•  Biotech sector stronger and better funded
• Increased competition and hungry buyers will drive up pre-sale prices
• M&A of biologics companies rising on back of huge sales growth
• Increased innovation expected in European biotech industry

For immediate release, 06 December 2007: “M&A is reshaping the biotech sector,” said Kate Bingham, Managing Partner of SV Life Sciences (SVLS) talking on behalf of International Biotechnology Trust plc (IBT) at the FT Global Pharmaceutical and Biotech Conference 2007.

“This current round of M&A activity is transforming the whole biotech landscape and what we are seeing is a stronger, better funded sector. Increased M&A coincides with the emergence of a top tier of VCs with larger funds injecting more capital into portfolio companies, enabling them to reach later phase drug development. This means successful biotech companies will be able to stay independent for longer with better internal funding.

“Additionally, biotech companies are reinforcing their independence by undertaking more complex deal structures. Regional deals, co-promotes and profit sharing are now more commonplace signalling that the large cap biotech sector will expand rather than be subsumed by pharma.”

Kate has seen M&A activity favoured over IPOs for some time and VCs continue to build up companies for sale rather than IPO. Not surprising as there is of a broadening range of hungry buyers who want to fill pipelines and also increased competition - speciality pharma and biotech acquirers are now joining pharma in the M&A hunt and as a result prices will rise.

Kate Bingham continued: “Another ‘side-effect’ of M&A activity, is the emergence of more pharma spin-outs. With increased M&A we are likely to see more spin-out activity as pharma disposes of the unwanted by-products of acquisition.

Kate also expects increased innovation in the European biotech industry as a result of pharma’s current appetite for biotech acquisitions.

She said: “Unlike the US, which has the Nasdaq as an exit route for successful biotech companies, European biotechs have struggled to raise enough cash to IPO. This has hampered new company formation in the EU, so we are likely to see more high quality biotech company formation instead.

“Where we will also see innovation is among biologics companies, where improving drug development and processes will be a key focus. Also in speciality, hospital prescribed drugs, rather than primary care blockbusters.

“Overall, the particular challenges companies face when integrating biotech acquisitions into pharma companies is autonomy, reward and risk. But despite the challenges, I see no sign of this activity abating; more so, the industry needs to find ways of adapting.”

- ENDS -

For further information please contact:

Kate Bingham
Managing Partner of SVLS
Tel: 020 7421 7058

Charlotte Edgar / Kim Atkins
Lansons Communications
Tel: 020 7490 8828

Notes to editors:

About IBT
International Biotechnology Trust plc is a publicly quoted investment Trust listed on the London Stock Exchange (ticker IBT), with total net asset value per share of £102.4m as at close of business 31 August 2007

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.

SVLS became Advisers to the Trust in November 2000 and Manager on 1 January 2005.

Website: www.internationalbiotrust.com

About SV Life Sciences
SV Life Sciences, previously known as Schroder Ventures Life Sciences, currently advises or manages five funds with capital of approximately ~$1.6 billion which invest primarily North America and Europe, but will consider innovative investments in other regions

SV Life Sciences provides finance to businesses at all stages of development and across the human life sciences sector. These sectors range from biotechnology and pharmaceuticals to medical devices & instruments, to healthcare information technology and services. Its team of 27 professionals has a diverse, complimentary set of skills and experience that allow it to tailor a team to work with almost any life sciences business.

Website: www.svlsa.com