Rtw Biotech Opportunities Share Discussion Threads

[rimau1] 21/2/2024 14:30

Added this morning, unaudited nav is $1.88 proforma combined. 30% discount is too large IMO.

[rimau1] 14/2/2024 09:55

Agreed, add that to my shopping list under Macro! You raise a good point and a key buy case here is if you are bullish on Biotech having a good year after the prolonged bear market. All indicators point to this being the case and is a big contributor to RTW's NAV shooting up from the mid $1.60's to $1.90's - look at the quoted holdings price action since Dec (RCKT, IMCR make up 20% of NAV pre Arix)

[weatherman] 14/2/2024 09:45

Its partly due to the depressed market, where investment valuations in unquoted companies are not fully trusted by the market. As confidence returns, then the gap to NAV should close.

[rimau1] 14/2/2024 08:19

Of course there are Weatherman, its much more complicated than that as you know. Quality of management team, composition of holdings, sector, exit opportunities/realisations/news pipeline/cash available for new investments/accretive buyback appetite/historic performance. I would venture that RTW ticks all the boxes for me personally.

[weatherman] 14/2/2024 08:14

There are lots of investment companies selling at large discounts to NAV.

[jaf111] 14/2/2024 07:56

Yes that sounds about right….but it really shouldn’t take long to calculate 🤔
Certainly concur regarding compelling entry point….time will tell 🤞🤞🤞

[rimau1] 14/2/2024 07:47

I may be shooting from the hip but I recall the official word at the time being "low single digit accretive impact" of the pro forma group. Compelling entry point at $1.26 IMO

[jaf111] 14/2/2024 07:39

As useful as the Jan NAV is the more interesting figure will be the pro forma NAV which they will publish “at the soonest opportunity”

[weatherman] 14/2/2024 07:17

January update - $1.94 NAV

[weatherman] 13/2/2024 10:23

A very predictable movement today - trying to lock-in ARIX shareholders from selling.

[jaf111] 13/2/2024 09:44

No selling by former Arix holders possible currently if held in AJ Ball, II or HL…..as always brokers very slow to act!

I agree with your sentiments on biotech so 🤞

[hpcg] 13/2/2024 09:26

There will be some momentary pressure to the share price from former ARIX holders in for the trade, but buy back program should mitigate that. In the meantime biotech seems to have bottomed and there are exciting new opportunities with those using AI to sift molecules.

[rambutan2] 09/5/2023 21:48

RTW Venture Fund Limited (the "Company"), a London Stock Exchange-listed investment company focused on identifying transformative assets with high growth potential across the biopharmaceutical and medical technology sectors, is pleased to note the announcement by one of its portfolio companies, Acelyrin, Inc. ("Acelyrin") regarding its pricing of an upsized $540 million initial public offering ("IPO") and admission to trade on Nasdaq Global Market under ticker "SLRN".

Acelyrin is a late-stage clinical biopharma company focused on accelerating the development and delivery of transformative medicines in immunology. Its lead product candidate, Izokibep, is a small protein therapeutic designed to inhibit interleukin-17A (IL-17A) with high potency and the potential for robust tissue penetration due to its small molecular size, about one-tenth the size of a monoclonal antibody. Izokibep is in late-stage clinical development across multiple indications including hidradenitis suppurative, psoriatic arthritis, uveitis and axial spondylarthritis.

Prior to IPO, the Company, together with other funds managed by RTW Investments, LP (the "Investment Manager"), participated in Acelyrin's $250 million Series B financing round in November 2021.

Acelyrin's IPO raised $540 million by offering 30 million shares at $18.00 per share. On the first day of trading, Acelyrin's share price traded up by 30.55% to close at $23.50 per share.

Roderick Wong, MD, Managing Partner and Chief Investment Officer at the Investment Manager, said:
"We are excited about Acelyrin's successful debut on the public markets, the third from our portfolio this year in an otherwise challenging capital market, and we look forward to supporting the company in its efforts to develop new treatments for inflammatory conditions. "

[rambutan2] 06/5/2023 03:08

Good interview with another top bio crossover investor, Dr. Chen Yu, Founder & Managing Partner at TCGX. Many similarities to RTW. And like them, he's currently pretty bullish.

[rambutan2] 27/4/2023 15:43

A worthwhile listen:

Rod Wong is the founder and Managing Partner of RTW Investments, a life sciences-focused investment and innovation firm of 80 professionals that manages $6 billion in assets.

I had a chance to drop by Rod’s office in NYC and discuss his background, case for life sciences, investment and business approach, investment process across sourcing ideas, research, probability assessment of binary outcomes, portfolio construction, competition, and outlook.

[rambutan2] 17/4/2023 14:30

And back up we go, thanks to this timely takeover!

RTW Venture Fund Limited (the "Company" or "RTW Venture Fund"), a London Stock Exchange-listed investment fund focused on identifying transformative assets with high growth potential across the life sciences sector, is pleased to note the announcement by Prometheus Biosciences, Inc. (NASDAQ: RXDX) ("Prometheus"), that it has entered into a definitive agreement under which Merck, through a subsidiary, has agreed to acquire Prometheus for $200.00 per share in cash for a total equity value of approximately $10.8 billion, a c. 75% premium to the prior closing price. The acquisition is subject to Prometheus Biosciences shareholder approval and is expected to close in the third quarter of 2023.

Prometheus is the largest holding in RTW Venture Fund's portfolio, representing c. 14.8% of NAV at 31 March 2023. As such, the Company expects that this will translate into a material accretion to the NAV.

[rambutan2] 11/4/2023 20:35

Just as well for me I only took a small position as the price rapidly fell from $1.20 to $1, at which price I've been adding. On a discount of 35% to last reported nav, and from what I can see, no obvious disasters in the portfolio, RTW currently appears to be suffering from some very keen selling. Imho, it won't be down here for long.

Here's a run through the fund with the manager from Jan:

[rambutan2] 31/3/2023 21:36

AR out today. I recently took a small position in what I think is the pick of the Bio trusts:

Roderick Wong, MD, Managing Partner and Chief Investment Officer of RTW Investments, LP (the "Investment Manager") commented:
"We are pleased to report another robust set of results for the RTW Venture Fund in 2022. We find ourselves in unprecedented market conditions, having witnessed the second consecutive year of a bear market in the biotech sector.

"Given these challenging times, we are happy to report that the Group has once again significantly outperformed the Russell 200 Biotech Index (the most appropriate performance comparator), with a -10.2% NAV return for the period, against a -31.3% return for the Index.

"The Group's successful strategy of selecting high-quality transformative assets with significant growth potential could be seen in our core portfolio, which held up well, contributing +0.2% to NAV during 2022. Whilst only a modest return, it compares favourably to the weak performance of the Group's sector indices.

"Due to the adverse market conditions, 2022 saw just two of our portfolio companies IPO. RTW added three new companies to the portfolio and disposed of seven. Disposals crystalised a +1.6% contribution to NAV for the year with the proceeds being redeployed into other public opportunities.

"Most importantly, we continue to see public market valuations at significant discounts to historic levels, providing extremely compelling investment opportunities, with many of potential best-in-class therapeutics trading at notable lows compared to their long-term benchmarks. Our resources and expertise place us in an excellent position to capitalise on these trends and achieve significant value for shareholders over the medium- to long-term."



Research:

Reported manager positions:

Index:

[spectoacc] 30/10/2019 07:54

Thanks @Jonwig. I don't personally trust that opening NAV due to the historic holdings, and any which way, want to see it trading at a similar discount to the MERCs, IPOs etc.

I reckon c.60c in about 6 months, but very small free float so who knows!

[jonwig] 29/10/2019 06:19

Issue Price = Opening NAV = $1.0397. 161,544,695 shares in issue.

[jonwig] 29/10/2019 06:14

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"We are delighted to be listing RTW Venture Fund Limited on the London Stock Exchange. This will provide RTW Investments, as the Investment Manager, with an exciting opportunity to put our long-term focus to work, identifying transformative companies across life sciences, biopharmaceuticals and medical technology that we believe have the potential to offer compelling long-term capital appreciation for investors. In helping to build and support these world-class businesses, we will play our part in the development of therapeutic assets that aim to improve and extend patients' lives. We look forward to building on the platform for growth that RTW Venture Fund represents."