Final Results
Intl. Biotechnology Trust PLC
30 September 2005
For immediate release 30 September 2005
International Biotechnology Trust plc
The Board of International Biotechnology Trust Plc ('IBT') today announces its
unaudited Annual Results for the twelve months ended 31 August 2005.
Summary
• Net asset value per share rose by 4.2% to 120.16p
• NASDAQ Biotech Index rose 12.1% and the Merrill Lynch Small Cap Biotech Index
rose by 13.6% (both sterling adjusted).
• Return on IBT's quoted portfolio of 5.4%.
• Unquoted revaluations increased net assets by £0.7m, however since the
year-end the revaluation of Sunesis at its IPO reduced the Net Assets by
£0.6m or1.3p per share
• Ten new investments in quoted companies; sales of two quoted companies,
Eyetech and Xoma
• One new unquoted investment during the period (Oxagen) and one committed
after the year end; follow-on investments in Trine, KuDOS Genosis, Archemix,
PowderMed, and Micromet.
• Total net assets at 31 August 2005: £57.5m (31 August 2004: £55.2m)
Andrew Barker, Chairman, commented:
'Investment in International Biotechnology Trust's shares provides shareholders
with exposure to biotechnology companies - both public and private. While the
volatility of the share price of single stocks in the sector is high, the
combination of a portfolio of investments, including unquoted holdings, should
reduce the volatility of the Company's net assets while the investment trust
structure allows investors reasonable liquidity for a specialist vehicle. Many
of the companies in the portfolio have products that are in mid-stage clinical
trials and as such can take a number of years to reach registration and the
market. We remain optimistic about the prospects for the portfolio but must
point out that it can take time to reap the rewards.'
For further information, please contact:
International Biotechnology Trust plc
Andrew Barker, Chairman 020 7658 3206
SV Life Sciences Managers LLP
Kate Bingham / Andy Smith 020 7421 7070
Lansons Communications
Amy Fisher / Charlotte Edgar 020 7490 8828
Website: www.internationalbiotrust.com
CHAIRMAN'S STATEMENT
Performance and review
I am pleased to report that for the third successive year there has been an
increase in net asset value (NAV) of International Biotechnology Trust. However,
in this year we did not have the benefit of the uplift in assets from initial
public offerings (IPOs), such as Eyetech in the previous year. Over the year to
31st August 2005 the NAV per share increased by 4.2% from 115.35p to 120.16p per
share. Over the same period the Merrill Lynch Small-Cap Biotech Index (MLSCI),
which we consider the most relevant index given our weighting in private equity
and smaller quoted companies, rose by 13.6% and the NASDAQ Biotech Index (NBI)
12.1%, in Sterling terms. Over the three years the NAV rose by 22.0% while the
MLSCI and NBI rose by 15.4% and 36.2% respectively. In the last year,
importantly for shareholders, the share price rose by 9.7% (up 36.3% over the
three years) reflecting the rise in assets and the narrowing of the discount
from 17.6% to 13.2%.
This year currency changes had no material effect on net assets on a year to
year basis, unlike the previous year when the US dollar weakened considerably
against sterling. Whilst the situation is kept under regular review, it remains
our current policy not to hedge the currency exposure of the portfolio.
The performance of IBTs quoted portfolio showed an increase of 5.4%. During the
reporting period, the net effect of the Directors valuation changes of unquoted
portfolio investments totaled a net increase of £0.7 million and principally
comprised a discount to the expected proceeds of the acquisition of most of the
assets of Aderis, small write ups in the value of our holdings in KuDOS and
Micromet, and a 50% write-down to the valuation of Affibody to reflect the poor
European private funding climate. Subsequent to the year end there has been a
write-down of £0.6m (or 1.3p per share) of our investment in Sunesis, following
its IPO on 27 September 2005.
There have been no IPOs from the portfolio this last year, which has mirrored
the situation in the wider global biotechnology market which has had an
intermittent IPO window in the U.S. and Europe. The IPOs that have occurred have
frequently been priced below the indicative range and often below the last round
private valuation. There have, however, been sales from the portfolio with the
complete divestment of the holding in Eyetech Pharmaceuticals after its
successful IPO in early 2004 which was priced at $21 per share. IBT invested
$5.0 million in Eyetech and realised $32 million in total, including $11 million
in the previous year, with an average exit price of just over $39 per share. The
other exit from the unquoted portfolio was the acquisition of most of the assets
of Aderis, which has been announced, but has not yet completed. In addition,
there have been acquisitions of quoted portfolio companies; Warner Chilcott and
Atrix Laboratories, while portfolio company Epimmune, in the U.S. merged with
IDM in France.
It has been both interesting and welcome to see a resurgence in the acquisition
of biotechnology companies by larger pharmaceutical companies. This activity
will hopefully continue and has recently been illustrated by GlaxoSmithKline's
proposed acquisition of ID Biomedical in Canada.
For part of the year, the success of Genentech's drug Avastin propelled the
share price of Genentech to the position of the world's largest biotechnology
company by stock market capitalisation. With this advance came the focus on the
larger quoted capitalisation biotechnology companies to the detriment of those
with smaller capitalisations, where this Company has historically concentrated.
Within the last year the Company has begun to diversify into some larger
capitalisation companies, however it should be remembered that investment in
even the larger biotechnology companies also carries significant risk.
There have been some concerns since the election of the Republican
Administration for a second term, that the absence of a permanent Commissioner
at the Food and Drug Administration (FDA) would prompt a more cautious approach
to U.S. drug and biologic approvals. However, while the appointment of Dr
Crawford to that post in the second half of the year initially allayed those
concerns, his retirement after two months, in late September 2005 has lead to
those concerns re-surfacing. Dr Crawford's replacement has already been proposed
and is an oncology specialist. This should bode well for those oncology
companies in the portfolio and prior to these personnel changes at the FDA,
three oncology portfolio companies received approval, approvable letters, or a
positive recommendation by a FDA panel, subsequent to our year end.
Continuation vote
The Articles of Association of the Company contain provisions requiring the
Directors to put a proposal for the continuation of the Company to shareholders
at the Annual General Meeting in 2005, and at two year intervals thereafter.
In considering whether to recommend to Shareholders that the Company continue in
business as an investment trust, the Board of Directors has reviewed five
particular aspects of its business:
The prospects for the biotechnology sector
The prospects for the portfolio
The strength and depth of our management
The appropriateness of the investment trust structure
The number of investment vehicles offering investors liquid biotechnology
exposure
We consider the fundamentals of the biotechnology sector to be compelling and
these are highlighted in the Investment Managers' Review. Our Investment Manager
continues to manage a portfolio of public and private biotechnology investments
which we believe are best positioned to benefit from an increase in interest in
the sector. We believe that your Company has as its Investment Manager, a
leading team in the biotechnology sector with considerable skill, diligence and
resources to apply to the management of the portfolio. Investment trusts are one
of the few investment vehicles that can provide investors a liquid investment in
a portfolio of private and illiquid quoted investments in a specialist sector;
furthermore their management is overseen by an active, but non-executive
independent board of directors. Finally, in the last year we have witnessed a
contraction in the number and scope of investment trusts offering investors
global private and public biotechnology exposure.
For these reasons, your Board of Directors remain excited about the prospects
for the sector and for the Company. They intend to vote their 181,183 shares in
favour of the ordinary resolution to continue in business as an investment trust
and commend this resolution to shareholders.
Share buy-backs
During the year ended 31 August 2005, no shares were purchased by the Company
for cancellation under the authority granted to it at the Annual General Meeting
(AGM) held on 19 November 2004. The Board pays close attention to the discount
to net assets at which the Company's shares trade and when shares are available
in reasonable volumes and at a high discount to net assets, purchases will be
made. To retain this flexibility to act, a resolution to authorise the Directors
to purchase up to 14.99% of the issued share capital will be proposed to
shareholders at the forthcoming AGM.
Valuations
In valuing unquoted securities, securities with restricted trading and holdings
that are regarded as illiquid, the Board continues to use the policy outlined in
past annual reports which is based upon the Association of Investment Trust
Companies' Statement of Recommended Practice (SORP) and the International
Private Equity and Venture Capital Valuation Guidelines (which were developed
and adopted by the British Venture Capital Association (BVCA) on which the
weekly NAV calculations are based. Valuation discounts applied to quoted
investments range from 10% to 25% and the effect of these on 31 August 2005 was
to reduce the NAV by a little under £0.6 million.
International Financial Reporting Standards (IFRS)
From 1 September 2005 IBT is required to prepare its financial statements in
accordance with IFRS, as adopted for use in the European Union. The Company's
Interim results for the six months ended 28 February 2006 will be the first set
of results prepared exclusively on this basis. Adoption of IFRS would have the
key impacts on previously published financial statements and portfolio
valuations of requiring the application of bid prices to, and more importantly,
the removal of discounts on quoted investments. At 31 August 2005 this would
have increased net assets by £547,000 (1.14p per share)
Annual General Meeting
The Annual General Meeting will be held at 12:00 noon on Friday 11 November 2005
at 31 Gresham Street, London EC2V 7QA. As in previous years, the meeting will
include a presentation by SV Life Sciences.
Prospects
Investment in IBT's shares provides shareholders with exposure to biotechnology
companies - both public and private. While the volatility of the share price of
single stocks in the sector is high, the combination of a portfolio of
investments, including unquoted holdings, should reduce the volatility of the
Company's net assets while the investment trust structure allows investors
reasonable liquidity for a specialist vehicle. Many of the companies in the
portfolio have products that are in mid-stage clinical trials and as such can
take a number of years to reach registration and the market. We remain
optimistic about the prospects for the portfolio but must point out that it can
take time to reap the rewards.
Andrew Barker
Chairman
30 September 2005
Investment Managers Review
MARKET REVIEW
It has been a very volatile year for biotechnology and one where the divergence
between the U.S. and European biotechnology indices has continued. In the U.S.,
the NBI visited low points in late October 2004 and early April 2005 and in the
case of the latter, remained depressed for a period of about three months.
During the period from early April to mid-June, the smaller capitalisation US
biotechnology companies were hit the hardest as investors rotated towards lower
risk equity exposure. Between January and May 2005 there appeared to be a
de-coupling of the perceived prospects for the largest profitable biotechnology
companies, from the rest of the U.S. biotechnology stock universe as a stream of
positive clinical trials emanated from Genentech.
The periods of recovery in the U.S. biotech indices; in the last two months of
2004, and from early June to August 2005, were marked by two very different
drivers. At the end of September 2004, Merck announced the withdrawal of its
blockbuster analgesic Vioxx due to the risk of cardiovascular side effects. This
event cast a shadow over the whole therapeutic (non-device) healthcare sector
(pharmaceutical and biotechnology) and was compounded in early October when
Chiron admitted to problems in the manufacturing of influenza virus vaccine
destined for the U.S. market which subsequently resulted in the suspension of
their manufacturing license and their inability to supply the U.S. market in
2004/5 and Europe in 2005/6.
While the impact of these events is still being felt in the pharmaceutical
industry with the success of the Vioxx first Class-action law suit, this shadow
had started to lift from the biotechnology sector at the end of 2004 when it was
realised that the likelihood of product withdrawals should be lower in the
biotechnology sector than in the pharmaceutical sector and the manufacturing
problems with influenza virus vaccines should be confined to Chiron.
However, at the end of February, Elan Corp. and partner Biogen IDEC announced
the withdrawal of their expected blockbuster drug for multiple sclerosis,
Tysabri due to the death of two patients. Sentiment was again hit across the
therapeutic healthcare sector although this later recovered as the negative
impact was limited mostly to Elan Corp. and Biogen. The accelerated approval
process at the FDA, which allowed Tysabri to be approved subject to the
completion of the clinical programme has however, rightly been the subject of
some further debate.
From the low point of the NBI at the end of April, the appointment of a
permanent FDA Commissioner in late July, a stream of positive clinical results
from Genentech on their oncology product, Avastin, and particularly good
earnings for the first half of 2005, reported in July and August, have all
bolstered the sector. A further milestone in the evolution of the biotechnology
sector occurred in the summer of 2005 when the market capitalisations of Amgen
and Genentech exceeded $100 billion making them bigger than many pharmaceutical
companies including Merck and AstraZeneca.
In Europe, companies and management appear to be at a much earlier stage than in
the U.S. and the European market shares those structural characteristics of
other less developed biotechnology markets (such as Canada and Australia), which
may always relegate them to being junior or feeder markets for the U.S.. These
structural issues include a smaller number of investors, inexperienced
management and currently too many companies with too few viable products.
Outside of the U.S., there are still opportunities to make money from
biotechnology and while there have been a limited number of IPOs, there
continues to be a high level of M&A activity leading to consolidation of this
fragmented European sector.
There are exceptions to this landscape and during the year include portfolio
company Cambridge Antibody Technology emerged from their successful legal
dispute with partner Abbott Laboratories (which is still under appeal) to sign a
landmark research and clinical development deal with AstraZeneca. In continental
Europe, the reputation of biotechnology companies has not however been enhanced
in the last year with a number including Evotech OAI, Bavarian Nordic and
Innogenetics raising money from secondary offerings and announcing profit
warnings within a matter of months. We remain cautious on the prospects for many
European biotechnology companies and 2005/6 may be a year where investor
expectations of clinical success at companies such as Ark Therapeutics,
Antisoma, Oxford bioMedica and the many recently AIM-listed companies may be
tested.
Paradoxically, this less developed European market has resulted in the out
performance of the predominantly U.K. biotechnology indices compared to their
U.S. counterparts, partly due to the limited availability of capital. The
Bloomberg UK biotechnology index and the FTSE techmark Mediscience index both
increased over 20% in the year under review but both indices are skewed by the
performance of single large components (Shire Pharmaceuticals and Elan Corp.,
respectively), which in the case of Elan Corp. has been removed and added back
to the composite index within the same year.
An increasingly important dynamic in this sector has been the re-emergence of
acquisition activity by large pharmaceutical companies. Over the last year
GlaxoSmithKline has acquired Corixa and announced the intended acquisition of ID
Biomedical, Pfizer announced the acquisition of Vicuron, which still has to
complete, and Shire has acquired Transkaryotic Therapies, Inc.. In addition,
pharmaceutical companies have been active in acquiring private biotechnology
companies such as Angiosyn (Pfizer) and Peninsula Pharmaceuticals (J&J) in a
growing trend where so-called 'IPO ready' companies opt to be acquired rather
than become public.
The year prior to the summer of 2005 saw 8 U.S. biotechnology IPOs raising $509
million compared to 22 IPOs raising $1.3 billion over the same period in 2004.
While calendar 2004 was the best biotechnology financing period since 2000, the
lower number of companies and pre-money valuations, as well as the lower
absolute level of money raised, suggests that investors have become more
selective. Part of this pause in the fundraising window has been due to the
oversupply of new primary and secondary biotechnology shares. This cautious
environment can bring with it opportunities for an investment trust company such
as IBT which can invest across the spectrum of public and private biotechnology.
OUTLOOK
The fundamentals of the biotechnology sector remain strong and the most recent
earnings season has emphasised the maturity of this sector where, in those
biotechnology companies that have them, profits growth is being achieved both by
growing sales and reducing costs. This is something that is much more difficult
to effect in more mature businesses in the broad healthcare sector. In times
during the past year, the biotechnology sector has outperformed the broader
markets and there may now be the gradual acceptance that the sector offers high
beta exposure combined with the defensiveness that has previously been reserved
for the pharmaceutical industry.
At the time of writing, the sector may be pausing its recent advance in order to
digest the plethora of IPOs and secondary fundraising that have occurred in the
last year. Future advancement of the sector is partly dependent on the
generalist investors' attitude to risk and in recent months, this has been
affected by terrorist attacks and oil prices.
A number of IBT portfolio companies are approaching important milestones before
the end of this calendar year. The first inhaled insulin product to be submitted
for US approval (from Nektar Therapeutics and Partners Pfizer and
Sanofi-Aventis) was recommended for approval by a FDA panel in early September.
Just after our year end, MGI Pharma received an approvable letter from the FDA
on Dacogen for a type of leukaemia which bodes well for an approval before the
end of our interim period. An FDA oncology review panel is also scheduled for
the drug Relvimid from Celgene for multiple myeloma in mid-September. Towards
the end of 2005, it is expected that the appeal of Abbott Laboratories against
the level of royalties to Cambridge Antibody Technology will be concluded.
PORTFOLIO HIGHLIGHTS
In mid-November 2004, OSI Pharmaceuticals and partner Genentech announced the
approval of OSIs lead drug Tarceva to treat non-small cell carcinoma (NSCLC). As
is often the case, the share price of OSI fell on the announcement as investors
expected a similar drug to Tarceva (Iressa from AstraZeneca) to show a
significant survival benefit as Tarceva had done earlier in the year. About a
month later, AstraZeneca reported the results of a clinical trial which was
designed (but failed) to show a survival benefit in NSCLC patients and the share
price of OSI Pharmaceuticals gained as much as 45%.
In late September 2004, when its shares were trading below £6.50 per share,
Warner Chilcott, formally Galen Holdings, announced that it had received an
approach from a potential acquirer. After a number of other approaches, the
company was acquired in early January 2005 for £8.62 per share. Similarly the
previously announced acquisition of Atrix Laboratories by QLT was completed in
November 2004. In late September 2004, Aradigm and affiliate Novo announced that
their agreement on the AERx inhaled insulin platform was to be restructured so
that Novo could take the programme, equipment and personnel in-house resulting
in a cash payment to Aradigm of $55 million. Aradigm continues to develop
non-insulin applications of AERx and has recently reported successful clinical
trial results on its second device platform, Intraject.
In July the majority of the assets of unquoted portfolio company Aderis were
acquired by their partner Schwartz Pharma in a transaction worth €58 million
which will result in a realisation slightly above carrying value but slightly
below cost due to currency movements.
In late January 2005 Progenics Pharmaceuticals reported positive Phase II
results for its lead drug methylnaltrexone for the management of post-operative
bowel dysfunction. Subsequently in March, Progenics announced highly
statistically significant results for all of the primary and secondary endpoints
for the Phase III clinical trial of methylnaltrexone in patients with advanced
medical illness. At the end of the period under review, Progenics was the
Company's largest quoted holding.
PORTFOLIO SUMMARY AT 31 AUGUST 2005
At our year end, IBT held 44 companies - 33 quoted companies (representing 56.1%
of NAV) and 11 unquoted companies (comprising 28.6% of NAV). The remaining 15.3%
was made up of cash and money market instruments (£8.8 million), a significant
proportion of which is committed to new or further unquoted investments.
Members of SV Life Sciences sat on the Boards of ten portfolio companies at the
end of the year under review - Affibody, Auxilium, Archemix, CancerVax, Dynogen,
KuDOS, Micromet, Oxagen, PowderMed, and Trine. The geographical split of the
portfolio at 31 August 2005 was 65.9% in North America, 10.6% in the U.K. and
6.2% in Continental Europe and 2.0% in Australia. By sub-sector, 66.4% of NAV
was invested in biopharmaceuticals, 5.4% in drug delivery, 5.9% in medical
devices and 7.0% in other areas. The remaining 15.3% is made up of cash, money
market instruments and other net current assets.
The companies which SV Life Sciences estimate as having less than one year of
cash at 31 August 2005 were Affibody, Anormed, Aradigm, Archemix, Atherogenics,
CancerVax, Genosis, Indevus, Kosan, KuDOS, Micromet, Powdermed, Pozen and Trine.
Within this group, Archemix, Genosis, Micromet and, Trine are unquoted companies
with milestone-linked committed funding tranches due within the next year.
As reported at the end of the interim period, the cash balances (including money
market instruments and other net current assets) totalled 30% of NAV - mostly as
a result of the divestment of the company's holding in Eyetech. By our year end
at 31 August, this had been reduced to below 16% due to new and further quoted
investments. Furthermore, a total of £4.2 million (or 7.3% of NAV at 31 August
2005) had been committed for first or further investment in unquoted companies.
The portfolio as always offered investors a broad exposure to biotechnology at
different stages of clinical development and across a diversified range of
therapeutic area including oncology, drug delivery, cardiovascular, specialty
pharmaceutical, anti-infective and vaccines. With the contraction in the number
of Investment Trusts offering investors global biotechnology exposure, IBT now
stands alone in offering investors this exposure to public and private
biotechnology investments.
INVESTMENT MANAGEMENT PERSONNEL
In May of the year under review, one of IBTs competitors, the Bioscience
Investment Trust (BIT), formally 3i Bioscience Investment Trust, elected to be
managed in members' voluntary liquidation. In June it was announced that Dr Andy
Smith, the lead manager of BIT had been recruited by SV Life Sciences to join
the team that manages IBT and is headed by Kate Bingham.
VALUATION
At 31 August 2005, IBTs unquoted portfolio (value £16.4 million) represented
28.6% of net assets, up from 22% the previous year due to further investments in
portfolio companies. These follow-on investments in Genosis, KuDOS, Trine,
Archemix and Powdermed, and Micromet totalled £2.8 million. During the year
under review, the net change in the Directors' valuations of the unquoted
investments was £0.7 million, representing 1.4% of NAV at the start of the
reporting year. Currency movements increased the valuation of the unquoted
portfolio by £0.02 million during the year under review.
INVESTMENT ACTIVITY
Unquoted Companies
A number of previously committed investments in portfolio companies from earlier
reporting periods were made during the year under review. As reported at the
interim stage, a new investment was made in Oxagen in the second half of our
year. While an investment in a U.S. unquoted anti-infective company was approved
and reported at the interim stage, delays and changes to the clinical programme
during the second half of our year allowed further review and the determination
that this particular investment was at an earlier stage than when the investment
was first reviewed, and consequently not yet suitable for IBT. However, very
close to our year end, an exciting North American SV Life Sciences unquoted
investment, which had not previously been an IBT investment was reviewed and
judged to be at a late enough stage to be very appropriate to IBT. $2 million
has been committed to this investment.
QUOTED COMPANIES
During the period under review the Company's holding in Encysive Pharmaceuticals
was partially divested after a positive Phase III clinical trial result and NDA
filing for its lead molecule Thelin, an endothelin antagonist for the treatment
of pulmonary hypertension. One of the Company's smaller investments, Xoma was
divested and the proceeds re-invested in new quoted investments that are
expected to have positive clinical or regulatory events in the next year. These
new quoted holdings include MGI Pharma, Celgene Corp., and Pozen Inc..
SV Life Sciences Managers LLP
30 September 2005
Ten Largest Quoted Investments at 31 August 2005
--------------- ------ -------- ------- --------------------
Investment Carrying % of Country Business activity
value Shareholders'
£'000 Funds
--------------- ------ -------- ------- --------------------
1 Progenics 2,575 4.48 USA Progenics is a
---- Pharmaceuticals ------ -------- ------- biopharmaceutical
------------- company focusing
products for the
treatment and prevention
of cancer and viral
diseases. The company's
lead drug,
methylnaltrexone is in
phase III studies for
patients with advanced
cancer.
--------------------
2 Alexion 2,277 3.96 USA Alexion discovers and
---- Pharmaceuticals ------ -------- ------- develops compounds for
------------- the treatment of
autoimmune and
cardiovascular diseases.
The company develops C5
complement inhibitors
and Apogens, two classes
of potential
therapeutics designed to
target disease-causing
segments of the immune
system.
--------------------
3 OSI 2,048 3.56 USA OSI is a research and
---- Pharmaceuticals ------ -------- ------- development company
------------- focused in the areas of
oncology and diabetes.
OSI has one approved
drug Tarceva, developed
and commercialised in
collaboration with
Genentech.
--------------------
4 Nektar 1,899 3.31 USA Nektar is a drug
---- Therapeutics ------ -------- ------- delivery company with
------------- technologies that
encompass inhaled
delivery and PEGylation
of macromolecules,
peptides and aptamers.
--------------------
5 Encysive 1,897 3.30 USA Encysive discovers and
---- Pharmaceuticals ------ -------- ------- develops small molecule
------------- therapeutics in vascular
biology. The company's
first product,
Argatroban is approved
and licensed to GSK for
heparin-induced
thombocytopenia and its
second is an endothelin
antagonist under review
by the FDA and EMEA.
--------------------
6 Phase Forward 1,838 3.20 USA Phase Forward provides
---- ------------- ------ -------- ------- data management
solutions for clinical
trials and drug safety,
offering solutions in
electronic data capture,
clinical data management
and adverse event
reporting.
--------------------
7 Cambridge 1,796 3.13 UK CAT discovers and
---- Antibody ------ -------- ------- develops monoclonal
Technology antibodies (MAbs). The
------------- companies MAbs are used
in human therapeutics
and the drug discovery
process. CAT's
development partners and
licensees include Abbott
Laboratories,
AstraZeneca and Human
Genome Sciences.
--------------------
8 Anormed 1,683 2.93 Canada AnorMED discovers and
---- ------------- ------ -------- ------- develops small molecule
therapeutics for the
treatment of HIV
infection and cancer
--------------------
9 Shire 1,317 2.29 UK Shire is a global
---- Pharmaceuticals ------ -------- ------- specialty pharmaceutical
------------- company with a focus on
four therapeutic areas:
central nervous system
disorders, oncology/
hematology, anti-virals
and biologics.
--------------------
10 Solexa 1,287 2.24 USA Solexa is developing a
---- (including ------ -------- ------- method of genetic
warrants) analysis based on
------------- sequencing-by-synthesis
and molecular arrays.
The company intends to
offer different types of
genetic analyses
including DNA
sequencing, gene
expression, genotyping
and micro-RNA analysis.
--------------------
Total 18,617 32.40
--------------- ------ -------- ------- --------------------
Unquoted Investments at 31 August 2005
------------- ----- ------ -------- ----------------------
Investment Cost Carrying % of Business activity and
£'000 value Shareholders' valuation basis
£'000 Funds
1 Sunesis 3,312 2,780 4.84 Sunesis is a
Pharmaceuticals clinical-stage
biopharmaceutical
company focused on the
discovery, development
and commercialisation of
novel small molecule
therapeutics for
oncology and other unmet
medical needs.
(USA)
---- ------------ ----- ------ -------- ----------------------
2 Aderis 3,519 2,780 4.84 Aderis is a small
Pharmaceuticals molecule discovery and
development company with
investigational
compounds in CNS,
cardiovascular and renal
therapeutic areas.
Aderis has partnerships
with Schwarz Pharma AG
and King
Pharmaceuticals.
(USA)
---- ------------ ----- ------ -------- ----------------------
3 Micromet 4,121 2,091 3.64 Micromet designs and
develops novel antibody
derived therapies for
the treatment of severe
human diseases. Micromet
has two clinical
candidates and
partnerships with
Serono, Enzon and
MedImmune
(Germany)
---- ------------ ----- ------ -------- ----------------------
4 KuDOS 1,585 1,585 2.76 KuDOS is developing
Pharmaceuticals small molecule drugs
based on DNA damage
sensing, signalling and
repair, initially
focussed on oncology,
has three products in
clinical development and
three preclinical
candidates.
(UK)
---- ------------ ----- ------ -------- ----------------------
5 Genosis 1,640 1,533 2.66 Genosis is a medical
device company with
proprietary technology
for the diagnosis of
reproductive disorders.
The company's first
product offering is an
over-the-counter in
vitro diagnostic for
screening male and
female fertility which
has already received
regulatory approval.
(USA)
---- ------------ ----- ------ -------- ----------------------
6 Trine 5,741 1,494 2.60 Trine is a drug
Pharmaceuticals development company with
products to address the
areas of renal,
gastrointestinal and
metabolic diseases.
(USA)
---- ------------ ----- ------ -------- ----------------------
7 Affibody 2,687 1,464 2.55 Affibody uses innovative
protein engineering
technologies for the
development of products
for biotherapeutics and
biotechnology
applications. Affibody
molecules mimic
monoclonal antibodies
and are derived from an
antibody-binding domain
of Protein A.
(Sweden)
---- ------------ ----- ------ -------- ----------------------
8 Oxagen 930 930 1.62 Oxagen is developing a pipeline
of novel drugs to treat
inflammatory diseases. The
company's portfolio includes a
lead programme with the potential
to treat asthma and other
respiratory and inflammatory
conditions.
(UK)
---- ------------ ----- ------ -------- ----------------------
9 Dynogen 639 650 1.13 Dynogen is a biopharmaceutical
company developing drugs for
genitourinary and
gastrointestinal disorders
including constipation, irritable
bowel syndrome and overactive
bladder.
(USA)
---- ------------ ----- ------ -------- ----------------------
10 Archemix 621 626 1.09 Archemix is a leading
biopharmaceutical company in the
development of aptamers as
therapeutic agents. Aptamers are
single-stranded nucleic acids
that form well-defined 3-D shapes
binding target molecules in a
similar manner to antibodies.
(USA)
---- ------------ ----- ------ -------- ----------------------
11 PowderMed 480 480 0.84 PowderMed is an immunotherapeutic
product company with six vaccine
programmes targeting influenza,
chronic vital diseases and
cancer. PowderMed's products are
based on their proprietary DNA
particle mediated delivery
technology.
(UK)
---- ------------ ----- ------ -------- ----------------------
Total 25,275 16,413 28.57
------------- ----- ------ -------- ----------------------
Note on Merrill Lynch Small Cap Biotech Index (MLSCI)
The MLSCI represents stocks with market caps under US$1 billion. The movement in
the MLSCI from 31 August 2004 to 31 August 2005 in $ terms, based on the data
received from Merrill Lynch on 1 September 2005 is 14%.The movement in £ terms
has been calculated using the prevailing exchange rates at the start and end of
the reporting period, sourced from Factset and Bloomberg.
The data underlying the MLSCI changes regularly in line with changes in the
index constituents, price adjustments and corporate actions. The historic data
is then retrospectively adjusted. As a result the performance for the reporting
period, if calculated at a future date, is likely to be different from the
previously published number.
International Biotechnology Trust plc
Unaudited Preliminary Results
Unaudited Statement of Total Return (incorporating the Revenue Account)
Group Group
For the year For the year
ended 31 August ended 31 August
2005 2004
Revenue Capital Total Revenue Capital Total
£'000 £'000 £'000 £'000 £'000 £'000
Gains on
investments - 3,258 3,258 - 2,641 2,641
Exchange
(losses)/gains
on currency
balances - (224) (224) - (226) (226)
Income 545 - 545 204 - 204
Management fees (781) - (781) (788) - (788)
Administrative (496) - (496) (608) - (608)
expenses
-------------- -------- -------- -------- -------- -------- --------
Net(deficit)/
return on ordinary
activities
before
taxation (732) 3,034 2,302 (1,192) 2,415 1,223
Tax on ordinary - - - - - -
activities
-------------- -------- -------- -------- -------- -------- --------
Net
(deficit)/return
on ordinary
activities
after taxation (732) 3,034 2,302 (1,192) 2,415 1,223
-------------- -------- -------- -------- -------- -------- --------
Transfer
(from)/to
reserves (732) 3,034 2,302 (1,192) 2,415 1,223
-------------- -------- -------- -------- -------- -------- --------
(Deficit)/surplus
per share (1.54)p 6.35p 4.81p (2.49)p 5.05p 2.56p
The revenue column of this statement is the profit and loss account of the
Group.
All revenue and capital items in the above statement derive from continuing
operations.
International Biotechnology Trust plc
Unaudited Balance Sheets as at 31 August
Group Company Group Company
2005 2005 2004 2004
£'000 £'000 £'000 £'000
Fixed assets
Investments 48,680 48,680 43,242 42,211
Investment in _ _
subsidiary undertaking
Current assets
Debtors 61 61 1,935 3,035
Investments 7,110 7,110 6,018 6,018
Cash at bank 2,336 2,336 4,337 4,337
----------------- --- ----------- ---------- --------- -------
9,507 9,507 12,290 13,390
----------------- --- ----------- ---------- --------- -------
Creditors: amounts
falling due (731) (1,242) (378) (378)
within one year
--- ----------- ---------- --------- -------
-----------------
Net current assets 8,776 8,265 11,912 13,012
----------------- --- ----------- ---------- --------- -------
Net assets 57,456 56,945 55,154 55,223
----------------- --- ----------- ---------- --------- -------
Capital and reserves
Called up share capital 11,954 11,954 11,954 11,954
Capital redemption 11,043 11,043 11,043 11,043
reserve
Share purchase reserve 66,467 66,467 66,467 66,467
Capital reserve (21,063) (21,574) (24,097) (24,028)
Revenue reserve (10,945) (10,945) (10,213) (10,213)
----------------- --- ----------- ---------- --------- -------
Equity shareholders'funds 57,456 56,945 55,154 55,223
--- ----------- ---------- --------- -------
-----------------
Net asset value per share 120.16p 119,.09p 115.35p 115.49p
International Biotechnology Trust plc
Unaudited Cash Flow Statement
Group Group
For the year For the year
ended ended
31 August 2005 31 August 2004
£'000 £'000
Operating activities
Income 683 25
Management fees paid (969) (785)
Other cash payments (523) (657)
----------------------- ----------- -----------
Net cash outflow from operating (809) (1,417)
activities
----------------------- ----------- -----------
Servicing of finance
Interest paid _ _
----------------------- ----------- -----------
Cash outflow from servicing of finance _ _
----------------------- ----------- -----------
Taxation
UK income tax recovered _ _
----------------------- ----------- -----------
Tax recovered _ _
Capital expenditure and financial
Investment
Purchase of investments (17,740) (3,776)
Disposal of investments 18,002 11,241
----------------------- ----------- -----------
Net cash inflow from capital
expenditure and financial
investment 262 7,465
----------------------- ----------- -----------
Net cash (outflow)/inflow before
management of liquid resources and
financing (547) 6,048
----------------------- ----------- -----------
Management of liquid resources (1,230) (3,100)
----------------------- ----------- -----------
Financing
Repurchase of shares for cancellation _ _
----------------------- ----------- -----------
Net cash outflow from financing _ _
----------------------- ----------- -----------
Net cash (outflow)/inflow (1,777) 2,948
----------------------- ----------- -----------
Notes:
1. Audit status
These accounts consolidate the accounts of the Company 'International
Biotechnology Trust plc and its wholly-owned subsidiary, IBT 2004 Limited.
The financial information set out in the announcement does not constitute the
Company's statutory accounts for the year ended 31 August 2005 or 31 August
2004. The financial information for the year ended 31 August 2004 is derived
from the statutory accounts for that year which have been delivered to the
Registrar of Companies. The auditors reported on those accounts; their report
was unqualified and did not contain a statement under section 237(2) or (3) of
the Companies Act 1985. The statutory accounts for the year ended 31 August 2005
will be finalised on the basis of the financial information presented by the
Directors in this preliminary announcement and will be delivered to the
Registrar of Companies following the Company's Annual General Meeting.
This announcement is prepared on the basis of the accounting policies set out in
the annual financial statements.
2. As permitted by Section 230 (4) of the Companies Act 1985, the Company has
not presented its own revenue account. The net revenue deficit after taxation
for the year of the Company, dealt within the accounts of the Group was
£732,000.
3. Transactions in foreign currency, whether of a revenue or capital nature, are
translated into sterling at the rates of exchange ruling on the dates of such
transactions. Foreign currency assets and liabilities at the balance sheet date
are translated into sterling at the rates of exchange ruling on that date.
Exchange gains or losses on fixed asset investments are included within realised
or unrealised gains or losses on investments. Other exchange movements are shown
separately in the Group Statement of Total Return.
4. The net asset value shown as at 31 August 2005 of 120.16p relates to group
assets of £57,456,000 and on 47,815,467 shares in issue.
5. Annual General Meeting
The Annual General Meeting of International Biotechnology Trust plc will be held
at 12 noon on 11 November 2005 at 31 Gresham Street, London, EC2V 7QA.
6. Annual Report and Accounts
The Annual Report and Accounts will be mailed to registered shareholders at
their registered addresses in October 2005 and from the date of release copies
of the Annual Report will be made available to the public at the Company's
registered office, 31 Gresham Street, London EC2V 7QA.
This information is provided by RNS
The company news service from the London Stock Exchange
Friday, 22nd November 2024
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