The Biotech Growth Trust delivers strong one-year gains, significant outperformance

BIOG

The Biotech Growth Trust plc (LON:BIOG) has announmced that its Fact Sheet as at 31 July 2026 is now available:

Commentary

In July, the NAV per share was -3.0%, the share price was +1.3% and the benchmark NASDAQ Biotechnology Index (net, total return, sterling adjusted) was -3.3%.

During July, the biotech sector underperformed the general market. Broader equity markets were volatile, highly fragmented, and driven by bidirectional moves following earnings reports of several large tech companies. Investor scrutiny remained focused on whether the significant capital being deployed toward artificial intelligence infrastructure would generate adequate returns. At the same time, elevated oil prices, inflation concerns and increased expectations of potential rate hikes pressured biotech sentiment. Biotech performance was also influenced by profit-taking following the sector’s strong June rally.

July brought another active month of dealmaking. Importantly, the buyer pool continued to broaden beyond traditional large pharma companies to include commercial-stage biotech companies seeking to diversify their pipelines and enhance long-term growth. Vertex Pharmaceuticals acquired Crinetics Pharmaceuticals for $10bn, representing a 102% premium to the stock’s last closing price prior to the announcement. The transaction expands Vertex’s pipeline into endocrinology and adds atumelnant, an oral ACTH receptor antagonist in Phase 3 development for congenital adrenal hyperplasia with additional potential in Cushing’s syndrome. Eli Lilly announced the acquisition of AtaiBeckley for $2.8bn, representing a 26% premium to the company’s prior closing price. Lilly secured the rights to Phase 3 ready BPL-003, an intranasal synthetic form of 5-MeO-DMT being developed for depression. Rounding out the month, Argenx agreed to acquire Forte Biosciences for $2.2bn, representing a 41% premium to the unaffected price prior to announcement of the transaction. The transaction followed positive Phase 1b data for Forte’s drug FB102 in vitiligo and adds a potentially first-inclass anti-CD122 antibody to Argenx’s pipeline, which may have utility across a number of autoimmune diseases. The Company held shares in AtaiBeckley and Forte Biosciences at the time of announcement of those respective transactions.

Forte Biosciences, Apnimed, and AtaiBeckley were the largest positive contributors to performance during the month. Forte Biosciences outperformed after the positive Phase 1b vitiligo readout for its asset FB102 and the subsequent acquisition by Argenx. Shares of Apnimed, an emerging biotech company developing a treatment for obstructive sleep apnea, performed strongly after its initial public offering (“IPO”). AtaiBeckley’s stock price appreciated following its acquisition by Eli Lilly.

C4 Therapeutics, LongBio Pharma, and Relmada Therapeutics were the largest negative contributors to performance during the month. C4 Therapeutics sold off as investors took profits following the stock’s strong performance over recent months.
Shares of Chinese biotech LongBio Pharma came under pressure due to profit-taking after a strong IPO debut. Relmada’s stock price fell as some investors grew concerned the company might miss its mid-2026 Investigational New Drug (“IND”) submission guidance for its lead asset NDV-01.

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. 

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