RCS - Biotech Growth Trust - Edison issues review on The Biotech Growth Trust

Biotech Growth TrustAnnouncement

06/09/2022 08:45

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RNS Number : 4130Y  Biotech Growth Trust PLC (The)  06 September 2022

London, UK, 6 September 2022

 

Edison issues review on The Biotech Growth Trust (BIOG)

The Biotech Growth Trust (BIOG) is managed by global healthcare specialist
OrbiMed Capital. Despite a reversal in the trust's relative performance
following a very successful FY21 (ending 31 March 2021), manager Geoff Hsu is
continuing to favour smaller-cap, emerging biotech stocks, as he says these
companies are where the bulk of industry innovation occurs, and this is the
primary driver of the biotech sector's long-term positive performance. The
manager believes that the latest drawdown in biotech stocks, which is
unprecedented in both magnitude and duration, has led to a very large
disconnect between favourable industry fundamentals and very low biotech
company valuations. Over the last year, BIOG's portfolio has become
increasingly concentrated as Hsu and his team are focusing more on their
highest-conviction investments.

 

BIOG's valuation has been volatile since early 2021, which coincides with the
trust's period of relative underperformance. Its 8.3% discount to cum-income
NAV compares with a 4.0% to 4.9% range of average discounts over the last one,
three, five and 10 years. If BIOG can build on its very long-term record of
outperformance, there is potential for the trust to be afforded a higher
valuation.

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All reports published by Edison are available to download free of charge from
its website

www.edisongroup.com (http://www.edisongroup.com)

About Edison: Edison is a leading research and investor relations consultancy,
connecting listed companies to the widest pool of global investors. By
focusing on the volume and quality of investors reached - across institutions,
family offices, wealth managers and retail investors - Edison can create and
gauge intent to purchase, even in the darkest pools of capital, and then make
introductions via non-deal roadshows, events or virtual meetings.

Having been the first in-market 17 years ago, Edison now has more than 100
analysts covering every economic sector. Headquartered in London, Edison also
has offices in New York, Frankfurt, Amsterdam and Tel Aviv and a presence in
Athens, Johannesburg and Sydney.

Edison is authorised and regulated by the Financial Conduct Authority
(https://register.fca.org.uk/ShPo_FirmDetailsPage?id=001b000000MfYL6AAN) .

Edison is not an adviser or broker-dealer and does not provide investment
advice. Edison's reports are not solicitations to buy or sell any securities.

For more information, please contact Edison:

Mel Jenner +44 (0)20 3077 5700 investmenttrusts@edisongroup.com
(mailto:investmenttrusts@edisongroup.com)

Learn more at www.edisongroup.com (http://www.edisongroup.com) and connect
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