International Biotechnol... Share Discussion Threads

[ianood] 08/7/2021 07:34

Thanks speedsgh

[speedsgh] 07/7/2021 18:50

Dividend Declaration -

At the Annual General Meeting held on 15 December 2020, Shareholders approved the
Company's dividend policy of making dividend payments, equivalent to 4 per cent. of the Company's Net Asset Value as at the last day of the preceding financial year (31 August), through two equal semi-annual distributions. In accordance with this policy, the first Interim Dividend for the period ending 31 August 2021 was paid in January 2021.

The Directors have today declared the second Interim Dividend for the period ending 31 August 2021 in an amount of 14.2p per Ordinary Share.

The second Interim Dividend will be payable on Friday, 27 August 2021 to holders of Ordinary Shares on the Register at the close of business on Friday, 16 July 2021 (ex-dividend Shares on the Register at Thursday, 15 July 2021).

[melloteam] 20/5/2021 14:55

Just to let shareholders and prospective investors know that IBT, ANGLE plc, Inspiration Healthcare Group plc, Polarean Imaging plc and Diaceutics will be presenting at Mello Events’ Healthcare webinar on the 25th May at 5:30pm-9:30pm. The webinar will also include the latest insights and analysis from investment managers, research professionals, analysts and experienced investors. If you are a shareholder and you would like a ticket to the Healthcare event, please use the code SHVIP75 to receive 75% off your ticket.
Additionally, on the 24th May, The Property Franchise Group PLC and Samarkand will be presenting at the MELLOMonday webinar event on 24th May at 6pm-9:30pm. There will also be special insights from Michael Taylor (@shiftingshares): Using technical analysis to find trades.
There will be over 600 investors attending and these are very popular shows with company presentations, fund manager and investor interviews, and panel sessions including the popular Mello BASH (Buy, Avoid, Sell or Hold).
If you purchase a ticket to MELLOMonday, you will automatically get sent a link to the healthcare event! Tickets are still available and if you would like one at half price then enter the code MMTADVFN50.

[speedsgh] 14/5/2021 20:03

Changes afoot at International Biotech after Janson’s exit -

International Biotechnology (IBT) is planning changes to improve performance and reduce trading costs two months after lead fund manager Carl Harald Janson stepped back from the £284m investment trust.

Ailsa Craig and Marek Poszepczynski, who have worked with Janson for over six years, have taken charge of the SV Health Investors-run portfolio with Janson remaining in touch as a senior adviser.

The reshuffle has prompted Stifel analyst Anthony Stern to assess IBT’s record since Janson (pictured) joined in 2013 with a big reputation from a six-year stint running the Carnegie Biotechnology fund.

Stern described the trust’s performance as ‘fine’ rather than exceptional. In the seven-and-a-half years to 29 March, its underlying net asset value (NAV) grew 180%, beating the 165% return from the Nasdaq Biotechnology index but lagging rivals such as BB Biotech (BION) and Biotech Growth Trust (BIOG) which both delivered 227%.

IBT’s shareholder returns were considerably stronger, at 230%, as Janson presided over a rerating of the trust whose shares moved from a mid-teens discount to trade close to NAV after a decision to pay out 4% of net assets each year in dividends.

Stern was not concerned by the promotion of Craig and Poszepczynski, but after what he called the ‘mediocre’ returns relative to the index of the last five years, he did call for changes to broaden the team’s resource, increase use of leverage (borrowing) and reduce churn in the portfolio.
Gradual changes

Speaking to Investment Trust Insider, Craig said they had worked together as a team for many years and remained ‘wedded to the current strategy’. However, she said there would be changes.

One step will be bringing down the amount of trading done within the portfolio where annual turnover has been running at about 200% – in other words, the entire portfolio changes twice in a year, adding to the costs borne by investors. Data from Numis Securities shows the trust’s overall ongoing charges are 1.39% year, slightly above the 1.16% average of its direct rivals.

‘Marek and I are a bit more buy-and-hold and valuation driven,’ said the manager, who has been at SV since 2006. She said turnover had already fallen to about 180%, putting it on track to hit the 100-150% range Stern believes it will settle at in the long run.

Other concerns raised by the Stifel analyst included the team’s depth and sources, with a smaller investment team than BIOG and BION. Stern said SV had acknowledged this and in addition to hiring were looking to work more closely with the firm’s 50-strong investment team working on unlisted healthcare stocks.

Another shift is a greater use of leverage, where Janson was fairly conservative. By borrowing, trusts can increase returns in rising markets as well as losses on the way down. According to Stern, the team can gear up to 15% of NAV, although this is likely to be limited to 10%, above the 0-9% range of recent years.

Lastly, the analyst questioned the transparency around private investments which accounted for 10.7% of the trust at the end of February. These are overseen by SV’s managing partner Kate Bingham, currently best known for leading the UK Vaccine Taskforce.

Half-year results last month showed IBT had made a 23.5% since first investing in Bingham’s SV Fund VI in which the private equity stakes are held, but provided little other information.
Searching for alpha

One reason for IBT’s high portfolio turnover is how the team manage ‘binary events’, particularly the publication of trial data and drug approvals. The shares of biotech companies often move sharply around these, with investors betting on the outcome ahead of time.

Instead, IBT has typically traded out of stocks before that point, then jumping back in if they like the outcome and valuation. Craig (pictured) said this strategy would continue.

Another reason for high turnover is frequent mergers and acquisitions (M&A) activity in the sector. Four holdings were taken out from last September to February, with the acquisition of Immunomedics by Gilead Sciences, also held, proving the biggest performance driver during that period.

That is a trend the fund managers hope will continue, having positioned the trust away from ‘frothy’ early-stage companies towards more mature names with proven drugs, some of which could be takeover targets.

While the healthcare sector broadly enjoyed a strong 2020, the managers said this had been led by earlier-stage firms and Covid-19 vaccine names like Moderna. The Healthcare sub-sector of S&P 500 is today at a 30% discount to the wider index on a forward earnings basis. That is a low over the last three decades, otherwise seen only on the eve of Obamacare in 2009, according to an interim results presentation.

The pair pointed to concerns over drug pricing continuing to cast a shadow, despite US President Joe Biden’s relative moderate stance and the Democrats’ fragile control of Congress, making action less likely.

Craig outlined a couple of big holdings that had enjoyed strong product launches recently. They have been adding to top 8.1% holding Horizon Therapeutics on the back of the launch of Tepezza for thyroid eye disease, which has been ‘shooting the lights out every quarter’.

PTC Therapeutics, a 4.3% position, already has a muscular dystrophy drug on the market and has partnered with Roche to launch an oral drug to address spinal muscular atrophy in children.

‘Outlook-wise, we’re hopeful that the names we own will get picked up from M&A and then give us some alpha,’ said Craig.

Poszepczynski also argued their cheaper portfolio was less exposed to loss-making names as sentiment shifts during the economic recovery. ‘When we had this push of interest rates in mid-February, you could see that the small cap biotech index, XBI [the ticker of the SPDR S&P Biotech ETF], was hit badly,’ he said.

That thesis has not entirely been borne out in performance so far this year, however. Year to date to 12 May, the trust’s NAV has fallen 14.2% and the shares are down 15.7%, versus the Nasdaq Biotechnology index’s 6.1% fall.

[rocketblast] 29/4/2021 09:29

Fund now hitting newspapers and share mags as a recommendation. Looks like we will see a nice move from here. My target 850 plus and 1000 following further news flow..any dips will be topping up strategy.

[speedsgh] 15/3/2021 13:06

Carl Harald Janson is stepping back from his role as Lead Investment Manager to be replaced by existing investment mansgers Ailsa Craig & Marek Poszepczynski...

Appointment of Joint Lead Investment Managers -

[speedsgh] 16/12/2020 11:30

Dividend Declaration -

At the Annual General Meeting held on 15 December 2020, Shareholders approved the Company's dividend policy of making dividend payments, equivalent to 4 per cent. of the Company's Net Asset Value as at the last day of the preceding financial year (31 August), through two equal semi-annual distributions.

The Directors have today declared the first Interim Dividend for the period ending 31 August 2021 in an amount of 14.2p per Ordinary Share.

The first Interim Dividend will be payable on Friday, 29 January 2021 to holders of Ordinary Shares on the Register at the close of business on Tuesday, 29 December 2020 (ex-dividend Thursday, 24 December 2020).

[speedsgh] 10/11/2020 13:33

International Biotechnology Trust: Bypassing Binary Bets -

[speedsgh] 19/10/2020 20:34

Int’l Biotech switches small-caps for ‘undervalued’ growth -

[panshanger1] 08/10/2020 20:21

All quiet here !!New ATH and plenty of momentum in this sector GLA

[shieldbug] 04/8/2020 13:02

Not so pleased to see how they calculate the dividend though. The 4% is calculated once a year and divided into two payments. So we don't get 2% of the mid July price.

[shieldbug] 04/8/2020 13:00

This year IBT bought back about £1m of shares (172,546 shares) at an average price of £5.82 and have just issued 75,000 shares at £7.94.

Rarely see great benefit from buy backs but that looks impressive.

[caradog] 17/4/2020 10:45

The two US phase 3 trials of Remdesivir are still recruiting and won't be reporting before May.



The similar Chinese trials had to be suspended because of lack of suitable patients. (Trump's incompetence will help to ensure plenty of US participants)

Optimism in the press is based on the publication of a small uncontrolled trial in the NEJM, with promising but inconclusive results. Still, promising is good, for now.

[robizm] 17/4/2020 09:20

That is actually fake news and has been down played by the company itself. You need to be careful where you get your news from these days.

[shieldbug] 17/4/2020 08:46

More positive news from Gilead testing of Remdesivir on severe Covid patients in Chicago trials.

[shieldbug] 11/4/2020 07:40

The tide may well have turned here since Bernie pulled out of the US presidential race.

In addition Bloomberg are reporting today some success in a trial of Gilead's remdesivir where two thirds of Covid 19 patients showed improvement. Gilead being IBT's second largest holding.

Hopefully we will not be revisiting the lows of 3 weeks ago any time soon.

[panshanger1] 14/2/2020 17:07

Discount widening now

[speedsgh] 21/1/2020 13:59

The following blog is somewhat out-of-date (July 2019) but a useful read on the sector all the same...

Boosting Returns With Biotech -

[speedsgh] 21/1/2020 00:49

Yes, it would appear that the benefits of the attractive dividend policy have been more than nullified by NAV performance where IBT has noticeably lagged its peers over the past 5yrs. It would certainly be pleasing to see that change. The irony of course is that the discount to NAV has narrowed significantly over the same time period.

[mozy123] 20/1/2020 16:16

Quite disappointing, other healthcare/bio trusts on the move over the last few months. IBT nothing.

Nothing for a fair few years, hopefully a rocket has been ignited somewhere in the portfolio.

[robsy2] 04/11/2019 18:36

Thanks all

rambuten ,thanks for the factsheet. It looks interetsing but the intro is a bit over my head!!

Welcome to our September Factsheet. Autumn is officially upon us and,
quite literally, everything is turning brown. This month, we have ‘adroitly̵7;
circumnavigated a seemingly endless horizon of icebergs, and one can at
least enjoy the band’s jaunty music for a while longer. Reaching the calmer
waters of macro-political stability has become quite the odyssey. Rest
assured, we harbour no delusions of exceptional strength and are fully
aware that much lies below the surface. We remain thusly focused on
avoiding the obstacles ahead, be they white or brown.

onto the others...

[rambutan2] 04/11/2019 16:22

As I’ve got bio exposure from likes of PRTC, ARIX and SYNC, i prefer BBH which has a broader remit, and a gd monthly factsheet with useful commentary.

[the oak tree] 03/11/2019 19:26

Hi Robsy2

Am in here for the same reasons. Very much for the long term. Im afraid I don't have the answer though, not been good performance but will keep for the time being.

Investments can lag, but feel being in a investment trust , they will change it up. Well thats one theory!