Biotech Growth Trust PLC (LON:BIOG) has announced its Fact Sheet as at 31 May 2026.
Commentary
In May, the NAV per share was +3.0%, the share price was +3.3% and the benchmark NASDAQ Biotechnology Index (net, total return, sterling adjusted) was +3.1%.
During May, the broad market continued to rally as investors seemed to brush aside concerns regarding the Iran conflict. Kevin Warsh became the new Chair of the Federal Reserve in May, replacing Jerome Powell. Against a backdrop of persistent inflation concerns and resilient economic data, expectations for near-term interest rate cuts were pushed out further, which remained a headwind for biotech.
There was significant turnover of leadership at the U.S. Food and Drug Administration (FDA) during the month. After a controversial tenure, Marty Makary resigned as FDA Commissioner, followed by the departure of Katherine Szarama as head of the Center for Biologics Evaluation and Research (CBER) and the departure of Tracy Beth Høeg as head of the Center for Drug Evaluation and Research (CDER). New acting directors have been appointed to each of the vacant senior leadership roles while the Trump administration considers the potential permanent replacements. Given the inconsistent way in which the FDA seemed to act on drug applications during Makary’s term, we believe some stability and consistency at the agency will be welcomed by both investors and industry participants. Our hope is that President Trump will appoint someone relatively noncontroversial to the FDA Commissioner post. In the meantime, it seems drug reviews and approvals are continuing on schedule, and we are hopeful that the departure of Makary will lead to an even more constructive review environment.
Merger and acquisition (M&A) activity cooled down after a surge of deals in late-March and April, but there were still two notable transactions during the month. At the beginning of May, investment firm ArchiMed announced its intention to acquire Esperion Therapeutics for $1.1bn, representing a 58% premium to the stock’s last closing price prior to the announcement. Esperion markets the drugs Nexletol and Nexlizet, which are approved to treat high cholesterol and lower the risk of major cardiovascular events. The Company held Esperion shares at the time of announcement of the transaction. Additionally, Italian company Angelini Pharma announced the acquisition of the commercial-stage company Catalyst Pharmaceuticals for $4.1bn. The transaction marks Angelini’s entry into the US market and the addition of a robust and rare neuromuscular and neurological portfolio. We are encouraged that the M&A activity in the sector is not confined to traditional Big Pharma and smaller companies are also pursuing acquisitions.
C4 Therapeutics, Esperion Therapeutics, and UroGen Pharma were the largest positive contributors to performance during the month. C4 Therapeutics’ stock price appreciated ahead of competitor Bristol Myers Squibb’s data presentation at the American Society of Clinical Oncology (ASCO) conference for its drug mezigdomide, a drug with a comparable mechanism of action to C4’s cemsidomide for the treatment of multiple myeloma. Esperion surged following the acquisition by ArchiMed. UroGen outperformed in May due to strong sales growth for its drug Zusduri and the release of positive Phase 3 data for its pipeline drug UGN-103 in bladder cancer.
Forte Biosciences, Corbus Pharmaceuticals, and Nanjing Leads Biolabs were the largest negative contributors to performance during the month. Forte gave up some gains as investors derisked in advance of clinical trial results for its drug FB102 in vitiligo. Corbus shares declined after presenting updated Phase 2 data for its drug CRB-701 in head and neck cancer at ASCO, which only showed strong efficacy in a subset of patients with the disease. Nanjing Leads sold off amidst a broader Chinese biotech sell-off due to fears about potential tighter Chinese regulatory scrutiny of out-licensing deals with US companies
