Biotech Growth Trust PLC (LON:BIOG) has announced its Fact Sheet as at 30 September 2026 is now available.
Commentary
In September, the NAV per share was -11.3%, the share price was -10.9% and the benchmark NASDAQ Biotechnology Index (net, total return, sterling adjusted) was +2.0%. During September, biotech stocks came under pressure as rising interest rates and renewed inflation concerns weighed on the broader market. The U.S. Federal Reserve raised the
benchmark federal funds rate by 25 basis points on Sept. 16 to help stem inflation, and Fed Chair Kevin Warsh hinted that more rate hikes were likely coming. The 10-year Treasury yield moved sharply higher during the month as investors increased expectations for additional Federal Reserve rate hikes and elevated oil prices added to persistent inflation concerns. The impact was particularly pronounced beneath the surface of the major equity indices, as strength in large-cap
technology stocks masked broader market weakness.
Within biotech, the trading environment became increasingly challenging as the month progressed. Well-owned high-quality names among healthcare-dedicated investors experienced significant selling pressure, while heavily shorted companies moved higher, creating an unfavorable backdrop for crowded positioning across the sector.
Small-cap biotech companies, the segment of the biotech universe where the Company has a large overweight versus the index, was particularly impacted by the sudden increase in interest rates, leading to underperformance of the Company versus the benchmark. Companies with financing overhangs were disproportionately pressured as the beginning of a rate-hike cycle and its uncertain duration weighed on future funding requirements. In light of the new interest rate outlook, we trimmed and exited certain small-cap names in the portfolio and brought the Company’s gearing to zero by the end of the month.
