Interim Results

Intl. Biotechnology Trust PLC
19 April 2001


Press Release

     19 April 2001

                          Unaudited Interim Results

The Directors of International Biotechnology Trust PLC announce the unaudited
interim results for the six months ended 28 February 2001:


                         For the six months ended   For the six months ended
                                 28 Feburary 2001           29 February 2000
Statement of total return
 
                     Revenue    Capital      Total  Revenue  Capital    Total
                       £'000      £'000      £'000    £'000    £'000    £'000 

  Realised gains on        -     49,813     49,813        -   66,405   66,405 
  sales of investments                                                          
      
  Increase/(decrease)      -   (138,774)  (138,774)       -  224,909  224,909
  in unrealised                                                             
  appreciation on                                                             
  investments                                                                 

  Exchange losses          -    (1,147)    (1,147)        -        -        - 
  on currency                                                                 

  Incentive fee and        -    (2,160)    (2,160)        -   (8,651)  (8,651)
  termination fee                                                             

  Dividend income          -          -          -       69        -       69 

  Income from          1,952          -      1,952      363        -      363 
  current asset                                                               
  investments                                                                 

  Deposit interest       396          -        396       40        -       40 

  Administrative      (2,990)         -    (2,990)   (1,762)       -   (1,762)
  expenses                                                                    

  (Deficit)/return     (642)   (92,268)   (92,910)   (1,290)  282,663  281,373
  before finance                                                              
  costs and taxation                                                            
       
  Interest payable      (15)          -       (15)      (4)        -      (4) 

  (Deficit)/return     (657)   (92,268)   (92,925)   (1,294)  282,663  281,369
  on ordinary                                                                 
  activities before                                                           
  and after taxation                                                            
       
  Transfer (from) /    (657)   (92,268)   (92,925)   (1,294)  282,663  281,369
  to reserves                                                                 

  (Deficit)/return    (0.84)p  (117.93)p  (118.77)p  (1.47)p  321.20p  319.73p
  per ordinary share                                                            
          
 
Unaudited Preliminary Statement of Results

                                        At 28 February 2001   At 31 August 2000
Assets                                                £'000               £'000

Fixed asset investments                             126,043             262,038

Current asset investments                             3,511              89,918

Net current assets/ (liabilities)                     3,795             (2,627)

Net Assets                                          133,349             349,329

Net asset value per share (basic)                   274.29p             381.88p

Net asset value per share (diluted)                 274.29p             379.13p



                                       For the six months   For the six months
                                                    ended                ended
                                         28 February 2001     29 February 2000
Cash Flow Statement                                 £'000                £'000

Net cash outflow from operating                     (520)                (883)
activities

Interest paid                                        (13)                  (4)

UK tax paid                                          (67)                    -

Net cash inflow from investing                     49,019               54,842
activities

Management of liquid resources                     86,407             (48,968)

Net cash outflow from financing                 (129,033)                    -


Net cash inflow                                     5,793                4,987


This announcement is prepared on the basis of the accounting policies as set
out in the most recently published set of annual financial statements.

The Board of Directors approved this statement on 19 April 2001.

Statement by the Chairman, Andrew barker :

Introduction

This report provides the unaudited highlights of International Biotechnology
Trust plc ('IBT') for the six months ended 28 February 2001, together with
details of the investment activity during that period.


Overview

The US biotech sector was under extreme pressure during the period under
review. Over the six months ended 28 February 2001, the NASDAQ Biotech Index
fell by 29.4% in dollar terms and 28.8% in sterling terms. The UK biotech
sector, however, fared a little better, with the Bloomberg UK Biotechnology
Index declining by only 14.6% over the period. The downturn reflected two main
factors. First, technology stocks in general experienced a severe bear market,
as investors recognised that earnings growth expectations had been set too
high and valuations had become over-stretched - the NASDAQ Composite Index
dropping by just under 50% over the six months. The fall-out also led to
profit taking in the biotech sector. Second, investors have realised any
short-term benefit from the availability of the fully sequenced human genome
would be less tangible than originally thought.


Over the six months IBT marginally out-performed the NASDAQ Biotech Index: the
NAV fell by 27.6% from 379.1p per share at 31 August 2000 to 274.3p per share
at 28 February 2001. The share price fell by 29.8% to 230p, reflecting a
widening of the discount to NAV.


During this period the other major event for IBT was the restructuring of the
Fund. The new Investment Manager, advised by Schroder Ventures Life Sciences,
formally took over from the previous Manager at the beginning of November
2000. The restructuring was completed in January 2001. In order to effect the
restructuring a number of holdings were sold during December 2000. Proceeds
from these disposals taken together with existing cash resources were more
than sufficient to repay the capital requested by shareholders.




Investment activity

The surplus cash raised from the reconstruction was invested in January and
February 2001 in a non-core portfolio of 13 highly liquid, large cap public
companies, pending investment into new core holdings. Reflecting the view of
the Adviser at that time that the biotech sector could decline further in the
very short term, the emphasis was placed on those biotech companies with
strong product stories, and well-regarded companies in other sectors of the
life sciences industry, such as speciality pharmaceuticals, drug delivery
systems and medical devices.


Approximately £2 million was invested in each of the following in January
2001: Amgen, Biogen, Celltech Group, Elan, Forest Labs, Genentech, IDEC
Pharma, Immunex and Medimmune. In the same month an aggregate £2 million was
invested in three medical device companies, namely Boston Scientific, Guidant
and Medtronic. In February 2001, £2 million was invested in Abgenix, Inc.


In the case of core holdings, a commitment was made in February for a
EURO 5million investment by IBT in Micromet GmbH, an unlisted German
company. This investment was part of a EURO 40million financing, which
closed in March 2001. Micromet, located in Munich, was formed in 1996 and has
50 employees. It is an anti-cancer company, focusing on the elimination of
micrometasteses using bispecific antibodies.


Divestment activity

Prior to the changeover, the previous Manager had initiated disposals of Cell
Therapeutics and Angiotech Pharmaceuticals. The new Manager completed these
disposals during November and December 2000, selling the whole of the
remaining holding in each case. Proceeds from the sale of Cell Therapeutics
totalled £40.4 million, representing a multiple on investment of 4.3 times
cost. In the case of Angiotech, the proceeds were £20.4million, resulting in
an investment multiple of 6.8 times. The remaining small stake in Cadus, a
non-core portfolio company, was sold in September 2000, realising proceeds of
£0.4million.


As a result of the reduction in size of IBT post-reconstruction, and
consequent portfolio re-balancing, holdings in the following companies were
cut back: CeNeS, Corvas, Onyx, Ribozyme, and Targeted Genetics.


The take-over of ImmGenics Pharmaceuticals by Abgenix, one of the world
leaders in therapeutic antibody development, took place in November 2000. As
consideration, IBT received a series of put options for cash exercisable after
the period end.




Activity subsequent to reporting period

Following the expiration of a lock-up on IBT's shareholding in OSI
Pharmaceuticals, half of the Fund's position was sold in March 2001 in line
with the reduction in size of the Fund. This disposal realised proceeds of £
7.1million, representing an investment multiple on cost of 2.7 times. Part of
these proceeds was used in the same month to acquire a £2 million stake in
Shire Pharmaceuticals, the UK's leading emerging pharmaceuticals company, as
an additional non-core holding.


Cash proceeds from exercising 75% of the put options received from Abgenix
amounted to £4.1 million, representing an investment multiple of 3.2 times. In
March 2001, a further disposal was made from the Fund's holding in CeNeS, and
the non-core holding of Immunex was sold following disappointing clinical
trial results.


Finally, the values of certain positions in core unquoted companies have been
written down by around £6.5m on 19 April 2001 as a result of events since the
balance sheet date.




Outlook

IBT continues to adopt a strategic stance towards the life sciences industry,
and the Managers are using this period of weakness to identify situations of
value in the sector. By taking a long-term view for its core investments, IBT
sees the current stage in the cycle as a good buying opportunity.


With the reconstruction and change of Manager behind us, the Board is
confident that IBT is well placed to take advantage of the many opportunities
that are expected to arise as the bear market in the biotech sector of the
last year approaches its nadir. As previously stated, the new Manager looks to
increase the exposure of IBT to the unquoted sector and to European companies.


Andrew Barker

Chairman


Interim Report


The Interim Report will be sent by mail to shareholders at their registered
addresses in May 2001 and from the date of release, copies of the Interim
Report will be made available to the public at the Company's registered
office: 31 Gresham Street, London, EC2V 7QA.



Enquiries:        Schroder Investment Management Limited

John Spedding     (020 7658 3206)

19 April 2001     (e-mail [e-mail])