Interim Management Statement

RNS Number : 0799Z

Intl. Biotechnology Trust PLC

15 July 2008

International Biotechnology Trust plc

Interim Management Statement for the Quarter ended 31 May 2008

The Board of International Biotechnology Trust plc ('the Company') is pleased to announce its second Interim Management Statement as required by the UK Listing Authority's Disclosure and Transparency Rules. This Statement is in respect of the period from 1 March 2008 to 31 May 2008.

Investment Objective and Policy

The Company's investment objective is to achieve long term capital growth by investing in high growth, development-stage biotechnology companies that are either quoted or unquoted. The Company invests in companies that the Manager considers to be good value, with experienced management and strong potential upside through the development and/or commercialisation of a product, device or enabling technology.

Material Events

On 6 March 2008, the Company invested £0.25 million in Vantia Limited, a private company based in Southampton, UK. Vantia is focused on the design and development of drugs associated with protease inhibitors and peptidomimetics.

Since 15 April 2008, the Company invested in two new unquoted medical device companies, both based in Minneapolis, USA: £1.1m (US$2.0m) in Entellus, focused on treating sinusitis; and £0.6m (US$1.14m) in EBR systems which is developing a wireless cardiac stimulation device. Additional investments have also been made in the following existing portfolio companies: £0.16m (US$0.3m) in Itero, £1.3m (US$2.4m) in EUSA Pharma, £0.08m (US$0.15m) in Dynogen and £0.36m (US$0.7m) in Intranasal.

On 24 April 2008, the Company announced that the Directors' valuation of the holdings in Intranasal Therapeutics and Ricerca had changed. Ricerca had been written down from £0.8m to £0.6m as a result of delayed progress on the development of its products. Ricerca had previously been written up from £0.5m to £0.8m to reflect growing sales and profits and will be revalued periodically as this portfolio company releases trading results. The net effect of these changes was an uplift of £90k, or 0.1 pence on the net asset value per share, as at 23 April 2008. These valuation changes were incorporated into the net asset value of the Company from 24 April 2008 and reflected in the Company's net asset value announcements with effect from 25 April 2008.

On 20 May 2008, the Company announced that the Directors' valuation of the holding in Intranasal Therapeutics had been written down from £0.6m to £0.4m following delayed progress on the development of its products. The impact of this change was a reduction in net asset value of £0.2m, or 0.299p per share. This valuation change was incorporated into the net asset value of the Company from 19 May 2008 and was reflected in the Company's net asset value announcements with effect from 20 May 2008.

On 2 July 2008, the Board noted that a new investment was made in the unquoted portfolio on 30 June 2008: the Company invested £84,000 (with milestone-based future commitments of £400,000) in Allocure, a company based in Salt Lake City, Utah, USA and Hamburg, Germany, focused on developing treatments for acute renal failure and medical complications following kidney transplant.

On 11 July 2008, the Board noted that new and follow-on investments had been made in the unquoted portfolio that week. The Company had invested £0.6m in new unquoted portfolio company CR LLC, based in Virginia, USA and Cologne, Germany. CR LLC is set up to build a contract research business that will buy and consolidate businesses in this sector. In addition, a follow-on investment of £0.2m had been made in ESBATech, a Swiss-based company focused on inflammatory conditions, bringing the total investment in this company to £1.0m.

There have been no other material events or transactions that have taken place between 1 June 2008 and the date of publication of this Statement.

Results of Extraordinary General Meeting

An Extraordinary General Meeting of the Company was held on 2 July 2008 to consider the adoption of new Articles of Association. The Resolution set out in the Notice of Meeting was duly passed at the meeting.

Company Statistics as at 31 May 2008*

Total Net Asset Value	£96.7m
Net Asset Value (NAV) per Ordinary Share	136.24p
Share Price	116.50p
Share Price Premium/(Discount) to NAV	(14.5)%
Total Value of Unquoted Investments	£15.17m (16% of NAV)
Total Number of Portfolio Holdings	57
Cash	£2.8m (3% of NAV)
Cash Committed and Reserved to Unquoted Investments	£11.8m (12.2% of NAV)

*Source for all Statistical Data: Schroders

Cumulative Performance to 31 May 2008*

Performance Over	3 mths	6 mths	1 year
Share Price	(3.9%)	(10.9%)	(26.0%)
NAV	6.1%	(3.3%)	(14.4%)
Nasdaq Biotech Index Return✝	5.0%	(1.8%)	(2.0%)
Russell 2000 Biotech Growth Index Return✝	9.8%	(1.7%)	(11.6%)

* Source for all Performance Data: Fundamental Data

✝Sterling Adjusted

Portfolio Information as at 31 May 2008

Ten Largest Investments

Investment	Weighting (% NAV)	Country
Gilead Sciences	5.90	USA
Celgene	5.76	USA
CSL	5.48	Australia
Applera-Celera Genomics Group	3.95	USA
Oxagen Limited Series B Preference	3.50	UK
Barr Pharmaceuticals	3.06	USA
Micromet	3.05	USA
Shire	2.95	UK
Alexion Pharmaceuticals	2.87	USA
Gen Probe	2.83	USA

Sector Allocation (Plus Cash Committed)

Sector	Weighting (% NAV)
Pharmaceuticals & Biotechnology	76.34
Healthcare Equipment & Services	19.32
Money Market Funds	4.34

Changes to Share Capital during the quarter ended 31 May 2008

	Issued Ordinary shares of 25p each
As at 1 March 2008	70,592,664
Shares bought back and cancelled during the period	Nil
Shares bought for holding in treasury	Nil
Shares already held in treasury	Nil
Shares cancelled from treasury	N/A
Shares remaining in issue as at 31 May 2008	70,592,664

General Company Information as at 31 May 2008

SEDOL Code	045593
Sector	Sector Specialist - Biotechnology
Launch Date	May 1994
Financial Year End	31 August
Next AGM	November 2008
Next Continuation Vote	2009 AGM