OREANDA-NEWS. BB Biotech AG's net profit for 2014 amounts to CHF 1.47 bn - the highest profit for the year reported by the Swiss investment company since its establishment in 1993. While 2014 was generally a good year for the sector, BB Biotech's record results are largely attributable to its investment strategy and stock selection. Its distribution policy remains unchanged with a tax-efficient cash distribution (free of Swiss withholding tax) of CHF 11.60 per share, to be proposed at the Annual General Meeting. This represents a 65% increase compared to last year. BB Biotech remains positive on the sector - the R&D pipelines of biotech companies are well filled and sector profits should continue growing at a strong pace in 2015.

BB Biotech looks back on its most successful year since its founding in 1993: Its investment strategy paid off once again and the Net Asset Value (NAV) increased 72.3% in CHF or 75.8% in EUR and 54.6% in USD, which beat the benchmark performance (Nasdaq Biotech Index in USD) by 20 percentage points. BB Biotech's annual share performance was 75.1% in CHF and 79.3% in EUR (all values include the cash distribution of CHF 7.00 per share). For the fiscal year 2014, net profit reached a record high of CHF 1.47 bn, well above the previous year's result of CHF 931.8 mn. The core holdings of Celgene, Isis, Incyte, Actelion and Agios were major performance drivers for BB Biotech's portfolio, each making a positive contribution of more than CHF 100 mn to the overall full-year performance. Smaller positions such as Puma and Receptos also made a notable contribution thanks to convincing clinical data.

BB Biotech is sticking to its selectively focused portfolio strategy, consisting of core shareholdings plus various mid-cap names that have innovative technology and/or are pursuing novel avenues of treatment. This investment strategy is not bound by any benchmark indices, a fact that has helped BB Biotech to outperform sector indices by a wide margin in the past.

In line with the distribution policy established in 2013, the Board of Directors will propose a tax-efficient cash distribution of CHF 11.60 per share at the Annual General Meeting. This represents a significant increase of 65% compared to the previous year and corresponds to a yield of 5% based on the volume weighted average share price in December 2014.

In view of the product candidates moving through the pipelines of biotech companies, it is likely that the sector will bring new, highly effective drugs to market in 2015. That should help to support sector momentum along with continued earnings growth.

Company profile     

BB Biotech invests in companies in the fast growing market of biotechnology and is one of the world's largest investors in this sector with CHF 3.5 bn in assets under management. BB Biotech is listed in Switzerland, Germany and Italy. Its investments are focused on listed companies that are developing and commercializing novel medical treatments and cures. BB Biotech's investment selection process is guided by the fundamental research and analysis of physicians and molecular biologists. Its Board of Directors has many years of experience in industry and science.