HBM HEALTHCARE INVESTMENTS AG Quarterly Report 2022
December
At a Glance
Profile and Portfolio
HBM Healthcare Investments invests in the human medicine, biotechnology, medical technology and diagnostics sectors and related areas. The company holds and actively manages an international portfolio of promising companies.
Many of these companies have their lead products already available on the market or at an advanced stage of development. The portfolio companies are closely tracked and actively guided on their strategic directions. This is what makes HBM Healthcare Investments an interesting alternative to investing in big pharma and biotech companies. HBM Health- care Investments has an international shareholder base and is listed on SIX Swiss Exchange (ticker: HBMN).
HBM Healthcare Investments Ltd / Quarterly Report December 2022 | 2 |
Currency allocation of assets 1)
Emphasis on US dollar investments.
61% US dollar (USD)
17% Renminbi (CNY)
11% Euro (EUR)
4% Indian rupee (INR)
4% Other currencies
(CAD, DKK, GBP, HKD, SEK)
3% Swiss franc (CHF)
Allocation of assets 1)
Mainly invested in private companies or in companies originating from the private companies portfolio.
32% | Private companies | |||
28% | Public (from private) | |||
companies | ||||
15% | Public companies | |||
15% | Cash and cash equivalents | |||
8% | Funds | |||
2% | Other assets | |||
Development phase of portfolio companies 2)
Mainly invested in revenue generating companies or in companies with products at an advanced stage of development.
Investments by continents 2)
Global portfolio.
Western Europe 18%
North and South America 47%
Asia 35%
44% | Profitable | |
24% | Products on the market | |
5% | Phase III | |
13% | Phase II | |
6% | Phase I | |
8% | Preclinical | |
Therapeutic area of the lead product of portfolio companies 2)
Broadly diversified areas of activity.
25% | Others | ||
20% | Synthetic Biology | ||
14% | Oncology | ||
13% | Central Nervous System | ||
9% | Digital Health | ||
7% | Immunology / Inflammation | ||
6% | Orphan diseases | ||
- Total consolidated assets as at 31.12.2022: CHF 1 944 million.
- Total investments as at 31.12.2022: CHF 1 618 million.
6% Medical technology / |
diagnostics |
At a Glance | HBM Healthcare Investments Ltd / Quarterly Report December 2022 | 3 |
Key Figures and Performance |
Key Figures | 31.12.2022 | |
Net assets | CHF million | 1 486.1 |
Investments in private companies and funds | 793.5 | |
Investments in public companies | 824.7 | |
Cash and cash equivalents | ||
(net of liability from market hedging) | 282.1 | |
Net result for the period | CHF million | - 154.7 |
Basic earnings per share | CHF | - 22.24 |
Net asset value (NAV) per share | CHF | 253.59 |
Share price | CHF | 201.00 |
Premium (+) / discount (-) | % | - 20.7 |
Distribution per share | CHF | |
Distribution yield | % | |
Shares issued | Registered shares (m) | 7.0 |
Shares outstanding | Registered shares (m) | 7.0 |
31.3.2022 | 31.3.2021 | 31.3.2020 | 31.3.2019 |
1 986.5 | 2 151.5 | 1 448.8 | 1 318.3 |
790.3 | 662.8 | 706.4 | 542.1 |
1 130.2 | 1 404.2 | 629.9 | 688.2 |
223.7 | 327.0 | 224.2 | 176.2 |
- 78.0 | 756.3 | 182.7 | 209.1 |
- 11.22 | 108.71 | 26.26 | 30.05 |
285.53 | 309.25 | 208.25 | 189.48 |
276.00 | 332.50 | 190.00 | 168.80 |
- 3.3 | +7.5 | - 8.8 | - 10.9 |
9.70 | 12.50 1) | 7.70 | 7.50 |
3.5 | 3.8 | 4.1 | 4.4 |
7.0 | 7.0 | 7.0 | 7.0 |
7.0 | 7.0 | 7.0 | 7.0 |
- Thereof CHF 9.50 as ordinary distribution and CHF 3.00 as a special distribution to mark the 20th anniversary of the Company.
Performance (including distributions) | 2022/2023 |
(9 months) |
2021/2022 2020/2021 2019/2020 2018/2019
Net asset value (NAV) | % | - 7.8 | - 3.6 | 52.2 | 13.9 | 18.1 |
Registered share HBMN | % | - 23.7 | - 13.2 | 79.1 | 17.0 | 22.1 |
Indexed performance since launch in CHF (12.7.2001 = 100), dividends reinvested 560
500
HBM Healthcare Investments Share
440
380
320
NASDAQ Biotechnology Index | HBM Healthcare Investments NAV |
260
200
MSCI World Health Care Index
140
80
20 | ||||||||||
1.1.2013 | 31.12.2013 | 31.12.2014 | 31.12.2015 | 31.12.2016 | 31.12.2017 | 31.12.2018 | 31.12.2019 | 31.12.2020 | 31.12.2021 | 31.12.2022 |
Management Report | HBM Healthcare Investments Ltd / Quarterly Report December 2022 | 4 |
1 April to 31 December 2022 |
HBM Healthcare Investments closed the quarter under
review as at the end of December 2022 with a loss of CHF 120 million, largely attributable to currency develop- ments. Currency hedging partially compensated for the decline and was then closed. A loss of CHF 155 million resulted for the first nine months of the 2022/2023 financial year. In this period, the decline in the market capitalisation of the largest position, Cathay Biotech, was the main factor. Cash and cash equivalents increased to 15 percent of the portfolio due to the completion of acquisitions and profit taking. Notwithstanding the volatile market environment, HBM Healthcare Investments remains confident in its chosen investment strategy and considers the value potential of its well-diversified portfolio to be intact.
Dear Shareholders
HBM Healthcare Investments closed the third quarter of the 2022/2023 financial year as at the end of December 2022 with a loss of CHF 120 million. The net asset value per share (NAV) declined by 6.4 percent and the share price by 9.3 percent during this period.
This decrease in value is largely due to currency developments. In the three-month period, the US dollar depreciated by 6.3 percent against the Swiss franc and the Chinese yuan by 3.4 percent. The currency hedge, which had been increased slightly in October 2022 and was closed after the US dollar fell in mid-November, was able to partially compensate for this decline. Overall, the currency development burdened the result in the quarter under review by around CHF 84 million.
For the first nine months of the 2022/2023 financial year, this resulted in a loss of CHF 155 million with a decline in NAV of 7.8 percent. The share price fell disproportionately by 23.7 percent. Calculated over the first nine months, the foreign currencies' negative impact of CHF 25 million on the result has been much less accentuated. Rather, the result for this period is mainly due to the market-driven decline in the market capitalisation of our largest investment, Cathay Biotech (share price -21 percent).
Management Report | HBM Healthcare Investments Ltd / Quarterly Report December 2022 | 5 |
1 April to 31 December 2022 |
Significant portfolio developments in the quarter under review
The value of the portfolio of private companies decreased by a total of CHF 41 million, of which CHF 28 million was due to currency developments. The following events stood out:
Swixx Biopharma is expecting sales in 2022 to jump to over EUR 700 million. This pleasing
developmentallowed the company to return part of its surplus liquidity to shareholders as a capital repayment. For HBM Healthcare Investments, this resulted in dividend income of CHF 10 million recognised in the income statement.
Fangzhou, which operates the digital healthcare platform Jianke.com in China, filed the prospectus for a planned IPO on the Hong Kong Stock Exchange in November 2022. HBM Healthcare Investments still values its investment in Fangzhou at cost, in line with its prudent valuation principles.
A revaluation of the investment is being reviewed for the annual financial statements as at the end of March, based on financing rounds which were closed at higher valuations due to the company's good operating performance.
Acrivon Therapeutics, a US company active in personalised oncology, raised around USD 100 million in new capital via an IPO. At year end, the share closed around 8 percent below the issue price.
In addition, value adjustments totalling CHF 15 million were made for various investments.
Public companies burdened the quarterly result with CHF 51 million, CHF 39 million of which was due to currency developments. Y-mAbs Therapeutics suffered an unexpected setback. The US Food and Drug Administration (FDA) denied the company approval for omburtamab, an antibody therapy
for the treatment of rare childhood cancers. The company's market value declined sharply as a result. Y-mAbs owns an approved drug, DANYELZA®, and is also developing other cancer therapies.
The strong share price performance of Harmony Biosciences largely compensated for the decline in Y-mAbs.
The fund portfolio burdened the result in the quarter under review by CHF 20 million, CHF 11 million of which was due to currency developments.
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HBM Healthcare Investments AG published this content on 18 January 2023 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 20 January 2023 08:10:01 UTC.
