BIOG’s latest portfolio update points to a simple message: despite a strong rise in the shares, the managers still see meaningful value in the portfolio.
The shares have more than doubled since 2025, while the portfolio is still considered cheap. That matters because the current strategy is not built around chasing past gains. The managers remain focused on areas where they believe valuations still leave room for further upside.
Over the last 12 months, BIOG delivered a net asset value total return of 87.0% and a share price total return of 95.8%. The strength was not limited to one part of the portfolio. Performance was broad-based across different therapeutic areas and across companies at different stages of development.
That breadth is important in biotechnology, where individual companies can be highly dependent on clinical progress, regulatory outcomes or commercial execution. A wider spread of holdings helps reduce reliance on any single programme or therapeutic theme.
BIOG also continues to run an overweight position in small-cap biotechnology. This remains the area where the managers see the greatest upside potential.
Smaller biotech companies can carry higher development and financing risks, but they can also offer more substantial rerating potential when clinical results improve, strategic interest increases or market expectations change. BIOG’s positioning suggests the managers believe the risk-reward remains attractive despite the sector’s recent gains.
The portfolio remains positioned around three main drivers: continued progress across a broad range of biotechnology companies, further upside from small-cap valuations, and the possibility of additional M&A activity.
Biotech Growth Trust plc (LON:BIOG) seeks capital appreciation through investment in the worldwide biotechnology industry. The Company and the Company’s Portfolio Manager believe that there is a high congruence between companies that seek to act responsibly and those that succeed in building long-term shareholder value.
