The recent pullback in biotechnology shares could present an opportunity to add exposure to an industry with significant growth potential, according to the managers of Biotech Growth Trust (BIOG). Following a strong rally, the sector has come under pressure from inflation concerns, uncertainty over US interest rates and a slowdown in acquisition activity. These factors have affected smaller companies particularly hard, prompting the trust’s managers to adjust the portfolio’s positioning.
BIOG delivered substantial outperformance during the recovery that began in April 2025. In the financial year to 31 March 2026, its net asset value (NAV) total return reached 74%, compared with 35% for the Nasdaq Biotechnology Index. The trust benefited from its bias towards small and mid-sized companies, which generally advanced further during the rally. Positive gearing and acquisitions involving portfolio holdings also contributed to returns.
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.
