.

Developments in the fund portfolio

The fund portfolio burdened the result in the quarter under review by about CHF 6 million, CHF 4 million of which was due to currency developments.

Asset allocation

The portfolio remains well balanced with public companies accounting for 44 percent of consolidated assets (of which 26 percent were formerly private companies), 35 percent private companies, 9 percent funds and 12 percent cash and cash equivalents as well as other assets.

Outlook

The market environment remains dominated by investor concerns about inflation, rising interest rates and a cooling economy. Currency developments also continued to create headwinds at the beginning of the quarter. For the portfolio companies, however, this challenging financing environment also offers opportunities. As the examples of Upstream Bio, Prometheus Biosciences and Chinook Therapeutics demonstrate, companies with convincing research results benefit from high demand and attractive offers in financing rounds and acquisition bids.

With the aforementioned strategic agreement with CMG, Cathay Biotech has laid a solid foundation for further growth. In addition, the lock-up period after the IPO is going to expire in August 2023 increasing the free float.

Overall, with a carefully selected portfolio and a solid balance sheet, HBM Healthcare Investments remains ideally positioned to take advantage of opportunities and benefit from positive market momentum.

The Quarterly Report June 2023 is available on the Company’s website www.hbmhealthcare.com/en/investors/financial-reports.

Contact

For further information, please contact Dr Andreas Wicki on +41 41 710 75 77, or at andreas.wicki@hbmhealthcare.com.

Cathay Biotech, the largest holding in HBM Healthcare Investments' portfolio (15% of net assets), yesterday announced a significant strategic collaboration with China Merchants Group (CMG). The transaction, which is subject to approval by Cathay Biotech's shareholders, includes

• A capital increase by Cathay Biotech in the amount of up to RMB 6.6 billion, with the new shares being acquired by CMG;

• The formation of a partnership between Cathay Biotech's founder and CEO, Dr. Xiucai Liu, and China Merchants Group, which will jointly hold a controlling stake in Cathay Biotech;

• A business collaboration between Cathay Biotech and CMG for the strategic procurement of bio-based polyamides produced by Cathay Biotech. The targeted minimum purchase volumes by CMG include 10,000 tons, 80,000 tons and 200,000 tons for the first three years 2023, 2024 and 2025, respectively;

• A jointly set up of research team for bio-based materials in CMG’s application scenarios, to develop bio-based polyamide fiber compounding and pultrusion processes and application technologies in containers, construction, photovoltaics, logistics, etc. in order to determine the form of products to be procured by CMG.

For more details, please see Cathay Biotech's announcements on its website at https://www.cathaybiotech.com/en/singgg.aspx#content.

Cathay Biotech (Ticker: 688065) is a global leader in synthetic biology. HBM Healthcare Investments has held a stake in Cathay since 2006. The company has been listed on the STAR Market of the Shanghai Stock Exchange since 2020.

About China Merchants Group

Founded in 1872 as the China Merchants Steam Navigation Company in Shanghai, CMG has developed into one of China's leading SOEs since the 1980s and has expanded its role into a global player in transport infrastructures, financial, property development and industrial park operations.

Contact

For further information, please contact Dr Andreas Wicki on +41 41 710 75 77, or at andreas.wicki@hbmhealthcare.com.

The invitation to the 22nd Ordinary Shareholders’ Meeting on 19 June 2023 has been sent to the shareholders of HBM Healthcare Investments today.

The detailed invitation with all motions of the Board of Directors is enclosed and displayed on the Company’s website www.hbmhealthcare.com/en/investors/shareholders-meeting.

HBM Healthcare Investments also published today its Annual Report 2022/2023 on the Company’s website www.hbmhealthcare.com/en/investors/financial-reports.

Contact
For further information, please contact Dr Andreas Wicki on +41 41 710 75 77, or at andreas.wicki@hbmhealthcare.com.

HBM Healthcare Investments reports a loss of CHF 146 million for the 2022/2023 financial year. Inflation and rising interest rates led to declining valuations for technology and growth stocks around the globe. Four profitable acquisitions, two IPOs, and the value increase of several operationally successful portfolio companies did not compensate for the decline.

• Net asset value per share (NAV) -7.4 percent, share price -18.9 percent
• Healthcare sector remains attractive and HBM Healthcare Investments a predestined investment instrument
• Continuation of distribution policy with a yield of 3.5 percent

Declining valuations for growth stocks

The market environment with inflation and rising interest rates had a negative impact on the valuations of technology and growth stocks. The biotechnology sector was no  exception and the segment of small and medium-sized companies in particular – the main focus of HBM Healthcare's investment strategy – underwent a significant valuation correction.

In addition, the slowdown in economic growth and the prolonged restrictive policy in dealing with the Covid-19 pandemic in China affected the valuation of HBM’s largest holding, Cathay Biotech. Listed on the Shanghai stock exchange, Cathay lost some of the value growth it had achieved in previous years. However, replacing chemical products with bio-based input made from renewable raw materials remains a major trend for the future. As a global leader in synthetic biology, Cathay Biotech has a strong position in this growth market thanks to its technology and its production capacities.

The decision by the US Food and Drug Administration (FDA) to deny the portfolio company Y-mAbs Therapeutics marketing approval for its cancer therapy omburtamab on the grounds of inconclusive evidence of efficacy was unexpected.

In the past financial year, positive contributions to earnings came from the increase in value of various operationally successful private companies as well as from two IPOs and four acquisitions. However, this did not fully compensate for the negative performance.

The portfolio components contributed to the annual result as follows:

The portfolio components contributed to the annual result as follows:The portfolio of private companies closed positively, adding a total of CHF 32 million in value. The IPOs of Mineralys Therapeutics and Acrivon Therapeutics were responsible for a value increase of CHF 24 million. Fangzhou, operator of the digital healthcare platform Jianke.com in China, completed financing rounds in preparation for an IPO in Hong Kong, which increased the value of the investment by CHF 33 million. Swixx BioPharma, the largest position in the private companies portfolio, strongly increased sales and profit in the 2022 financial year, which allowed the company to return some of its excess capital to shareholders. In addition to the dividend received, the investment thus was appreciated by CHF 20 million. Value adjustments totalling CHF 45 million were necessary for companies that did not develop according to plan or had raised capital at lower valuations.

The funds' portfolio recorded a decline in value of CHF 5 million. Distributions of CHF 16 million were offset by capital calls of CHF 20 million.

The portfolio of public companies shows a total decrease in valuation of CHF 164 million. Significant profit contributions resulted from the four acquisitions of Turning Point Therapeutics (CHF 41 million), ChemoCentryx (CHF 21 million), Biohaven Pharmaceuticals (CHF 20 million) and Sierra Oncology (CHF 16 million). The main impairments were in Cathay Biotech (CHF 98 million), Y-mAbs Therapeutics (CHF 24 million), Harmony Biosciences (CHF 16 million), Pacira Biosciences (CHF 15 million) and Monte Rosa Therapeutics (CHF 10 million). The remaining public companies closed net CHF 99 million lower.

Other assets, which includes dividend income and profit contributions from foreign currency hedges, increased the result by CHF 20 million. 

The management fee, which depends on the Company’s average net assets and market capitalisation, as well as administration cost decreased to CHF 30 million compared to the previous year. The financial result was positive at CHF 1 million due to the interest income received.

Selective additions to the portfolio

HBM Healthcare Investments made a new investment of USD 12 million in the private company ArriVent Biopharma in the final quarter of the reporting year. The US-based company is testing the compound furmonertinib in a pivotal phase III trial for the treatment of patients with EGFRmutated (Epidermal Growth Factor Receptor) non-small cell lung cancer. The compound is already approved as a cancer therapy in China. A further CHF 69 million were invested as follow-on financing to nineteen existing private companies.

In the portfolio of public companies, the proceeds from the four acquisitions were used to  build up and expand various new and existing holdings.

Overall, the portfolio remains well balanced. Of the total assets of just under CHF 2 billion, 35 percent are invested in private companies. 43 percent are in public companies (thereof 26 percent formerly private companies), 9 percent in funds and 1 percent in other assets. The share of cash and cash equivalents stands at 12 percent. The latter will serve, among other things, the repayment of the CHF 50 million bond due in July and the proposed par value repayment.

Attractive distribution yield of 3.5 percent

Its strong financial position allows HBM Healthcare Investments to continue its distribution policy. The Board of Directors proposes to the Shareholders’ Meeting a par  value repayment of CHF 7.50 per share, free of withholding tax. The dividend yield thus remains at the previous year’s level of 3.5 percent.

Outlook

Various private portfolio companies are developing very well operationally and hold the potential for higher valuations, which are likely to materialise in future financing rounds, IPOs or takeovers. Value adjustments were made for the less performing companies. Overall, HBM’s portfolio of private companies should continue to make a positive value contribution in the coming years.

If, as expected, the cycle of rising interest rates comes to an end in the foreseeable future, this would ease the pressure on valuations of public companies, and investors would once again increasingly focus on the companies’ successes in clinical development and their operating results. HBM Healthcare will use the current favourable valuation level to selectively expand its portfolio of public companies.

Avid takeover activity in recent months at handsome premiums confirms the attractiveness  of the biotechnology sector as an investment universe. High medical need, scientific and technological advances, and demographic change remain strong drivers of long-term growth in the healthcare sector. This is not likely to change in the immediate future, and HBM Healthcare's portfolio is well positioned to benefit from this.

In the appendix to this media release you will find the balance sheet and income statement in accordance with IFRS, the portfolio details and an overview of the consolidated financials including a translation to the IFRS Financial Statements. The detailed Annual Report will be published on 26 May 2023 and will be available on the Company's website from that date onwards.

Contact
For further information, please contact Dr Andreas Wicki on +41 41 710 75 77, or at andreas.wicki@hbmhealthcare.com.

HBM Healthcare Investments closed the fourth quarter of the 2022/2023 financial year ended on 31 March with a small increase in value. The net asset value per share (NAV) increased by 0.5 percent to CHF 254.80. The share price rose by 6.5 percent to CHF 214.00.

High level of cash and cash equivalents allows continuation of cash distribution policy

For the 2022/2023 financial year, the NAV decreased by 7.4 per cent. The private companies (incl. funds) recorded a positive development overall and increased the NAV by 1.6 percent. The listed companies and the other components of the portfolio (incl. costs) reduced the net asset value by 7.7 and 1.3 percent respectively.

Based on the reported NAV as at 31 March, HBM Healthcare Investments expects a net loss of CHF 146 million for the financial year 2022/2023.

The balanced portfolio and the high level of cash and cash equivalents of CHF 232 million allow for the repayment of the CHF 50 million bond due in July from cash on hand as well as the continuation of the company's investment activities and distribution policy.

The figures presented are the preliminary and unaudited results based on the current status of the closing process. The final annual result will be published on Friday, 12 May 2023.

Contact
For further information, please contact Dr Andreas Wicki on +41 41 710 75 77, or at andreas.wicki@hbmhealthcare.com.

HBM Healthcare Investments refers to its media release dated 30 January 2023. Dr Andreas Wicki has recovered from his health matters and will fully resume his duties as Chief Executive Officer of HBM Healthcare Investments and with the investment adviser HBM Partners as of Monday 3rd April. The Boards of Directors and the employees of HBM Healthcare Investments and HBM Partners would like to thank Chairman Hans Peter Hasler for his increased commitment over the past weeks and are delighted to welcome Andreas Wicki back.

HBM Healthcare Investments also announces the closing of a new investment of USD 12 million in the private US-based company ArriVent Biopharma. The investment is part of ArriVent’s USD 155 million oversubscribed Series B financing. The proceeds of the financing will be used to support pivotal Phase 3 and additional studies with ArriVent’s lead product candidate furmonertinib as well as the continued expansion of its pipeline.

Furmonertinib, a highly brain-penetrating, mutation-specific EGFR kinase inhibitor, is approved in China as a cancer therapy for patients with EGFR-mutated non-small cell lung cancer. Furmonertinib is being developed in China by Allist Pharmaceuticals and in the rest of the world by ArriVent Biopharma.

Contact
For further information, please contact Erwin Troxler on +41 41 710 75 77, or at erwin.troxler@hbmhealthcare.com.

Dr Andreas Wicki, Chief Executive Officer of HBM Healthcare Investments, will be taking a brief leave of absence to adress a treatable health matter. Dr Wicki will remain involved to the extent practicable.

In the interim, Hans Peter Hasler, Chairman of the Board of Directors, will be responsible for the management of HBM Healthcare Investments as Executive Chairman, together with CFO Erwin Troxler. They will be actively supported by Dr Matthias Fehr and Dr Ivo Staijen, who have been leading the investment teams for private equity and public equity at the investment advisor HBM Partners for several years.

The Board of Directors and the employees of HBM Healthcare Investments and HBM Partners wish Andreas Wicki a speedy recovery.

Contact
For further information, please contact Erwin Troxler on +41 41 710 75 77, or at erwin.troxler@hbmhealthcare.com.

• Quarter closes with loss of CHF 120 million, mainly due to currency developments. Hedging partially compensates for decline
• 9-month period closes with loss of CHF 155 million, mainly due to lower stock market valuation of the largest portfolio position
• Portfolio remains well balanced and the value creation potential intact
• High levels of cash and cash equivalents create financial latitude in volatile markets

Quarter under review marked by currency developments

HBM Healthcare Investments closed the third quarter of the 2022/2023 financial year as at the end of December 2022 with a loss of CHF 120 million. The net asset value per share (NAV) declined by 6.4 percent to CHF 253.59 during this period, and the share price fell by 9.3 percent to CHF 201.00.

Currency developments accounted for over two-thirds of this decrease in value: The US dollar depreciated by 6.3 percent against the Swiss franc in the 3-month period, the Chinese yuan by 3.4 percent. The currency hedge, which was slightly increased in October 2022, partially compensated for this decline. After the US dollar had dropped in mid-November, the hedge was closed. Overall, currency developments burdened the result in the quarter under review by around CHF 84 million.

9-month period influenced by market sentiment

A loss of CHF 155 million resulted for the first nine months of the 2022/2023 financial year. The NAV declined by 7.8 percent and the share price fell disproportionately by 23.7 percent.

In this 9-month period, the impact of foreign currencies of CHF 25 million on the result has been much less accentuated. Rather, the result for this period is mainly owed to the market-driven decline in the market capitalisation of the largest investment, Cathay Biotech (share price -21 percent).

Most relevant market indices in the health sector also declined during this period. The broad-based MSCI World Health Care Index recorded a minus of 1.9 percent. In the biotech segment, large and mid-cap companies outperformed small caps: the Nasdaq Biotechnology Index (NBI) rose by 1.7 percent, while the SPDR S&P Biotech (XBI) declined by 7.7 percent.

Developments in the portfolio of private companies

The value of the portfolio of private companies decreased by a total of CHF 41 million in the quarter under review, of which CHF 28 million was due to currency developments.

The following events stood out:

• Swixx Biopharma: With 2022 sales expected to jump to over EUR 700 million, the company returned part of its surplus liquidity to shareholders as a capital repayment. HBM Healthcare Investments recognised dividend income of CHF 10 million in its income statement.
• Fangzhou, operator of the Chinese healthcare platform Jianke.com, is planning an IPO on the Hong Kong Stock Exchange and filed its prospectus in November. HBM Healthcare still values its investment in Fangzhou at cost, in line with its prudent valuation principles. A revaluation of the investment is being reviewed for the annual financial statements as at the end of March, as financing rounds have been concluded at higher valuations due to the company’s good operating performance.
• Acrivon Therapeutics, a US company active in personalised oncology, raised around USD 100 million in new capital via an IPO. At year end, the share closed around 8 percent below the issue price.
• Value adjustments totalling CHF 15 million were made for various investments.

No new investments were made in private companies during the quarter under review. CHF 20 million went to existing portfolio companies as follow-on financing.

Developments in the portfolio of public companies

Public companies burdened the quarterly result with CHF 51 million, CHF 39 million of which was due to currency developments.

• Y-mAbs Therapeutics suffered an unexpected setback. The US Food and Drug Administration (FDA) denied the company approval for omburtamab, an antibody therapy for the treatment of rare childhood cancers. The company's market value declined sharply as a result. Y-mAbs owns an approved drug, DANYELZA®, and is also developing other cancer therapies.
• The strong share price performance of Harmony Biosciences largely compensated for the decline in Y-mAbs.
• New investments were made or existing investments increased in Cytokinetics, Prometheus Biosciences, Cogent Biosciences, Natera, Travere Therapeutics, Vicore Pharma and Insmed.

Developments in the fund portfolio

The fund portfolio burdened the result in the quarter under review by CHF 20 million, CHF 11 million of which was due to currency developments.

In the quarter under review, investment commitments of CHF 6 million were called and CHF 2 million were repaid from realisations.

Asset allocation

The portfolio remains well balanced with a 43 percent share of public companies (of which 28 percent were formerly private companies), 32 percent private companies, 8 percent funds and 2 percent other assets.

Cash and cash equivalents increased by around CHF 122 million to CHF 282 million in the quarter under review due to the completion of the Biohaven and ChemoCentryx acquisitions as well as profit taking at Harmony Biosciences and sales of other public investments. Cash and cash equivalents now correspond to 15 percent of the portfolio.

Outlook

The biotech sector started the year strongly with the announcement of two billion-dollar acquisitions at prices well above those previously traded (Albireo Pharma and CinCor Pharma). HBM Healthcare is not invested in either company, but has comparably positioned, operationally successful private companies in its portfolio. Many of these portfolio companies have potential for an increase in value that is likely to materialise when the general market environment improves. In addition, there is potential for a countermovement in various public companies following the sometimes steep, mostly market-driven price losses.

Uncertainties remain regarding the impact on global economic growth of the rise in interest rates, higher energy prices and the geopolitical situation. HBM Healthcare continues to anticipate a volatile market environment. Nevertheless, HBM Healthcare Investments remains confident in its chosen investment strategy and considers the value potential of its portfolio to be intact for the coming years.

High levels of cash and cash equivalents continue to allow HBM Healthcare Investments to selectively increase existing positions and initiate new exposures.

The Quarterly Report December 2022 is available on the Company’s website www.hbmhealthcare.com/en/investors/financial-reports.

Contact
For further information, please contact Dr Andreas Wicki on +41 41 710 75 77, or at andreas.wicki@hbmhealthcare.com.

HBM Healthcare Investments suffered a negative performance for the calendar year 2022 in a declining market. The net asset value per share (NAV) declined by 21.7 percent to CHF 253.59. The share price fell by a much greater 37.8 percent to CHF 201.00.

The relevant market indices in the healthcare sector showed a negative performance across the board. The broad-based MSCI World Health Care Index recorded a minus of 3.9 percent. The biotech segment, as measured by the Nasdaq Biotechnology Index (NBI) and the SPDR S&P Biotech (XBI), declined significantly more, by 9.1 per cent and 25.0 per cent respectively. 

Performance for the 9 months of the financial year 2022/2023

For the first nine months of the 2022/2023 financial year ending on 31 March, the NAV decreased by 7.8 per cent. Therefore, a net loss of around CHF 155 million is expected for this period.

Notwithstanding the market-driven decline in value, the HBM Healthcare Investments portfolio remains well positioned for the market environment, which continues to be fraught with uncertainty, thanks to the balanced mix of promising private and listed companies and a high level of cash and cash equivalents of CHF 282 million. 

These figures are the preliminary results based on the current status of the closing process. The December 2022 quarterly report will be published on 20 January 2023.

Contact
For further information, please contact Dr Andreas Wicki on +41 41 710 75 77, or at andreas.wicki@hbmhealthcare.com.

HBM Healthcare Investments recorded a decrease in value of CHF 86 million in the second quarter of the 2022/2023 financial year ended 30 September. The net asset value per share (NAV) declined by 4.2 percent. For the first half of the financial year, the loss thus amounts to CHF 34 million, with a decline in NAV of 1.7 percent. The share price fell more sharply, by 16.2 percent, due to the negative market sentiment, and is currently trading at a significant discount to the net asset value. In comparison, the Nasdaq Biotech Index traded 3.1 percent lower and the MSCI World Health Care Index was down 7.7 percent.

In a declining market, the portfolio heavyweight Cathay Biotech in particular, posted a negative share price development. Four acquisitions and a strong US dollar supported the result. From an operational perspective, the portfolio’s large holdings continued to be very successful. Moreover, the healthcare sector’s fundamental factors also remained positive. Due to continuing market uncertainties, HBM Healthcare nevertheless acted cautiously and limited its investment activities to follow-on financing of private companies as well as selective profit-taking or additions in the portfolio of public companies. The hedging of one fifth of the US dollar currency risk remained in place. Thanks to a high level of cash and cash equivalents and a well-balanced portfolio, HBM Healthcare is well positioned for the current market environment.

Acquisitions support results, decline in Cathay Biotech share price weighs on results

The half-year result was significantly influenced by the holding in Cathay Biotech. The company’s market capitalisation on the Shanghai Stock Exchange fell by slightly more than one fifth in line with the market trend. Due to the substantial weight of the investment in the portfolio, this burdened the result by CHF 91 million. However, the company, which is a leader in the growth market of synthetic biology, is debt-free, operates profitably and shows continuously increasing sales and profits. The investment in Cathay Biotech is subject to a lock-up period until mid-August 2023.

The other assets in the portfolio showed positive value growth of CHF 74 million in total. This was partly favoured by the strength of the US dollar against the Swiss franc, but also thanks to four acquisitions from the portfolio of public companies: Sierra Oncology, Biohaven Pharmaceuticals, Turning Point Therapeutics, and most recently ChemoCentryx.

ChemoCentryx received a USD 3.7 billion takeover offer from Amgen in August 2022. HBM Healthcare Investments had invested a total of CHF 28 million in ChemoCentryx since November 2019, generating a profit of CHF 26 million. CHF 21 million of this is attributable to the current financial year.

The other changes in value in the private companies’ portfolio were roughly balanced in the first six months of the financial year. Mineralys Therapeutics closed a financing round at a higher valuation based on positive phase II trial results, which led to an appreciation of the investment of CHF 9 million. Value adjustments totalling CHF 11 million were necessary for various smaller investments.

High level of cash and cash equivalents

HBM Healthcare Investments made no new investments in private companies during the quarter under review. CHF 16 million was provided as follow-on financing to existing portfolio companies. Including the acquisition of Biohaven, which was completed after the balance sheet date at the beginning of October, HBM Healthcare Investments has cash and cash equivalents of CHF 227 million. The closing of the ChemoCentryx acquisition, also expected in the fourth calendar quarter, will increase cash and cash equivalents by a further CHF 38 million. HBM Healthcare Investments is thus well positioned for the current market environment.

In the portfolio of public companies, there were selective additions or profit-taking respectively on individual investments.

The portfolio remains well balanced. Half of the assets are invested in public companies, of which 30 percent come from the private companies’ portfolio. Due to the completion of the Biohaven and ChemoCentryx acquisitions in the current quarter, the share of public companies will be reduced somewhat in favour of cash and cash equivalents. Private companies account for 32 percent, funds for 8 percent, cash and cash equivalents for 8 percent and other assets for 2 percent. A good fifth of the US dollar currency risk is hedged. An increase in currency hedging is being considered.

Outlook

The general global market environment continues to be strongly influenced by macroeconomic developments (inflation, rising interest rates, economic downturn) and the tense geopolitical situation, and accordingly remains volatile and fraught with uncertainty. HBM Healthcare Investments is prepared for this not to change in the short term and is acting with corresponding caution.

Regarding private companies, the focus remains mainly on financing existing portfolio companies. With regard to the public companies’ portfolio, opportunities are exploited selectively to build up new positions or expand existing ones.

The fundamental factors favouring the healthcare sector and the Company’s investment strategy have not changed. Various acquisitions this year confirm that small and medium-sized biotech companies with already approved drugs or innovative development programmes continue to be sought-after takeover targets for large pharmaceutical companies. Also, companies with promising trial data continue to see high investor demand at capital increases. These trends are likely to continue and contribute to improve the sector’s market sentiment.

Many of the large holdings in the private companies’ portfolio are developing very successfully operationally, which will translate into higher valuations over time. The largest position Swixx BioPharma is posting strong revenue and profit growth. This trend is likely to continue. Neurelis, the second largest position, is also seeing rising sales of its VALTOCO® nasal spray and should reach break-even soon. The digital healthcare platforms (ConnectRN, Tata 1mg, Fangzhou/Jianke) are growing strongly, though not yet profitably. In addition, Mineralys Therapeutics and other portfolio companies are making good progress in their clinical development programmes.

Several public companies have significant events coming up in the next six months. The most important approval decision concerns Y-mAbs Therapeutics: The US Food and Drug Administration (FDA) will decide in the fourth quarter whether to approve OMBLASTYS® (omburtamab) for the treatment of childhood cancer. Significant trial results are expected from Harmony Biosciences (phase II data for Prader-Willi syndrome) and Arcutis Biotherapeutics (phase III data for dermatitis).

Irrespective of external circumstances, HBM Healthcare Investments is confident about the operational development of its portfolio companies and expects to realise significant added value from its existing investments.

The Half-Year Report September 2022 is available on the Company’s website www.hbmhealthcare.com/en/investors/financial-reports.

Contact
For further information, please contact Dr Andreas Wicki on +41 41 710 75 77, or at andreas.wicki@hbmhealthcare.com.

The net asset value per share (NAV) as at 30 September 2022 amounts to CHF 270.92 and is thus 1.7 percent lower than at the beginning of the current financial year 2022/23. In comparison, the MSCI World Health Care Sector Index declined by 7.7 percent and the Nasdaq Biotechnology Index by 3.1 percent.

Based on the reported NAV, HBM Healthcare Investments expects a loss of CHF 34 million for the first half of the year. The result was significantly influenced by the listed investment in Cathay Biotech. The company's market capitalisation on the Shanghai Stock Exchange fell by slightly more than one fifth. Cathay Biotech, a leader in the growth market of synthetic biology, is debt-free, profitable and shows continuously increasing sales and profits. The remaining private and listed investments in the portfolio developed positively in value overall. This is also thanks to the four acquisitions of Sierra Oncology, Biohaven, Turning Point Therapeutics and most recently ChemoCentryx from the portfolio of listed companies. 

The figures presented here are the preliminary result based on the current status of the closing process. The definitive result will be published with the half-year report on 21 October 2022. 

Contact
For further information, please contact Dr Andreas Wicki on +41 41 710 75 77, or at andreas.wicki@hbmhealthcare.com.

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.

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.
   
• 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.

Outlook

The market environment is likely to remain volatile over the summer months. However, thanks to its high level of cash and cash equivalents, HBM Healthcare Investments is well positioned for this.

For the second half of 2022, a number of relevant approval decisions are pending in the portfolio of public companies. For example, Arcutis Biotherapeutics expects to receive approval for the drug roflumilast, a PDE-4 inhibitor, for the topical treatment of psoriasis, in the third quarter. At the same time, Arcutis is conducting further phase III trials with the same compound for the treatment of other skin diseases.

At Y-mAbs Therapeutics, the US Food and Drug Administration (FDA) will decide in the fourth quarter whether to approve OMBLASTYS® (omburtamab) for the treatment of childhood cancer. With DANYELZA®, Y-mAbs already has a drug approved in the US for the treatment of neuroblastoma. The drug is currently also undergoing the approval process in China. In addition, Y-mAbs is conducting numerous other clinical trials for the treatment of various cancers.

Several other public companies are also due to report important study results, which, if successful, should have a positive impact on the value of these companies.

The portfolio remains well positioned. Operationally, many of the companies are developing successfully and – as demonstrated by the recent acquisitions – are attractive for strategic buyers.

The Quarterly Report June 2022 is available on the Company’s website www.hbmhealthcare.com/en/investors/financial-reports.

Contact
For further information, please contact Dr Andreas Wicki on +41 41 710 75 77, or at andreas.wicki@hbmhealthcare.com.

The invitation to the 21st Ordinary Shareholders’ Meeting on 10 June 2022 has been sent to the shareholders of HBM Healthcare Investments today.

In accordance with the Ordinance on Measures to Combat the Coronavirus, issued by the Swiss Federal Council, the shareholders are not permitted to participate in person. All shareholders are kindly asked to exercise their rights exclusively through the independent proxy by way of written or electronic instruction and power of attorney.

The detailed invitation with all motions of the Board of Directors is displayed on the Company’s website www.hbmhealthcare.com/en/investors/shareholders-meeting.

Agenda for the 21st Ordinary Shareholders’ Meeting on 10 June 2022

1. Statutory financial statements and group financial statements 2021/2022; reports of the auditors
    
2. Discharge from liability of the members of the Board of Directors and Management
    
3. Appropriation of results
   - Appropriation of disposable profit of CHF 327'937'326.
    
4. Elections regarding the Board of Directors
   - Re-elections of the Chairman and of the Members of the Board of Directors
   - Re-elections of the Members of the Compensation Committee
    
5. Compensation to the Board of Directors and to the Management
    
6. Appointment of auditors
    
7. Appointment of independent proxy-holder
    
8. Reduction of share capital: partial payback of nominal value
   - Cash distribution to shareholders of CHF 9.70 per share through nominal value repayment
    
9. Approval of a new share buy-back programme and capital reduction in principle
    
10. Miscellaneous

HBM Healthcare Investments also published today its Annual Report 2021/2022 on the Company’s website www.hbmhealthcare.com/en/investors/financial-reports.

Contact
For further information, please contact Dr Andreas Wicki on +41 41 710 75 77, or at andreas.wicki@hbmhealthcare.com.

HBM Healthcare Investments reports a loss of CHF 78 million for the 2021/2022 financial year, for the first time in ten years and after a cumulative increase in value of 550 percent. The net asset value per share (NAV) fell by 3.6 percent and the share price by 13.2 percent due to globally declining market valuations of public companies, especially in the first quarter of 2022, triggered by rising inflation, interest rate hikes and increasing geopolitical uncertainty. The increase in value of the private companies’ portfolio totalling CHF 129 million was unable to entirely compensate for this.

However, the healthcare market continues to offer an attractive investment universe
and the prospects for HBM Healthcare’s carefully constructed portfolio remain intact. The Company’s solid financial position allows to continue its proven investment strategy and distribution policy.

The Board of Directors proposes to the Shareholders’ Meeting a slight increase in the cash distribution of 20 cents to CHF 9.70 per share in the form of a par value repayment free of withholding tax. 

Annual loss of CHF 78 million due to declining market valuations

HBM Healthcare Investments reports an annual loss of CHF 78 million for the 2021/2022 financial year. This is the first negative result in ten years, following the previous year’s record profit.

In an increasingly challenging market environment, HBM Healthcare Investments initially performed very well. In January 2022, the Company reported a strong profit of CHF 275 million for the first nine months. Increases in the value of private companies and the rise in the share price of its largest investment – Cathay Biotech in China – offset the market-driven decline in the share prices of the other public investments. However, valuations of growth companies on the stock market came under increasing pressure against the backdrop of rising inflation and a first interest rate hike in the United States. The geopolitical events in Ukraine and the renewed flare-up of the Covid-19 pandemic in China further accentuated the price decline in public holdings in the final quarter of the financial year while the share price of Cathay Biotech also gave back some of its previous gains, which ultimately pushed our result into negative territory.

The individual components of the portfolio contributed as follows to the annual loss:

The value of the portfolio of private companies increased by a total of CHF 129 million. Financing rounds with external investors enabled an increase in the valuations of the investments in Swixx Biopharma by CHF 75 million and ConnectRN by CHF 38 million. Both companies are operationally successful and experience strong sales growth. Furthermore, the acquisition of Bioshin by Biohaven resulted in a profit contribution of CHF 12 million. The value of the other investments combined increased by a total of CHF 4 million, net of higher valuations due to financing rounds as well as some value adjustments.

The fund portfolio decreased by CHF 35 million, mainly due to lower market prices of public companies held by these funds. Of this, CHF 12 million was attributable to HBM Genomics, CHF 10 million to WuXi Healthcare Ventures, and CHF 13 million to the other funds. Repayments totalling CHF 36 million were offset by capital calls of CHF 31 million. In total, CHF 5 million in liquidity flowed back from the funds. No new investment commitments were made to funds in the reporting year.

Public companies originating from the portfolio of private companies recorded market-related losses of CHF 82 million. Positive performers were Cathay Biotech (CHF 128 million, including dividend income of CHF 3 million and net of an increase in the provision for deferred tax on capital gain of CHF 14 million) and Harmony Biosciences (CHF 58 million). Both companies are profitable and report growing sales. The result was negatively impacted primarily by oncology companies with clinical development candidates, some of which had appreciated strongly in earlier years: BioAtla (CHF 62 million), ALX Oncology (CHF 32 million), Y-mAbs Therapeutics (CHF 28 million), Turning Point Therapeutics (CHF 27 million), Ambrx (CHF 20 million), Longboard Pharmaceuticals (CHF 20 million), Instil Bio (CHF 18 million), Connect Biopharma (CHF 13 million), IO Biotech (CHF 10 million) and other companies (CHF 38 million net). HBM Healthcare Investments had already realised substantial profits from most of these investments in the financial year just ended or in previous financial years. Clinical development is proceeding according to plan at most of these companies.

The portfolio of other public companies impaired the result by CHF 65 million. The investment in Biohaven developed positively, increasing by CHF 25 million. The result was burdened by the share price developments of Zymeworks (CHF 24 million), Esperion Therapeutics (CHF 12 million), Rocket Pharmaceuticals (CHF 11 million), ChemoCentryx (CHF 10 million) and various smaller investments (CHF 33 million net).

The hedging positions for currency and market risks resulted in a profit contribution of CHF 29 million. Other financial assets and financial instruments reduced the result by CHF 13 million, mainly due to currency effects.

Management fees, which depend on average net assets and market capitalisation, amounted to CHF 35 million. As the NAV did not exceed the high water mark at the end of the financial year, no performance-related compensation was due to the investment advisor or the Board of Directors. Other administrative costs and financial expenses were stable at less than CHF 6 million.

Attractive portfolio with private and public companies

Taking into account the reported loss for the year and the par value repayment to shareholders last September, net assets decreased by CHF 0.17 billion to just under CHF 2 billion in the reporting year. As of 31 March 2022, total invested assets of CHF 2.2 billion were grouped as follows: private companies 28 percent, public companies 52 percent (public companies originating from the private companies’ portfolio 37 percent), funds 8 percent, other assets 1 percent and cash and cash equivalents 11 percent. At less than 7 percent, the level of financial liabilities remains low.

On the balance sheet date, there were no hedges for currency or market risks.

CHF 162 million invested in private companies

HBM Healthcare Investments invested CHF 93 million in eleven new private companies during the year under review. Of this amount, CHF 67 million has been paid in and CHF 26 million has been recognised as investment commitments. A further CHF 69 million was transferred to existing private companies as follow-on financings.

New investments made during the year are mentioned in the respective quarterly reports. No new investments were made in the reporting year’s final quarter ended 31 March 2022. The three largest new investments in the 2021/2022 financial year are:

• The US company Upstream Bio received an investment commitment of USD 20 million (USD 11 million paid in). Upstream is developing an antibody to treat severe asthma.
   
• CHF 17 million went to the Swiss company Numab Therapeutics. Numab develops novel cancer immunotherapies based on its multispecific antibody discovery technology platform and has several partnerships with international pharmaceutical companies.
   
• USD 10 million was invested in Odyssey Therapeutics. The US-based company develops novel antibodies (V-bodies) for the treatment of cancer and for autoimmune therapies.

In addition to new investments in private companies, selective buying opportunities were also taken in new or existing public companies. For example, the sharp decline in the share price of Y-mAbs Therapeutics at the beginning of 2022 was used to double the position back to the original ownership stake. The investment in Sierra Oncology was significantly increased following positive phase III trial results for Momelotinib for the treatment of myelofibrosis patients. This decision was rewarded shortly after the balance sheet date, when GlaxoSmithKline announced the acquisition of Sierra Oncology for a total of USD 1.9 billion in mid-April.

Increase of cash distribution to CHF 9.70 per share

HBM Healthcare’s large increase in value in recent years, the positive outlook for its portfolio, and its solid financial position allow the Company to continue its distribution policy unchanged. Accordingly, over the long term, a portion of the increase in value achieved is to be returned to shareholders with a target yield ranging from 3 to 5 percent on the closing share price.

The Board of Directors proposes to the Shareholders’ Meeting a slight increase in the cash distribution of 20 cents to CHF 9.70 per share in the form of a par value repayment free of withholding tax. Based on the share price of 31 March 2022, this corresponds to a yield of 3.5 percent.

Furthermore, the Board of Directors intends to propose a new share buy-back programme to the Shareholders’ Meeting. 

Outlook

With inflation, rising interest rates and geopolitical uncertainty, the macroeconomic market environment has become more challenging in recent months. Nevertheless, HBM Healthcare Investments continues to rate the growth prospects for the healthcare sector and the factors central to its investment strategy as good.

The carefully compiled portfolio remains attractive in its composition and was supplemented with some interesting new investments in the reporting year. Many private companies are operationally successful and hold considerable added value potential. After the significant share price decline of the past twelve months, the segment of small and mid cap public companies is valued reasonably and will benefit from a market recovery. In addition, the progress of clinical development at these companies in the form of positive study results or market approvals should once again attract investor attention. Finally, Cathay Biotech, our largest holding, maintains its excellent position as one of the leading companies in the promising growth area of synthetic biology.

The current market environment offers increasingly interesting investment opportunities in the area of public companies, which we intend to exploit selectively. In addition, it can be assumed that strategic buyers will also follow this market development closely and – as demonstrated by GSK’s recent acquisition of Sierra Oncology – this will again lead to an increase in acquisitions and strategic partnerships.

In the appendix to this media release you will find the balance sheet and income statement in accordance with IFRS, the portfolio details and an overview of the consolidated financials including a translation to the IFRS Financial Statements. The detailed Annual Report will be published on 18 May 2022 and will be available on the Company's website from that date onwards.

Contact
For further information, please contact Dr Andreas Wicki on +41 41 710 75 77, or at andreas.wicki@hbmhealthcare.com.

Following the previous year's record result, HBM Healthcare Investments experienced a slight decline in value in the 2021/22 financial year ended on 31 March 2022. The net asset value (NAV) per share fell by 3.6 percent to CHF 285.53. The share price declined disproportionately by 13.2 percent to CHF 276.00.

The healthcare sector showed a mixed picture in terms of performance in the reporting year. While the MSCI World Health Care Index, which mainly tracks the large-cap companies from the pharmaceutical and medical technology sectors, rose by 13%, the market capitalisations of the biotech companies (Nasdaq Biotechnology Index -13% and SPDR S&P Biotech ETF -35%) fell, in some cases significantly.

Based on the NAV as at 31 March 2022, HBM Healthcare Investments expects an annual loss of around CHF 80 million (previous year: annual profit of CHF 756 million). For an investment company, the net result reflects the changes in value of the investments held.

With a well-balanced mix of private and listed companies and cash and cash equivalents of more than CHF 220 million, the portfolio remains attractively positioned for long-term value growth.

The present result is preliminary and unaudited based on the current status of the closing process. The final annual result will be published on Friday, 6 May 2022.

Contact
For further information, please contact Dr Andreas Wicki on +41 41 710 75 77, or at andreas.wicki@hbmhealthcare.com.

HBM Healthcare Investments generated a net profit of CHF 4 million in the reporting quarter ended 31 December 2021. For the first nine months of the 2021/2022 financial year, the net profit amounts to CHF 275 million. Although the biotech stock market in general declined, several portfolio companies announced operational successes, which resulted in higher valuations. With cash and cash equivalents of CHF 226 million, HBM Healthcare is well positioned for a market downturn and may benefit from buying opportunities at low valuations. Eight new investments in private companies complement the portfolio. 

HBM Healthcare Investments closed the third quarter of the 2021/2022 financial year with a small net profit of CHF 4 million amid a bearish market environment, at least in the biotech sector. The net asset value per share (NAV) increased by 0.2 percent during the same period, while the share price declined by 0.3 percent.

This results in a profit of CHF 275 million for the first nine months of the financial year and an increase in the NAV of 12.8 percent. 

Operational success as a basis for high valuations

The two private companies Swixx BioPharma and ConnectRN concluded financing rounds with new investors. Against the backdrop of the companies’ very successful operational development, these led to an increase in the valuation of the two investments totalling CHF 72 million.

Swixx BioPharma announced the signing of an agreement for the exclusive distribution of Sanofi's prescription drugs in Eastern Europe. The company expects this to double its 2022 sales to over EUR 600 million and plans to expand its team to around 900 employees.

ConnectRN, the digital placement platform for nursing staff in the United States, increased its 2021 revenue organically by more than 240 percent and expects further growth in the current year.

Furthermore, BioShin, a Chinese subsidiary of listed Biohaven Pharmaceuticals, will be fully acquired by Biohaven as part of Biohaven’s announced strategic partnership with Pfizer. Upon completion of the transaction, HBM Healthcare Investments will receive Biohaven shares equivalent to approximately USD 23 million in exchange for its USD 8 million investment in BioShin.

Valo Health announced that the merger agreement signed in June with Khosla Ventures Acquisition Co. has been terminated by mutual consent. Accordingly, the value of the investment was reduced back to the original cost value.

Cathay Biotech defies declining stock market

Among the public companies originating from the private companies’ portfolio, the pleasing share price performance of the Chinese company Cathay Biotech stood out in particular. The market capitalisation of this leader in synthetic biology rose by almost a fifth to over CHF 11 billion in the quarter under review, thereby compensating for the considerable market-related decline in the share prices of the other public holdings originating from the portfolio of private companies.

A detailed analyst report highlighted the potential of Cathay Biotech’s technology to use straw instead of corn starch as the renewable resource to manufacture its products in the future. Thereby, Cathay wants to avoid bottlenecks in the procurement of raw materials which are expected for the growing biomass industry. According to OECD estimates, at least 20 percent of the world’s chemical products will be replaced by biomass products by 2030. This corresponds to a market volume of USD 800 billion, and synthetic biology is said to play a central role in this replacement process.

With a share of 27 percent, Cathay Biotech is by far the largest holding in HBM Healthcare’s portfolio. As Cathay’s shares will remain subject to a lock-up period for the next 20 months, they are valued at a discount of 9.75 percent to the current market price, in the amount of CHF 76 million. The percentage of the lock-up discount will be reduced on a straight-line basis over the remaining term of the lock-up period.

Among the other public companies, Argenx and ChemoCentryx each benefitted from an FDA market approval. Argenx was granted approval for VYVGARTTM for the treatment of the chronic neuromuscular autoimmune disease myasthenia gravis, characterised by weakness and rapid fatigability of the skeletal muscles, and ChemoCentryx for TAVNEOSTM for the treatment of ANCA-associated vasculitis, an inflammatory disease of the blood vessels. Furthermore, additional value was added by the acquisition of Dicerna by Novo Nordisk.

Eight new investments in private companies

During the quarter under review, new investments totalling CHF 52 million were made in eight private companies. A further CHF 18 million was invested in current portfolio companies.

Among the new investments, the US company Upstream Bio received an investment commitment of USD 20 million, of which a first tranche of USD 11 million was paid in. Upstream Bio is developing an antibody therapy for the treatment of severe asthma.

In addition, US company Acrivon Therapeutics received USD 8 million for the development of personalised oncology treatments; Mahzi Therapeutics, United States, USD 8 million, of which USD 4 million paid in, for the development of a gene therapy for the treatment of rare diseases; Ignis Therapeutics, China, USD 7 million, of which USD 4.2 million paid in, for the development of licensed therapies for the treatment of diseases of the central nervous system in China. Japanese company Aculys Pharma received USD 5 million for the development of Pitolisant for the treatment of narcolepsy for the Japanese market, and the Italian online pharmacy 1000Farmacie, Italy, EUR 4 million. Finally, the two US companies Freenome Holdings (blood test for the early detection of cancer) and Antiva Biosciences (topical therapies for the treatment of precancerous lesions caused by HPV) each received USD 3 million, of which in the case of Antiva USD 1.5 million paid in.

Outlook

The equity markets in the biotech sector continued to trend sharply downwards on the first trading days of the new year. The acquisition of the portfolio company Zogenix by UCB, announced this week, provides some confidence in addition to a cash inflow. With substantial cash and cash equivalents totalling CHF 226 million, HBM Healthcare Investments is well positioned for this market phase. As most portfolio companies are performing well operationally, as expected, there is no need to reduce exposure at unattractive prices.

Due to the large percentage share of Cathay Biotech in the portfolio, its share price performance will continue to have significant impact on the results of HBM Healthcare Investments. Cathay is profitable, operationally very successful and unswerving in implementing its long-term growth plans.

In the private companies’ portfolio, various companies are about to close financing rounds, which should have a positive impact on the book value of the corresponding investments.

The portfolio thus remains attractive and well balanced in its composition with private and public companies.

The Quarterly Report December 2021 is available on the Company’s website www.hbmhealthcare.com/en/investors/financial-reports.

Contact
For further information, please contact Dr Andreas Wicki on +41 41 710 75 77, or at andreas.wicki@hbmhealthcare.com.

HBM Healthcare Investments closes the 2021 calendar year with another strong performance. The net asset value per share (NAV) rose by 19 percent to CHF 336.27 as at 31 December 2021, while the share price increased by 15.2 percent to close at CHF 339.00 at a small premium to NAV.

The healthcare sector showed a mixed picture in terms of performance. While the large-cap pharmaceutical companies (MSCI World Healthcare Index +23.9 percent, measured in Swiss francs) rose strongly in value, biotech companies (Nasdaq Biotechnology Index +3.0% and SPDR S&P Biotech ETF -18.1%) took a breather after their good run in recent years.

HBM Healthcare Investments, which is mainly invested in the segment of small and medium sized biotech companies, was able to more than compensate for the significant share price declines in this segment thanks to the strong share price performance of its largest listed investment, the Chinese Cathay Biotech (share price +118%), value contributions from the portfolio of private companies (financing rounds and IPOs), and partial profit realisations in the portfolio of listed companies.

Expected net profit of around CHF 275 million for the first 9 months of the financial year 2021/2022

Also for the first 9 months of the financial year 2021/2022 ending on 31 March, there was an increase in value of 12.8 percent in the NAV and of 5.7 percent in the share price (MSCI World Health Care Index +15.4%, NBI -2.7%, XBI -20.2%). Based on the reported NAV as at 31 December 2021, HBM Healthcare Investments expects a net profit of approximately CHF 275 million for this period (previous year net profit of CHF 644.6 million). In the case of an investment company, the net result reflects the changes in the value of the investments held.

The present figures are preliminary based on the current status of the financial closing process. The final result will be published with the December 2021 quarterly report on 21 January 2022.

Contact
For further information, please contact Dr Andreas Wicki on +41 41 710 75 77, or at andreas.wicki@hbmhealthcare.com.

HBM Healthcare Investments generated for the first half of the financial year from 1 April to 30 September 2021, a profit of CHF 271 million while NAV increased by 12.6 percent to CHF 335.64. The share price rose 6.0 percent to CHF 340.00.

The main drivers were positive changes in the value of private companies and of public companies originating from the portfolio of private companies, respectively. The investment in Cathay Biotech, which is subject to a lock-up period, increased to approximately 23 percent of total assets. Two new investments in private companies complement the portfolio. After profit-taking in public companies, cash and cash equivalents amount to around 10 percent of assets, thus offering scope for new investments and buying opportunities.

Cathay Biotech achieved a particularly pleasing performance. The share price has doubled since the end of March, bringing the shareholding to around 23 percent of total assets. The company published convincing half-year figures and in mid-year announced the start of production of 1,5-diaminopentane and polyamides at its new plant in Wusu based on the biotechnological manufacturing process developed by Cathay using renewable resources. In addition, the company was included in the index of the fifty most important companies on the STAR Market of the Shanghai Stock Exchange. HBM Healthcare’s investment in Cathay will remain subject to a lock-up period for a further two years, which is why the shareholding is valued at a discount of 11.3 percent to the market price. This lock-up discount will be reduced on a straight-line basis over the remaining term of the lock-up period.

Fund investments increased in value by CHF 17 million and also resulted in a net cash inflow of CHF 12 million: Repayments reached CHF 27 million while capital calls amounted to CHF 15 million.

Investments in various public companies resulted in a small profit of CHF 4 million amid a mixed market environment where the large biotech companies clearly outperformed the small- and mid-cap companies (NASDAQ Biotechnology Index + 7.1 percent vs. SPDR S&P Biotech ETF – 8.3 percent).

Hedging transactions contributed a total profit of over CHF 27 million (CHF 21 million from foreign currency transactions and CHF 6 million from general market hedging). Other assets reduced the result by CHF 5 million. The forward contracts that had expired during the last reporting quarter were only partially renewed, further reducing the level of currency hedging of the US dollar against the Swiss franc to just under 25 percent of the USD exposure.

Two new investments in private companies

The acquisitions of Alydia Health by Organon and of a majority stake in 1mg by Tata Digital, for which the agreements had already been signed in March 2021, were completed in the past quarter. This resulted in a cash inflow of CHF 20 million. These proceeds were invested in two new private companies:

• An investment commitment of USD 10 million (first tranche of USD 5 million paid in) was made to the US company Odyssey Therapeutics. Odyssey is developing a platform of novel antibodies (V-bodies) for the treatment of cancer and autoimmune diseases.

• A further USD 10 million (first tranche of USD 2 million paid in) was awarded to the Chinese company C Ray Therapeutics. The company, which was founded last year, is aiming for a leading position in the Chinese healthcare market in the field of nuclear medicine.

In addition, around CHF 11 million were invested in existing portfolio companies as follow-on financing.

Balanced portfolio

The past quarter was used for further profit-taking in public companies. As a result, cash and cash equivalents increased by CHF 51 million to CHF 245 million or around 10 percent of total assets at the end of September. This takes into account the par value repayment of CHF 87 million at the beginning of September. The closing of the acquisition of Trillium by Pfizer, expected in the coming weeks, should increase cash and cash equivalents by a further CHF 30 million.

HBM Healthcare Investments thus has sufficient scope to make further new investments in private companies and to seize opportunities to buy public companies in the event of a correction in valuations on the financial markets.

Of total assets, 61 percent are invested in public companies (of which Cathay Biotech accounts for more than one third), 19 percent in private companies, 9 percent in funds and 1 percent in other assets.

Positive outlook

Various private portfolio companies are operationally very successful and hold considerable value potential. For example, Swixx BioPharma, the leading distribution partner for biotech and pharmaceutical companies in Central and Eastern Europe, expects continued strong revenue and profit growth in the coming years. ConnectRN, a digital placement platform for healthcare personnel in the United States, is benefiting from the prevailing shortage of skilled workers, expanding rapidly and posting high growth rates. Fangzhou, operator of the Chinese healthcare service platform Jianke.com, is also a winner of the digital transformation.

In the portfolio of public companies, important approval decisions by the US Food and Drug Administration (FDA) are due in the coming months for Argenx and Hutchmed China. In addition, a number of other companies are awaiting relevant trial results for various oncology programs, including the three formerly privately held companies BioAtla, ALX Oncology and SpringWorks. For companies such as Cathay Biotech, Harmony Biosciences, Biohaven and Pacira, however, investors are likely to focus primarily on further sales and profit developments.

The portfolio thus remains well balanced in all relevant dimensions (private and public companies, geographic regions, stages of development, areas of activity and therapy, sales vs. clinical development) and continues to be positioned for further value growth.

The Half-year Report September 2020 is available on the Company's website https://www.hbmhealthcare.com/en/investors/financial-reports.

Contact
For further information, please contact Dr Andreas Wicki on +41 41 710 75 77, or at andreas.wicki@hbmhealthcare.com.

HBM Healthcare Investments' net assets continued to grow in the first half of the 2021/2022 financial year, thanks to the excellent performance of the listed investment in Cathay Biotech in China and contributions from the private companies portfolio. The net asset value per share (NAV) increased by 12.6 percent to CHF 335.64 as at 30 September 2021, while the share price rose by 6 percent.

Based on these key figures, HBM Healthcare Investments expects a net profit of around CHF 270 million for the first half of the financial year. In the same period of the previous year, a net profit of CHF 441 million was reported.

These figures represent the preliminary result based on the current status of the closing process. The definitive result will be published with the half-year report on 22 October 2021.

Contact
For further information, please contact Dr Andreas Wicki on +41 41 710 75 77, or at andreas.wicki@hbmhealthcare.com.

HBM Healthcare Investments closed the first quarter of the 2021/2022 financial year with a profit of CHF 136 million. The increase in the net asset value per share (NAV) amounted to 6.3 percent. The share price rose by 6.9 percent. The investment approach with holdings in private and public companies around the globe proved itself once again.

The portfolio of private companies (including public companies originating from the private portfolio) resulted in an increase in value of CHF 90 million. A number of transactions contributed to this. Three companies successfully went public: Werewolf Therapeutics, Ambrx Biopharma and Monte Rosa Therapeutics. In addition, Valo Health signed a merger agreement with listed company Khosla Ventures Acquisition Co. Swixx BioPharma, NiKang Therapeutics and ConnectRN completed financing rounds with external investors at higher valuations, and Tata Digital acquired a majority stake in leading Indian healthcare platform 1mg. The public companies originating from the private portfolio also increased in value in aggregate. The share price of Cathay Biotech in China rose by around 30 percent, offsetting the decline in the majority of the other holdings.

The value of fund investments decreased by CHF 9 million in the quarter under review. This was mainly due to the decline in the share price of Seer Inc., the largest investment in the HBM Genomics Fund.

The portfolio of other public companies contributed CHF 45 million to profit. This came mainly from the investments in the fast-growing Indian biopharmaceutical company Laurus Labs, the US company Biohaven Pharmaceuticals and the new investment in Hutchmed China. In addition to its listing on Nasdaq, Hutchmed China completed an IPO on the Hong Kong Stock Exchange during the quarter under review, with HBM Healthcare Investments participating as a cornerstone investor with USD 20 million.

The market and currency hedges resulted in profit contributions of CHF 7 million and CHF 24 million, respectively. The market hedge was fully unwound in the quarter under review and the USD currency hedge was reduced to around 35 percent of the exposure. Other assets reduced the investment result by CHF 10 million, mainly due to currency fluctuations.

Investments in private companies

During the quarter under review, HBM Healthcare invested CHF 25 million as follow-on financing in existing portfolio companies and made a new investment of CHF 17 million in the privately held Swiss company Numab Therapeutics. Numab is developing a new generation of cancer immunotherapies. The most advanced compound (NM21-1480) is currently being tested in a phase I/II clinical trial in patients with solid tumours. Numab is developing this therapy together with its Chinese partner CStone Pharmaceuticals.

Outlook

The portfolio continues to be well diversified and finely balanced in terms of composition (private and public companies, geographical regions, stages of development and areas of activity or therapy). This reduces dependence on the development of individual sectors or regions within the healthcare market, which has a stabilising effect and should continue to have a positive impact on performance.

Essentially, nothing has changed compared to the outlook outlined in the annual report. The fundamental factors continue to speak for a successful development of the sector as a whole and for the portfolio companies individually. In this respect, the Company expects further value-enhancing events from its portfolio due to IPOs, financing rounds, company takeovers or clinical trial results.

The Quarterly Report June 2020 is available on the Company’s website www.hbmhealthcare.com/en/investors/financial-reports.

Contact
For further information, please contact Dr Andreas Wicki on +41 41 710 75 77, or at andreas.wicki@hbmhealthcare.com.

Monte Rosa Therapeutics (Nasdaq: GLUE), a private company in the portfolio of HBM Healthcare Investments, reached an important milestone in the company's development with yesterday's successful IPO on Nasdaq. By issuing 11.7 million shares at a price of USD 19.00 each, the company raised USD 222 million in new capital. On yesterday's first trading day, the share price rose to USD 21.18 (+11.5%).

HBM Healthcare Investments has invested USD 14 million in Monte Rosa in two financing rounds since September 2020 (investment previously valued at USD 18.8 million) and increased its stake by a further USD 7.6 million in the IPO. Following the IPO, HBM Healthcare Investments holds 2.2 million shares with a total value of USD 46.6 million.

Monte Rosa Therapeutics is developing a portfolio of novel small molecule precision medicines that employ the body’s natural mechanisms to selectively degrade therapeutically relevant proteins. The company has developed a proprietary protein degradation platform, called QuEEN™, that enables it to rapidly identify protein targets and molecular glue degrader (MGD) product candidates that are designed to eliminate therapeutically relevant proteins in a highly selective manner. The company’s drug discovery platform combines diverse and proprietary chemical libraries of small molecule protein degraders with in-house proteomics, structural biology, machine learning-based target selection and computational chemistry capabilities to predict and obtain protein degradation profiles. Monte Rosa is headquartered in Boston, USA,  with research operations in both Boston and Basel, Switzerland.

Contact
For further information, please contact Dr Andreas Wicki on +41 41 710 75 77, or at andreas.wicki@hbmhealthcare.com.

About HBM Healthcare Investments

HBM Healthcare Investments invests in the healthcare sector. The Company holds and manages an international portfolio of promising companies in the human medicine, biotechnology, medical technology and diagnostics sectors and related areas. 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 in their strategic direction. This is what makes HBM Healthcare Investments an interesting alternative to investments in big pharma and biotechnology companies. HBM Healthcare Investments has an international shareholder base and is listed on SIX Swiss Exchange (ticker: HBMN).

Disclaimer

The publication is for information purposes only and does not constitute an offer to sell or a solicitation to buy or subscribe for securities. This news release does not constitute a prospectus within the meaning of Art. 35ff FinSA, or securities prospectus in the sense of the German securities prospectus law. This news release and the information contained therein is not intended for distribution to the United States of America (USA) or within the USA and may not be distributed or forwarded to US persons (including legal persons) or to publications with a general distribution in the USA. This news release is not an offer or solicitation to buy securities in the United States. HBM Healthcare Investments AG's securities were not issued in accordance with the U.S. U.S. securities laws, and may not be sold, offered for sale, or delivered in the U.S. or to U.S. individuals without prior registration or without a registration exemption. Some information quoted was obtained from external sources HBM considers to be reliable. HBM cannot guarantee the adequacy, accuracy, timeliness or completeness of or be held responsible or liable for errors of fact regarding such data and information obtained from third parties, and this data may change with market conditions.

Ambrx Biopharma (NYSE: AMAM), a private company in the portfolio of HBM Healthcare Investments, completed its initial public offering on the New York Stock Exchange last Friday. The company raised USD 126 million in new capital through the issuance of 7 million American Depository Shares (ADS) at a price of USD 18.00 per ADS. On the first trading day, the shares closed slightly lower at USD 17.05 (-5.3%).

HBM Healthcare Investments invested USD 20 million in Ambrx in November 2020 and increased its stake by a further USD 14.4 million in the IPO. After the IPO, HBM Healthcare Investments holds 2.54 million ADS with a total value of USD 43.25 million.

Ambrx Biopharma is developing a novel class of engineered precision biologics using a proprietary genetic code technology platform that allows it to incorporate, in a site-specific manner, synthetic amino acids into proteins within living cells, which the company believes could offer safety and efficacy benefits over conventional conjugation approaches which use natural amino acids. The company's lead candidate, ARX788, is an antibody-drug conjugate currently being studied in breast, gastric and other solid tumors. The most advanced trial of ARX788 is being conducted by Ambrx Biopharma's partner, NovoCodex Biopharmaceuticals, in China in patients with HER2-positive metastatic breast cancer. In addition, the company has clinical collaborations with Bristol Myers Squibb, Astellas, BeiGene, Sino Biopharma, Elanco and NovoCodex, for drug candidates generated using Ambrx technology.

Contact
For further information, please contact Dr Andreas Wicki on +41 41 710 75 77, or at andreas.wicki@hbmhealthcare.com.

About HBM Healthcare Investments

HBM Healthcare Investments invests in the healthcare sector. The Company holds and manages an international portfolio of promising companies in the human medicine, biotechnology, medical technology and diagnostics sectors and related areas. 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 in their strategic direction. This is what makes HBM Healthcare Investments an interesting alternative to investments in big pharma and biotechnology companies. HBM Healthcare Investments has an international shareholder base and is listed on SIX Swiss Exchange (ticker: HBMN).

Disclaimer

The publication is for information purposes only and does not constitute an offer to sell or a solicitation to buy or subscribe for securities. This news release does not constitute a prospectus within the meaning of Art. 35ff FinSA, or securities prospectus in the sense of the German securities prospectus law. This news release and the information contained therein is not intended for distribution to the United States of America (USA) or within the USA and may not be distributed or forwarded to US persons (including legal persons) or to publications with a general distribution in the USA. This news release is not an offer or solicitation to buy securities in the United States. HBM Healthcare Investments AG's securities were not issued in accordance with the U.S. U.S. securities laws, and may not be sold, offered for sale, or delivered in the U.S. or to U.S. individuals without prior registration or without a registration exemption. Some information quoted was obtained from external sources HBM considers to be reliable. HBM cannot guarantee the adequacy, accuracy, timeliness or completeness of or be held responsible or liable for errors of fact regarding such data and information obtained from third parties, and this data may change with market conditions.

At today’s ordinary Shareholders’ Meeting of HBM Healthcare Investments Ltd the shareholders approved all proposals submitted by the Board of Directors. Based on the Federal Council's COVID 19 Ordinance 3, the meeting was held without the personal participation of shareholders. The independent proxy holder represented 38.50% of the outstanding shares.

The Chairman of the Board of Directors Hans Peter Hasler and the existing board members Mario G. Giuliani, Dr. Rudolf Lanz and Dr. Stella X. Xu were re-elected for a further one year term. The shareholders also confirmed the election of Dr. Elaine V. Jones as new member of the Board of Directors to the close of the 2022 Ordinary Shareholders' Meeting. In addition to the existing member Mario G. Giuliani, Dr. E. Jones and Dr. S. Xu were elected to the Compensation Committee. The shareholders also approved the proposed compensation to the Board of Directors and to the Management.

Further, the Shareholders’ Meeting voted for a partial payback of nominal value of CHF 12.50 per share. The cash payment will be made on 9 September 2021. Registered shares entitled to receive the cash distribution will be traded for the last time on 6 September 2021 (as of 7 September 2021 trading will occur without the cash distribution entitlement, ex-date).

Contact
For further information, please contact Dr Andreas Wicki on +41 41 710 75 77, or at andreas.wicki@hbmhealthcare.com.

About HBM Healthcare Investments

HBM Healthcare Investments invests in the healthcare sector. The Company holds and manages an international portfolio of promising companies in the human medicine, biotechnology, medical technology and diagnostics sectors and related areas. 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 in their strategic direction. This is what makes HBM Healthcare Investments an interesting alternative to investments in big pharma and biotechnology companies. HBM Healthcare Investments has an international shareholder base and is listed on SIX Swiss Exchange (ticker: HBMN).

Disclaimer

The publication is for information purposes only and does not constitute an offer to sell or a solicitation to buy or subscribe for securities. This news release does not constitute a prospectus within the meaning of Art. 35ff FinSA, or securities prospectus in the sense of the German securities prospectus law. This news release and the information contained therein is not intended for distribution to the United States of America (USA) or within the USA and may not be distributed or forwarded to US persons (including legal persons) or to publications with a general distribution in the USA. This news release is not an offer or solicitation to buy securities in the United States. HBM Healthcare Investments AG's securities were not issued in accordance with the U.S. U.S. securities laws, and may not be sold, offered for sale, or delivered in the U.S. or to U.S. individuals without prior registration or without a registration exemption. Some information quoted was obtained from external sources HBM considers to be reliable. HBM cannot guarantee the adequacy, accuracy, timeliness or completeness of or be held responsible or liable for errors of fact regarding such data and information obtained from third parties, and this data may change with market conditions.

HBM Healthcare Investments AG successfully completed the placement of the bond early, with Helvetische Bank AG and Raiffeisen Schweiz Cooperative acting as Joint-Lead Managers. Due to the strong demand, the coupon was fixed at the lower end of the indicated coupon range at 1⅛% and HBM Healthcare Investments AG increased the issue amount and exercised the option of reopening to the maximum of CHF 100 million. The subscription period ended prematurely today at 4.00pm.

„We are delighted with the extremely positive response to our bond on the capital market“, says Erwin Troxler, CFO of HBM Healthcare Investments AG.

The provisional admission to trading on SIX Swiss Exchange is expected to take place on 9 July 2021 and the settlement on 12 July 2021.

Contact

For further information, please contact Erwin Troxler, tel.: +41 41 710 75 77, 
erwin.troxler@hbmhealthcare.com.

About HBM Healthcare Investments

HBM Healthcare Investments invests in the healthcare sector. The Company holds and manages an international portfolio of promising companies in the human medicine, biotechnology, medical technology and diagnostics sectors and related areas. 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 in their strategic direction. This is what makes HBM Healthcare Investments an interesting alternative to investments in big pharma and biotechnology companies. HBM Healthcare Investments has an international shareholder base and is listed on SIX Swiss Exchange (ticker: HBMN).

Disclaimer

The publication is for information purposes only and does not constitute an offer to sell or a solicitation to buy or subscribe for bonds or any other securities of HBM Healthcare Investments Ltd. This news release does not constitute a prospectus within the meaning of the Swiss Financial Services Act («FinSA») and implementing provisions under the Swiss Financial Services Ordinance («FinSO») nor a listing prospectus in the sense of the Listing Rules of SIX Swiss Exchange Ltd or a prospectus pursuant to any other legislation or regulation. A decision to purchase or subscribe for bonds must be made solely on the basis of the relevant prospectus. The preliminary prospectus and final prospectus both issued in German relating to the bonds (which are expected to be available on 15 June 2021 and 18 June 2021, respectively) may be ordered free of charge by e-mail from Helvetische Bank AG at prospectus@helvetischebank.ch or by calling +41 (0)44 204 56 19. 

This news release does not constitute a prospectus or a supplementary prospectus pursuant to the Regulation (EU) 2017/1129 of the European Parliament and of the Council of 14 June 2017 (the «EU Prospectus Regulation») or the EU Prospectus Regulation as it forms part of domestic law by virtue of the European Union (Withdrawal) Act 2018 (the «UK Prospectus Regulation»). This news release is only addressed to, and is only directed at, qualified investors in any member state of the European Economic Area within the meaning of the EU Prospectus Regulation. The bonds are not intended to be offered, sold or otherwise made available to and should not be offered, sold or otherwise made available to any retail investor in the European Economic Area.

This news release is directed only at persons who are qualified investors within the meaning of the UK Prospectus Regulation and who (i) have professional experience in matters relating to investments falling within Article 19 of the Financial Services and Markets Act 2000 (Financial Promotion) Order 2005 (as amended) or (ii) are persons falling within Article 49 (2)(a) to (d) (high net worth companies, unincorporated associations, etc.) of the Financial Services and Markets Act 2000 (Financial Promotion) Order 2005 (as amended) or to whom it may otherwise lawfully be communicated (all such persons together being referred to as relevant persons). The bonds are not intended to be offered, sold or otherwise made available to and should not be offered, sold or otherwise made available to any retail investor in the United Kingdom. This news release is only directed at relevant persons and must not be acted on or relied on by persons who are not relevant persons. Any investment or investment activity to which this communication relates is available only to relevant persons and will be engaged in only with relevant persons.

NEITHER THIS DOCUMENT NOR ANY PART OR COPY OF IT NOR THE INFORMATION CONTAINED IN IT AND ANY RELATED MATERIALS MAY BE TAKEN OR TRANSMITTED INTO THE UNITED STATES OF AMERICA, AUSTRALIA, CANADA, JAPAN OR TO ANY RETAIL INVESTOR IN THE EEA OR THE UNITED KINGDOM OR DISTRIBUTED OR REDISTRIBUTED, DIRECTLY OR INDIRECTLY, IN THE UNITED STATES OF AMERICA, AUSTRALIA, CANADA, JAPAN, TO ANY RETAIL INVESTOR IN THE EEA OR THE UNITED KINGDOM OR TO ANY RESIDENT THEREOF.This news release is not for distribution in, nor does it constitute an offer of securities in the United States. Neither this news release nor any copy of it may be taken or transmitted into the United States, its territories or possessions, or distributed, directly or indirectly, in the United States, its territories or possessions or to any US person as defined in Regulation S («Regulation S») under the US Securities Act 1933, as amended (the «Securities Act»). Any failure to comply with this restriction may constitute a violation of United States securities law. Accordingly, each person viewing this document will be deemed to have represented that it is not a US person within the meaning of Regulation S of the Securities Act. Securities may not be offered or sold in the United States absent registration or an exemption from registration. HBM Healthcare Investments Ltd has not registered and does not intend to register any securities that may be described herein in the United States or to conduct a public offering of any securities in the United States.

This document is not an offer of securities for sale or purchase in the United States. The securities to which this document relates have not been and will not be registered under the Securities Act, and may not be offered or sold in the United States absent registration or an exemption from registration under the Securities Act. There will not be a public offering of securities in the United States.

This document has been prepared by HBM Healthcare Investments Ltd and may not be copied, amended, offered, sold or otherwise given to third parties by the recipient without the consent of HBM Healthcare Investments Ltd. The German version of the document is applicable and binding in any event. Versions of the document in other languages are for information purposes only. Due care has been taken to ensure that the facts set out herein are accurate and that all opinions expressed herein are fair and reasonable. Some information quoted was obtained from external sources HBM Healthcare Investments Ltd considers to be reliable.HBM Healthcare Investments Ltd cannot guarantee the adequacy, accuracy, timeliness or completeness of or be held responsible or liable for errors of fact regarding such data and information obtained from third parties, and this data may change with market conditions. The facts and information set out in this document are as current as possible but may change in the future. Both HBM Healthcare Investments Ltd as such and its directors, officers, employees and advisors or any other person disclaim any express or implied liability or warranty as to the accuracy or completeness of the information contained in this document.

This document may contain projections or other forward-looking statements relating to HBM Healthcare Investments Ltd that involve inherent risks and uncertainties, both general and specific, and there is a risk that the projections, forecasts, plans and other explicit or implicit contents of forward-looking statements may prove to be inaccurate. All forward-looking statements are based on information available to HBM Healthcare Investments Ltd on the date of their publication; HBM Healthcare Investments Ltd is only obliged to update these statements if required to do so by applicable laws.
 

HBM Healthcare Investments Ltd announces the issue of a bond with a 6-year term and a nominal amount of CHF 60 million with the possibility to increase the issue amount up to a maximum of CHF 75 million. The proceeds will be used to refinance the bond maturing 10 July 2021 in the amount of CHF 50 million and for general funding purposes.

Helvetische Bank AG and Raiffeisen Switzerland Cooperative as Joint Lead Managers and Reichmuth & Co as Co-Lead Manager have firmly underwritten the bond. The terms are as follows:

The final terms (issue amount and coupon) will be fixed and communicated based on demand in the book building and on general market conditions no later than 18 June 2021 after close of trading. The book building can be terminated by the Joint Lead Managers at any time.

HBM Healthcare Investments and its Investment Advisor HBM Partners have agreed, that no management fee shall be due on the financial debt raised through the issue of this bond.

Contact
For further information, please contact Dr Andreas Wicki on +41 41 710 75 77, or at andreas.wicki@hbmhealthcare.com.

About HBM Healthcare Investments

HBM Healthcare Investments invests in the healthcare sector. The Company holds and manages an international portfolio of promising companies in the human medicine, biotechnology, medical technology and diagnostics sectors and related areas. 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 in their strategic direction. This is what makes HBM Healthcare Investments an interesting alternative to investments in big pharma and biotechnology companies. HBM Healthcare Investments has an international shareholder base and is listed on SIX Swiss Exchange (ticker: HBMN).

Disclaimer

The publication is for information purposes only and does not constitute an offer to sell or a solicitation to buy or subscribe for bonds or any other securities of HBM Healthcare Investments Ltd. This news release does not constitute a prospectus within the meaning of the Swiss Financial Services Act («FinSA») and implementing provisions under the Swiss Financial Services Ordinance («FinSO») nor a listing prospectus in the sense of the Listing Rules of SIX Swiss Exchange Ltd or a prospectus pursuant to any other legislation or regulation. A decision to purchase or subscribe for bonds must be made solely on the basis of the relevant prospectus. The preliminary prospectus and final prospectus both issued in German relating to the bonds (which are expected to be available on 15 June 2021 and 18 June 2021, respectively) may be ordered free of charge by e-mail from Helvetische Bank AG at prospectus@helvetischebank.ch or by calling +41 (0)44 204 56 19. 

This news release does not constitute a prospectus or a supplementary prospectus pursuant to the Regulation (EU) 2017/1129 of the European Parliament and of the Council of 14 June 2017 (the «EU Prospectus Regulation») or the EU Prospectus Regulation as it forms part of domestic law by virtue of the European Union (Withdrawal) Act 2018 (the «UK Prospectus Regulation»). This news release is only addressed to, and is only directed at, qualified investors in any member state of the European Economic Area within the meaning of the EU Prospectus Regulation. The bonds are not intended to be offered, sold or otherwise made available to and should not be offered, sold or otherwise made available to any retail investor in the European Economic Area.

This news release is directed only at persons who are qualified investors within the meaning of the UK Prospectus Regulation and who (i) have professional experience in matters relating to investments falling within Article 19 of the Financial Services and Markets Act 2000 (Financial Promotion) Order 2005 (as amended) or (ii) are persons falling within Article 49 (2)(a) to (d) (high net worth companies, unincorporated associations, etc.) of the Financial Services and Markets Act 2000 (Financial Promotion) Order 2005 (as amended) or to whom it may otherwise lawfully be communicated (all such persons together being referred to as relevant persons). The bonds are not intended to be offered, sold or otherwise made available to and should not be offered, sold or otherwise made available to any retail investor in the United Kingdom. This news release is only directed at relevant persons and must not be acted on or relied on by persons who are not relevant persons. Any investment or investment activity to which this communication relates is available only to relevant persons and will be engaged in only with relevant persons.

NEITHER THIS DOCUMENT NOR ANY PART OR COPY OF IT NOR THE INFORMATION CONTAINED IN IT AND ANY RELATED MATERIALS MAY BE TAKEN OR TRANSMITTED INTO THE UNITED STATES OF AMERICA, AUSTRALIA, CANADA, JAPAN OR TO ANY RETAIL INVESTOR IN THE EEA OR THE UNITED KINGDOM OR DISTRIBUTED OR REDISTRIBUTED, DIRECTLY OR INDIRECTLY, IN THE UNITED STATES OF AMERICA, AUSTRALIA, CANADA, JAPAN, TO ANY RETAIL INVESTOR IN THE EEA OR THE UNITED KINGDOM OR TO ANY RESIDENT THEREOF.This news release is not for distribution in, nor does it constitute an offer of securities in the United States. Neither this news release nor any copy of it may be taken or transmitted into the United States, its territories or possessions, or distributed, directly or indirectly, in the United States, its territories or possessions or to any US person as defined in Regulation S («Regulation S») under the US Securities Act 1933, as amended (the «Securities Act»). Any failure to comply with this restriction may constitute a violation of United States securities law. Accordingly, each person viewing this document will be deemed to have represented that it is not a US person within the meaning of Regulation S of the Securities Act. Securities may not be offered or sold in the United States absent registration or an exemption from registration. HBM Healthcare Investments Ltd has not registered and does not intend to register any securities that may be described herein in the United States or to conduct a public offering of any securities in the United States.

This document is not an offer of securities for sale or purchase in the United States. The securities to which this document relates have not been and will not be registered under the Securities Act, and may not be offered or sold in the United States absent registration or an exemption from registration under the Securities Act. There will not be a public offering of securities in the United States.

This document has been prepared by HBM Healthcare Investments Ltd and may not be copied, amended, offered, sold or otherwise given to third parties by the recipient without the consent of HBM Healthcare Investments Ltd. The German version of the document is applicable and binding in any event. Versions of the document in other languages are for information purposes only. Due care has been taken to ensure that the facts set out herein are accurate and that all opinions expressed herein are fair and reasonable. Some information quoted was obtained from external sources HBM Healthcare Investments Ltd considers to be reliable.HBM Healthcare Investments Ltd cannot guarantee the adequacy, accuracy, timeliness or completeness of or be held responsible or liable for errors of fact regarding such data and information obtained from third parties, and this data may change with market conditions. The facts and information set out in this document are as current as possible but may change in the future. Both HBM Healthcare Investments Ltd as such and its directors, officers, employees and advisors or any other person disclaim any express or implied liability or warranty as to the accuracy or completeness of the information contained in this document.

This document may contain projections or other forward-looking statements relating to HBM Healthcare Investments Ltd that involve inherent risks and uncertainties, both general and specific, and there is a risk that the projections, forecasts, plans and other explicit or implicit contents of forward-looking statements may prove to be inaccurate. All forward-looking statements are based on information available to HBM Healthcare Investments Ltd on the date of their publication; HBM Healthcare Investments Ltd is only obliged to update these statements if required to do so by applicable laws.
 

HBM Healthcare Investments announced today, that Tata Digital, a fully-owned subsidiary of Tata Sons Private Limited, to acquire a majority stake of its privately held portfolio company 1mg.

HBM Healthcare Investment was one of the early backers of 1mg and invested in various financing rounds a total of CHF 17 million since May 2016. As part of the transaction with Tata Digital, which comprises a purchase of primary and secondary shares by Tata Digital, HBM Healthcare Investments to sell about one quarter of its shareholding and will continue to own a stake of about four percent in 1mg.

Founded in 2015, 1mg is a leading player in the eHealth space and enables easy & affordable access to a wide range of products like medicines, health & wellness products, diagnostics services & tele-consultation to customers. The company operates three state of the art diagnostics labs, has a supply chain covering over 20,000 pincodes across the country and through its subsidiaries is also engaged in the business of B2B distribution of medicines & other healthcare products.

Contact
For further information, please contact Dr Andreas Wicki on +41 41 710 75 77, or at andreas.wicki@hbmhealthcare.com.

About HBM Healthcare Investments

HBM Healthcare Investments invests in the healthcare sector. The Company holds and manages an international portfolio of promising companies in the human medicine, biotechnology, medical technology and diagnostics sectors and related areas. 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 in their strategic direction. This is what makes HBM Healthcare Investments an interesting alternative to investments in big pharma and biotechnology companies. HBM Healthcare Investments has an international shareholder base and is listed on SIX Swiss Exchange (ticker: HBMN).

Disclaimer

The publication is for information purposes only and does not constitute an offer to sell or a solicitation to buy or subscribe for securities. This news release does not constitute a prospectus within the meaning of Art. 35ff FinSA, or securities prospectus in the sense of the German securities prospectus law. This news release and the information contained therein is not intended for distribution to the United States of America (USA) or within the USA and may not be distributed or forwarded to US persons (including legal persons) or to publications with a general distribution in the USA. This news release is not an offer or solicitation to buy securities in the United States. HBM Healthcare Investments AG's securities were not issued in accordance with the U.S. U.S. securities laws, and may not be sold, offered for sale, or delivered in the U.S. or to U.S. individuals without prior registration or without a registration exemption. Some information quoted was obtained from external sources HBM considers to be reliable. HBM cannot guarantee the adequacy, accuracy, timeliness or completeness of or be held responsible or liable for errors of fact regarding such data and information obtained from third parties, and this data may change with market conditions.

HBM Healthcare Investments announced today that its portfolio company Valo Health (“Valo”), a technology company using human-centric data and artificial intelligence (AI) powered computation to transform the drug discovery and development process, and Khosla Ventures Acquisition Co. (“KVAC”, Nasdaq: KVSA), a special purpose acquisition company founded by affiliates of Khosla Ventures, have entered into a definitive merger agreement.

The transaction values the combined company at a pro forma market value of approximately USD 2.8 billion. The combined company is anticipated to have a pro forma cash balance of approximately USD 750 million before deducting anticipated transaction expenses, including existing Valo cash of approximately USD 250 million as of the date hereof, approximately USD 333 million of net cash held in KVAC’s trust, after deducting deferred underwriting commissions and assuming no redemptions, and a USD 168.5 million private investment in public equity (“PIPE”) priced at $10.00 per share., to which HBM Healthcare Investments committed USD 7 million.

HBM Healthcare Investment will revalue its existing investment of USD 15 million in Valo Health to reflect the agreed merger valuation. Trading of the KVAC shares may serve as additional valuation parameter. As a result, the net asset value per HBM-share is expected to increase by approximately 0.6 percent.

Closing of the transaction is anticipated to occur in the third quarter of 2021 and is subject to the approval of KVAC’s stockholders and the satisfaction or waiver of certain other customary closing conditions.

Valo is building a fully integrated, end-to-end approach to developing drugs from target discovery through approval using its Opal Computational Platform™. Built on large scale, highquality longitudinal and omics data, Valo’s Opal platform is designed to accelerate the rate of drug discovery compared to that of traditional operators, by allowing information and data to be shared in parallel at every stage of the drug discovery and development process, reducing the dependency on surrogates, and enabling insights across preclinical and clinical to drive towards therapeutic success. Valo has built an internal pipeline with two clinical-stage assets and 15 prioritized pre-clinical assets across cardiovascular, metabolic renal, neurodegeneration and oncology fields, as well as a deep pipeline of additional candidates. This transaction positions Valo to use the full power of technology to accelerate multiple programs through clinical trials.

Contact
For further information, please contact Dr Andreas Wicki on +41 41 710 75 77, or at andreas.wicki@hbmhealthcare.com.

About HBM Healthcare Investments

HBM Healthcare Investments invests in the healthcare sector. The Company holds and manages an international portfolio of promising companies in the human medicine, biotechnology, medical technology and diagnostics sectors and related areas. 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 in their strategic direction. This is what makes HBM Healthcare Investments an interesting alternative to investments in big pharma and biotechnology companies. HBM Healthcare Investments has an international shareholder base and is listed on SIX Swiss Exchange (ticker: HBMN).

Disclaimer

The publication is for information purposes only and does not constitute an offer to sell or a solicitation to buy or subscribe for securities. This news release does not constitute a prospectus within the meaning of Art. 35ff FinSA, or securities prospectus in the sense of the German securities prospectus law. This news release and the information contained therein is not intended for distribution to the United States of America (USA) or within the USA and may not be distributed or forwarded to US persons (including legal persons) or to publications with a general distribution in the USA. This news release is not an offer or solicitation to buy securities in the United States. HBM Healthcare Investments AG's securities were not issued in accordance with the U.S. U.S. securities laws, and may not be sold, offered for sale, or delivered in the U.S. or to U.S. individuals without prior registration or without a registration exemption. Some information quoted was obtained from external sources HBM considers to be reliable. HBM cannot guarantee the adequacy, accuracy, timeliness or completeness of or be held responsible or liable for errors of fact regarding such data and information obtained from third parties, and this data may change with market conditions.

Swixx BioPharma, a privately held company in the portfolio of HBM Healthcare Investments, today announced the signing of an investment agreement with Mérieux Equity Partners and its existing shareholders. Under the terms of the agreement, Mérieux Equity Partners will invest EUR 40 million for a minority stake in Swixx. HBM Healthcare Investments, who is an investor in Swixx since 2017, participates with EUR 5 million in the capital increase. The financing is subject to routine regulatory approvals and is expected to close in the next few months. The new capital will be used to leverage the steady growth that Swixx has enjoyed over the past few years. Mérieux Equity Partners and HBM Healthcare Investments have arrangements in place to further increase their investment in Swixx based upon the realisation of certain milestones.

In accordance with its valuation principles, HBM Healthcare Investments will revalue its investment in Swixx to reflect the equity valuation underlying to this capital increase. As a result, the net asset value per HBM-share increases by approximately 2 per cent.

Founded in Switzerland in 2014 by Petr Němec and Stuart Swanson, Swixx BioPharma is a specialized distributor of rare diseases, Rx and OTC medicinal products in Central & Eastern Europe, and acts as a true commercialization partner for pharma and biotech companies in this area. It aims to fully replace its partners capabilities in countries that multinationals choose not to enter, or to exit. With 550+ employees, Swixx BioPharma is the largest agent for ethical pharmaceuticals serving research-based biopharma in CEE and has experienced exceptional growth over the last few years, from less than EUR 50 million in revenues in 2017 to EUR 230 million in net sales in 2020. Its clients include international pharma and biotech companies such as Bristol-Myers Squibb, Amgen, Seattle Genetics, Y-mabs, Alexion, Jazz Pharmaceuticals, UPSA, Vifor Pharma, HRA Pharma and others.

Contact
For further information, please contact Dr Andreas Wicki on +41 41 710 75 77, or at andreas.wicki@hbmhealthcare.com.

About HBM Healthcare Investments

HBM Healthcare Investments invests in the healthcare sector. The Company holds and manages an international portfolio of promising companies in the human medicine, biotechnology, medical technology and diagnostics sectors and related areas. 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 in their strategic direction. This is what makes HBM Healthcare Investments an interesting alternative to investments in big pharma and biotechnology companies. HBM Healthcare Investments has an international shareholder base and is listed on SIX Swiss Exchange (ticker: HBMN).

Disclaimer

The publication is for information purposes only and does not constitute an offer to sell or a solicitation to buy or subscribe for securities. This news release does not constitute a prospectus within the meaning of Art. 35ff FinSA, or securities prospectus in the sense of the German securities prospectus law. This news release and the information contained therein is not intended for distribution to the United States of America (USA) or within the USA and may not be distributed or forwarded to US persons (including legal persons) or to publications with a general distribution in the USA. This news release is not an offer or solicitation to buy securities in the United States. HBM Healthcare Investments AG's securities were not issued in accordance with the U.S. U.S. securities laws, and may not be sold, offered for sale, or delivered in the U.S. or to U.S. individuals without prior registration or without a registration exemption. Some information quoted was obtained from external sources HBM considers to be reliable. HBM cannot guarantee the adequacy, accuracy, timeliness or completeness of or be held responsible or liable for errors of fact regarding such data and information obtained from third parties, and this data may change with market conditions.

The invitation to the 20th Ordinary Shareholders’ Meeting on 18 June 2021 has been sent to the shareholders of HBM Healthcare Investments today.

In accordance with the Ordinance 3 on Measures to Combat the Coronavirus (COVID-19), issued by the Swiss Federal Council, this year's Ordinary Shareholders Meeting is not held in the usual form, i.e. the shareholders are not permitted to participate in person. The Board of Directors has resolved in accordance with Art. 27 of the said Ordinance, that the shareholders may exercise their rights exclusively through the independent proxy by way of written or electronic instruction and power of attorney.
 

The detailed invitation with all motions of the Board of Directors is enclosed and displayed on the Company’s website www.hbmhealthcare.com/en/news.

Agenda for the 20th Ordinary Shareholders’ Meeting on 18 June 2021

1.    Statutory financial statements and group financial statements 2020/2021; reports of the
       auditors

2.    Discharge from liability of the members of the Board of Directors and Management

3.    Appropriation of results
       - Appropriation of disposable profit of CHF 283'034'893.

4.    Elections regarding the Board of Directors
       - Re-elections of the Chairman and of the Members of the Board of Directors
       - Election of Dr. Eilaine V. Jones as a member of the Board of Directors
       - Election of the Members of the Compensation Committee

5.    Compensation to the Board of Directors and to the Management

6.    Appointment of auditors

7.    Appointment of independent proxy-holder

8.    Reduction of share capital: partial payback of nominal value
       - Cash distribution to shareholders of CHF 12.50 per share through nominal value
          repayment

9.    Miscellaneous

HBM Healthcare Investments also published today its Annual Report 2020/2021 on the Company’s website www.hbmhealthcare.com/en/investors/financial-reports.

Contact
For further information, please contact Dr Andreas Wicki on +41 41 710 75 77, or at andreas.wicki@hbmhealthcare.com.

About HBM Healthcare Investments

HBM Healthcare Investments invests in the healthcare sector. The Company holds and manages an international portfolio of promising companies in the human medicine, biotechnology, medical technology and diagnostics sectors and related areas. 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 in their strategic direction. This is what makes HBM Healthcare Investments an interesting alternative to investments in big pharma and biotechnology companies. HBM Healthcare Investments has an international shareholder base and is listed on SIX Swiss Exchange (ticker: HBMN).

Disclaimer

The publication is for information purposes only and does not constitute an offer to sell or a solicitation to buy or subscribe for securities. This news release does not constitute a prospectus within the meaning of Art. 35ff FinSA, or securities prospectus in the sense of the German securities prospectus law. This news release and the information contained therein is not intended for distribution to the United States of America (USA) or within the USA and may not be distributed or forwarded to US persons (including legal persons) or to publications with a general distribution in the USA. This news release is not an offer or solicitation to buy securities in the United States. HBM Healthcare Investments AG's securities were not issued in accordance with the U.S. U.S. securities laws, and may not be sold, offered for sale, or delivered in the U.S. or to U.S. individuals without prior registration or without a registration exemption. Some information quoted was obtained from external sources HBM considers to be reliable. HBM cannot guarantee the adequacy, accuracy, timeliness or completeness of or be held responsible or liable for errors of fact regarding such data and information obtained from third parties, and this data may change with market conditions.
 

Board of Directors of HBM Healthcare Investments Ltd proposes Dr Elaine V. Jones, an experienced and well connected executive, to be elected to the Board of Directors at the Shareholders' Meeting on 18 June 2021. In this regard, the Company refers to its announcement of 2 November 2020.

Dr Jones has more than 20 years of investment experience in venture capital financing, focusing on biosciences. For more than ten years, she was vice-president at Pfizer Ventures with responsibility for managing investments in biotechnology and healthcare companies. Prior to that, Dr Jones worked at EuclidSR Partners and at SR One, the former venture capital fund of GlaxoSmithKline.

The three long-standing members of the Board of Directors, Prof. Dr Heinz Riesenhuber (Vice Chairman), Dr Eduard E. Holdener and Robert A. Ingram, are retiring and therefore not standing for re-election at the forthcoming Shareholders' Meeting .

'Over the last two decades, Heinz, Ed and Bob have been instrumental in establishing and building up our company. On behalf of the Board of Directors and the Mangement I thank them for their valuable services and enormous commitment over the years and wish them all the best for their personal future. At the same time, we are looking forward to working with Elaine Jones and the other existing directors Ruedi Lanz, Germano Giuliani and Stella Xu.' comments Chairman Hans Peter Hasler.

Contact
For further information, please contact Dr Andreas Wicki on +41 41 710 75 77, or at andreas.wicki@hbmhealthcare.com.

In the 2020/2021 financial year, HBM Healthcare Investments recorded a profit of CHF 756 million, the highest since it was founded 20 years ago. The net asset value (NAV) rose by more than half (+52 percent) in the reporting year and the HBMN shares advanced 79 percent including distribution.

The profit can mainly be attributed to IPOs and takeovers from the portfolio of private companies and is clear evidence of the success of HBM Healthcare’s investment strategy. Over the past 20 years, HBM Healthcare Investments has channelled some CHF 2 billion in more than 160 private companies and supported the development of numerous medical innovations as a result.

Based on the excellent financial results, the Board of Directors is proposing a considerably higher cash distribution of CHF 12.50 per share. Of this, CHF 9.50 is for the ordinary payout (previously CHF 7.70) and CHF 3.00 for a one-off anniversary payment.

Record profit of CHF 756 million

In the 2020/2021 financial year, HBM Healthcare Investments achieved a profit of CHF 756 million, the largest since the Company was founded. In the reporting year, net asset value (NAV) rose by 52 percent. Including distributions, Shareholders achieved an impressive return of 79 percent.

The private companies portfolio (including the public companies originating from the portfolio of private companies) increased by a total of CHF 662 million. The increase in value was largely the result of 12 IPOs (BioAtla CHF 94 million, Harmony Biosciences CHF 79 million, Cathay Biotech CHF 76 million, ALX Oncology CHF 49 million, Instil Bio CHF 36 million, others CHF 76 million) and seven acquisitions in the reporting year (Viela Bio, Forbius and Corvidia CHF 22 million each and others CHF 18 million). The total gains from the other revaluations came to CHF 168 million. Of this, CHF 123 million was from changes in market prices of public companies (SpringWorks CHF 49 million, Pacira BioSciences CHF 30 million and others CHF 44 million) and CHF 45 million from write-ups in relation to private companies in line with valuation rules. This figure includes write-downs of CHF 16 million relating to a few smaller investments owing to unsatisfactory trial results.

The increase in the value of fund investments amounted to CHF 49 million. This was primarily attributable to two funds: HBM Genomics (CHF 23 million, primarily driven by the IPO of Seer) and 6 Dimensions Capital (CHF 19 million, various IPOs and takeover of Viela Bio).

The portfolio of public companies grew by CHF 276 million. The largest contribution of CHF 68 million came from the takeover of Immunomedics by Gilead. Gains were also made by Argenx (CHF 38 million), Rocket Pharmaceuticals and Biohaven Pharmaceuticals (CHF 21 million each).

The hedging positions for market and foreign currency risks burdened the result with CHF 57 million and CHF 12 million respectively, while the other assets lowered the result by CHF 1 million net.

The management fees of CHF 26 million reflected the increase in net assets and market capitalisation. The large increase in value above the high water mark achieved during the reporting year triggers performance fees of CHF 121 million to the investment advisor and CHF 8 million variable compensation to the Board of Directors. Other operating and financial expenses were stable and came in below CHF 6 million.

Net assets exceed CHF 2 billion

Net assets increased by CHF 0.7 billion to CHF 2.15 billion in the reporting year. Of the overall assets of CHF 2.4 billion1), 18 percent were allocated to private companies, 9 percent to funds, 58 percent to public companies and 1 percent to other assets. Around two-thirds of the public companies originate from the private companies portfolio. The proportion of cash and cash equivalents1) amounted to 14 percent of net assets.

Market hedging was reduced in the first calendar quarter and, as at the end of March, represented around 7 percent of the portfolio of listed companies. The extent of currency hedging of the US dollar against the Swiss Franc was around 53 percent.

CHF 270 million invested in private companies

In the reporting year, HBM Healthcare Investments invested a total of CHF 211 million in 24 new private companies. CHF 176 million of this total was paid in and CHF 35 million booked as investment commitment. An additional CHF 59 million was invested in existing private companies as follow-on financings.

Six new investments were made in private companies in the first calendar quarter of 2021.

• IO Biotech based in Copenhagen, Denmark, received an investment commitment of EUR 20 million (EUR 8 million paid in). The company has a pipeline of immunotherapies for the treatment of cancer.
• Mineralys Therapeutics in Philadelphia, USA, received an investment commitment of USD 10 million (USD 6.7 million paid in). Mineralys is testing a molecule to treat high blood pressure in phase II of clinical development.

Further investments of between USD 5 and 7.5 million each were made in Visen Pharmaceuticals (development and marketing of endocrinology treatments for rare diseases for Ascendis Pharma in China), eGenesis Bio (gene editing technology used in xeno transplantation), Pyxis Oncology (portfolio of potent biologics for difficult-to-treat cancers) and FogPharma (development platform based on cell-penetrating mini proteins (CPMPs) for innovative cancer treatments).

Details on the new investments made in previous quarters can be found in the respective quarterly reports.

In addition to direct investments, new investment commitments were made to two funds which are primarily active in China. USD 25 million is allocated to 120 Capital (formerly 6 Dimensions Capital) and USD 15 million to C-Bridge Healthcare Fund V.

Substantial increase in cash distribution to CHF 12.50 per share

Thanks to excellent business results and a positive outlook, the cash distribution can be significantly increased. The Board of Directors is proposing to the Shareholders’ Meeting to raise the ordinary distribution from the previous CHF 7.70 per share to CHF 9.50 per share.

In addition, shareholders are to benefit from a one-off anniversary payment of CHF 3.00. The proposed payout therefore amounts to a total of CHF 12.50 per share in the form of a withholding tax-exempt par value repayment.

Outlook

The HBM Healthcare Investments’ portfolio has been carefully assembled and is very well balanced. The major investments are in quality companies with excellent market positions in their fields. These companies are therefore interesting candidates for takeovers, but can also remain independently and create substantial added value on their own.

The Company also holds smaller investments in promising companies in earlier development phases which therefore have high value-creation potential. These investments are carefully monitored and will be increased over time if their potential continues to be considered intact.

In the reporting year, a range of promising new investments was added to the portfolio.

The fundamental outlook for the healthcare sector remains positive. The innovation developed by the companies and the still untapped demand for medical treatments offer numerous attractive investment opportunities. We still rate the environment for finance, public offerings and company takeovers as good. All this favours the Company’s investment strategy, which should continue to generate considerable added value in the years to come.

In the appendix to this media release you will find the balance sheet and income statement in accordance with IFRS, the portfolio details and an overview of the consolidated financials including a translation to the IFRS Financial Statements. The detailed Annual Report will be published on 27 May 2021 and will be available on the Company's website from that date onwards.

1) After deduction of the liability from market hedging amounting to CHF 0.1 billion.

Contact
For further information, please contact Dr Andreas Wicki on +41 41 710 75 77, or at andreas.wicki@hbmhealthcare.com.

About HBM Healthcare Investments

HBM Healthcare Investments invests in the healthcare sector. The Company holds and manages an international portfolio of promising companies in the human medicine, biotechnology, medical technology and diagnostics sectors and related areas. 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 in their strategic direction. This is what makes HBM Healthcare Investments an interesting alternative to investments in big pharma and biotechnology companies. HBM Healthcare Investments has an international shareholder base and is listed on SIX Swiss Exchange (ticker: HBMN).

Disclaimer

The publication is for information purposes only and does not constitute an offer to sell or a solicitation to buy or subscribe for securities. This news release does not constitute a prospectus within the meaning of Art. 35ff FinSA, or securities prospectus in the sense of the German securities prospectus law. This news release and the information contained therein is not intended for distribution to the United States of America (USA) or within the USA and may not be distributed or forwarded to US persons (including legal persons) or to publications with a general distribution in the USA. This news release is not an offer or solicitation to buy securities in the United States. HBM Healthcare Investments AG's securities were not issued in accordance with the U.S. U.S. securities laws, and may not be sold, offered for sale, or delivered in the U.S. or to U.S. individuals without prior registration or without a registration exemption. Some information quoted was obtained from external sources HBM considers to be reliable. HBM cannot guarantee the adequacy, accuracy, timeliness or completeness of or be held responsible or liable for errors of fact regarding such data and information obtained from third parties, and this data may change with market conditions.

HBM Healthcare Investments will close its 20th financial year, ending on 31 March 2021, with a record result. The net asset value per share (NAV) rose by 52 percent to CHF 309.25. The share price climbed disproportionately by 79 percent to CHF 332.50. Based on these key figures, HBM Healthcare Investments expects to report a net profit of more than CHF 750 million for the financial year (previous year: net profit of CHF 182.7 million).

Thanks to 20 years of investment experience as a global investor, with a broad network of excellent contacts, HBM Healthcare Investments was able to successfully expand and develop its portfolio even in the difficult Corona year. The record profit is based on an above-average number of twelve IPOs and eight trade sales from the portfolio of private companies and a broad recovery of the financial markets during the financial year. With investments of around CHF 270 million in existing and more than twenty new private companies, the foundation for future growth was also laid. In this respect, the outlook remains confident.

The aforementioned figures are preliminary and unaudited based on the current status of the closing process. The final annual result will be published on Friday, 7 May 2021.

Contact
For further information, please contact Dr Andreas Wicki on +41 41 710 75 77, or at andreas.wicki@hbmhealthcare.com.

With Instil Bio (Nasdaq: TIL) and Connect Biopharma (Nasdaq: CNTB), two more private companies from the HBM Healthcare Investments portfolio successfully went public last Friday.

Instil Bio raised USD 320 million in new capital by issuing 16 million shares at a price of USD 20.00 per share. On the first day of trading, the share price rose to USD 26.44 (+32.2%).

HBM Healthcare Investments has invested a total of USD 12.5 million in Instil Bio since June 2020. The investment was previously valued at USD 20.3 million based on the last financing round. A further USD 6 million was invested in the IPO. Following the IPO, HBM Healthcare Investments thus holds 2.2 million shares with a total value of USD 59.1 million.

Instil Bio is developing a cell therapy pipeline with autologous tumour-infiltrating lymphocytes (TIL) for the treatment of cancer. The lead TIL candidate, ITIL-168, is being developed for the treatment of advanced melanoma.

Connect Biopharma raised USD 191.3 million through the IPO by issuing 11.25 million American Depositary Shares (ADS) at a price of USD 17.00 per ADS. The shares closed at USD 18.49 (+8.8%) on the first day of trading.

HBM Healthcare Investments invested USD 10 million in Connect Biopharma in August 2020 and increased its stake by a further USD 5.1 million at the IPO. Following the IPO, HBM Healthcare Investments holds 1.2 million ADS worth USD 22.4 million.

Connect Biopharma develops therapies for the treatment of T-cell related inflammatory diseases. The company has a pipeline of four drug candidates. The two most advanced clinical-stage programmes, CBP-201 and CBP-307, are potentially differentiated product candidates against validated targets for the treatment of atopic dermatitis and ulcerative colitis and Crohn's disease.

Longboard Pharmaceuticals (Nasdaq: LBPH), a private company in the portfolio of HBM Healthcare Investments, completed its IPO last Friday. The company raised USD 80 million in new capital by issuing 5 million shares at a price of USD 16.00 each. On the first day of trading, the share price closed at USD 16.65 (+4.1%).

HBM Healthcare Investments invested USD 10 million in Longboard Pharmaceuticals in October 2020 and increased its stake by a further USD 8 million in the IPO. Following the IPO, HBM Healthcare Investments holds 1.88 million shares with a total value of USD 31.3 million.

Longboard Pharmaceuticals focuses on the development of novel, transformative drugs for neurological diseases. The most advanced compound, LP352, an oral, centrally acting 5-HT2c superagonist, is being tested for the potential treatment of developmental and epileptic encephalopathies such as Dravet syndrome, Lennox-Gastaut syndrome and other epileptic disorders.

Horizon Therapeutics (Nasdaq: HZNP) and Viela Bio (Nasdaq: VIE) today announced that the companies have entered into a definitive agreement under which Horizon will acquire all of the issued and outstanding shares of Viela Bio for USD 53.00 per share in cash, which represents a fully diluted equity value of approximately USD 3.05 billion. The deal is expected to close by the end of the first quarter 2021.

HBM Healthcare Investments invested a total of USD 29.5 million in Viela since July 2019, when the company was still privately held. As of today, HBM Healthcare Investments holds 1.75 million Viela shares worth USD 92.75 million, based on the takeover price of USD 53.00 per share, which represents a 53 percent premium over Viela's closing share price of USD 34.68 of last Friday.

HBM Healthcare Investments continued its impressive growth in net assets in the third quarter of the 2020/2021 financial year. Thanks to a quarterly profit of CHF 203 million with contributions from all portfolio categories, the result for the first nine months rose to CHF 645 million. The highlights included five IPOs and one sale from the portfolio of private companies. Six new investments were made to compensate for these disposals and more are planned. A total of CHF 95 million was invested in private companies and the portfolio allocation therefore remained stable. HBM Healthcare continued to hedge market risk and increased the hedging of US dollar currency risk. The fundamental outlook for the healthcare sector remains favourable and HBM Healthcare has sufficient liquidity to seize new opportunities.

HBM Healthcare Investments closed the third quarter of the 2020/2021 financial year with a net profit of CHF 203 million. Net asset value (NAV) rose by 11 percent and the share price gained 13 percent. Over the first nine months of the financial year, profit totalled CHF 645 million and NAV grew by 44.5 percent.

All portfolio categories (private companies, public companies and funds) increased in value during the quarter. In the portfolio of private companies, the sale of Westmed in addition to five IPOs - C4 Therapeutics, Everest Medicines, Galecto, Seer and BioAtla - made a substantial contribution to the quarterly profit. Public companies, including those originating from the portfolio of private companies, also saw an overall increase in value. The declining share price of Cathay Biotech was more than made up for by increases in the value of companies such as ALX Oncology, SpringWorks Therapeutics and Y-mAbs Therapeutics.

In the fund portfolio, HBM Genomics' early-stage investment approach was validated for the first time with the IPO of Seer. HBM Genomics is an investment vehicle of HBM Healthcare for investments in emerging companies with new technologies. The California-based company Seer is engaged in proteome research and raised USD 175 million in new capital at its IPO in early December 2020. HBM Genomics was one of the early investors in Seer and has participated in several of the company's financing rounds since December 2017 with a total of USD 2.3 million (at an average price of USD 4.21 per share). In addition, HBM Healthcare Investments directly invested another USD 2.75 million (USD 8.03 per share) in May 2020. By the end of December, the price of Seer shares on the Nasdaq had risen to more than USD 56. As a result, a small investment ended up making a substantial contribution of CHF 34 million to the quarterly profit.

Hedging positions made a positive contribution to profit in the reporting period. While general market hedging had a negative impact on the result, currency hedging, which had been increased by a further USD 200 million to USD 1.2 billion in the reporting period, paid off: a significant portion of the decline in the US dollar against the Swiss franc was absorbed in this way.

New investments in six private companies

In the period, HBM Healthcare Investments invested a total of CHF 66 million in six new private companies. An additional CHF 29 million were invested in existing private portfolio companies as part of follow-on financing arrangements.

• A new investment of USD 20 million was made in Ambrx, which is based in San Diego, USA. Ambrx is developing a pipeline of oncology therapies and also has development partnerships with a number of pharmaceutical companies. Its most advanced development programme, ARX788 for the treatment of HER2-positive metastatic breast cancer, recently received the FDA's Fast Track designation, which opens the door for accelerated approval.

• A USD 15 million investment was made in Valo Health in Boston. Valo has an integrated platform for drug development that combines human and machine intelligence in order to make the discovery and development of new therapies more efficient.

• Further new investments were made in Longboard Pharmaceuticals (USD 10 million, spin-off of Arena Pharmaceuticals with a development pipeline for neurological diseases), River Renal (USD 16 million, thereof USD 10 million already paid in, two development programmes to treat severe chronic kidney diseases), Neuron23 (USD 7 million, pre-clinical development platform for the targeted treatment of neurological diseases) and Werewolf Therapeutics (USD 5 million, immuno-oncology, protein engineering technology to improve activity, stability and tumour selectivity within a single molecule).

Portfolio composition remains stable

The composition of the portfolio remained stable compared to the previous quarter. Disposals from the portfolio of private companies due to IPOs and company sales were replaced by new investments. The share of private companies and funds in the portfolio therefore remained unchanged at 15 percent and 7 percent of assets, respectively. The ratio of private companies continues to be low and is to be increased through additional new investments.

The quota of public stocks fell by 4 percentage points to 60 percent (or 52 percent net of market hedge) due to profit taking in the fourth quarter of calendar 2020. Around two-thirds of the public positions originate from the portfolio of private companies.

The amount of cash and cash equivalents increased by 2 percentage points to 15 percent (or 7 percent after deduction of the repurchase obligation from market hedging).

The partial hedging of market risk of currently around one-eighth of the public portfolio and the exchange rate risk against the Swiss franc of around 70 percent of the USD position will remain in place for the time being.

Outlook

The fundamental outlook for the sector continues to be very good. Medical needs and companies' innovative capacities are high, as events in connection with the pandemic have clearly demonstrated in recent months. The financing environment continues to be favourable and provides portfolio companies access to sufficient capital to advance their clinical developments. Acquisition activity in the healthcare sector is also likely to remain high. All of these factors benefit the investment strategy of HBM Healthcare Investments.

With regard to the general market environment, the strong performance in recent months is likely to give way to intermittent periods of weakening. With its share of private companies and funds and a partial hedging of market risk, HBM Healthcare Investments is prepared well for such a scenario while a well-stocked level of cash and cash equivalents allows to seize opportunities as they arise.

HBM Healthcare Investments expects further IPOs from the portfolio of private companies. Some of the most recent new and follow-on investments were made by means of crossover financings with a view to the intended IPO of these companies. Moreover, a number of portfolio companies are waiting on clinical study results that could have a positive impact on the overall value of the Company's holdings.

The Quarterly Report December 2020 is available on the Company's website https://www.hbmhealthcare.com/en/investors/financial-reports.

HBM Healthcare Investments closed the volatile 2020 calendar year, marked by the uncertainties surrounding the Covid-19 pandemic, with an outstanding result. Net asset value per share (NAV) rose by a high 36.7 percent to CHF 293.21 as at 31 December 2020, while the share price increased by 40.5 percent to close at CHF 305.00 with a small premium to NAV.

The healthcare sector was pleasingly robust, particularly in the segment of research-oriented, small and mid-sized companies. HBM Healthcare Investments benefited from the value appreciation resulting from a record number of ten IPOs and six company acquisitions from the portfolio.

Expected net profit of around CHF 645 million for the first 9 months of the financial year 2020/2021

For the 9 months of the 2020/2021 financial year ending 31 March, the NAV per share increased by 44.5 percent and the share price rose by 64.6 percent. Based on the reported NAV as at 31 December 2020, HBM Healthcare Investments expects a net profit of approximately CHF 645 million for this period. In the same period of the previous year, net profit amounted to CHF 265.7 million.

The aforementioned figures are preliminary based on the current status of the closing process. The final result will be published with the December 2020 quarterly report on 22 January 2021.

With Bioatla (Nasdaq: BCAB), another private company from the HBM Healthcare Investments portfolio successfully went public yesterday. The company placed 10.5 million new shares at USD 18.00, raising USD 189 million. On yesterday's first trading day, the share price rose to USD 31.02 (+72.3%).

HBM Healthcare Investments first invested USD 11.5 million in Bioatla in June 2020 and increased its stake by a further USD 17.6 million in the IPO. Following the IPO, HBM Healthcare Investments holds 2.69 million Bioatla shares with a total value of USD 83.5 million. The IPO increases the net value per HBM-share (NAV) by CHF 5.89 (+2.0%, was not yet included in NAV as of 15 December 2020).

BioAtla is developing a novel class of highly specific and selective antibody-based therapeutics for the treatment of solid tumor cancer.

Earlier this month, Seer Inc. (Nasdaq: SEER) completed its initial public offering on the Nasdaq Stock Exchange. HBM Healthcare Investments was among Seer's early investors and has participated indirectly through HBM Genomics and later also directly in various rounds of the company's financing since December 2017. HBM Genomics is an investment vehicle for early stage investments in emerging companies with new technologies and is owned by HBM Healthcare Investments. The revaluation of the investment based on Seer's share price as at mid-December resulted in a gain of CHF 5.43 per HBM-share and was already reflected in the NAV as of 15 December 2020 published yesterday.