Biotech Growth Trust delivered an 87.0% net asset value (NAV) total return in the 12 months to 31 July 2026, while its share price total return reached 95.8%. Both exceeded the 43.1% return from the Nasdaq Biotechnology Index.
The performance reflects a recovery in biotechnology shares following a prolonged period of weak valuations. The trust benefited from holdings across multiple clinical areas and development stages, including companies with drugs in phase two and phase three trials and those with commercially available treatments.
Managers Geoff Hsu and Josh Golomb continue to favour small and mid-cap biotechnology companies, where they see potential for further gains. The trust maintained a substantial overweight to small-cap stocks, which contributed to its performance as the sector recovered.
Acquisitions have been a significant contributor. During the second quarter of 2026, several portfolio holdings agreed to takeover deals at premiums to their market prices. Forte Biosciences agreed to be acquired by argenx at a 40.5% premium, Nuvalent agreed to a deal with GSK at a 40% premium, and Esperion agreed to be acquired by ARCHIMED at a 58% premium. Apellis agreed to a deal with Biogen at a 163% premium.
The managers estimate that approximately 80% of the portfolio is invested in potential acquisition targets, reflecting continued consolidation as large pharmaceutical companies seek to replenish revenues ahead of upcoming patent expiries.
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.
