BB BIOTECH AG: 2021 was a difficult year for biotech equity markets

DGAP-News: BB BIOTECH AG / Key word(s): Annual Results/Dividend
21.01.2022 / 07:00
The issuer is solely responsible for the content of this announcement.

Media release as at January 21, 2022

Portfolio of BB Biotech AG as at December 31, 2021

2021 was a difficult year for biotech equity markets – increased dividend of CHF 3.85 proposed

The year 2021 was a volatile market environment for all involved in biotechnology investing, including BB Biotech. The biotech and pharmaceutical sector adapted to the SARS-CoV-2 virus pandemic cycling through Delta and now Omicron variants with offers of booster vaccines, therapeutic antibodies and most recently new antiviral drugs. For human health overall, new modalities such as genetic medicines, cell-based therapies and RNA-based drugs continue to make positive strides and are expected to improve the prognosis of severe and chronic diseases in the coming years. For the fourth quarter, that challenging biotechnology equity market resulted in a portfolio loss of 14.2% in CHF, 10.9% in EUR and 12.5% in USD for BB Biotech – driving a net loss of CHF 546 mn. Likewise, the share price depreciated by 8.3% in CHF and 4.7% in EUR. BB Biotech carefully adjusted the portfolio in the last three months of 2021. For the full year, total share return was +8.3% in CHF and +13.3% in EUR, substantially ahead of the portfolio performance of -11.5% in CHF, -7.8% in EUR and -14.2% in USD. The net loss for BB Biotech in 2021 was CHF 405 mn. In line with the stated dividend policy of past years, the Board of Directors’ dividend proposal at the Annual General Meeting on March 17, 2022 will be an ordinary dividend of CHF 3.85 per share – which corresponds to a 5% return on the volume-weighted average closing price of BB Biotech shares in December 2021. BB Biotech plans to expand its Board of Directors. Shareholders will therefore be asked to elect Pearl Huang and Laura Hamill at the upcoming Annual General Meeting.

During the last quarter of the year major global equity indices extended their 2021 gains. Many markets achieved new all-time highs even though SARS-CoV-2 infection rates reaccelerated in the last weeks of 2021 due to the rapid spread of the Omicron variant. The Dow Jones (+21.0% in USD), the Dax (+15.8% in EUR), and the SPI (+23.4% in CHF) indices all showed gains for the year in line with the technology dominated Nasdaq Composite (+22.2% in USD). The Nasdaq Biotech Index (NBI) traded flat for the year (0.0% in USD), lagging the broader markets.

Although the SARS-CoV-2 pandemic remained a dominant topic for healthcare authorities in 2021, an impressive array of drug approvals was reported by the US FDA – total drug approvals comprised 50 NDAs and 10 BLAs (vaccines, blood and cell products) for the year. Additionally, multiple SARS-CoV-2 diagnostic tests, vaccines and drugs were granted emergency use authorization (EUA) by the FDA during 2021.

For 2021, BB Biotech’s total share return of +8.3% in CHF and +13.3% in EUR trended…