International Biotechnology Trust PLC · LSE:IBT
International Biotechnology Trust — Investor Presentation (January 2025)
31 slides from International Biotechnology Trust's investor presentation, January 2025
Slide 1: IBT 2025 outlook Webinar
IBT 2025 outlook Webinar International Biotechnology Trust plc (IBT) January 2025 Marketing material for professional clients only.
Slide 2: Agenda
Agenda 01 Introduction 02 Performance & strategy 03 Sector outlook 04 Appendix 2
Slide 3: Joint Lead Managers since March 2021
Joint Lead Managers since March 2021 Scientific and financial expertise with over 26 years combined experience at IBT Ailsa Craig Marek Poszepczynski Lead Investment Manager, BSc Lead Investment Manager, MSc Managed IBT since 2006 and took over as co-lead manager in March Managed IBT since 2013 and
Slide 4: Schroders healthcare platform
Schroders healthcare platform A full spectrum of investment opportunities Venture Early stage Biotech Pharmaceutical Healthcare Healthcare Innovation Healthcare and Medical related equities International Biotechnology Trust plc Public biotech equities with 5-15% venture fund exposure Private Equity
Slide 5: Performance & Strategy
Schroders Performance & Strategy
Slide 6: International Biotechnology Trust – established May 1994
International Biotechnology Trust – established May 1994 Trust overview Past performance is not a guide to future performance and may not be repeated. The value of investments and the income from them may go down as well as up and investors may not get back the amount originally invested. Exchange r
Slide 7: IBT’s overall performance
IBT’s overall performance IBT has returned >10% per annum over the past ten years Past performance is not a guide to future performance and may not be repeated. The value of investments and the income from them may go down as well as up and investors may not get back the amount originally invested.
Slide 8: Fund risk considerations
Fund risk considerations • Capital erosion: Where fees are charged to capital instead of income, or a fixed distribution amount is paid regardless of the Company’s performance, there is the potential that performance or capital value may be eroded. • Concentration risk: The Company may be concentrat
Slide 9: Summary
Summary IBT strategy has rewarded investors with strong historical outperformance – Top down / bottom up approach – Reducing positions into ‘binary events’ – M&A has boosted returns – 3x acquisitions of the fund’s top holdings – Tactical use of gearing – “Theme baskets” to reduce risk and volatility
Slide 10: Biotech sector goes in and out of favour
Biotech sector goes in and out of favour M&A bringing optimism to biotech sector. IPO window cautiously reopening DESPAIR Company values depressed Stage 1 Despair RECOVERY M&A kickstarts and n Correc 5 valuations start to Sta very tio Re e CORRECTION recover Where do we Stag co ge 2 M&A dries up, in
Slide 11: Investment process overview
Investment process overview The management team considers bottom-up factors as well as a top-down issues Single/wholly owned asset Top down Unmet medical need Market cap Monopoly position Financial strength Diversification Pricing power Management Therapeutic area Valuation Macro environment Liquidi
Slide 12: Biotech trades inversely with the US interest rates
Biotech trades inversely with the US interest rates US long-term bond yields rose significantly in Q4 2023 XBI Smaller Cap Biotech vs US Treasuries 10-yr yield, December 2024 % 110 5.5 105 Dovish Fed rhetoric – peak rates? 100 5 Silicon Valley 95 Bank failure 90 4.5 85 80 4 75 70 3.5 65 60 3 Oct 22
Slide 13: Valuations - not looking stretched esp in small / mid caps
Valuations - not looking stretched esp in small / mid caps Tiled the fund where we saw value over past 12M Past performance is not a guide to future performance and may not be repeated. The value of investments and the income from them may go down as well as up and investors may not get back the amo
Slide 14: M&A – a major theme of the biotech industry
M&A – a major theme of the biotech industry Reinvested 10% NAV from Intracellular Therapies into existing and new ideas 27 M&A deals among IBT’s portfolio companies since 2020¹ Acquiror Quoted M&A Target 120% Amgen Gilead ChemoCentryx 100% Immunomedics Ipsen Pfizer Albireo Arena Pharma 80% Sanofi Jo
Slide 15: Major biopharma patent expiries
Major biopharma patent expiries Threat increasing during second half of the decade Worldwide sales ($bn) % Retail sales at Patent Risk 120 8.00% 7.00% 100 6.70% 6.20% 6.00% 80 5.50% 5.00% 5.00% 5.00% 4.50% 4.20% 4.10% 60 4.00% 3.40% 3.50% 3.30% 99 3.00% 40 80 2.40% 2.30% 2.20% 2.00% 51 51 52 44 46 2
Slide 16: “Basket approach”
“Basket approach” Building baskets of stocks to capture upside but spread risk Central Nervous Emerging M&A Obesity System Oncology targets Rationale • Less crowded space • Accelerating innovation • Pharma cash pile • Vast market potential • High unmet medical need • Huge market • Patent expiries &
Slide 17: Top ten holdings
Top ten holdings Diversification in size and therapeutic area As at 31 December 2024 Investment Therapeutics split Market cap £BN % of NAV Intra-Cellular Therapies Central nervous system 7,1 5.3 Vera Auto-immune 2,1 5.1 Insmed Rare diseases 9,8 4.6 Regeneron Auto-immune 61,6 4.3 Uniqure Central nerv
Slide 18: Portfolio composition
Portfolio composition 59% of NAV is in companies with an approved product As at 31 December 2024: NAV of £275.3m; 81 quoted, as well as 2 unquoted funds and 5 directly-held unquoted companies % of investments by region % of investments by Development Stage 80% US and Canada 18% 16% EU and UK Profita
Slide 19: Outlook
Schroders Outlook
Slide 20: Industry fundamentals remain intact
Industry fundamentals remain intact Quality companies raising money but IPOs still lagging – Secondary offerings in healthy state – IPOs have emerged but performance has been mixed – Number of new clinical trial starts trending up again – Majority of clinical approvals emanating from biotech compani
Slide 21: Biotech equity financing – a key indicator of sector health
Biotech equity financing – a key indicator of sector health Q1 2024 is already the best quarter since Q2 2021 Past performance is not a guide to future performance and may not be repeated. The value of investments and the income from them may go down as well as up and investors may not get back the
Slide 22: Political landscape
Political landscape Trump administration net neutral for biotech – FTC (Federal Trade Commission) may spur further M&A after a dry spell – RFK’s (if confirmed for HHS, Health and Human Services) focus expected to be on Food – FDA (Food & Drug Administration) appointment Dr Martin Makary a Johns Hopk
Slide 23: Important information
Important information Marketing material. Past performance is not a guide to future performance and may not be repeated. The value of investments and the income from them may go down as well as up and investors may not get back the amount originally invested. Exchange rate changes may cause the valu
Slide 24: Important information
Important information Schroders will be a data controller in respect of your personal data. For information on how Schroders might process your personal data, please view our Privacy Policy available at www.schroders.com/en/privacy-policy or on request should you not have access to this webpage. For
Slide 25: Thank you
Schroders es International as Biotechnology °® Trust Thank you
Slide 26: Unquoted Portfolio – 5.6% of investments at 31 December 2024
Unquoted Portfolio – 5.6% of investments at 31 December 2024 Range of 5-15% of investments, managed by SV Health Investors SV Health Investors¹ SV Fund VI (SVF6)¹ • 30 year track record • Founded 2016 • $3.6bn historical commitments • 14 holdings 1% • 75 exits via IPOs and M&A 18% • Net IRR 16.0% •
Slide 27: Performance and discount/premium
Performance and discount/premium Active buyback policy Past performance is not a guide to future performance and may not be repeated. The value of investments and the income from them may go down as well as up and investors may not get back the amount originally invested. Exchange rate changes may c
Slide 28: International Biotechnology Trust’s Board of Directors
International Biotechnology Trust’s Board of Directors Experienced and motivated Kate Cornish-Bowden Caroline Gulliver Alexa Henderson Patrick Magee Chair Chair of Audit Chair of Audit Senior Independent Background in Investment Mgmt Committee Committee, designate Director Background in Audit Backgr
Slide 29: International Biotechnology Trust’s Board of Directors
International Biotechnology Trust’s Board of Directors Experienced and motivated Gillian Elcock Prof. Patrick Maxwell, CBE Independent Director Independent Director Background in Equity Research Background in Medicine Appointed a non-executive Director of Appointed a non-executive Director of IBT on
Slide 30: Details of fee arrangements (since move to Schroders)
Details of fee arrangements (since move to Schroders) Management fees overall likely to remain in line, OCF expected to reduce over time • Ongoing charge ratio expected to reduce marginally for FY24 and further over time (1) • IBT’s costs in connection with the transition to Schroders estimated to b
Slide 31: Key facts
Key facts Details Website www.schroders.com/IBT Net assets (Cum) GBP 275.3m (as at 31 December 2024) Listing London Stock Exchange Dividend Annual dividend of 4% of net asset value at August year end, and paid semi-annually Ex-div date December 2024 Daily volume 76k shares* Sedol 0455934 GB ISIN GB0
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