IBT at Mello London 2018 IBT presentation by Carl Harald Janson, Lead Investment Manager given last November at Mello London. Good overview of the trust, the opportunities, risk mitigation and the investment opportunity. piworld.co.uk International Biotechnology Trust (IBT) Presentation at MELLO London November... By Carl Harald Janson, Lead Investment Manager, IBT International Biotechnology Trust plc is an investment trust company. The Company's investment objective is t
IBT presentation at ShareSoc April 2018 IBT presentation at the ShareSoc growth company seminar in April 2018 by Lead Investment Manager Dr Carl Harald Janson. piworld.co.uk International Biotechnology Trust (IBT) presentation at ShareSoc April 2018 IBT presentation at the ShareSoc growth company seminar in April 2018 by Lead Investment Manager Dr Carl Harald Janson. International Biotechnology Trust offers inv International Biotechnology Trust offers investors access to the fast growing biotechnology sector through an actively managed, diversified fund. Its award winning fund managers at SV Health Investors are scientifically and medically trained with over 60 years of experience in this specialist sector between them. As well as investing in a wide ranging portfolio of global quoted biotechnology stocks, we include a small proportion of otherwise inaccessible carefully selected unquoted investments which have the potential to deliver additional returns over the long term. Excellent management teams, unique innovative products and strong potential for outperformance are the key criteria for inclusion in our diversified portfolio of assets. International Biotechnology Trust introduction video – 00:22 Dr Carl Harald Janson, Lead Investment Manager introduction – 037 Performance 1, 3 & 5 years – 3:47 Dividend – 056 Share price/discount – 05:42 Dividend sustainability – 06:34 Biotech is a high growth sector – 07:25 Favourable regulatory environment – 10:45 Worldwide pharma sales – 11:15 M&A – 11:37 Risks – 13:15 The US market – 14:11 Sector valuation – 16:13 IBT investment process – 174 Risk mitigation – 17:54 Portfolio breakdown – 19:42 Oncology treatment options – 21:54 Top 10 holdings – 23:14 Unqouted portfolio – 240 Awards & Summary -25:58 Q&A -25:19
Contrarian buy from now? holland44, my family too use a chart and has 670p as a target by August with a view to reducing soon after and buy back in any dips.
Re: Contrarian buy from now? Good call: IBT bottomed in the first week of April, when the short-term KST indicator and CCI and RSI all started turning upwards. Momentum since then has been steadily positive and MACD has turned positive too. At the current rate of progress, the SP might even cross positively over the 200-day moving average soon, around 595p.If you draw tramlines over 5 years from May 2013 (ignoring the period of irrational exuberance in 2014-15), then it looks like this trust has some serious catching-up to do and is due a leg up. The US biotech/healthcare sectors are trading on average P/E of 13 compared to 17 for the US market as a whole, which is surprising given these sectors are stuffed with growth stocks.
Contrarian buy from now? Extremely disappointing performance in comparison to my Technology funds but we know this sector can only grow on average in the long run. We may see April lows again however I have added.
6 month performance iShares NASDAQ Biotechnology Index (ETF) shows growth of 7%. Let's see how the LSE funds compared...BBH fund - no changeIBT - no change plus a dividend of 1.5%BIOG - 7.5%Desapointing as IBT has been outperforming BIOG pre-6 month view so I suspect this fund will play catch up in time for their bonuses.
Re: Dividends and biotech 6 month performance has been poor even by the sector but this is still the fund I am most bullish about. The key issue is political. First Hillary now Trump. If we can overcome healthcare care reform or even embrace it we will then see some progress in this the sector.Drugs and Technology are the only two sectors I invest for my retirement in 30 years time.
Dividends and biotech Anyone in doubt about the revitalising effect dividends can have on an investment trusts share price need only look at International Biotechnology Trust (IBT).Managers of the £223 million closed-end fund hope it may soon be able to issue shares for the first time in over a decade. Thats because of the apparently enthusiastic response to its proposal last September to start paying shareholders a 4% dividend from capital.Dividends and biotech funds arent natural bedfellows because biotech companies rarely distribute income to shareholders, preferring to reinvest the cash into research and new drugs.In that context the arrival of an 11.5p per share dividend in January to be followed by an identical payment at the end of this month looks to have impressed investors, even if there are doubters who question the wisdom of creating an income stream where none naturally exists.Since then the discount or gap between IBTs share price and its underlying net asset value (NAV) has shrunk dramatically, from 16% to under 4%, a clear sign of renewed investor demand.Another indication of a broadening shareholder base has been the sight of value investor Lazard reducing its holding from 26% to under 18% as it sells into a 12-month rally.Share issue eyedIBTs discount hasnt been this narrow since early 2007 when the investment trust raised £36 million in a C (conversion) share issue to take advantage of investor appetite following a strong period of performance.Ailsa Craig, one of three investment managers on the fund, believes a similar opportunity could arise in the future. I see no reason why we shouldnt be able to issue more shares, she told Investment Trust Insider recently.If issued at a price above NAV, another share issue would be good for investors, increasing liquidity in the stock and cutting the proportion they pay in charges.Should IBT pull off a new share issue it would be quite an achievement for an investment trust that, having issued nearly 25 million shares 10 years ago, subsequently spent much of the time since then buying them back in again!Unfortunately for IBT and everyone else its 2007 fund raising was followed by the 2008 financial crisis. Strange though it may seem now, biotechnology didnt do too badly during the credit crunch.Morningstar data shows IBTs shares fell 11.7% in 2007 and 9.4% in 2008, which was painful but nothing like the 30% falls many equity funds in developed markets suffered before the great bank bailouts signalled a powerful rebound.Nevertheless, IBTs discount ballooned to 24% as cautious investors gave high-risk areas like biotechnology a wide berth. Thus began a period of intermittent buybacks as the board sought to reduce excess supply of stock and lower its discount to the 8% level shareholders were promised at the C-share issue.Good, but not amazingThe result has been that whilst performance since then looks extraordinary a 328.5% total shareholder return makes the FTSE All-Shares post-crisis gain of 86% look dismal the number of IBT shares in issue has nearly halved to 37.5 million.The apparent disparity is not as odd as it might look. On the one hand, buying back shares at a discount would have contributed a little bit to those stunning shareholder returns. On the other hand, the fact the shares often traded more than 10% below net asset value reflects the fact that IBT was actually the weakest of the four biotech investment companies over the period.In the past decade Swiss-listed BB Biotech (BION.S) has shot the lights out with a 765% total return, while the Orbimed-managed Biotech Growth (BIOG) and Worldwide Healthcare (WWH) trusts have delivered blockbuster returns of 662% and 506%. IBT was the only one not to beat the Nasdaq Biotechnology index return of 538%.To be fair, virtually all of the biotechnology trusts have stood at discounts at various points in recent years. Also, IBTs ranking has improved since the arrival in 2013 of
Nice looking chart Trending North Easterly with 6.30 key area to watch[link]
Re: Stifel Biotech picks I guess investment choice boils down to market expectations. If there is to be a hefty readjustment then the larger cap is better. personally I have always favoured the smaller cap and ride out any bear markets...so Int biotech, IBT, for me
Re: April 2017 factsheet That was the newsletter. The actual factsheet can be sent by signing up.
April 2017 factsheet Sign up on the website for the newsletter and PDF fact sheetwww.ibtplc.comDear Reader, Please find attached International Biotechnology Trusts April 2017 factsheet. On 21 April 2017 our half year results were released. We were happy and proud with the performance which beat our comparator, the NASDAQ Biotech Index in the first six months. Anthony Stern, an analyst at Stifel who follows the trust, published a note on 15 May, stating We keep our Positive rating on the International Biotechnology Trust (IBT) due to its lower concentration and strong performance. Yesterday we had another positive endorsement from Martin Waller in The Times writing his Tempus column with the title Trust in a third way for returns on Biotech. It is always nice to receive credit when you achieve, and it encourages us to continue to find new good investment opportunities. Extract from the investment managers comment in the factsheet: In April 2017, IBTs NAV/share fell by 1.8% (GBP) while the NASDAQ Biotechnology Index was off 1.7% (GBP). The FTSE All-Share Index was off 0.4% (GBP) and the S&P 500 Index fell 2.2% (GBP). IBTs share price decreased 1.7% (GBP). The USD weakened 3.2% vs the GBP. The main positive contributors to NAV in April were Acceleron, Vertex and Illumina. Acceleron, and partner Celgene, announced that their phase three MEDALIST trial testing Luspatercept in MDS was enrolling patients in the trial ahead of schedule. Vertex shares continued to show strength after announcing positive top-line data from two phase 3 cystic fibrosis trials at the end of March. The company also beat 2Q expectations for their marketed drug Orkambi. Illumina posted better than expected revenues driven by steady growth. The main negative contributors to NAV in March were Incyte and Global Blood Therapeutics. Incyte shares were hit after FDA requested more data in order to approve their rheumatoid arthritis drug which had been expected to launch during the first half of 2017. Global Blood Therapeutics was sold off after a strong move in March on news that Novo Nordisk was looking to buy the company. Drug pricing concerns diminished in recent weeks due to a lack of consensus within the Republican Party on how to address the issue. It is worth remembering that competition, both generic and branded, naturally forces prices down. Since the 1980s the biologic drugs market has grown to USD 200BN in size. As these drugs approach their patent cliffs, expectations are that biosimilars will cut healthcare spending by over USD100BN by the end of 2020. These savings do not require government legislative changes (source: SNS Research). This obviously poses problems for the companies that market the original branded biologics, forcing them to innovate or acquire assets in order to maintain growth. Taking this into account, International Biotechnology Trust invests in the innovative companies with attractive characteristics of high growth and M&A potential Thank you for taking the time to read our factsheet. Please visit our website for more information: www.ibtplc.com Kind regards,Carl Harald JansonLead Investment Manager International Biotechnology Trust Plcwww.ibtplc.com SV Life Sciences Managers LLPwww.svlsm.com
Stifel Biotech picks Many investors have steered clear of biotechnology investment trusts fearful of a US government intervention on high drug prices. However, Stifel analyst Anthony Stern believes these concerns are overblown.With this in mind, he has highlighted two biotech trusts offering attractive buying opportunities, given their shares trade around 8% below their net asset values.Stern points out that US politicians take issue with 'price gouging' for older, off-patent drugs rather than the new innovative drugs that biotech stocks work on. As evidenced by President Trumps failed initial attempt to restructure Obamacare, the US healthcare system is complicated and difficult to reform. Any changes are unlikely to be as significant as the market fears, will be slow in coming and are likely to have less of an impact on innovative biotech treatments, Stern noted.The analyst believes the longer-term outlook for biotech companies remains positive, supported by ageing demographics and a growing middle class in emerging markets.However, the perceived cloud hanging over the sector has depressed biotech share prices with the six biggest 'mega caps' trading on 13 times forecast earnings (P/E) for this year, below the multiple of 17 that more mainstream US pharmaceuticals stand at.That said, the P/E rating of biotechs rises to 18 when Gilead Sciences (GILD.O) is included.It is rare for a sector with higher forecast growth rates to trade at a discount to the wider US market, Stern pointed out.Biotech picksStifels top pick in the sector is International Biotechnology Trust (IBT) on account of the manager Carl Harald Jansons strong track record and focus on small and mid cap stocks. This offers investors greater portfolio diversification, says Stern. For example, IBT has 51% of the portfolio in its top 10, while Biotech Growth Trust (BIOG) has 70%.IBT currently trades at an 8% discount to net asset value (NAV) which is slightly narrower than its one-year average of 10.7% and half the level at the height of the uncertainty from the US presidential election last September.The trust has shrugged off a rough three months in which its share price fell 4% to return 41.3% in the past year, ahead of the 26.5% 12-month gain in the Nasdaq Biotechnology index. Over five years shareholders have enjoyed an impressive total return of 221.5%, beating the benchmark's gain of 196%, although growth in the underlying portfolio was slightly lower than this at 1992%.Since the trust has introduced a dividend (4% of NAV, paid out of capital), the discount has narrowed sharply from 15% to around 9%, and this yield may provide discount support in the current low yield environment, Stern said in a recent note to investors.Stifel also has positive outlook for Biotech Growth. Although it has lagged the Nasdaq Biotechnology index and IBT over one, three and five years, the analyst expects its focus on large and 'mega cap' stocks will pay off. This is because Stern believes valuations also look attractive in this space.BIOG currently trades on an 8% discount to NAV, slightly wider than its 12-month average of 6% and well below the 1% premium the shares stood at in December. Over one year its share price is up 18% and 181.4% over five years.Unlike the other two biotech funds we cover, we believe there is little discount risk on the trust as the board seeks to protect a 6% discount level and the fund currently trades below this level at a 9% discount, Stern noted.Stifels optimism does not extend to Swiss-listed BB Biotech (BION), however. Although its NAV performance has been strong over five years, with a 268% return, the analyst has concerns about discount risk. BB Biotech currently trades at a 5% discount.We remain cautious about the discount risk as should sentiment to markets change we could see this widen out. We retain our neutral rating, Stern added.[link]
Biotech Firms, NIH Team Up To Stop Trumps Research Budget Cuts Biotech Firms, NIH Team Up To Stop Trumps Research Budget CutsMay 8, 2017[link] biotech companies joined forces with the head of the National Institutes of Health (NIH) today in Washington to try and convince the White House not to seek major budget reductions for medical research.The move comes as President Trump looks to cut billions in funding from the NIH programs. From Bloomberg: President Donald Trumps administration proposed cutting $1.23 billion from the NIHs budget this fiscal year and $5.8 billion next year. Most of the proposed 2017 cuts would have come from reductions in research grants. But Congress increased the NIHs budget for this fiscal year by $2 billion in the spending bill it passed last week to fund the government through September.Those government subsidies are highly important for biotech firms, because the NIH funds the majority of the basic research that kicks off their quest for new drug treatments.Todays meetings were attended by the CEOs of such major biotech companies as Vertex Pharmaceuticals, Regeneron, and Celgene. Bill Ford, CEO of investment firm General Atlantic was also present, and issued the following statement afterwards: The United States is a global leader in bioscience thanks to a rich ecosystem where government, medical research institutions, and the private sector work together to generate incredible insights and innovations. Following todays discussion it is clear that the White House is committed to further extending Americas leadership position in this vital industry.These meetings could have major ramifications for biotech stocks and ETFs in the coming months and years, so investors are well advised to keep tabs on the developments.
Re: Time to buy again Correction NAV reports are not being shown on iii for the past few days.[link]