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International Biotechnology Trust plc flying high as it outperforms all indices in its first half OUTPERFORMS ALL INDICES IN ITS FIRST HALF
International
Biotechnology Trust plc fuelled by M&A activity For immediate release – 28 April 2006 – International Biotechnology Trust plc (IBT), the investment trust managed by SV Life Sciences (‘SVLS’) that invests in high growth, development stage biotechnology companies, has today announced stellar Interim Results, outperforming all relevant indices*. IBT’s first six months have been fuelled by increased activity in the biotechnology sector - clinical success and commercial agreements signed in its quoted portfolio, and IPOs and merger and acquisition (M&A) exits in its unquoted portfolio. The trust has also benefited from the recognition by generalist investors that biotechnology investments represent a maturing asset class offering capital growth and, in increasing numbers, companies with sales and profit growth. Andy Smith, Investment Manager at IBT, said: “The increased pace of M&A within the sector has further boosted the performance of IBT. I expect this trend to continue as pharmaceutical companies turn to smaller biotechnology companies to alleviate increasing pressures of drug safety concerns, generic competition to their larger products, and a tougher regulatory environment for primary care medicines.“ Within the IBT portfolio, M&A has not been the only move towards liquidity - the unquoted portfolio has seen two IPOs since year end - Sunesis in the US and Genosis in the UK. Yet IBT believes the pace of this activity will slow as the US and Europe experiences a different type of IPO window which will mean that fewer companies will be able to list and those that do will have reasonable valuations, with viable later stage businesses. There have also been positive clinical trial results at several of IBTs quoted companies** and positive drug or biological regulatory events***. In addition, since August year end, there have been commercial agreements signed at several portfolio companies. Kate Bingham, General Partner of SVLS, said: “IBT has witnessed an excellent six month period in a particularly active sector. We believe the good performance has come from a combination of factors and as such, we will continue with our existing strategy investing in small and mid-capitalisation companies. We believe that many investors have a renewed confidence in these size companies and are drifting away from the largest capitalisation names, therefore the company is well positioned for the coming six months.” The full text of the Interim Results can be found on RNS. - ENDS - For further information please contact:
Notes to editors: * Over the same period the share price of IBT rose 26.6%, the NASDAQ Biotech Index (NBI) rose by 13.9%, the Merrill Lynch Small Cap Biotech Index (MLSCI) rose by 7% (or 18.9% before a significant re-balancing of the index) and the Bloomberg UK Biotechnology Index (BUKBI) rose by 17.7%, all in sterling terms. ** Progenics, Alexion, Tanox, Myogen and Adolor *** OSI Pharmaceuticals, Noven, Nektar and Celgene Highlights from the Results International biotechnology trust plc The Board of International Biotechnology Trust plc (“IBT”) today announces its unaudited Interim Results for the six months ended 28 February 2006. Summary · Net asset value per share rose by 20.1% to 145.70p · Both the quoted and unquoted portfolios outperformed the NASDAQ biotech index · Valuation changes of unquoted companies resulted in a rise in net assets of £4.1m · KuDOS realisation to AstraZeneca added £2.0m to NAV · Micromet merger with Cancervax added £3.0m to NAV · Two IPOs from the unquoted portfolio (Sunesis in the US and Genosis in the UK) · Two new unquoted investments (GlycoFi and Spinal Kinetics) · 22.7% of net assets invested in unquoted companies at 28 February 2006 (28 February 2005: 23.0%) Andrew Barker, Chairman, commented: “The IBT portfolio is constructed to give shareholders exposure to global biotechnology and medical technology through investments in both quoted and unquoted companies. The focus of IBT is on quoted mid and small-capitalisation stocks, and the unquoted universe. When these components perform well as they did in the six months under review, investors will benefit and indeed have benefited from the out-performance in the market capitalisation strata where IBT focuses, augmented by the excellent realisation-driven performance of the unquoted portfolio. “Recent mergers and acquisitions have already brought the biotechnology sector into focus for many investors and as the pace of these transactions increase, the positive outlook of the sector should continue to improve.” For further information, please contact: International Biotechnology Trust plc Andrew Barker, Chairman 020 7658 3206 SV Life Sciences Managers LLPKate Bingham/Josee Gray 020 7421 7070Lansons Communications Amy Fisher/Charlotte Edgar 020 7490 8828 Website: www.internationalbiotrust.com About IBT
The Company’s investment
objective is to achieve long term capital growth by investing in high
growth, development stage biotechnology companies that are either quoted
or unquoted. IBT invests in companies that are undervalued, with
experienced management and strong potential upside through the development
and/or commercialisation of a product, device or enabling technology. SV Life Sciences™ ('SVLS'), previously known as Schroder Ventures Life Sciences, is a life sciences focused venture capital adviser and manager. SVLS advised funds invest in companies requiring funding within the human life sciences sector including biotechnology and pharmaceuticals, medical devices and instruments, healthcare IT and services. SVLS was established in 1993 and currently has offices in Boston, London and San Francisco. Charlotte Edgar Direct +44 (0)20 7294 3622 Email charlottee@lansons.com Web www.lansons.com
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