Biotech Growth Trust plc (LON:CIOG) Fact Sheet as at 30 April 2026 is now available:
Commentary
In April, the NAV per share was +0.8%, the share price was +0.8% and the benchmark NASDAQ Biotechnology Index (net, total return, sterling adjusted) was -2.3%.
During April, the Company outperformed despite biotech underperforming the general market. Market performance was shaped by a combination of macroeconomic factors and shifting investor sentiment across sectors. Market odds for interest rate cuts in 2026 continued to drop, pressuring the biotech sector generally. Overall, the broader market pushed to all-time highs as geopolitical tensions in Iran and oil price volatility were overlooked in favour of strong first quarter S&P 500 earnings and artificial intelligence tailwinds. Given this backdrop, investor positioning rotated meaningfully towards tech following a weaker start to the year for the tech sector, contributing to relative underperformance for healthcare and biotech.
Merger and acquisition (M&A) activity continued to build upon the significant activity at the end of March, with April being the most acquisitive month year-to-date, as pharma companies remained opportunistic and deal hungry. To kick off the month, Neurocrine Biosciences acquired Soleno Therapeutics for $2.9 bn, representing a 34% premium to the stock’s last closing price prior to the announcement. The transaction gives Neurocrine access to Vykat XR, the first therapy approved for hyperphagia in PraderWilli syndrome. Additionally, Gilead Sciences announced the acquisition of private company Tubulis for $3.2bn upfront, thereby expanding Gilead’s antibody-drug conjugate capabilities. Other major deal announcements include Sun Pharma’s $11.8 bn acquisition of women’s health and general medicine drugmaker Organon, Eli Lilly’s $3.3bn upfront acquisition of privately-held Kelonia Therapeutics for its in-vivo CAR-T cell therapies, and Chiesi’s acquisition of Kalvista Pharmaceuticals for $1.9bn. Chiesi’s acquisition offer represented a 40% premium to Kalvista’s prior closing price and allows Chiesi to secure Ekterly, an oral on-demand treatment for hereditary angioedema. The Company held Kalvista shares at the time of announcement of the transaction.
UroGen Pharma, Revolution Medicines, and Kiniksa Pharmaceuticals were the largest positive contributors to performance during the month. UroGen outperformed due to investor anticipation that first quarter earnings would beat relatively low expectations. Revolution Medicines’ stock price rose following positive Phase 3 overall survival data in pancreatic cancer that met investors’ bull case expectations. Kiniksa surged following a strong first quarter earnings beat and full-year guidance raise.
Esperion Therapeutics, ORIC Pharmaceuticals, and Regeneron Pharmaceuticals were the largest negative contributors to performance during the month. Esperion Therapeutics’ stock declined during the period due to underwhelming prescriptions for the company’s cholesterol-lowering drugs Nexletol and Nexlizet. ORIC underperformed in April after the company released updated Phase 1b data in prostate cancer for its lead drug rinzimetostat that underperformed investors’ high expectations. Regeneron sold off in April due to a mixed first quarter print, approval delay for its drug Eylea HD
PFS, and a lung cancer trial failure for one of its pipeline candidates.
Biotech Growth Trust plc (LON:BIOG) seeks capital appreciation through investment in the worldwide biotechnology industry.
