Half-yearly Report
NEWS RELEASE
To: City Editors
For immediate release
29 November 2010
London Stock Exchange Announcement
The Biotech Growth Trust PLC
Unaudited Interim Report for the Six Months ended 30 September 2010
INVESTMENT OBJECTIVE AND BENCHMARK
The Company seeks capital appreciation through investment in the worldwide
biotechnology industry, principally by investing in emerging biotechnology
companies. Performance is measured against the NASDAQ Biotechnology Index
(sterling adjusted).
INVESTMENT POLICY
In order to achieve its investment objective, the Company invests in a
diversified portfolio of biotechnology (including emerging biotechnology
companies) and related securities on a worldwide basis.
Investment restrictions
The Board seeks to manage the Company's risk by imposing various investment
limits and restrictions. The limits and restrictions remain unchanged from
those published in the annual report for the year ended 31 March 2010. A
summary of the key limits and restrictions are as follows:
• The Company will not invest more than 15% of the portfolio in any one
individual stock at the time of acquisition.
• The largest 30 quoted stocks will normally represent at least 50% of the
quoted portfolio.
• The Company will not invest more than 10% of the portfolio in direct unquoted
investments at the time of acquisition. This limit does not include any
investment in private equity funds managed by OrbiMed Capital LLC, the
Company's Investment Manager, or any affiliate thereof.
• The majority of the emerging biotechnology companies that the Company will
invest in are likely to be companies with a market capitalisation of less than
US$3 billion that have undergone an IPO (Initial Public Offering) but as yet
are unprofitable. They will typically be focused on drug research and
development, with their valuations driven by profitable developments, clinical
trial results and partnerships.
• The Company may invest or commit for investment a maximum of US$15 million,
after the deduction of proceeds of disposal and other returns of capital, in
private equity funds managed by OrbiMed Capital LLC, the Company's Investment
Manager, or an affiliate thereof.
• The Company does not hedge its foreign currency exposure.
In accordance with the requirements of the UK Listing Authority, any material
change to the investment policy will only be made with the approval of
shareholders by ordinary resolution.
CAPITAL STRUCTURE
During the half year, a total of 90,052 shares were repurchased by the Company
for cancellation.
At 30 September 2010, the Company had 65,869,809 shares of 25p each in issue
(30 September 2009: 50,127,463; 31 March 2010: 65,959,861). Since the end of
the half year 273,174 shares have been repurchased for cancellation by the
Company. As at 22 November 2010 the Company had 65,596,635 shares in issue.
GEARING
Under the Company's Articles of Association, the maximum amount the Company may
borrow is a sum equal to 33% of the adjusted total capital and reserves. The
Company's borrowing requirements are met through the utilisation of a loan
facility, repayable on demand, provided by the Company's custodian, Goldman
Sachs & Co. New York. At 30 September 2010, the Company had not used this
facility.
CONTINUATION VOTE
The next continuation vote of the Company is scheduled to be held at the Annual
General Meeting in 2015. Further opportunities to vote on the continuation of
the Company shall be given to shareholders every five years thereafter.
Company Summary
Performance Statistics
30 September 31 March
2010 2010 % change
Net asset value per share 168.3p 182.6p -7.8
Share price 159.0p 175.8p -9.6
Discount of share price to net 5.5% 3.7% -
asset value per share
NASDAQ Biotechnology Index 569.3 618.1 -7.9
(sterling adjusted)
Chairman's Statement
Performance
Following strong returns during the last financial year, it is disappointing to
report that markets were rather more subdued during the first half of the
current financial year. The Company's net asset value per share fell by 7.8%
during the period compared to a fall of 7.9% in the Company's benchmark, the
NASDAQ Biotechnology Index, measured in sterling terms. The Company's share
price fell by 9.6% as the discount of the share price to the net asset value
per share widened from 3.7% at 31 March 2010 to 5.5% at 30 September 2010.
During the half year the U.S. dollar fell by 3.9% against sterling from $1.52
to £1 at the end of March 2010 to $1.58 to £1 at the end of September 2010.
This had an adverse influence on the Company's net asset value. Another
negative factor was the slight underperformance of the biotechnology sector
against the wider market. This underperformance reflected concerns over the
short term impact of the recently enacted U.S. healthcare reform and weaker
than expected earnings reports from a number of major biotechnology companies.
Merger and acquisition (M&A) activity remains extremely important for the
sector. For example, the shares of portfolio holding Genzyme rose by over 25%
on news that Sanofi-Aventis had made a takeover approach. We believe that we
are well placed to benefit from further M&A activity in the future.
Further information on the investment performance and the outlook for the
Company is given in the Review of Investments beginning on page five of this
Interim Report.
Discount Management Policy and Share Buyback Policy
The Board has continued to implement its policy of active discount management
and to buy back shares for cancellation when the discount of the share price
against the net asset value per share is greater than 6%. During the six months
under review the Company repurchased a total of 90,052 shares for cancellation
at a cost of £134,000 (including expenses).
Revenue and Dividends
The revenue loss for the period was £202,000 (six months ended 30 September
2009: loss of £233,000) and no interim dividend is declared (six months ended
30 September 2009: nil).
Outlook
President Obama's Democratic Party suffered heavy losses in the recent U.S.
mid-term elections. The Republican Party took control of the House of
Representatives and made significant gains in the Senate. This result brings
uncertainty to the proposed healthcare reform in the U.S. as the Republicans
have indicated that they would wish to `repeal and replace' the healthcare
reform law passed in early 2010. President Obama, however, has pledged to find
common ground with the Republicans on this and other key issues and the polls
suggest that, overall, the public wants the healthcare reform to be amended
rather than scrapped altogether. The outcome is likely to remain unclear for
some time and at this stage it is impossible to predict whether progress or
paralysis will mark the remainder of President Obama's term of office. While it
is unlikely that there will be a wholesale repeal of the healthcare reform, the
expected gridlock should lead to less negative rhetoric and legislation against
the healthcare industry, a positive for healthcare companies overall.
Chairman's Statement (continued)
Your Board remains of the view that the longer term outlook for the
biotechnology sector is promising, with M&A activity being a key driver of
performance for the sector as a whole.
Our focus continues to be on the selection of stocks with strong prospects for
capital growth and our belief that the long term investor in our sector will be
well rewarded is still firm.
John Sclater CVO
Chairman
22 November 2010
Interim Management Report
Principal Risks and Uncertainties
A review of the half year, including reference to the risks and uncertainties
that existed during the period, and the outlook for the Company can be found in
the Chairman's Statement beginning on page two and in the Review of Investments
beginning on page five. The principal risks faced by the Company fall into ten
broad categories: objective and strategy; level of discount/premium; portfolio
performance; operational and regulatory; market price risk; liquidity risk;
shareholder profile; currency risk; the risk associated with the Company's loan
facility; and credit risk. Information on each of these areas is given in the
Business Review within the annual report and accounts for the year ended 31
March 2010. In the view of the Board these principal risks and uncertainties
are applicable to the remaining six months of the financial year as they were
to the six months under review.
Related Party Transactions
During the first six months of the current financial year, no transactions with
related parties have taken place which have affected the financial position or
the performance of the Company during the period.
Directors' Responsibilities
The Directors are responsible for preparing the interim report in accordance
with applicable law and regulations. The Directors confirm that to the best of
their knowledge the condensed set of financial statements, within the interim
report, have been prepared in accordance with IAS 34 and that the Chairman's
Statement and the Interim Management Report include a fair review of the
information required by 4.2.7R and 4.2.8R of the FSA's Disclosure and
Transparency Rules.
The interim report was approved by the Board on 22 November 2010 and the above
responsibility statement was signed on its behalf by:
John Sclater CVO
Chairman
Review of Investments
Performance
The Company's net asset value per share declined by 7.8% during the six month
period ended 30 September 2010. The Company performed in-line with our
benchmark index, the NASDAQ Biotechnology Index (measured on a sterling
adjusted basis), which declined 7.9% during this period. Currency movements had
a negative effect on the Company's net asset value performance, as sterling
appreciated 3.9% against the U.S. dollar during this period.
The largest gains in the portfolio were from positions in Genzyme,
Pharmacyclics, Endo Pharmaceuticals The Medicines Company, and Illumina.
Genzyme received a takeover bid from Sanofi-Aventis at a 27% premium, which was
subsequently rejected by Genzyme's Board as being too low. Most investors
believe Sanofi-Aventis is committed to completing the transaction and will
increase its offer. Pharmacyclics announced positive data from its phase I
trial of PCI-32765, its Btk inhibitor for the treatment of lymphoma. We
continue to believe that this compound is one of the most promising new agents
for cancer. Endo Pharmaceuticals made progress in its franchise extension
strategy for its painkiller Opana and also acquired two businesses, the urology
diagnostics/services company HealthTronics and the generics company Qualitest,
which are both accretive to earnings. The Medicines Company received an
extension of its patent for its lead drug Angiomax. Illumina has posted strong
operating results with the introduction of its new HiSeq instrument line,
continuing its leadership in the gene sequencing sector.
The biggest losses were from positions in Gilead Sciences and Allos
Therapeutics. Gilead has performed poorly due to increased concern that it will
be unable to grow beyond the patent expiry for its HIV drug Viread in 2018. We
continue to think there is value in the company's shares and the patent cliff
will not be as dramatic as investors fear. Allos' shares declined due to a
disappointing launch of their lead drug Folotyn for T-cell lymphoma.
Since the signing of the U.S. healthcare reform bill in March 2010, markets
have struggled to determine the implications of the reform measures for
healthcare companies. The major biotechnology companies tended to underperform
as investors factored in reduced Medicaid reimbursement and other small reform
impacts into earnings projections. While there are some minimal reform-related
costs for biotechnology companies to absorb in the near-term, the gains in
patient volumes from having an extra 30 million Americans insured in 2014
should still represent a net benefit for the industry. In general, Americans
remain divided about their support for the healthcare reform package. In the
run-up to the mid-term elections, one of the main Republican platform
initiatives resonating with voters was the Republicans' desire to repeal or
replace "ObamaCare" and they substantially eroded the Democratic majorities in
Congress, taking control of the House of Representatives and making significant
gains in the Senate. While it is unlikely that this will lead to wholesale
repeal of healthcare reform, the resulting gridlock should lead to less
negative rhetoric and legislation against the healthcare industry, a positive
for healthcare companies overall.
Review of Investments (continued)
Merger and acquisition (M&A) activity remains a key theme for biotechnology
investing. During the period, Sanofi-Aventis launched a takeover bid for
Genzyme, one of the largest holdings within the portfolio. If the transaction
is completed, this will leave only five independent biotechnology companies
that we consider major, following the acquisitions of Genentech, MedImmune and
Chiron over the past several years. The acquisition shows that M&A activity is
not restricted to emerging biotechnology companies and that the larger, more
mature major biotechnology companies still represent compelling value.
Interestingly, Genzyme focuses primarily on orphan disease markets, which
involves delivering extremely high-priced drugs to very small patient
populations. In the past it has been conventional wisdom that large
pharmaceutical companies would not acquire orphan disease companies, as it
would be poor public relations to sell such expensive drugs, whose prices can
exceed $300,000 annually. Sanofi's acquisition interest in Genzyme may signal a
shift in this attitude towards these markets and a belief that high pricing is
sustainable even for a large pharmaceutical company. Other profitable orphan
disease companies that may now be considered as acquisition targets include
portfolio holdings Shire, BioMarin Pharmaceutical, and former holding Alexion
Pharmaceuticals.
Although the number of major biotechnology companies has gradually been
declining over the years due to acquisitions, there are several companies with
major drug launches underway or expected over the next year that are poised to
become the next generation of major biotechnology companies. Three such
candidates are currently held within the portfolio. Dendreon recently launched
Provenge, a cell-based immunotherapy for the treatment of advanced prostate
cancer. We expect Provenge sales to eventually exceed $2 billion. In December
we expect approval of Human Genome Sciences' Benlysta for Lupus. This is a
multi-billion dollar opportunity, as lupus is a high-unmet medical need.
Finally, in mid-2011, we anticipate the approval of Vertex's Telaprevir for
hepatitis C. Data released recently indicates that Telaprevir increases the
cure rate to 75% compared to 44% for the current standard of care. We expect
rapid uptake of this drug, due to retreatment of prior treatment failures and
an increase in new patients seeking treatment.
The number of holdings in the portfolio remains at approximately 30, exclusive
of unquoted investments and warrants. The geographic distribution of assets is
82% North America, 14% Europe, 3% Israel and 1% Asia. Currently approximately
40% of the Company's assets are invested in major biotechnology companies, and
60% are invested in emerging biotechnology companies. We have taken a closer
look at potential opportunities in Asia as more companies have gone public in
that area.
With the Republicans having made significant gains in the recent U.S. mid-term
elections, investors increasingly understanding the implications of healthcare
reform, and several blockbuster drugs expected to launch over the next 12-18
months, we think that the outlook for the biotechnology sector is bright and
believe that strong returns can be delivered.
Sven Borho
Orbimed Capital Llc
Investment Manager
22 November 2010
Top and Bottom Five Contributors
to Net Asset Value Performance
for the six months to 30 September 2010
Contribution for
the six months
to 30 September Contribution
2010 per share
£'000 (pence)*
Top Five Contributors
1 Genzyme 3,421 5.2
2 Pharmacyclics 3,041 4.6
3 Endo 2,795 4.2
Pharmaceuticals
4 The Medicines 2,507 3.8
Company
5 Illumina 1,760 2.7
13,524 20.5
Bottom Five Contributors
1 Gilead Sciences (2,251) (3.4)
2 Allos Therapeutics (1,773) (2.7)
3 Curis (1,750) (2.7)
4 InterMune (1,735) (2.6)
5 Celgene (1,464) (2.2)
(8,973) (13.6)
*based on 65,934,855 ordinary shares being the weighted average number of
shares in issue during the period ended 30 September 2010
Source: Frostrow Capital LLP
Investments
as at 30 September 2010
Fair Value % of
Security Country £'000 Investments
Amgen United States 9,093 8.0
Genzyme United States 7,321 6.5
Gilead Sciences United States 6,418 5.7
Shire Ireland 6,214 5.5
Cubist Pharmaceuticals United States 6,081 5.4
Celgene United States 5,776 5.1
Pharmacyclics United States 5,626 5.0
Human Genome Science United States 5,018 4.4
Endo Pharmaceuticals United States 4,556 4.0
BioMarin Pharmaceutical United States 4,474 4.0
Top 10 Investments 60,577 53.6
Warner Chilcott Ireland 4,471 3.9
Illumina United States 4,274 3.8
Ariad Pharmaceuticals United States 3,981 3.5
Incyte Genomics United States 3,717 3.3
Clinical Data United States 3,646 3.3
Actelion Switzerland 3,423 3.0
Biogen Idec United States 3,418 3.0
Teva Pharmaceutical Industries Israel 3,147 2.8
Allos Therapeutics United States 2,795 2.4
Dendreon United States 2,551 2.3
Top 20 Investments 96,000 84.9
Thermo Fisher Scientific United States 2,297 2.0
Orexigen Therapeutics United States 2,239 2.0
Medivir Sweden 2,099 1.8
Vertex Pharmaceuticals United States 2,018 1.8
Cephalon United States 1,656 1.5
Affymetrix United States 1,243 1.1
Pharmasset United States 1,194 1.1
Savient Pharmaceuticals United States 1,131 1.0
Caduceus Asia Partners L.P. Far East 1,083 0.9
(unquoted)
Transcept United States 990 0.9
Top 30 Investments 111,950 99.0
Anadys Pharmaceuticals United States 686 0.6
Cytokinetics United States 410 0.4
Biowisdom (unquoted) United Kingdom 15 -
Ligand Pharmaceuticals Inc Wts
10/13/11* United States - -
Total Investments 113,061 100.0
All of the above investments are equities unless otherwise stated.
*Includes warrants
Income Statement
for the six months ended 30 September 2010
RevenueCapitalTotalRevenueCapitalTotalRevenueCapitalTotal
(Unaudited) (Unaudited) (Audited)
Six months Six months Year
ended ended ended
30 30 31 March
September September 2010
2010 2009
Note £'000 £'000 £'000 £'000 £'000 £'000 £'000 £'000 £'000
Investment
Income
Investment 2 7 - 7 4 - 4 31 - 31
income
Other income - - - - - - 34 - 34
Total income 7 - 7 4 - 4 65 - 65
Gains and
losses
on
investments
(Losses)/
gains on
investments
held at
fair value
through
profit or - (8,913) (8,913) - 9,119 9,119 - 30,979 30,979
loss
Exchange
gains/
(losses)
on currency - 223 223 - (62) (62) - (725) (725)
balances
Expenses
Investment
management,
management
and
performance 3 - (512) (512) - (621) (621) - (1,365) (1,365)
fees
Refund of
VAT
previously
paid on
management - - - - - - - 168 168
fees
Other (199) - (199) (235) - (235) (417) - (417)
expenses
(Loss)/
profit
before
finance
costs and
taxation (192) (9,202) (9,394) (231) 8,436 8,205 (352) 29,057 28,705
Finance (10) - (10) (2) (3) (5) (3) (13) (16)
costs
(Loss)/
profit
before
taxation (202) (9,202) (9,404) (233) 8,433 8,200 (355) 29,044 28,689
Taxation - - - - - - - - -
(Loss)/
profit for
the period (202) (9,202) (9,404) (233) 8,433 8,200 (355) 29,044 28,689
(Loss)/
earnings
per share 4 (0.3) (14.0)p (14.3)p (0.5)p 16.9p 16.4p (0.6) 52.4p 51.8p
p p
The Company does not have any income or expenses which are not included in the
profit for the period. Accordingly the "Profit for the period" is also the
"Total comprehensive income for the period", as defined in IAS 1 (revised) and
no separate Statement of Comprehensive Income has been presented.
All of the profit and total Comprehensive Income for the period is attributable
to the owners of the Company.
The total column of the statement is the Income Statement of the Company
prepared in accordance with IFRS.
The supplementary revenue and capital columns are presented for information
purposes as recommended by the Statement of Recommended Practice issued by the
Association of Investment Companies.
All items in the above statement derive from continuing operations. No
operations were acquired or discontinued in the period.
Statement of Changes in Equity
(Unaudited)
Six months ended 30 September 2010
Share Capital
Share Premium Special Redemption Capital Retained
Capital Account Reserve Reserve Reserve Earnings Total
£'000 £'000 £'000 £'000 £'000 £'000 £'000
At 31 March 2010 16,490 19,298 32,021 4,642 50,970 (3,004) 120,417
Net loss for period - - - - (9,202) (202) (9,404)
Buy back of shares (23) - (134) 23 - - (134)
Refund of issue costs - 2 - - - - 2
At 30 September 2010 16,467 19,300 31,887 4,665 41,768 (3,206) 110,881
(Unaudited)
Six months ended 30 September 2009
Capital
Share Special Redemption Capital Retained
Capital Reserve Reserve Reserve Earnings Total
£'000 £'000 £'000 £'000 £'000 £'000
At 31 March 2009 12,824 33,800 4,307 21,926 (2,649) 70,208
Net profit/(loss) for - - - 8,433 (233) 8,200
period
Buy back of shares (292) (1,475) 292 - - (1,475)
At 30 September 2009 12,532 32,325 4,599 30,359 (2,882) 76,933
(Audited)
Year ended 31 March 2010
Share Capital
Share Premium Special Redemption Capital Retained
Capital Account Reserve Reserve Reserve Earnings Total
£'000 £'000 £'000 £'000 £'000 £'000 £'000
At 31 March 2009 12,824 - 33,800 4,307 21,926 (2,649) 70,208
Net profit/(loss)
for
the year - - - - 29,044 (355) 28,689
Issue of shares 4,001 19,877 - - - - 23,878
Issue costs - (579) - - - - (579)
Buy back of shares (335) - (1,779) 335 - - (1,779)
At 31 March 2010 16,490 19,298 32,021 4,642 50,970 (3,004) 120,417
Balance Sheet
as at 30 September 2010
(Unaudited) (Unaudited) (Audited)
30 30 31 March
September September
2010 2009 2010
Note £'000 £'000 £'000
Non current assets
Investments held at fair value through 113,061 77,434 132,618
profit or loss
Current assets
Other receivables 643 2,031 304
Cash and cash equivalents 5,294 95 -
5,937 2,126 304
Total assets 118,998 79,560 132,922
Current liabilities
Other payables 8,117 2,627 4,016
Bank loan - - 8,489
8,117 2,627 12,505
Net assets 110,881 76,933 120,417
Equity attributable to equity holders
Ordinary share capital 16,467 12,532 16,490
Share premium account 19,300 - 19,298
Special reserve 31,887 32,325 32,021
Capital redemption reserve 4,665 4,599 4,642
Capital reserve 41,768 30,359 50,970
Retained earnings (3,206) (2,882) (3,004)
Total equity 110,881 76,933 120,417
Net asset value per share 5 168.3p 153.5p 182.6p
Cash Flow Statement
for the six months ended 30 September 2010
(Unaudited) (Unaudited) (Audited)
Six months Six months Year ended
ended ended
30 30 31 March
September September
2010 2009 2010
£'000 £'000 £'000
Net cash inflow/(outflow) from operating
activities (note 6) 13,692 3,218 (27,698)
Net cash inflow/(outflow) before financing 13,692 3,218 (27,698)
Net cash (outflow)/inflow from financing (8,621) (5,222) 26,262
activities
Net increase/(decrease) in cash and cash
equivalents 5,071 (2,004) (1,436)
Cash and cash equivalents at start of period - 2,161 2,161
Realised gain/(loss) on foreign currency 223 (62) (725)
Cash and cash equivalents at period end 5,294 95 -
Notes to the Financial Statements
1. Accounting Policies
The condensed financial statements have been prepared under the historical cost
convention, except for the valuation of investments at fair value, and in
accordance with applicable accounting standards and with the Statement of
Recommended Practice `Financial Statements of Investment Trust Companies and
Venture Capital Trusts' dated January 2009.
The same accounting policies used for the year ended 31 March 2010 have been
applied.
2. Income
(Unaudited) (Unaudited) (Audited)
Six months Six months Year ended
ended ended
30 September 30 September 31 March
2010 2009 2010
£'000 £'000 £'000
Investment income 7 4 31
Other operating income - - 34
Total income 7 4 65
3. Investment Management, Management and Performance Fees
(Unaudited) (Unaudited) (Audited)
Six months Six months Year ended
ended ended
30 September 30 September 31 March
2010 2009 2010
£'000 £'000 £'000
Investment management fee 336 226 544
Management, administrative
and
company secretarial fee 158 101 247
Performance fee charged in 18 294 574
the period/year*
512 621 1,365
*In accordance with the performance fee arrangements described on page 12 of
the 2010 Annual Report, a performance fee of £506,000 was accrued at the period
end (six months ended 30 September 2009: £516,000; year ended 31 March 2010: £
799,000).
In addition, during the period, fees totalling £310,000 were paid, of which £
224,000 related to fees which crystallised at 31 March 2010 and £86,000 in
relation to fees which crystallised and became payable at 30 June 2010.
Notes to the Financial Statements (continued)
4. (Loss)/Earnings per Share
The (loss)/earnings per share figure is based on the net loss for the six
months of £9,404,000 (six months ended 30 September 2009: £8,200,000 gain; year
ended 31 March 2010: £28,689,000 gain) and on 65,934,855 shares, (six months
ended 30 September 2009: 50,043,197 and year ended 31 March 2010: 55,422,574)
being the weighted average number of shares in issue during the period.
The (loss)/return per share detailed above can be further analysed between
revenue and capital as follows:
(Unaudited) (Unaudited) (Audited)
Six months Six months Year ended
ended ended
30 September 30 September 31 March
2010 2009 2010
£'000 £'000 £'000
Net revenue loss (202) (233) (355)
Net capital (loss)/gain (9,202) 8,433 29,044
Net total (loss)/gain (9,404) 8,200 28,689
Weighted average number of shares in issue
during the period 65,934,855 50,043,197 55,422,574
Pence Pence Pence
Revenue loss per share (0.3) (0.5) (0.6)
Capital (loss)/earnings per (14.0) 16.9 52.4
share
Total (loss)/earnings per (14.3) 16.4 51.8
share
5. Net Asset Value per Share
The net asset value per share is based on the net assets attributable to equity
shareholders of £110,881,000 (30 September 2009: £76,933,000; 31 March 2010: £
120,417,000) and on 65,869,809 shares, (30 September 2009: 50,127,463; 31 March
2010: 65,959,861) being the number of shares in issue at the period end.
Notes to the Financial Statements (continued)
6. Reconciliation of Profit/(Loss) Before Taxation to Net Cash Inflow/(Outflow)
From Operating Activities
(Unaudited) (Unaudited) (Audited)
Six months Six months Year ended
ended ended
30 September 30 September 31 March
2010 2009 2010
£'000 £'000 £'000
(Loss)/profit before taxation (9,404) 8,200 28,689
Losses/(gains) on investments 8,690 (9,057) (30,254)
held at fair value through
profit or loss
Movements in investments held 14,674 3,678 (26,783)
at fair value through profit
or loss
Decrease/(increase) in other 18 17 (17)
receivables
(Decrease)/increase in other (286) 380 667
payables
Net cash inflow/(outflow) 13,692 3,218 (27,698)
7. Transaction Costs
Purchase and sale transaction costs for the six months ended 30 September 2010
were £256,000 (six months ended 30 September 2009: £183,000; year ended 31
March 2010: £415,000). These costs comprise mainly commission.
8. Comparative Information
The financial information contained in this interim report does not constitute
statutory accounts as defined in section 435(1) of the Companies Act 2006. The
financial information for the six months ended 30 September 2010 and 2009 has
not been audited, or reviewed by the auditors.
The information for the year ended 31 March 2010 has been extracted from the
latest published audited financial statements. The audited financial statements
for the year ended 31 March 2010 have been filed with the Registrar of the
Companies. The report of the auditors on those accounts was unqualified, did
not include a reference to any matters to which the auditors drew attention by
way of emphasis without qualifying the report and did not contain statements
under section 498 of the Companies Act 2006.
Company Information
Directors
John Sclater CVO, (Chairman)
Sven Borho
Paul Gaunt
Dr John Gordon
Peter Keen
Lord Waldegrave of North Hill
Company Registration Number
3376377 (Registered in England)
The Company is an investment company as defined under Section 833 of the
Companies Act 2006.
Registered Office
One Wood Street,
London EC2V 7WS
Website: www.biotechgt.com
Investment Manager
OrbiMed Capital LLC
767 Third Avenue, 30th Floor,
New York NY10017-2023 USA
Telephone: +1 212-739-6400
www.orbimed.com
Registered under the U.S. Securities Exchange Commission.
Manager, Administrator and Company Secretary
Frostrow Capital LLP
25 Southampton Buildings,
London WC2A 1AL
Telephone: 0203 008 4910
E-Mail: info@frostrow.com
Website: www.frostrow.com
Authorised and regulated by the Financial Services Authority.
If you have an enquiry about the Company or if you would like to receive a copy
of the Company's monthly fact sheet by e-mail, please contact Frostrow Capital
using the above e-mail address.
Custodian and Banker
Goldman Sachs & Co.
200 West Street, Third Floor
New York
NY10282
Auditors
Grant Thornton UK LLP
30 Finsbury Square,
London EC2P 2YU
Stockbrokers
Winterflood Investment Trusts
The Atrium Building,
Cannon Bridge, 25 Dowgate Hill,
London EC4R 2GA
Registrars
Capita Registrars
Northern House, Woodsome Park,
Fenay Bridge, Huddersfield,
West Yorkshire HD8 0LA
Telephone (in UK): 0871 664 0300â€
Telephone (from overseas): +44 208 639 3399
Facsimile: +44 (0) 1484 600911
E-Mail: ssd@capitaregistrars.com
Website: www.capitaregistrars.com
Please contact the Registrars if you have a query about a certificated holding
in the Company's shares.
†Calls cost 10p per minute plus network extras and may be recorded for training
puposes. Lines are open from 8.30 a.m.-5.30 p.m. Monday-Friday.
Share Price Listings
The price of your shares can be found in various publications including the
Financial Times, The Daily Telegraph, The Times, The Scotsman and The Herald.
The Company's net asset value per share is announced daily on the TrustNet
website at www.trustnet.com
Identification Codes
Shares:SEDOL:0038551
ISIN:GB0000385517
BLOOMBERG:BIOG LN
EPIC:BIOG
Alliance Trust Savings Limited
The Company's shares are available through savings plans (including investment
Dealing Accounts, ISAs and SIPPs) operated by Alliance Trust Savings Limited,
which facilitates both regular monthly investments and lump sum investments in
the Company's shares. Shareholders who would like information on the savings
plans should call Alliance Trust Savings Limited on 01382 573737 or log on to
www.alliancetrust.co.uk/alliancetrustsavings/ or email
contact@alliancetrust.co.uk. Calls to this number may be recorded for
monitoring purposes.
An Individual Savings Account (`ISA') is a tax efficient method of investment
for an individual which gives the opportunity to invest in the Company up to £
10,200 in the tax year 2010/2011 and in subsequent tax years when they
subscribe to a Stocks and Shares ISA.
The preceding two paragraphs have been issued and approved by Alliance Trust
Savings Limited. Alliance Trust Savings Limited of PO Box 164, 8 West
Marketgait, Dundee DD1 9YP is registered in Scotland with number SC98767.
Alliance Trust Savings Limited provides investment products and services and is
authorised and regulated by the Finance Services Authority. It does not provide
investment advice.
Capita Registrars - Share Dealing Service
A quick and easy share dealing service is available to existing shareholders
through the Company's Registrar, Capita Registrars, to either buy or sell
shares. An online and telephone dealing facility provides an easy to access and
simple to use service.
Type of trade Online Telephone
Share certificates 1% of the value of the deal 1.5% of the value of the deal
(Minimum £20.00, max £75.00) (Minimum £25.00, max £102.50)
There is no need to pre-register and there are no complicated forms to fill in.
The online and telephone dealing service allows you to trade `real time' at a
known price which will be given to you at the time you give your instruction.
To deal online or by telephone all you need is your surname, shareholder
reference number, full postcode and your date of birth. Your shareholder
reference number can be found on your latest statement or certificate where it
will appear as either a `folio number' or `investor code'. Please have the
appropriate documents to hand when you log on or call, as this information will
be needed before you can buy or sell shares.
For further information on this service please contact:
www.capitadeal.com (online dealing) or 0871 664 0445†(telephone dealing)
†Calls cost 10p per minute plus network extras and may be recorded for training
purposes. Lines are open from 8.30 a.m. to 4.30 p.m. Monday to Friday.
The Share Dealing Service is provided by Capita IRG Trustees Limited which has
issued and approved the preceding paragraphs. Capita IRG Trustees Limited, The
Registry, 34 Beckenham Road, Beckenham, Kent BR3 4TU is registered in England
and Wales with number 2729260. Capita IRG Trustees Limited is authorised and
regulated by the Financial Services Authority.
Risk Warnings
- Past performance is no guarantee of future performance.
- The value of your investment and any income from it may go down as well as up
and you may not get back the amount invested. This is because the share price
is determined by the changing conditions in the relevant stockmarkets in which
the Company invests and by the supply and demand for the Company's shares.
- As the shares in an investment trust are traded on a stockmarket, the share
price will fluctuate in accordance with supply and demand and may not reflect
the underlying net asset value of the shares; where the share price is less
than the underlying value of the assets, the difference is known as the
`discount'. For these reasons, investors may not get back the original amount
invested.
- Although the Company's financial statements are denominated in sterling, it
may invest in stocks and shares that are denominated in currencies other than
sterling and to the extent they do so, they may be affected by movements in
exchange rates. As a result, the value of your investment may rise or fall with
movements in exchange rates.
- Investors should note that tax rates and reliefs may change at any time in
the future.
- The value of ISA tax advantages will depend on personal circumstances. The
favourable tax treatment of ISAs may not be maintained.
Enquiries:
Mark Pope - Tel: 0203 008 4913
Frostrow Capital LLP
25 Southampton Buildings
London WC2A AL
29 November 2010
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