REG - RTW Biotech Opp. - Annual Financial Report
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RNS Number : 5112Y RTW Biotech Opportunities Ltd 30 March 2026
LEI: 549300Q7EXQQH6KF7Z84
30 March 2026
RTW Biotech Opportunities Ltd
Annual Report and Audited Consolidated Financial Statements for the Year Ended
31 December 2025
A transformative year for the portfolio, as shifting policy tailwinds and a
revitalised M&A landscape drive a powerful re-rating
RTW Biotech Opportunities Ltd ("RTW Bio", "the Company", or "the Group"), the
London Stock Exchange-listed investment company focused on identifying
transformative assets with high growth potential across the life sciences
sector, is pleased to announce its Annual Results for the year ended 31
December 2025.
Roderick Wong, MD, Managing Partner and Chief Investment Officer of RTW
Investments LP (the "Investment Manager") commented:
"2025 marked a decisive turning point for the biotechnology sector, bringing
to a close a historic four-year bear market. After a record period of
underperformance, we were pleased to see biotech indices finish the year ahead
of both the S&P 500 and the Nasdaq. For RTW Bio, this broader sector
recovery, combined with our rigorous asset selection, delivered a standout
year. During the year, RTW Bio's NAV per Ordinary Share returned +35.7% while
the share price returned +54.8%, driving a significant narrowing of the
discount to 12.0% at year-end. Since listing in 2019, we have grown the NAV
from US$168.0 million to over US$800.9 million, representing a +136.0% return,
a testament to our full life-cycle investment strategy.
"Our performance this year was primarily fueled by the public portfolio, which
delivered a +46.1% return and outperformed both the Russell 2000 and Nasdaq
Biotech indices. This outperformance reflects our belief that public equities
often lead broader market recoveries. Key drivers included Avidity
Biosciences, which contributed +9.5% to NAV following a path-to-market
alignment with the FDA and its subsequent acquisition by Novartis at a
meaningful premium. We also saw significant gains from PTC Therapeutics and
Stoke Therapeutics, both of which benefited from clinical momentum in rare
neurologic and genetic diseases. While Rocket Pharmaceuticals detracted
following a serious adverse event followed by a trial protocol modification,
we remain supportive on the fundamental science and the long-term value of
their platform.
"The pivot to growth we observed in the second half was underpinned by a
stabilising policy environment. The resolution of tariff concerns through
reshoring commitments and the Pfizer blueprint for drug pricing provided the
clarity necessary for large pharma to deploy its massive balance sheet
firepower. With a friendlier FTC and more predictable Medicare negotiations,
M&A activity surged to US$126 billion for the year, more than double
2024's total. We view this institutional alignment and the return of the
strategic buyer as a structural tailwind that will continue to drive value
realisation across our holdings.
"In our private portfolio, performance was modestly negative at -2.0%, a lag
we typically expect as private marks reset behind public equity rebounds.
However, the underlying fundamentals remain robust. Our recent Series D-1 lead
in Corxel, alongside a syndicate of global healthcare investors, underscores
the institutional conviction in next-generation cardiometabolic and obesity
franchises.
"Looking ahead, biotech is entering a new phase of maturity. We are witnessing
the evolution of science into profitable revenue, as evidenced by the
emergence of new US$50 billion market cap leaders. Furthermore, we are
positioning the portfolio to capture two defining megatrends: the acceleration
of drug discovery via AI tools and the high-efficiency innovation engine in
China. Our deep expertise in the Chinese biotech market allows us to support
the global licensing of assets that are iterating faster and cheaper than ever
before.
"In summary, the combination of regulatory clarity, record M&A demand, and
a profound advancement of clinical assets points to a potentially powerful
re-rating as we enter 2026. For investors, the sector remains attractively
valued and under-owned. With our inclusion in the FTSE 250 and a narrowing
discount, we believe RTW Bio offers a compelling vehicle for capturing the
full value creation curve of modern medicine."
Key highlights:
Strong NAV and share price performance: In a year of decisive sector
turnaround, the Group delivered a +35.7% NAV return and a +54.8% share price
return, significantly outperforming major biotech benchmarks. Since the 2019
IPO, the NAV per Ordinary Share has grown by +136.0%, representing an
annualised growth rate of +14.5% and demonstrating the long-term success of
the Investment Manager's strategy.
Robust M&A and realisation cycle: The portfolio benefited from intense
strategic activity with five take-outs or acquisitions across the public and
private books. High-profile exits included Avidity Biosciences' acquisition by
Novartis and the take-out of Alcyone, highlighting the continued urgency among
large pharma to acquire high-impact, late-stage assets.
Increased scale and FTSE 250 inclusion: Following a period of material growth,
the Group's NAV reached US$800.9 million. This increased scale and liquidity
supported the Company's inclusion in the FTSE All Share Index in September
2025 and the FTSE 250 in December, while the share price discount narrowed
significantly to 12.0% by year-end.
Strategic positioning in high-growth verticals: The Group is increasingly
concentrated in areas with powerful secular tailwinds, most notably obesity
and cardiometabolic disease. With high-conviction private holdings like Corxel
and Kailera, we believe that the portfolio is well-positioned to benefit from
the next wave of innovation-led value creation.
Financial summary:
As at 31 December 2025 Change over period As at 31 December 2024
Net asset value (Ordinary Shares) $800.9 million +35.7% $606.9 million
Net asset value per Ordinary Share $2.45 +35.7% $1.81
Ordinary Share price $2.16 +54.8% $1.40
Share price discount to Net Asset Value (12.0%) +10.8% (22.8%)
Number of Ordinary Shares in issue 326.4 million (2.8%) 335.7 million
Russell 2000 Biotech Index +44.6%
Nasdaq Biotech Index +33.4%
AIC Biotechnology & Healthcare Sector +18.4%
Public investments:
● Portfolio composition: As of 31 December 2025, public equities
represented 70.9% of total NAV. The portfolio remains high-conviction, with 26
companies having an exposure greater than 1%, accounting for 58.5% of NAV.
● Sector-leading outperformance: Driven by the portfolio's strategic
design, the public book delivered a +46.1% return in 2025, significantly
outperforming both the Russell 2000 Biotech Index and the Nasdaq Biotech
Index. This performance underscores our full life-cycle belief that public
equities are the primary vehicle for value realisation during sector
recoveries.
● Avidity Biosciences (+9.5% contribution): The year's top performer
following successful FDA alignment on its muscular dystrophy RNA program and a
subsequent acquisition by Novartis at a substantial premium.
● PTC Therapeutics (+5.1% contribution): Benefited from strong
commercial momentum for Sephience and a growing narrative around rare
neurological disorders.
● Stoke Therapeutics (+4.9% contribution): Gained on the back of
clinical data supporting a near-term filing for its transformative genetic
therapy for Dravet syndrome.
● Detractors: Rocket Pharmaceuticals was the sole material detractor
(-3.9% impact) following a serious adverse event and clinical trial protocol
modification. Despite this, the Investment Manager remains committed to the
platform's long-term scientific potential. Other negative positions had a
negligible aggregate impact of -0.3%.
● Robust M&A activity: The year was characterised by high-velocity
exits, including five acquisitions or take-outs. Key realisations included
Verona, Akero, Avidity, and Merus in the public book, alongside Alcyone in the
private portfolio.
● Broad-based expertise: Gains were diversified across all RTW
sub-teams, with commercial-stage assets leading the returns, followed closely
by development-stage companies and M&A events across oncology, immunology,
cardiometabolic and medtech.
Private investments:
● Portfolio composition: Private investments accounted for 24.0% of
total NAV as of 31 December 2025. Concentration remains disciplined, with five
core positions exceeding 1% of NAV, representing 14.4% of the total portfolio.
● Active company building: RTW Investments' incubation strategy
remains a core differentiator. The portfolio saw the addition of Prolium (1.5%
of NAV), a newly incubated biotech focused on bispecific antibodies for
autoimmune diseases, alongside capital deployment into several other newCo
formations.
● Valuation lag: The private book declined by -2.0% in 2025, a
performance profile consistent with a market recovery where private valuations
typically lag the immediate rebound of public equities. Despite this, the
portfolio remains focused on early-stage engagement and long-term optionality
in high-conviction therapeutic areas.
● Corxel (+0.9% contribution): Continued to advance its
cardiometabolic pipeline. Post-period end, its outlook was further
strengthened by a US$287 million Series D-1 financing, led by RTW Investments
and a syndicate of global investors, validating its oral GLP-1 receptor
agonist program.
● Alcyone (+0.9% contribution): Successfully realised value through
a strategic M&A take-out during the year.
● Artios (-2.9% impact): While delivering encouraging Phase 1/2a
oncology data, the breadth of its clinical programs necessitated higher
capital requirements, leading to a conservative valuation adjustment.
Royalty investments:
● Uncorrelated portfolio ballast: Representing 2.3% of NAV, the
royalty sleeve added +0.9% to NAV in 2025. These positions continue to serve
as a critical diversifier, providing income-oriented returns and durable cash
flows that are uncorrelated with biotechnology equity volatility.
● Strong performance: The 4010 Royalty Fund delivered a ~20% net IRR
as of Q4 2025. The fund remains disciplined in its deployment, with 33% of
commitments currently deployed into differentiated, commercial-stage assets
with clear regulatory pathways.
● High-value realisation: Following the acquisition of Avadel by
Alkermes, the Group exercised its contractual put right for the Lumryz
royalty. This exit is expected to close in Q1 2026 at the full 2.5x return
cap, demonstrating the significant upside potential of structured royalty
agreements.
● Commercial milestone achievements: UroGen's Jelmyto delivered
steady organic growth of 8-12%, while the next-generation therapy Zusduri
received FDA approval in June 2025, marking a new revenue stream for the
franchise. Cardamyst received FDA approval in December 2025, triggering the
associated royalty commitment shortly after year-end.
● Event-Driven Pipeline: The Group expanded its commitment to
near-term catalysts, including Aquestive's Anaphylm and Savara's Molbreevi.
These investments focus on late-stage assets with asymmetric risk-reward
profiles and defined timelines to cash flow.
Post period-end events
● Corxel completed a US$287 million Series D-1 financing: Proceeds
are expected to support the advancement of CX11 in its Phase 2 trial in the
United States, its planned global Phase 2 trial to treat Type 2 Diabetes
Mellitus, and initial preparations for Phase 3 trials as well as other
cardiometabolic programs.
● Boston Scientific Corporation entered into a definitive agreement
to acquire Penumbra, Inc. ("PEN"): The transaction values Penumbra at US$14.5
billion and is expected to be completed in 2026.
● GSK plc entered into a definitive agreement to acquire RAPT
Therapeutics, Inc. ("RAPT"): The transaction values RAPT at US$2.2 billion and
completed in the first quarter of 2026.
● Aktis Oncology went public on 9 January in the first biotech IPO
of 2026: Issuing 17.7 million shares of common stock at US$18.00 each, raising
proceeds of US$318 million. The shares now trade on the Nasdaq Global Select
Market under the ticker symbol "AKTS".
Enquiries:
RTW Investments, LP - Investment Manager +44 (0)20 7959 6361
Oliver Kenyon biotechopportunities@rtwfunds.com
(Business & Corporate Development)
Krisha McCune (Investor Relations)
Cadarn Capital - PR & IR Partner
Lucy Clark (PR) +44 (0)7984 184 461 / lucy@cadarncapital.com
David Harris (Distribution) +44 (0)7368 883 211 / david@cadarncapital.com
Deutsche Numis - Joint Corporate Broker +44 (0)20 7260 1000
Nathan Brown
George Shiel
Duncan Monteith
BofA Securities - Joint Corporate Broker +44 (0)20 7628 1000
Edward Peel
Alex Penney
Altum (Guernsey) Limited +44 (0)1481 703 100
Joanna Duquemin Nicolle
Sadie Morrison
About Biotech Opportunities Ltd:
RTW Biotech Opportunities Ltd (LSE: RTW) is an investment fund focused on
identifying transformative assets with high growth potential across the
biopharmaceutical and medical technology sectors. Driven by a long-term
approach to support innovative businesses, RTW Biotech Opportunities Ltd
invests in companies developing next-generation therapies and technologies
that can significantly improve patients' lives. RTW Biotech Opportunities Ltd
is managed by RTW Investments, LP, a leading healthcare-focused
entrepreneurial investment firm with deep scientific expertise and a strong
track record of supporting companies developing life-changing therapies.
Visit the website at www.rtwbio.com for more information.
Highlights
RTW Biotech Opportunities Ltd ("RTW Bio", "the Company" or, with its
subsidiaries, "the Group") is a life sciences and investment innovation fund
focused on identifying transformative assets with high growth potential across
the biopharma and medtech sectors. We're powering medical breakthroughs that
have the potential to transform the wellbeing of people around the world.
31 December 2025 Financial Highlights
US$800.9 million Ordinary NAV US$2.45 NAV per Ordinary Share
2024: US$606.9 million 2024: US$1.81
+136.0% Ordinary NAV growth since inception +107.7% total shareholder return since admission
2024: +73.8% 2024: +34.1%
+35.7% Ordinary NAV per share growth YTD +54.8% total shareholder return YTD
2024: -4.6% 2024: -0.6%
1.2 Leverage¹ US$2.16 price per Ordinary Share
2024: 1.2x 2024: US$1.40
(¹) Leverage is calculated per the Commitment Method of the AIFMD. Real
economic exposure at the fund and position level (1.0x) is ultimately what
impacts NAV as some positions are partially or fully hedged.
Portfolio Highlights
7 new private companies added in the year³
Significant capital markets activities in the portfolio¹: 2024: 21
2 IPOs, 1 private acquisition, 4 public acquisitions, 1 reverse merger; 2
royalty funding agreements
2024: 3 IPOs, 1 acquisition, 1 reverse merger
Public exposure²: 71% 77% NAV exposure to companies with late-stage clinical trials or commercial
products⁴
Private exposure²: 24%
2024: 71%
Royalty exposure²: 2%
2024: Public 65%, Private 30%, Royalty 3%
85% NAV exposure to mid and small-cap biotechs
2024: 100%
Average historical multiple on invested capital (MOIC) of private investments
to liquidity event since inception: 1.7x
Average historical holding period of private investments to liquidity event:
18 months
( )
(1) In prior periods capital markets activities were presented for the private
portfolio only. Beginning with this report they are shown for the full
portfolio.
(2) In the prior year report exposure was presented as fair market value +/-
accruals as a percentage of NAV, summing to 100%. Beginning in 2025, exposure
is shown as economic exposure as a percentage of NAV, the result of which
could be more or less than 100%.
³ In the prior year report, this statistic showed new "core" portfolio
companies added, which included a combination of private and public companies.
In 2024, 17 of the 21 core companies added were private companies.
⁴ Development stage exposures are analysed on portfolio companies with 1% or
greater exposure. Exposures have been converted to sum to 100%. At the prior
year-end, development stage exposures were presented as the number of
companies vs % of NAV, and on what was previously referred to as the "core"
portfolio.
Chair's Statement
2025 Overview
I am pleased to report that the Group's NAV per Ordinary Share returned +35.7%
in 2025. This was ahead of the Nasdaq Biotech Index (NBI) and AIC
Biotechnology and Healthcare Sector, which returned +33.4% and +18.4%
respectively, although behind the Russell 2000 Biotech Index, which returned
+44.6%. The Group's NAV per Ordinary Share has compounded at an average +14.5%
per annum since IPO in 2019, materially ahead of the indices and AIC sector
referenced above.
Pleasingly, the Company's share price strengthened significantly over 2025,
reflecting the discount to NAV closing from 22.8% at the beginning of the year
to 12.0% at year-end. The share price returned +54.8%, outstripping all the
benchmarks referenced above. Indeed, RTW Bio's share price performance during
the year put it in the top 10 of all investment companies tracked by the AIC.
This improvement reflects renewed confidence in the biotechnology sector,
continued progress in investor relations and public engagement efforts,
deepening retail investor interest, and the Company's inclusion in the FTSE
indices during the year.
The biotechnology sector experienced a challenging first half of the year,
with risk appetite suppressed until after the summer as investors grappled
with persistent macro uncertainty. Market conditions improved meaningfully in
the latter part of the year, however, as greater clarity emerged and
fundamentals reasserted themselves. Against this backdrop, the Group's
performance reflects both the resilience of its portfolio and the growing
maturity of the biotechnology sector.
We continue to frame sector risk around three key areas: tariffs, drug
pricing, and regulatory oversight by the FDA. While these factors contributed
to volatility during the year, they were increasingly offset by several
structural tailwinds. M&A activity accelerated as larger pharmaceutical
companies sought to replenish pipelines ahead of looming patent cliffs, drug
approvals are in line with the last five years despite widespread speculation,
and the sector demonstrated further evidence that biotechnology is maturing
with more disciplined capital allocation, improved commercial execution, and
clearer pathways from innovation to sustainable revenues.
Performance during the year was driven by a combination of company-specific
successes and setbacks. The most significant contributors to returns were
Avidity (+9.5%), following positive clinical data and its subsequent
acquisition; PTC Therapeutics (+5.1%), which benefited from regulatory and
commercial progress across its core franchise; and Stoke Therapeutics (+4.9%),
where encouraging trial results supported the long-term potential of its
precision medicine approach. Offsetting these gains were Rocket
Pharmaceuticals (-3.9%), Artios Pharma (-2.9%), and Dyne Therapeutics (-1.9%),
each of which detracted from performance following clinical or
development-related challenges that tempered near-term expectations.
The Group also benefited meaningfully from the upswing in M&A activity
during the year. Across the portfolio, there were four public company
take-outs and one private company acquisition, underscoring the strategic
value of the assets held. Notably, the private company take-out highlights the
latent value embedded within the Group's private portfolio and validates the
long-term approach taken to building exposure to high-quality innovation at
earlier stages.
By contrast, the IPO market remained subdued. Among the less than ten in 2026,
Beta Bionics and Evommune came out of the Group's private book, illustrating
the continued selectivity of public markets and reinforcing the importance of
maintaining flexible routes to realisation beyond IPOs alone.
The Investment Manager also continued to develop its company creation
capabilities during the year. These early-stage private investments allow the
Group to partner closely with scientific founders to build new biotechnology
companies from inception. New private investments during the year included
Windward, Basecure, American Laboratories Inc., AIRNA, Yarrow Bioscience,
Prolium, Amani and other early-stage opportunities, further strengthening the
pipeline of innovation within the private portfolio.
Capital Allocation
Capital allocation remains a core focus for the Board. During the year, the
Company continued to repurchase shares, reflecting our conviction in the
long-term value of the portfolio and our commitment to addressing the discount
to NAV where appropriate. Following successful M&A exits, the Board also
approved the allocation of a further US$15 million to share buybacks under the
Company's capital allocation plan. In accordance with our dividend policy, no
dividend has been recommended, as the Group continues to prioritise capital
growth over income and remains alert to future potential inorganic scaling
opportunities.
Corporate Developments
The Company reached an important milestone during the year with its inclusion
in the FTSE indices. Changes announced at the start of 2025 enabled companies
with non-sterling share quotations to be eligible for inclusion for the first
time. Following these changes, the Company was first admitted to the FTSE
All-Share Index and subsequently to the FTSE 250, enhancing the Company's
profile, broadening its shareholder base, and improving liquidity.
As announced in the interim report to 30 June 2025, the Group simplified its
portfolio disclosure by removing the historical distinction between "core" and
"other" public investments. The Board concluded that this classification had
become less meaningful to shareholders and could obscure the predominantly
public nature of the portfolio. Listed holdings are now reported under a
single public category, alongside private investments and royalties, with no
change to how the portfolio is constructed or managed.
Outlook
Looking ahead, the Board remains cautiously optimistic. In 2025, biotechnology
ended a multi-year period of underperformance relative to the S&P 500,
signalling the conclusion of a four-year bear market for the sector. While the
recovery remains at an early stage, the underlying drivers appear durable and
we believe the current dynamics provide a supportive environment for sustained
near and long-term value creation.
2026 AGM
The Company will hold its Annual General Meeting on 11 June 2026 to review the
annual results and provide portfolio updates. The meeting will take place at
Royal Chambers, St Julian's Avenue, St Peter Port, Guernsey. We would like to
dedicate a part of the meeting to address questions from shareholders. We
encourage shareholders to submit questions at the following email, and we will
endeavour to answer as many as we can: biotechopportunities@rtwfunds.com
(mailto:biotechopportunities@rtwfunds.com) .
On behalf of the Board, I would like to express my gratitude for your
continued support and wish you all the best for 2026.
Report of the Investment Manager
Since its listing on the London Stock Exchange on 30 October 2019, the Group
has grown the NAV attributable to Ordinary Shareholders from US$168.0 million
to US$800.9 million as of 31 December 2025. The NAV per Ordinary Share has
grown +136.0% from US$1.04 to US$2.45, or +14.5% annualised growth since
launch. The share price returned +107.7% in the same period, with the discount
closing significantly to 12.0% by year-end. In 2025, the NAV per Ordinary
Share returned +35.7% while the share price returned +54.8%. With continued
NAV outperformance versus the market and peers, in addition to an improving
outlook for the biotech sector, we would expect the discount to continue to
narrow.
RTW Investments, LP, the "Investment Manager", a leading global
healthcare-focused investment firm with a strong track record of supporting
companies developing life-changing therapies, created the Group as an
investment fund focused on identifying transformative assets with high growth
potential across the biopharmaceutical and medical technology sectors. Driven
by deep scientific expertise and a long-term approach to building and
supporting innovative businesses, we invest in companies developing
transformative next-generation therapies and technologies that can
significantly improve patients' lives while creating significant value for our
shareholders.
Table 1. Financial Highlights in the period
As at 31 December 2025 Change over period As at 31 December 2024
Net asset value (Ordinary Shares) $800.9 million +35.7% $606.9 million
Net asset value per Ordinary Share $2.45 +35.7% $1.81
Ordinary Share price $2.16 +54.8% $1.40
Share price discount to Net Asset Value (12.0%) +10.8% (22.8%)
Number of Ordinary Shares in issue 326.4 million (2.8%) 335.7 million
Russell 2000 Biotech Index +44.6%
Nasdaq Biotech Index +33.4%
AIC Biotechnology & Healthcare Sector +18.4%
Figure 1. Historical Performance Characteristics
Public Investments
NAV performance in 2025 was driven principally by the public positions,
reflecting the design of the portfolio and the fact that public biotechnology
equities lead broader market recoveries. Over the year, our public book
delivered a +46.1% return, outperforming both the Russell 2000 Biotech Index
and the Nasdaq Biotech Index, as developing clinical and commercial narratives
drove sector sentiment. As full life-cycle investors, our belief remains that
the majority of value creation in biotech is recognised first in public
markets, while earlier engagement ahead of IPOs and other liquidity events
remains an important source of long-term opportunity.
Table 2. Public positions greater than 1% exposure as of 31 December 2025
compared to 31 December 2024¹,²
Portfolio Company Ticker Description Therapeutic Area Location $ Position Size % NAV 31/12/2025 % NAV
31/12/2024
PTC PTCT Rare neurological and metabolic conditions. Neurology US/CAN $100,766,409 11.6% 2.0%
Stoke STOK RNA-based medicines to restore protein expression. Neurology US/CAN $44,784,265 5.2% 2.3%
UroGen URGN Innovative treatments for bladder and specialty cancers. Oncology ROW $43,524,772 5.0% 0.4%
Insmed INSM Serious and rare diseases. Pulmonary US/CAN $33,751,055 3.9% 0.7%
Tarsus TARS First-in-class therapeutics for eye conditions. Ophthalmology US/CAN $24,186,273 2.8% 6.0%
Immatics IMTX Targeted cancer immunotherapies. Oncology UK/EUR $23,711,216 2.7% 0.4%
argenx ARGX Antibody treatments for autoimmune diseases. Inflammation & Immunology UK/EUR $18,947,597 2.2% 1.3%
Madrigal MDGL Treatments for MASH, a serious liver disease. Metabolic US/CAN $16,600,766 1.9% 5.9%
Verastem VSTM Cancer treatments, with one approved product for blood cancers. Oncology US/CAN $16,248,971 1.9% 0.0%
Protagonist PTGX Peptide-based treatments for diseases with significant unmet medical need. Inflammation & Immunology US/CAN $14,010,646 1.6% 1.3%
Taysha TSHA Gene therapies for severe genetic diseases of the central nervous system. Neurology US/CAN $13,193,094 1.5% 0.1%
Spyre SYRE Antibody therapies for inflammatory bowel disease. Inflammation US/CAN $12,828,423 1.5% 1.2%
Cogent COGT Precision therapies for genetically defined diseases. Oncology US/CAN $11,850,715 1.4% 0.0%
Zai Lab ZLAB Developing medicines across cancer, immunology, neuroscience, and infectious Inflammation & Immunology ROW $11,767,132 1.4% 0.3%
diseases.
Oruka ORKA Antibody therapies for chronic skin and inflammatory conditions. Inflammation & Immunology US/CAN $11,686,657 1.4% 1.2%
Milestone (2) MIST Nasal spray for acute at-home treatment of heart rhythm disorders. Cardiovascular US/CAN 1.3% 1.7%
$11,505,764
RadNet RDNT Leading US outpatient diagnostic imaging services. Medtech US/CAN 1.3% 0.6%
$11,121,396
Compass Pathways CMPS Novel treatment for mental health disorders. Neurology UK/EUR 1.2% 0.1%
$10,742,865
Apogee APGE Antibody Inflammation & Immunology US/CAN $10,560,482 1.2% 1.0%
therapeutics for inflammatory and immune conditions.
Evommune EVMN New treatments for chronic inflammatory diseases. Inflammation & Immunology US/CAN $10,276,057 1.2% 1.1%
GH Research GHRS Novel therapies for treatment-resistant depression. Neurology UK/EUR $9,998,342 1.2% 0.4%
Tenax TENX Therapies for cardiopulmonary conditions. Cardiovascular US/CAN $9,419,988 1.1% 0.0%
Rocket RCKT Gene therapy platform for rare paediatric diseases. Rare Disease US/CAN $8,987,103 1.0% 5.1%
Penumbra PEN Global medical device leader in vascular and neurovascular care. Cardiovascular $8,720,715 1.0% 0.9%
US/CAN
Establishment Labs (2) ESTA Medical technology company commercialising breast and body shaping implants. Medtech US/CAN $8,670,505 1.0% 0.7%
UniQure QURE Gene therapies for patients with severe medical needs. Gene Therapy US/CAN $8,659,741 1.0% 0.1%
Total>1% 58.5%
Total <1% (56 companies) 12.4%
Total Public
70.9%
(1) Positions are shown on a net basis. Any differences with the Schedule of
Investments are due to short holdings and/or derivative securities.
(2) Includes both public and private securities but included in this table
because the company is publicly traded.
Among the public positions, Avidity Biosciences was the largest contributor,
with strong share price performance following alignment with the FDA on a path
to market for one of its two muscular dystrophy RNA medicines and subsequent
agreement to be acquired by Novartis at a meaningful premium to the pre-deal
share price, resulting in a +9.5% contribution to NAV. PTC Therapeutics also
made a material contribution, benefitting from the momentum around rare
neurological disease and the commercial success of its recently approved
therapy Sephience, which supported a +5.1% contribution to NAV. Stoke
Therapeutics similarly traded up on the potential for a near-term filing of
its transformative genetic therapy for Dravet patients, contributing +4.9% to
NAV.
On the detractor side, Rocket Pharmaceuticals was the only material negative
contributor among our public positions, with a -3.9% impact on NAV after the
tragic death of a Danon disease trial patient led to a protocol modification
to avoid an immunosuppressant that may have contributed to the event. Other
public positions that finished the year negative had only a modest aggregate
impact of -0.3% on NAV. Notwithstanding near-term setbacks, we continue to
believe in the fundamental potential of these platforms where science and
clinical data support durable long-term value. In total, the breadth of public
performance reflected both clinical catalysts and renewed capital market
confidence in biotech innovation.
Figure 2. Performance breakdown for the year ending 31 December 2025
Across the broader portfolio, we saw robust M&A activity with five
take-outs or acquisitions, including four public companies (Verona, Akero,
Avidity and Merus) and one private company (Alycone). Commercial stage
companies once again led our gains, with M&A activity tied with
development-stage names for second place. Our positive contributors came from
across all sub-teams, spanning rare disease, cardiometabolic, oncology,
immunology, respiratory, neuropsychiatric disease and medtech.
Private Investments
NAV performance from our private investments in 2025 was negative, with the
private book declining -2.0% over the year, a pattern we would expect in a
market recovery where private valuations typically lag those of public
equities. As a full life-cycle investor, we remain focused on early
engagement, patient value creation and selective capital deployment across
transformative early-stage companies, particularly where structural scientific
advances and sector dynamics create durable long-term optionality.
Table 3. Private positions greater than 1% exposure, as of 31 December 2025
compared to 31 December 2024 ¹,²
Portfolio Company Description Therapeutic Area Location $ Position Size % NAV 31/12/2025 % NAV
31/12/2024
Corxel RTW Investments-incubated company committed to targeting underserved patients Metabolic ROW $53,901,891 6.2% 8.5%
with cardiometabolic diseases.
Kailera RTW Investments co-incubated company developing broad pipeline to treat Metabolic US/CAN $29,507,052 3.4% 3.4%
obesity and related metabolic conditions.
Ensoma Developing genetic therapies to engineer certain cells for immuno-oncology and Rare Disease US/CAN $15,181,175 1.7% 2.6%
genetic diseases.
Artios Breakthrough cancer treatments that target DNA Damage Response pathways. Oncology UK/EUR $13,795,384 1.6% 4.9%
Prolium RTW Investments-incubated company developing bispecific antibodies for Inflammation & Immunology US/CAN $12,551,547 1.5% -
autoimmune diseases.
Total > 1% 14.4%
Total < 1% (37 companies) 9.6%
Total Private 24.0%
¹ Positions are shown on a net basis. Any differences with the Schedule of
Investments are due to short holdings and/or derivative securities.
(2) Certain privately held positions of public companies are included in the
public table above.
Within the private book, Corxel Pharmaceuticals was one of the larger
contributors, delivering a +0.9% impact to NAV as it continued to advance its
cardiometabolic pipeline. Subsequent to the period end, Corxel completed a
US$287 million Series D-1 financing led by a syndicate of global healthcare
investors including RTW, underscoring broad institutional conviction in its
differentiated oral GLP-1 receptor agonist and other cardiometabolic programs.
Alcyone also contributed +0.9% to NAV, reflecting its value realisation
through a successful M&A take-out during the year. Other private uplifts
in aggregate added approximately +0.5% to NAV, with several portfolio
companies benefiting from encouraging data and sector interest, particularly
in cardiometabolic and obesity therapeutics, consistent with broader thematic
strength across these areas.
Among detractors, Artios Pharma was the most significant after we reduced its
carrying value resulting in a -2.9% impact to NAV. Artios announced
encouraging Phase 1/2a data from its lead oncology candidate, ART0380, across
multiple indications; however, the breadth of indications implied higher
development costs and capital requirements, prompting a valuation adjustment.
Dyne detracted -1.9%, serving effectively as a hedge to our public position in
Avidity. Despite these marks, we remain constructive on Artios' long-term
prospects given its potential to transform outcomes in hard-to-treat cancers.
Looking ahead, we view the private portfolio as positioned for steady
long-term progress: while private markets often lag public equity rebounds,
the underlying fundamental progress in our companies and secular tailwinds -
particularly in obesity and cardiometabolic disease - position these
investments for meaningful relative appreciation in 2026.
Royalties
The Group's royalty positions, representing approximately 2.3% of NAV at
year-end, made a solid contribution in 2025, adding +0.9% to NAV over the year
and underlining the attractiveness of their uncorrelated, income-oriented
return profile. As intended, the royalty sleeve continues to provide portfolio
ballast during periods of biotechnology equity volatility while generating
durable cash flows that can be recycled into new investment opportunities. The
Group's investment in the Investment Manager's 4010 Royalty Fund performed
well, with all underlying investments tracking at or above underwriting
expectations, delivering an approximately 20% net fund IRR as of the fourth
quarter and with 33% of commitments deployed.
Table 4. Royalty positions greater than 1% exposure as of 31 December 2025 and
31 December 2024
Portfolio Company Description Therapeutic Area Location $ Position Size % NAV 31/12/2025 % NAV 31/12/2024
4010 Royalty Private RTW-managed fund aiming to generate returns from rights to royalty Various US/CAN $14,933,990 1.7% 2.0%
stream distributions from life sciences companies.
Total > 1% 1.7%
Total < 1% 0.6%
Total Royalty 2.3%
Figure 3. 4010 Royalty Fund as of 31 December 2025
4010 Royalty Fund as of 31/12/2025
Commitment $31,485,000
Deployed $10.4m (33%)
Undeployed $21.1m (67%)
Distributions received $2.2m
Year-End Value $14.9m
4010's deployed portfolio remains concentrated in differentiated, commercial
assets with clear regulatory and reimbursement pathways. The royalty agreement
with Avadel Pharmaceuticals is associated with sales of Lumryz, the first
once-at-bedtime treatment for narcolepsy-related cataplexy, or excessive
daytime sleepiness. Lumryz continued to perform strongly, and Avadel announced
its acquisition by Alkermes during the year; 4010 exercised its contractual
put right and exited the position at the full 2.5x return cap in the first
quarter of 2026. The UroGen Pharma royalties relate to Jelmyto, a therapy for
low-grade upper tract urothelial cancer, and Zusduri, a next-generation
therapy for bladder cancer. Jelmyto continued to deliver steady commercial
growth of approximately 8-12%, while Zusduri received FDA approval in June
2025 and recorded its first sales in the third quarter, adding a new source of
revenue to the franchise. In addition, Cardamyst, Milestone Pharmaceuticals'
intranasal therapy for paroxysmal supraventricular tachycardia, was approved
in December 2025, with the associated royalty commitment funded shortly after
year-end.
The Group also expanded its pipeline of committed investments tied to FDA
approval. These include Aquestive's Anaphylm, an oral epinephrine film for the
treatment of severe allergic reactions, with funding triggered at FDA approval
and a PDUFA date of 31 January 2026, and Savara's Molbreevi, an inhaled
therapy for rare pulmonary disease, which submitted its BLA in December 2025.
These commitments reflect our continued focus on near-term, event-driven
royalties with asymmetric risk-reward profiles and defined time to cash flow.
Overall, we view the royalty portfolio as progressing steadily, providing
dependable income and downside protection while enabling disciplined capital
recycling. In addition to strong sales by underlying companies, falling
interest rates are valuation positive for biotech. Given the performance of
the first vehicle and the opportunity set we see across late-stage and
commercial therapeutics, the Investment Manager expects to launch a second
vehicle in the coming year, in which RTW Bio will invest, to further scale
this strategy.
Key updates for portfolio companies in 2025:
Clinical & Commercial Milestones
§ In January, Akero Therapeutics ("AKRO") reported preliminary topline
results showing a statistically significant reversal of compensated cirrhosis
due to MASH at Week 96 in its Phase 2b SYMMETRY study.
§ In January, Cargo Therapeutics ("CRGX") stopped its cell therapy pivotal
trial early due to failure to replicate Phase 1 efficacy and life-threatening
safety events. This was followed by the discontinuation of its entire
pipeline, and the announcement that it would lay off most of its staff and
seek a reverse merger or other business combination.
§ In January, Dyne Therapeutics' ("DYN") shares fell after the release of
updated data from its Phase 1/2 ACHIEVE trial for DYNE-101, a treatment for
myotonic dystrophy type 1 (DM1) and in June, its revised accelerated approval
strategy for DM1 drove a delay in its regulatory timeline, also contributing
to negative sentiment.
§ In February, GH Research ("GHRS") reported unprecedented data from a Phase
2b clinical trial with GH001, a product for treatment-resistant depression.
§ In May, Merus ("MRUS") announced compelling interim phase 2 data from its
trial treating a type of head and neck cancer. This underscored the
opportunity petosemtamab holds to become a new standard of care, if approved,
in head and neck cancer.
§ In May, Rocket Pharmaceuticals' ("RCKT") share price dropped significantly
after a young man treated with its gene therapy trial for Danon disease
tragically died. Rocket actively engaged with the FDA and the clinical hold
was subsequently released in August. Dosing of additional patients for the
Phase 2 study of RP-A501 for Danon disease is anticipated in the first half of
2026.
§ In May, Taysha Gene Therapies ("TSHA") released positive clinical data
from its phase 1/2 trials evaluating TSHA-102 in Rett syndrome, with all
patients across varying disease severity gaining or regaining one or more
developmental milestones. Taysha concluded that the likelihood of achieving
such milestones was improbable after age six, making the data particularly
compelling.
§ In May, private portfolio company Artios announced encouraging Phase 1/2a
data from its lead clinical oncology candidate, ART0380. The data hit multiple
indications, meaning that development costs (and therefore capital
requirements) will likely be higher than expected.
§ In June, private portfolio company Corxel began enrolling patients in a
U.S. Phase 2 trial following the release of positive results from a China
Phase 2 trial, where CX11 demonstrated significant weight reduction across all
doses.
§ In June, Corxel, in collaboration with its partner Vincentage, announced
the positive China Phase 2 clinical results for CX11. In the China Phase 2
trial, weight reduction was significantly greater at all doses compared to the
placebo. Treatment with CX11 was associated with improvement in all
weight-related and cardiometabolic metrics that were measured. Of reported
adverse events, most were gastrointestinal and mild to moderate in severity.
§ In July, private portfolio company Kailera and its partner, Hengrui Pharma,
announced positive topline data from the China Phase 3 clinical trial of
HRS9531 in individuals living with obesity or overweight. The trial met both
primary endpoints and the safety profile was favourable and consistent with
other GLP-1-based treatments. Kailera is advancing KAI-9531 to global clinical
trials.
§ In August, Rocket announced a strategic corporate reorganisation and
pipeline prioritisation of its cardiovascular programs. The company
implemented a reduction in workforce of approximately 30% and said that it
anticipates delays associated with the Fanconi Anemia (RP-L102) and Pyruvate
Kinase Deficiency (RP-L301) programs.
Financial Milestones
§ In January, the Group participated in the US$200 million Series A of
Windward Bio, a Swiss-based clinical-stage drug development company focused on
advanced immunological diseases.
§ In January, the Group made an additional investment as part of the CHF 50
million (~US$55m) Series C extension of Numab Therapeutics, a Swiss
clinical stage biotech advancing a proprietary pipeline of multi-specific
antibodies in immunology and oncology.
§ In January, the Group made an additional investment as part of the Series C
financing round of Umoja Biopharma. The round raised US$100 million in
proceeds which will be used to advance Umoja's in vivo CAR T cell therapy
pipeline.
§ In January, Beta Bionics completed a US$234.6 million IPO and began trading
on the Nasdaq under the ticker "BBNX".
§ In February, Corxel received a dividend distribution related to the
proceeds of the sale of Aficamten to Sanofi.
§ In April, the Group participated in the US$155 million Series B financing
round of AIRNA, a biotech company harnessing advances in genetics to develop
RNA-editing medicines to transform the lives of patients.
§ In April, Jade Biosciences announced the closing of its merger with
Aerovate Therapeutics. The combined company operates as "Jade Biosciences,
Inc." and trades on the Nasdaq under the ticker symbol "JBIO".
§ In July, Merck entered into a definitive agreement to acquire UK-based
Verona Pharma Plc ("VRNA") for a total transaction value of
approximately US$10 billion, at a 23% premium to Verona's closing price on
the day prior to the announcement.
§ In August, funds managed by RTW Investments, LP entered into a US$75
million strategic funding agreement with Aquestive Therapeutics ("AQST"). The
Group participated in this investment through its commitment to RTW
Investments-managed 4010 Royalty Fund. The financing will support Aquestive
to bring Anaphylm™ (epinephrine) Sublingual Film to market.
§ In September, Biogen announced that it would acquire private portfolio
company Alcyone Therapeutics in a transaction representing a 242% uplift on
the Group's carrying value.
§ In September, Genmab announced that it would acquire Merus ("MRUS") in an
US$8 billion transaction representing a 41% premium to Merus' closing share
price on the day prior to the announcement.
§ In October, Novartis announced that it would acquire Avidity Biosciences
("RNA") for US$72 per share, valuing it at approximately US$12 billion and
representing a 46% premium to its closing share price the day before the
announcement.
§ In October, Akero announced that it had entered into a definitive agreement
to be acquired by Novo Nordisk. The acquisition price represented a 17%
premium to Akero's closing share price prior to the announcement and a 42%
premium to Akero's closing price on 19 May 2025, prior to market
speculation.
§ In October, Kailera completed a US$600 million Series B financing round
which was a 1.4x step-up to the Series A. The financing will support the
advancement of Kailera's obesity portfolio, including lead program KAI-9531 as
well as KAI-7535, an oral small molecule GLP-1 receptor agonist, to global
clinical trials.
§ In October, funds managed by RTW Investments, LP entered into a US$75
million Royalty Funding Agreement with Savara Inc. ("SVRA"), subject to FDA
approval of MOLBREEVI, a treatment for rare lung disease. The Group will
participate through its commitment to the RTW Investments-managed
4010 Royalty Fund.
§ In November, Evommune completed its US$150 million IPO and began trading
on the Nasdaq under ticker symbol "EVMN".
§ In December, the Group participated in the Series A of Yarrow Bioscience, a
private biotech focused on autoimmune thyroid diseases and the seventh company
creation of RTW Investments, LP. Yarrow will go public via reverse merger with
VYNE Therapeutics, expected to close in 2Q26.
Portfolio Breakdown and New Investments
Figure 4. NAV capital breakdown as of 31 December 2025 and 31 December 2024
Public positions remain central to the portfolio's design and, consistent with
our full life-cycle investment approach, many of our holdings originate as
private investments before transitioning to the public markets. We retain
high-conviction positions beyond IPOs and other liquidity events, enabling us
to participate across the entirety of the value creation curve. Accordingly,
the portfolio comprises a mix of publicly listed and privately held
biotechnology and medtech companies, complemented by royalty investments that
provide differentiated, income-oriented exposure.
As of 31 December 2025, the portfolio was allocated 70.9% to public equities,
24.0% to private investments and 2.3% to royalties. We held 52 positions
representing greater than 0.5% of NAV, reflecting a diversified but
conviction-weighted construction. Investments are selected through our
rigorous assessment of scientific merit, commercial potential and valuation
discipline. Table 5 shows the top ten portfolio investments at the end of the
reporting period.
Table 5. Top 10 positions as of 31 December 2025¹
Portfolio Company Description Ticker Therapeutic Area Clinical stage Upcoming catalyst % NAV
PTC Rare neurological and metabolic conditions. PTCT Neurology Commercial Quarterly Sephience earnings 11.6%
Corxel RTW Investments-incubated company committed to targeting underserved Private Metabolic Phase 3 CX11 P2 data 6.2%
patients with cardiometabolic diseases.
H1 2026
Stoke RNA-based medicines to restore protein expression. STOK Neurology Pivotal Possible 5.2%
faster filing
path mid 2026
UroGen Innovative treatments for bladder and specialty cancers. URGN Oncology Commercial Quarterly Zusduri 5.0%
earnings
Insmed Serious and rare diseases. INSM Pulmonary Commercial Quarterly BRINSUPRI earnings 3.9%
Kailera RTW Investments co-incubated company developing broad Private Metabolic Phase 3 China P3 data mid 2026 3.4%
pipeline to treat obesity and related metabolic conditions.
Tarsus First-in-class treatments for eye conditions. TARS Ophthalmology Commercial Quarterly Xdemvy earnings 2.8%
Immatics Targeted cancer immunotherapies. IMTX Oncology Phase 3 P3 data update H1 2026 2.7%
argenx Antibody-based medicines to treat autoimmune diseases. ARGX Inflammation & Immunology Commercial Quarterly Vygart earnings 2.2%
Madrigal Treatments for MASH, a serious liver disease. MDGL Metabolic Commercial Quarterly Rezdiffra earnings 1.9%
¹ Positions are shown on a net basis. Any differences with the Schedule of
Investments are due to short holdings and/or derivative securities.
Public investments accounted for 70.9% of NAV and were the primary driver of
performance in 2025, as improving sentiment and clinical and commercial
catalysts were more rapidly reflected in share prices. Our public holdings
span development-stage innovators through commercial franchises and generally
exhibit larger market capitalisations and strong liquidity, allowing us to
manage position sizing efficiently and recycle capital into new opportunities
as they arise.
Table 6. New private investments in 2025 greater than 1% exposure
Company Public/Private Description Clinical Stage Upcoming Catalyst % NAV
Prolium Private RTW Investments-incubated company developing bispecific antibodies for Phase 1 Phase 1 data 1.5%
autoimmune diseases.
mid 2026
Private investments accounted for 24.0% of NAV across 41 companies.
Performance lagged the rebound in public markets, as private valuations
typically reset with a delay during sector recoveries. During the year, we
continued to deploy capital selectively into earlier-stage opportunities and
company creation, reflecting reduced crossover activity given the largely
closed IPO window. New investments included Windward, Basecure, American
Laboratories Inc., AIRNA, Yarrow Bioscience, Prolium and Amani, with several
structured as RTW newCo formations. Two private holdings, Beta Bionics and
Evommune, completed IPOs, and we realised additional value through one private
investment take-out. The private portfolio is increasingly concentrated in
areas where we see strong secular tailwinds, most notably cardiometabolic
disease and obesity, with Corxel and Kailera representing a meaningful portion
of exposure and positioned for potential public market transitions.
Royalties represented 2.3% of NAV across our investment in the 4010 Royalty
Fund and related vehicles. These positions are cash generative and largely
uncorrelated with equity market volatility, providing portfolio stability and
an additional source of income with limited scientific risk given their focus
on commercial or near-commercial products.
Our full life-cycle portfolio remains diversified across stages of
development, capital structures, treatment modalities and therapeutic focus,
providing multiple differentiated return drivers and horizons.
Commercial-stage assets once again led gains during the year, with
development-stage and M&A outcomes also contributing meaningfully.
Therapeutic exposure spans rare disease, cardiometabolic, oncology,
immunology, respiratory, neuropsychiatric disease and medtech, giving
investors access to innovative areas of life sciences where successful
clinical, regulatory or commercial inflection points can drive significant
value creation.
Looking forward, we expect the portfolio to remain predominantly allocated to
biopharmaceutical assets with a minority in medical technology, with new
private investments split between mid- to later-stage opportunities and active
company building, complemented by a measured allocation to royalties.
Figure 5. Breakdown of portfolio positions greater than 1% exposure as a
percentage of NAV, adjusted to sum to 100%, by (A) Therapeutic Focus, (B)
Modality, (C) Clinical Stage and (D) Geography as of 31 December 2025.
Therapeutic Focus, Modality and Geography do not include royalty vehicles
Private Portfolio Valuations and Cash Runway Analysis
The private positions are the foundation of the Group's strategy. They are
built on our rigorous assessment of the best investment opportunities we can
find. We have always been highly selective in this area, focusing only on
companies with both well-founded science and attractive commercial prospects.
We have benefited from this discipline as we continue to navigate a
challenging capital markets environment. Our private portfolio remains
well-sized and well-funded.
As of 31 December 2025, the average cash runway of our private companies was
26 months, largely unchanged from 2024. The increase in the 0-6 month category
was largely due to Corxel, which represents 26% of private NAV. Corxel
subsequently completed its US$287 million Series D1 financing post-period end.
Figure 6. Private portfolio - approximate cash runway as at 31 December 2025
and 31 December 2024(1)
¹ In prior periods cash runway was presented based on the count of private
companies. In the current period it is based on percentage of private NAV.
We hold our private company investments at 'fair value', i.e., the price that
would be received to sell an asset or paid to transfer a liability in an
orderly transaction between market participants. Valuations are assessed in
accordance with US GAAP, using techniques consistent with the International
Private Equity and Venture Capital ("IPEV") Guidelines, including, but not
limited to, the income approach and the market approach. Valuations are
adjusted both during regular cycles and on an ad hoc basis in response to
'trigger events', which may include changes in fundamentals, an intention to
carry out an IPO, financing transactions or changes in the valuations of
comparable public companies. This process ensures that private companies are
valued both fairly and timely.
The Board delegates valuation of the private investments to the Investment
Manager, while the Board's Audit Committee oversees the integrity of the
valuation process and conducts an independent review of the Investment
Manager's policies and procedures twice a year, during the interim and annual
statements, and on an ad hoc basis when appropriate.
The process is overseen at the Investment Manager by the Valuation Committee.
The Committee is supported by a valuation team independent from the investment
team and receives advice from two independent third-party valuation firms. The
Valuation Committee approves valuations of private company investments on a
monthly basis and incorporates independent third-party analysis no less
frequently than twice a year to determine the fair value of each material
private investment.
Table 7. Private Valuation Statistics for 2025²
Statistic 2025
Number of revaluations in 2025¹ 59
Average revaluations per investment 2
Average time since last third-party valuation (weeks) 5.1
Average time since last financing round (years) 1.0
Average valuation change -1.1%
Average write-up +24.5%
Average write-down -32.2%
Average MOIC to go-public event³ +1.3x
¹ Approximately half of the Fund's privately held investments were valued
based on observable inputs from recent financing transactions. The balance was
valued utilizing alternative methodologies, including the income approach,
market approach, and probability-weighted expected return method (PWERM), as
deemed appropriate.
²Does not include certain immaterial positions acquired as part of the Arix
transaction or private securities of public companies.
³Includes 1 reverse merger and 2 IPOs.
In 2025, 37 private and royalty positions underwent 59 valuation adjustments,
averaging two per position. 18 positions were marked up by an average of
+24.5%, while 15 positions were marked down by an average of -32.2%, resulting
in an average overall valuation change of -1.1%. The balance remained
unchanged. Around 26.7% of markdowns were primarily driven by changes to
relative comparables or market-based inputs, while 27.8% of markups were
primarily driven by comparables, 55.6% by financing rounds or specific
transactions and 16.7% by idiosyncratic company performance. At year-end, the
average time since the last third-party valuation was just 5.1 weeks, and the
average time since the last financing round remained around 12 months.
We believe the value of the private portfolio is best demonstrated by
go-public events or transactions. In 2025, there were two IPOs - Beta Bionics
and Evommune - with average step-ups from holding value of 1.1x. Furthermore,
the acquisition of Alcyone by Biogen further validated the latent value within
our portfolio. These continue to illustrate the strong potential of the
portfolio, consistent with our historical experience.
Figure 7. Average Multiple of Invested Capital (MOIC) by vintage on 1)
privates to liquidity event, 2) fully exited positions and 3) privates with no
liquidity event
As of 31 December 2025. Past performance is not indicative of future results.
¹ Liquidity event = IPO, SPAC merger, reverse merger, acquisition from
private.
² Multiple of Invested Capital ("MOIC") represents the ratio of total value
to the corresponding amount of total capital invested, expressed as a
multiple. Gross MOIC is utilised, calculated before management fees, carried
interest, taxes and other expenses, which would reduce performance and the
rate of return.
Sector Review
After a record four years of underperformance vs the S&P and Nasdaq
(2021-24 total returns: Nasdaq Biotech Index -6.5%, Russell 2000 Biotech Index
-43.1%, S&P 500 Index +66.3%, Nasdaq Index +54.7%), biotech indices
finished this year ahead (Nasdaq Biotech Index +33.4%, Russell 2000 Biotech
Index +44.6%, S&P 500 Index +16.4%, Nasdaq Index +20.4%). Although clearly
pleasing to see this positive performance, it is notable that broad biotech
valuations remain far below their peaks reached in 2021, in contrast to the
S&P 500 Index, which continues to trade around all-time highs.
Figure 8. Russell 2000 Biotechnology Index Value¹
¹ Bloomberg as of 31 December 2025.
Figure 9. Sector outperformance after unprecedented four years'
underperformance of broader market¹
¹ Bloomberg as of 31 December 2025.
Declining policy uncertainty got things started. In the summer, multinational
pharmas avoided tariffs by committing to reshore over US$300 billion in
manufacturing. In September, Pfizer laid the blueprint for
most-favoured-nation (MFN) drug pricing deals, and nearly all other
pharmaceutical companies targeted by the executive order have followed suit.
Shortly after, the first Medicare negotiations in the Trump administration
resulted in only modestly higher discounts. While Ozempic saw the biggest
price cuts, the White House packaged this with Medicare coverage for obesity
for the first time. The receding of policy tailwinds into the summer was the
breakout point for biotech to begin outperforming broader equity markets, as
illustrated below.
Figure 10. After a rocky start, the XBI ended the year up vs S&P 500 (1)
¹ Bloomberg as of 31 December 2025.
Combined with a friendlier FTC, by autumn pharma companies had enough policy
clarity to pursue larger M&A deals. 2025 saw US$126 billion in M&A
deals, far above the average over the last decade of US$85 billion and
in-line with the best year post-pandemic, 2023, despite no mega deals. That
said, 2025 was the best year on record for the number of >US$1 billion
M&A deals.
Figure 11. US biotech M&A deal volumes and value ¹
Figure 12. 2025 had the largest number of US$1B+ deals in the last decade¹
35
¹Biocentury, January 2026.
The recovery is likely still in the early innings. Fear dominated for much of
the year, resulting in significant net capital outflows, although it was
encouraging to see positive fund flows into the sector return for the
quarter ending 31 December 2025.
Figure 13. Biotech fund flows were mixed in the first half before rallying
into year-end(¹)
¹ Raymond James report (January 2026) as of 2 January 2026.
Biotech remains under-owned and attractively valued. Potential near-term
tailwinds include accommodative monetary policy and growing appreciation of
the maturation of science. Generalist growth investors should find it
increasingly hard to ignore the growing number of new US$50+ billion market
cap biotechs, such as argenx, that are growing revenues at an accelerated
rate. At the same time, AI tools and lower cost Chinese R&D are
mega-trends that should materially increase drug discovery productivity and
accelerate the pace of innovation. Over time, it is possible industry revenue
growth and or operating margins could improve.
FDA leadership instability is the key remaining policy uncertainty. CDER
Director, George Tidmarsh, was let go three months into the job. His
replacement, Richard Pazdur, resigned after less than a month. The drama has
the White House concerned, which at some point should increase the odds of
definitive action. We think the worst case is a reduction in the approval of
edge cases, which disproportionately impacts cell and gene therapy for rare
disease. For context, this would probably translate into a loss of a handful
of new medicines per year, less than the impact the Inflation Reduction Act
had on cancer small molecules. Despite this regulatory uncertainty, it was
pleasing to see that the FDA approved 54 new treatments in 2025, in-line with
the average of 56 per annum over the last decade.
Figure 14. FDA leadership instability has had no material impact on run-rate
of FDA approvals¹
¹ Societe Generale (January 2026) as at 31 December 2025.
Figure 15. IPO market remained closed while the re-financing market was active
and PIPEs surged to a 10-year high
¹
¹ Jefferies (5 January 2026) as of 31 December 2025.
In summary, the second half of 2025 marked a decisive turnaround for biotech.
The bear market endured over four consecutive years ended, with major biotech
indices outperforming both the S&P 500 and the Nasdaq. The sector
benefited from a more predictable policy environment, strong equity market
performance, and a sharp uptick in M&A. While IPO activity was subdued,
follow-on and PIPE markets were robust, and investor discipline remained high.
We have an optimistic outlook for 2026 and expect biotech to outperform
broader markets, driven by continued innovation, a strong financing
environment, and further M&A.
Outlook
Biotech is growing up and entering a new phase of growth and maturity.
Companies that pioneered early modalities such as cell and gene therapy are
now delivering their first approved products, and a cohort of emerging
US$50 billion market cap companies are expected to grow revenues materially
in the coming years. As biotechs begin to generate meaningful revenue and
profitability, the sector's profile is shifting, and we expect increased
interest from generalist growth investors, including those rotating out of
technology exposure.
China continues to be a megatrend for innovation. The country is now the
second-largest source of early-stage drug assets, with an ecosystem that
allows faster, cheaper iteration on promising mechanisms than in the U.S. Our
team's deep experience in China - including eight fluent Chinese-speaking
investment professionals - positions us to understand the competitive
landscape, support licensing of Chinese assets into global newCos, and assess
opportunities for U.S. players. While our current portfolio exposure to China
remains modest and predominantly in our private investments, the potential to
create globalised companies from Chinese innovation is significant.
Artificial intelligence is also reshaping healthcare. In our medtech portfolio
RadNet, the largest imaging chain in the U.S., has deployed AI-driven
adjunctive imaging tools for radiologists that are already generating
incremental revenue, expanding addressable markets, and enhancing margins. In
drug development, AI has the potential to accelerate discovery, improve
R&D efficiency, and ultimately translate into faster revenue growth or
cost savings. Given that drug companies spend a higher proportion of revenue
on R&D than any other industry, even modest productivity gains can
materially enhance profitability and competitiveness.
Therapeutically, we remain excited by opportunities across several areas. In
oncology, new approaches have the potential to shift standard-of-care in major
tumour types including pancreatic, breast, and bladder cancers. In obesity and
cardiometabolic diseases, oral obesity therapies and next-generation
mechanisms are coming to the fore, alongside smaller cardiovascular
innovators. Immunology continues to offer opportunities through novel
combinations and new disease indications, while neuropsychiatric conditions,
including seizure disorders and others treated with psychedelics, are reaching
important developmental milestones. Rare diseases remain a source of steady
innovation, and AI-enabled medtech applications are beginning to convert into
commercial revenues. Collectively, these trends underpin a compelling outlook
for 2026, with multiple drivers of growth, innovation, and portfolio value
creation.
Post period-end updates and other key portfolio company events
The following events occurred in January 2026:
· Corxel completed a US$287 million Series D-1 financing. Proceeds
are expected to support the advancement of CX11 in its Phase 2 trial in the
United States, its planned global Phase 2 trial to treat Type 2 Diabetes
Mellitus, and initial preparations for Phase 3 trials as well as other
cardiometabolic programs.
· Boston Scientific Corporation entered into a definitive agreement
to acquire Penumbra, Inc. ("PEN"). The transaction values Penumbra at US$14.5
billion and is expected to be completed in 2026.
· GSK plc entered into a definitive agreement to acquire RAPT
Therapeutics, Inc. ("RAPT"). The transaction values RAPT at US$2.2
billion and completed in the first quarter of 2026.
· Aktis Oncology went public on 9 January in the first biotech IPO
of 2026, issuing 17.7 million shares of common stock at US$18.00 each, raising
proceeds of US$318 million. The shares now trade on the Nasdaq Global Select
Market under the ticker symbol "AKTS".
The financial information set out below is an extract from the audited
consolidated financial statements of the Group for the year ended 31 December
2025 and does not constitute the Group's annual financial statements.
The audit opinion on the consolidated financial statements was unmodified.
The Group's audited annual report and financial statements, including the
notes to the consolidated financial statements, will be filed with the
National Storage Mechanism and made available on the Group's website,
www.rtwbio.com (http://www.rtwbio.com) , in due course.
RTW Biotech Opportunities Ltd
Consolidated Statement of Assets and Liabilities
as at 31 December 2025 and 31 December 2024
(Expressed in United States Dollars)
2025 2024
ASSETS:
Investments in securities, at fair value (cost at 31 December 2025:
$582,193,845; 31 December 2024:
$529,516,651) 794,317,535 611,011,096
Derivative contracts, at fair value (cost at 31 December 2025: $53,367,469; 31
December 2024: $60,427,785)
146,792,049 110,177,172
Cash and cash equivalents 5,986,177 5,360,022
Due from brokers 120,003,965 27,990,478
Receivable from unsettled trades 495,756 4,237,674
Other assets 1,446,088 1,239,967
TOTAL ASSETS 1,069,041,570 760,016,409
LIABILITIES:
Securities sold short, at fair value (proceeds at
31 December 2025: $97,804,817; 31 December 2024: $102,512,585) 160,552,645 95,151,493
Derivative contracts, at fair value (proceeds at
31 December 2025: $nil; 31 December 2024: $nil) 2,601,035 7,799,422
Due to brokers 39,415,179 23,570,906
Payable for unsettled trades 439,098 -
Accrued expenses 810,759 850,903
TOTAL LIABILITIES 203,818,716 127,372,724
TOTAL NET ASSETS 865,222,854 632,643,685
NET ASSETS attributable to Ordinary Shares (shares at 800,879,465 606,921,161
31 December 2025: 326,373,649; 31 December 2024: 335,713,649)
NET ASSETS attributable to Non-Controlling Interest 64,343,389 25,722,524
NAV per Ordinary Share 2.4539 1.8079
RTW Biotech Opportunities Ltd
Consolidated Condensed Schedule of Investments
as at 31 December 2025
(Expressed in United States Dollars)
Descriptions Number of Shares Cost Fair Value Percentage of Net Assets
Investments in securities, at fair value
Common stocks
United States
Healthcare
Madrigal Pharmaceuticals, Inc. 218,276 50,398,109 127,110,846 14.69
Others* 230,870,447 347,437,367 40.16
Total United States 281,268,556 474,548,213 54.85
Netherlands
Healthcare 15,251,071 27,913,322 3.23
Ireland
Healthcare 9,857,947 9,842,741 1.14
China
Healthcare
Corxel Pharmaceuticals Ltd. 541,205 216,482 376,774 0.04
Others* 1,503,264 1,478,645 0.17
Total China 1,719,746 1,855,419 0.21
British Virgin Islands
Healthcare 785,183 1,612,762 0.19
Singapore
Healthcare 530,171 709,954 0.08
Cayman Islands
Healthcare 627,810 707,129 0.08
Canada
Healthcare 2,922,276 581,227 0.07
France
Healthcare 3,930,888 32,970 0.00
Switzerland
Healthcare 2,498 12,468 0.00
United Kingdom
Healthcare 4,887 0 0.00
Total common stocks 316,901,033 517,816,205 59.85
* No individual investment security or contract constitutes greater than 5 per
cent. of net assets.
RTW Biotech Opportunities Ltd
Consolidated Condensed Schedule of Investments (continued)
as at 31 December 2025
(Expressed in United States Dollars)
Descriptions Number of Shares Cost Fair Value Percentage of Net Assets
Investments in securities, at fair value (continued)
Convertible preferred stocks
United States
Healthcare* 109,993,354 116,467,545 13.46
China
Healthcare
Corxel Pharmaceuticals Ltd. 29,462,131 48,316,157 37,637,332 4.35
Others* 4,110,584 2,994,795 0.35
Total China 52,426,741 40,632,127 4.70
United Kingdom
Healthcare 16,347,749 17,253,492 1.99
Netherlands
Healthcare 2,661,370 2,831,535 0.33
Switzerland
Healthcare 567,047 1,448,181 0.17
Belgium
Healthcare 0 0 0.00
Total convertible preferred stocks 181,996,261 178,632,880 20.65
American depository receipts
United Kingdom
Healthcare 19,709,601 26,879,274 3.11
Netherlands
Healthcare 12,797,852 20,498,156 2.37
China
Healthcare 15,257,803 11,767,132 1.36
Cayman Islands
Healthcare 2,418,187 4,778,005 0.55
France
Healthcare 215,338 260,084 0.03
Total American depository receipts 50,398,781 64,182,651 7.42
* No individual investment security or contract constitutes greater than 5 per
cent. of net assets.
RTW Biotech Opportunities Ltd
Consolidated Condensed Schedule of Investments (continued)
as at 31 December 2025
(Expressed in United States Dollars)
Descriptions Number of Shares Cost Fair Value Percentage of Net Assets
Investments in securities, at fair value (continued)
Investment in private investment companies
Cayman Islands
Healthcare 10,427,832 14,933,990 1.73
Ireland
Healthcare 3,221,986 5,083,675 0.58
Total investment in private investment companies 13,649,818 20,017,665 2.31
Convertible notes
Canada
Healthcare 7,512,664 8,314,309 0.96
China
Healthcare
Corxel Pharmaceuticals Ltd. 434,154 4,341,540 4,657,461 0.54
British Virgin Islands
Healthcare 367,692 384,738 0.04
United States
Healthcare 6,857,124 294,411 0.03
Total convertible notes 19,079,020 13,650,919 1.57
Revenue based financing agreement
United States
Healthcare 160,731 17,215 0.00
Corporate bonds
Bermuda
Healthcare 8,201 0 0.00
Total investments in securities, at fair value 582,193,845 794,317,535 91.80
RTW Biotech Opportunities Ltd
Consolidated Condensed Schedule of Investments (continued)
as at 31 December 2025
(Expressed in United States Dollars)
Descriptions Cost Fair Value Percentage of Net Assets
Derivative contracts - assets, at fair value
Equity swaps
United States
Healthcare* 66,216,532 7.65
Netherlands
Healthcare 5,155,637 0.60
British Virgin Islands
Healthcare 1,822,897 0.21
United Kingdom
Healthcare 1,220,685 0.14
China
Healthcare 659 0.00
Total equity swaps 74,416,410 8.60
Warrants
United States
Healthcare* 33,374,028 50,258,814 5.81
Canada
Healthcare 3,420,906 2,796,175 0.32
British Virgin Islands
Healthcare 1,349,970 2,367,620 0.27
United Kingdom
Healthcare 101,902 313,708 0.04
Total warrants 38,246,806 55,736,317 6.44
* No individual investment security or contract constitutes greater than 5 per
cent. of net assets.
RTW Biotech Opportunities Ltd
Consolidated Condensed Schedule of Investments (continued)
as at 31 December 2025
(Expressed in United States Dollars)
Descriptions Number of contracts Cost Fair Value Percentage of Net Assets
Derivative contracts - assets, at fair value (continued)
Contingent value rights
China
Healthcare
Corxel Pharmaceuticals Ltd. 1,066,910 10,669,103 11,230,324 1.30
United States
Healthcare 4,451,560 5,398,910 0.63
Switzerland
Healthcare 0 10,088 0.00
Denmark
Healthcare 0 0 0.00
Total contingent value rights 15,120,663 16,639,322 1.93
Total derivative contracts - assets, at fair value 53,367,469 146,792,049 16.97
RTW Biotech Opportunities Ltd
Consolidated Condensed Schedule of Investments (continued)
as at 31 December 2025
(Expressed in United States Dollars)
Descriptions Number of Shares Proceeds Fair Value Percentage of Net Assets
Securities sold short, at fair value
Common stocks
United States
Healthcare
Madrigal Pharmaceuticals, Inc. 189,769 59,779,698 110,510,079 12.77
Others* 30,691,215 41,972,639 4.85
Total United States 90,470,913 152,482,718 17.62
Ireland
Healthcare 1,948,127 1,897,660 0.22
Singapore
Healthcare 555,035 709,954 0.08
Netherlands
Healthcare 510,174 359,233 0.04
Canada
Healthcare 182,894 185,947 0.03
Total common stocks 93,667,143 155,635,512 17.99
American depository receipts
United Kingdom
Healthcare 3,316,925 3,997,134 0.46
Netherlands
Healthcare 820,749 919,999 0.11
Total American depository receipts 4,137,674 4,917,133 0.57
Total securities sold short, at fair value 97,804,817 160,552,645 18.56
* No individual investment security or contract constitutes greater than 5 per
cent. of net assets.
RTW Biotech Opportunities Ltd
Consolidated Condensed Schedule of Investments (continued)
as at 31 December 2025
(Expressed in United States Dollars)
Descriptions Fair Value Percentage of Net Assets
Derivative contracts - liabilities, at fair value
Equity swaps
United States
Healthcare 1,816,027 0.21
Ireland
Healthcare 772,452 0.09
Taiwan
Healthcare 12,556 0.00
Total derivative contracts - liabilities, at fair value 2,601,035 0.30
RTW Biotech Opportunities Ltd
Consolidated Condensed Schedule of Investments
as at 31 December 2024
(Expressed in United States Dollars)
Descriptions Number of Shares Cost Fair Value Percentage of Net Assets
Investments in securities, at fair value
Common stocks
United States
Healthcare
Madrigal Pharmaceuticals, Inc. 214,826 49,317,124 66,288,859 10.48
Akero Pharmaceuticals, Inc. 1,191,010 26,909,569 33,133,898 5.24
Rocket Pharmaceuticals, Inc. 2,400,755 8,188,796 30,177,490 4.77
Tarsus Pharmaceuticals, Inc. 401,308 8,874,464 22,220,424 3.51
Avidity Biosciences, Inc. 369,865 6,102,773 10,755,674 1.70
Others* 190,069,145 174,522,722 27.58
Total United States 289,461,871 337,099,067 53.28
Netherlands
Healthcare 12,693,165 16,077,163 2.55
Ireland
Healthcare 10,013,472 8,557,542 1.36
China
Healthcare
Corxel Pharmaceuticals Ltd. 541,205 216,482 835,037 0.13
Canada
Healthcare 2,879,914 518,365 0.08
Denmark
Healthcare 301,757 305,536 0.05
Singapore
Healthcare 191,496 296,101 0.05
France
Healthcare 3,930,888 79,772 0.01
Cayman Islands
Healthcare 77,953 73,384 0.01
Japan
Healthcare 64,326 70,334 0.01
Switzerland
Healthcare 2,496 17,811 0.00
United Kingdom
Healthcare 4,992 17,413 0.00
Total common stocks 319,838,812 363,947,525 57.53
* No individual investment security or contract constitutes greater than 5 per
cent. of net assets.
RTW Biotech Opportunities Ltd
Consolidated Condensed Schedule of Investments (continued)
as at 31 December 2024
(Expressed in United States Dollars)
Descriptions Number of Shares Cost Fair Value Percentage of Net Assets
Investments in securities, at fair value (continued)
Convertible preferred stocks
United States
Healthcare* 81,802,284 89,628,561 14.17
China
Healthcare
Corxel Pharmaceuticals Ltd. 14,177,776 25,664,114 34,445,874 5.44
Others* 4,110,584 3,952,898 0.63
Total China 29,774,698 38,398,772 6.07
United Kingdom
Healthcare* 16,347,749 34,368,669 5.44
Netherlands
Healthcare 1,166,079 1,165,404 0.18
Switzerland
Healthcare 90,748 763,629 0.12
Belgium
Healthcare 0 0 0.00
Total convertible preferred stocks 129,181,558 164,325,035 25.98
Convertible Notes
China
Healthcare
Corxel Pharmaceuticals Ltd. 1,803,339 18,033,384 18,381,736 2.91
Canada
Healthcare 7,512,664 8,050,255 1.27
United States
Healthcare 8,679,051 6,312,757 1.00
Total convertible notes 34,225,099 32,744,748 5.18
* No individual investment security or contract constitutes greater than 5 per
cent. of net assets.
RTW Biotech Opportunities Ltd
Consolidated Condensed Schedule of Investments (continued)
as at 31 December 2024
(Expressed in United States Dollars)
Descriptions Number of Shares Cost Fair Value Percentage of Net Assets
Investments in securities, at fair value (continued)
American depository receipts
United Kingdom
Healthcare 16,687,163 17,163,590 2.72
Netherlands
Healthcare 9,685,018 11,905,170 1.88
China
Healthcare 1,616,703 1,602,514 0.25
Cayman Islands
Healthcare 102,795 53,101 0.01
Total American depository receipts 28,091,679 30,724,375 4.86
Investment in private investment companies
Cayman Islands
Healthcare 10,348,706 12,571,857 1.99
Ireland
Healthcare 3,221,986 4,602,256 0.73
United Kingdom
Healthcare 4,444,220 1,920,687 0.30
Total investment in private investment companies 18,014,912 19,094,800
3.02
Revenue based financing agreement
United States
Healthcare 160,732 174,613 0.01
Corporate bonds
Bermuda
Healthcare 3,859 0.00 0.00
Total investments in securities, at fair value 529,516,651 611,011,096 96.58
RTW Biotech Opportunities Ltd
Consolidated Condensed Schedule of Investments (continued)
as at 31 December 2024
(Expressed in United States Dollars)
Descriptions Number of contracts Cost Fair Value Percentage of Net Assets
Derivative contracts - assets, at fair value
Warrants
United States
Healthcare
Avidity Biosciences, Inc. 2,208,114 36,431,673 64,209,747 10.15
Tarsus Pharmaceuticals, Inc. 150,000 4,799,985 8,305,485 1.31
Rocket Pharmaceuticals, Inc. 170,764 2,565,561 2,010,658 0.32
Others* 11,528,056 9,877,117 1.56
Total United States 55,325,275 84,403,007 13.34
Canada
Healthcare 3,121,272 2,283,707 0.36
British Virgin Islands
Healthcare 1,349,970 1,360,602 0.22
Total warrants 59,796,517 88,047,316 13.92
Equity swaps
United States
Healthcare
Tarsus Pharmaceuticals, Inc. 215,335 7,603,492 1.20
Others* 12,594,491 1.99
Total United States 20,197,983 3.19
British Virgin Islands
Healthcare 328,499 0.05
Total equity swaps 20,526,482 3.24
Contingent value rights
United States
Healthcare 466,420 1,023,626 0.17
Switzerland
Healthcare 164,848 579,748 0.09
Total contingent value rights 631,268 1,603,374 0.26
Total derivative contracts - assets, at fair value 60,427,785 110,177,172 17.42
* No individual investment security or contract constitutes greater than 5 per
cent. of net assets.
RTW Biotech Opportunities Ltd
Consolidated Condensed Schedule of Investments (continued)
as at 31 December 2024
(Expressed in United States Dollars)
Descriptions Proceeds Fair Value Percentage of Net Assets
Securities sold short, at fair value
Common stocks
United States
Healthcare* 100,739,418 93,400,032 14.76
British Virgin Islands
Healthcare 1,164,515 1,141,154 0.18
Singapore
Healthcare 200,738 296,101 0.05
Total common stocks 102,104,671 94,837,287 14.99
American depository receipts
United Kingdom
Healthcare 304,734 261,105 0.04
Cayman Islands
Healthcare 103,180 53,101 0.01
Total American depository receipts 407,914 314,206 0.05
Total securities sold short, at fair value 102,512,585 95,151,493 15.04
Descriptions Fair Value Percentage of Net Assets
Derivative contracts - liabilities, at fair value
Equity swaps
United States
Healthcare 7,799,422 1.23
Total derivative contracts - liabilities, at fair value 7,799,422 1.23
* No individual investment security or contract constitutes greater than 5 per
cent. of net assets.
RTW Biotech Opportunities Ltd
Consolidated Statement of Operations
For the year ended 31 December 2025 and 31 December 2024
(Expressed in United States Dollars)
2025 2024
Investment income
Dividends (net of withholding tax rebate of $61,966;
31 December 2024: charge of $82,087) 25,125,085 390,961
Interest income
(net of withholding taxes of $nil; 31 December 2024: $nil) 7,015,441 6,347,583
Other income 2,433,412 1,451,293
Total investment income 34,573,938 8,189,837
Expenses
Management fees 7,999,581 7,611,701
Interest expense 7,128,266 4,772,375
Professional fees 1,594,757 1,432,954
Research costs 1,544,005 849,452
Administrative fees 808,518 749,649
Audit fees 352,336 366,984
Directors' fees 308,796 262,477
Dividends 1,638 -
Other expenses 1,082,842 887,540
Total expenses 20,820,739 16,933,132
Net investment income/(loss) 13,753,199 (8,743,295)
Realised and change in unrealised gain/(loss) on investments, derivatives and
foreign currency transactions
Net realised gain/(loss) on securities and foreign currency transactions
108,007,512 28,021,357
Net change in unrealised gain/(loss) on securities and foreign currency
translation
59,372,515 (34,485,235)
Net realised gain/(loss) on derivative contracts 15,185,871 8,239,477
Net change in unrealised gain/(loss) on derivative contracts
48,873,580 41,147,665
Net realised and unrealised gain/(loss) on investments, derivatives and 231,439,478 42,923,264
foreign currency transactions
Net increase/(decrease) in net assets resulting from operations 245,192,677 34,179,969
RTW Biotech Opportunities Ltd
Consolidated Statement of Changes in Net Assets
For the year ended 31 December 2025
(Expressed in United States Dollars)
Ordinary Non-Controlling Interest
Share Class
Net assets, beginning of year 606,921,161 25,722,524
Operations
Net investment income/(loss) 13,753,199 -
Net realised gain/(loss) on securities and foreign currency transactions 108,007,512 -
Net change in unrealised gain/(loss) on securities and foreign currency 59,372,515 -
translation
Net realised gain/(loss) on derivative contracts 15,185,871 -
Net change in unrealised gain/(loss) on derivative contracts 48,873,580 -
Income/(loss) attributable to Non-Controlling Interest (38,620,865) 38,620,865
Net change in net assets resulting from operations 206,571,812 38,620,865
Capital transactions
Share buyback (Gross of $19,016 transaction costs; 31 December 2024: $22,681) (12,613,508) -
(Note 9)
Net change in net assets resulting from capital transactions (12,613,508) -
Net assets, end of year 800,879,465 64,343,389
RTW Biotech Opportunities Ltd
Consolidated Statement of Changes in Net Assets
For the year ended 31 December 2024
(Expressed in United States Dollars)
Ordinary Non-Controlling Interest
Share Class
Net assets, beginning of year 399,283,811 29,739,146
Operations
Net investment income/(loss) (8,743,295) -
Net realised gain/(loss) on securities and foreign currency transactions 28,021,357 -
Net change in unrealised gain/(loss) on securities and foreign currency (34,485,235) -
translation
Net realised gain/(loss) on derivative contracts 8,239,477 -
Net change in unrealised gain/(loss) on derivative contracts 41,147,665 -
Income/(loss) attributable to Non-Controlling Interest 4,016,622 (4,016,622)
Net change in net assets resulting from operations 38,196,591 (4,016,622)
Capital transactions
Issuance of Ordinary Shares (net of issuance cost of $6,473,897) 180,781,065 -
Share buyback (Gross of $22,681 transaction costs; 31 December 2023: $4,178) (11,340,306) -
(Note 9)
Net change in net assets resulting from capital transactions 169,440,759 -
Net assets, end of year 606,921,161 25,722,524
RTW Biotech Opportunities Ltd
Consolidated Statement of Cash Flows
For the year ended 31 December 2025 and 31 December 2024
(Expressed in United States Dollars)
2025 2024
Cash flows from operating activities
Net increase/(decrease) in net assets resulting from operations 245,192,677 34,179,969
Adjustments to reconcile net change in net assets resulting from operations to
net cash provided by/(used in) operating activities:
Net realised (gain)/loss on securities and foreign currency transactions (108,007,512) (28,021,357)
Net change in unrealised (gain)/loss on securities and foreign currency
translation
(59,372,515) 34,485,235
Net realised (gain)/loss on derivative contracts (15,185,871) (8,239,477)
Net change in unrealised (gain)/loss on derivative contracts (48,873,580) (41,147,665)
Effect of exchange rate changes on cash and cash equivalents (1,573,383) 99,291
Purchases of investments in securities (409,028,495) (530,568,570)
Proceeds from sales of investments in securities 376,173,346 321,657,762
Proceeds from securities sold short 165,277,032 174,423,104
Payments for securities sold short (81,369,418) (51,329,764)
Proceeds from derivative contracts 78,242,932 31,242,577
Payments for derivative contracts (55,996,745) (75,360,177)
Accretion of bond discount (4,342) (3,847)
Changes in operating assets and liabilities:
Other assets (206,121) 1,684,089
(Receivable from)/payable for unsettled trades 4,181,016 (4,237,674)
Due to brokers 15,844,273 18,241,225
Accrued expenses (40,144) (1,442,638)
Net cash provided by/(used in) operating activities 105,253,150 (124,337,917)
Cash flows from financing activities
Net proceeds from issuance of shares * - 108,419,956
Share buyback (12,613,508) (11,340,306)
Net cash provided by/(used in) financing activities (12,613,508) 97,079,650
Net change in cash and cash equivalents 92,639,642 (27,258,267)
Cash, cash equivalents, and restricted cash, beginning of the year 33,350,500 60,608,767
Cash, cash equivalents, and restricted cash, end of the year 125,990,142 33,350,500
At 31 December, the amounts categorised in cash, cash equivalents, and
restricted cash include the following:
Cash and cash equivalents 5,986,177 5,360,022
Due from brokers 120,003,965 27,990,478
Total 125,990,142 33,350,500
Supplemental disclosure of cash flow information
Cash paid during the year for interest 7,192,246 4,356,455
Cancellation of shares in RTW Biotech Opportunities Ltd received in Arix - 59,221,117
acquisition
* In kind financing activities:
Non-cash assets received from Arix acquisition, comprised of:
Investments in securities - 129,409,264
Derivative contracts - 1,799,515
Other assets - 373,447
General Company Information ((unaudited))
Structure Closed-end Investment Fund
Domicile Guernsey
Listing London Stock Exchange
Launch date 30 October 2019
Dividend policy To be reinvested
Management fee 1.25%
Performance fee 20% with an 8.0% annualised and compounded- since-inception hurdle
ISIN GG00BKTRRM22
SEDOL BKTRRM2
Ticker RTW
LEI 549300Q7EXQQH6KF7Z84
Index inclusion FTSE 250, FTSE All-Share
Website www.rtwbio.com (http://www.rtwbio.com)
Glossary ( (unaudited))
Defined Terms ((unaudited))
"ABHL" Arix Bioscience Holdings Limited, a wholly owned subsidiary of the Subsidiary
which was acquired as part of the Arix Bioscience plc acquired entities and
assets;
"Adjusted Net Asset Value" the Net Asset Value adjusted by deducting the unrealised gains and unrealised
losses in respect of private Portfolio Companies;
"Administrator" Altum (Guernsey) Limited;
"Admission" means admission of the Ordinary Shares to trading on the Main Market of the
London Stock Exchange on 30 October 2019;
"AIC" the Association of Investment Companies;
"AIC Code" the AIC Code of Corporate Governance dated February 2019;
"AIFM" means Alternative Investment Fund Manager;
"AIFMD" the Alternative Investment Fund Managers Directive;
"Annual Report" the Annual Report and audited financial statements;
"Antibody" a large Y-shaped blood protein that can stick to the surface of a virus,
bacteria, or receptor on a cell;
"Antibody-Oligonucleotide Conjugates" or "AOC" molecules that combine structures of an antibody and an oligo;
"Arix" Arix Bioscience plc, the company whose assets the Group acquired in February
2024;
"Autoimmune diseases" conditions, where the immune system mistakenly attacks a body tissue;
"Bispecifics" bispecific antibodies (BsAbs) have two distinct binding domains that can bind
to two antigens or two epitopes (an antigen part) of the same antigen
simultaneously;
"Calculation Date" 31 December or, if such date is not a business day, the previous business day;
"Cardiometabolic diseases" a group of common but often preventable conditions including heart attack,
stroke, diabetes, insulin resistance and non-alcoholic fatty liver disease;
"Cardiovascular disease" conditions affecting heart and vascular system;
"Clinical stage" or "clinical trial" a therapy in development goes through a number of clinical trials to ensure
its safety and efficacy. Trials in human subjects range from Phase 1 to Phase
3;
"Companies Law" the Companies (Guernsey) Law, 2008 (as amended);
"the Company" RTW Biotech Opportunities Ltd (or RTW Bio), a company incorporated in Guernsey
as a closed-ended Investment Company;
"Contingent Value Rights" or "CVRs" Securities sometimes received during mergers, acquisitions, or divestitures.
designed to provide additional compensation or benefits contingent upon the
occurrence of specific future events, such as regulatory approvals, milestones
related to product development or commercialisation, or the achievement of
certain financial targets;
"Corporate Brokers" Bank of America and Deutsche Numis;
"CRS" Common Reporting Standard;
"Danon Disease" a rare genetic heart condition in children, predominantly boys;
"Directors" or "Board" the directors of the Company and the Subsidiary as at the date of this
document and "Director" means any one of them;
"DTR" Disclosure Guidance and Transparency Rules of the UK's FCA;
"Fanconi Anaemia" a rare genetic blood condition in young children;
"FATCA" the Foreign Account Tax Compliance Act;
"FCA" the Financial Conduct Authority;
"FDA" the United States Food and Drug Administration;
"FRC" the Financial Reporting Council;
"FTC" the Federal Trade Commission;
"Gene therapy" a biotechnology that uses gene delivery systems to treat or prevent a disease;
"Genetic Medicine" an approach to treat or prevent a disease using gene therapy or RNA medicines;
"GFSC" the Guernsey Financial Services Commission;
"GFSC Code" the GFSC Finance Sector Code of Corporate Governance as amended in June 2021;
"GLP-1" drugs that mimic the action of naturally occurring hormone glucagon-like
peptide-1, which is produced in the intestines. Plays a crucial role in
regulating blood sugar levels by stimulating insulin release, slowing stomach
emptying and reducing appetite;
"Greater China" encompasses mainland China, Macau, Hong Kong and Taiwan;
"the Group" RTW Biotech Opportunities Ltd (or RTW Bio), and its subsidiaries, RTW Biotech
Opportunities Operating Ltd, Arix Bioscience Holdings Limited, RTW Biotech ALI
LLC and RTW Biotech UK Ltd;
"HCM" or "Hypertrophic cardiomyopathy" a cardiovascular disease characterised by an abnormally thick heart muscle;
"Investment Manager" RTW Investments, LP, also called RTW Investments;
"IPEV" the International Private Equity and Venture Capital Valuation
(IPEV) Guidelines set out recommendations, intended to represent current
best practice, on the valuation of Private Capital Investments;
"IPO" an initial public offering;
"IRA" Inflation Reduction Act of 2022;
"ISDA" International Swaps and Derivatives Association;
"LAD-I" Leukocyte adhesion deficiency, a rare genetic disorder of immunodeficiency in
young children;
"Listing Rules" the listing rules made under section 73A of the Financial Services and Markets
Act 2000 (as set out in the FCA Handbook), as amended;
"London Stock Exchange" London Stock Exchange plc;
"LSE" London Stock Exchange's main market for listed securities;
"MASH" metabolic dysfunction-associated steatohepatitis;
"Medtech" medical technology subsector of healthcare;
"Merck" Merck & Co., Inc.;
"Myotonic Dystrophy" a genetic condition that affects muscle function;
"Nasdaq Biotech" or "NBI" a stock market index made up of securities of NASDAQ-listed companies
classified according to the Industry Classification Benchmark as either the
Biotechnology or the Pharmaceutical industry;
"Net Asset Value" or "NAV" the value of the assets of the Group less its liabilities, calculated in
accordance with the valuation guidelines established by the Board;
"New Performance Allocation Shares" performance allocation shares of no-par value in the capital of the
Subsidiary;
"Notional Ordinary Shares" Performance Ordinary Shares, in which receipt of such shares has been
deferred;
"Official List" the official list of the UK Listing Authority;
"Oligonucleotides" or "Oligos" short DNA or RNA molecules that have a wide range of applications in genetic
testing and research;
"Oncology" a therapeutic area focused on diagnosis, prevention, and treatment of cancer;
"Ophthalmic conditions" conditions affecting the eye;
"Ordinary Shares" the Ordinary Shares of the Company;
"Performance Allocation Shares" performance allocation shares of no-par value in the capital of the Company
(prior to the 1 December 2022 reorganisation), or performance allocation
shares of no-par value in the capital of the Subsidiary (with effect from the
1 December 2022 reorganisation);
"Performance Allocation Period" each period ending on a Calculation Date and beginning on the business day
immediately following the last Performance Allocation Period in respect of
which a Performance Allocation has been allocated;
"PIPE" private investment in a public equity;
"Portfolio Companies" private and public companies in the Group's portfolio;
"Prospectus" the prospectus of the Company, most recently updated on 5 January 2024 and
available on the website (www.rtwfunds.com/rtw-biotech-opportunities-ltd);
"Radiopharmaceuticals" pharmaceutical consisting of a radioactive compound used in radiation therapy;
"Rare disease" a disease that affects a small percentage of the population;
"Registrar" MUFG Pension & Market Services;
"RNA medicines" a type of biotechnology that uses RNA to treat a disease;
"Russell 2000 Biotechnology Index" or "RGUSHSBT" or "R2kB" a stock index of small cap biotechnology and pharmaceutical companies;
"Small molecule" a compound that can regulate a biologic activity;
"SPAC" Special Purpose Acquisition Company;
"the SPV" RTW Biotech ALI LLC;
"Sub-Administrator" Morgan Stanley Fund Services USA LLC;
"the Subsidiary" or "OpCo" RTW Biotech Opportunities Operating Ltd;
"Type 1 Diabetes" or "TD1" a type of insulin resistance;
"Total shareholder return" a measure of shareholders' investment in a company with reference to movements
in share price and dividends paid over time;
"UK AIFMD" refers to a domestic regime of laws regulating the management and marketing of
alternative investment funds and fund managers in the UK, which generally
maintains the rules set out in the European Union's AIFMD as implemented at
the end of the transition period following Brexit;
"UK Code" the UK Corporate Governance Code 2018 published by the Financial Reporting
Council in July 2018;
"UK-Guernsey IGA" The UK-Guernsey Intergovernmental Agreement for the Automatic Exchange of
Information;
"the UK Subsidiary" RTW Biotech UK Ltd;
"US GAAP" United States Generally Accepted Accounting Principles;
"Valuation Committee" Valuation Committee of the Investment Manager;
"WACC" weighted average cost of capital;
Listing of portfolio company abbreviations used throughout this report
Shorthand Company Name Legal Company Name
AIRNA AIRNA Corporation
Alcyone Alcyone Therapeutics, Inc.
Akero Akero Therapeutics
Aktis Aktis Oncology
Alesta Alesta Therapeutics
Amani Amani Therapeutics
ALI American Laboratories Inc.
Aquestive Aquestive Therapeutics, Inc.
Ancora Ancora Heart, Inc.
Apogee Apogee Therapeutics, Inc.
argenx argenx SE
Artios Artios Pharma, Inc.
Avidity Avidity Biosciences, Inc.
Beta Bionics Beta Bionics, Inc.
Compass Compass Pathways plc
Cargo Cargo Therapeutics, Inc.
Cogent Cogent Biosciences, Inc.
Corxel Corxel Pharmaceuticals
Dyne Dyne Therapeutics, Inc.
Ensoma Ensoma, Inc.
Establishment Labs Establishment Labs, Inc.
Evommune Evommune, Inc.
GH Research GH Research PLC
Immatics Immatics N.V.
Insmed Insmed Incorporated
Jade Jade Biosciences
Kailera Kailera Therapeutics
Lycia Lycia Therapeutics, Inc.
Madrigal Madrigal Pharmaceuticals, Inc.
Magnolia Magnolia Medical Technologies, Inc.
Merus Merus N.V.
Milestone Milestone Pharmaceuticals, Inc.
Numab Numab Therapeutics AG
Oruka Oruka Therapeutics, Inc.
Penumbra Penumbra, Inc.
Prolium Prolium Bioscience, Inc.
Protagonist Protagonist Therapeutics, Inc.
PTC PTC Therapeutics, Inc.
RadNet RadNet, Inc.
RAPT RAPT Therapeutics, Inc.
Rocket Rocket Pharmaceuticals, Inc.
RTW Royalty 2 RTW Fund 2 (royalty deal for Jelmyto)
RTW Royalty Fund 4010 Royalty Fund, a private fund created and managed by RTW Investments,
LP.
Savara Savara, Inc.
Spyre Spyre Therapeutics, Inc.
Stoke Stoke Therapeutics, Inc.
Tarsus Tarsus Pharmaceuticals, Inc.
Taysha Taysha Gene Therapies, Inc.
Tenax Tenax Therapeutics, Inc.
Umoja Umoja Biopharma, Inc.
UniQure uniQure biopharma B.V.
UroGen UroGen Pharma
Verastem Verastem, Inc.
Verona Verona Pharma plc
Windward Windward Bio AG
Yarrow Bioscience Yarrow Bioscience, Inc.
Yarrow Biotechnology RTW Holdings LLC
Zai Lab Zai Lab Limited
Alternative Performance Measures ((unaudited))
( )
APM Definition Purpose Calculation
Available Cash Cash held by the Group's Bankers, Prime Brokers and ISDA counterparties. A measure of the Group's liquidity, working capital and investment level. Cash and cash equivalents, Due from brokers, Receivable from unsettled trades
and other miscellaneous current assets, less Due to brokers, Payable for
unsettled trades and other miscellaneous current liabilities on the Statement
of Assets & Liabilities.
NAV per Ordinary Share The Group's NAV divided by the number of Ordinary Shares. A measure of the value of one Ordinary Share. The net assets attributable to Ordinary Shares on the statement of financial
position divided by the number of Ordinary Shares in issue as at the
calculation date.
Price per share The Company's closing share price on the London Stock Exchange for a specified A measure of the supply and demand for the Company's shares. Extracted from the official list of the London Stock Exchange.
date.
NAV Growth The percentage increase or decrease in the NAV per Ordinary share during the A key measure of the success of the Investment Manager's investment strategy. The quotient of the NAV per share at the end of the period and the NAV per
reporting period. share at the beginning of the period minus one expressed as a percentage.
Share price growth/Total Shareholder Return The percentage increase or decrease in the price per share during the A measure of the return that could have been obtained by holding a share over The quotient of the price per share at the end of the period and the price per
reporting period. the reporting period. share at the beginning of the period minus one, expressed as a percentage. The
measure excludes transaction costs.
Share Price Premium/ (Discount) The amount by which the Ordinary Share price is higher/lower than the NAV per A key measure of supply and demand for the Company's shares. A premium implies The quotient of the price per share at the end of the period and the NAV per
Ordinary Share, expressed as a percentage of the NAV per ordinary share. excess demand versus supply and vice versa. share at the end of the period minus one, expressed as a percentage.
Multiple on Invested Capital (MOIC or MOC) The multiple that measures value that an investment has generated. A measure to evaluate performance of the realised and unrealised investments. The ratio between initial capital invested in a portfolio company and current
value of the investment. It is a gross metric and calculation is performed
before fees and incentive.
Extended Internal Rate of Return (XIRR) The percentage or single rate of return when applied to all transactions in a A measure of return which is used when multiple investments have been made The rate also expressed as a percentage that calculates the returns on the
portfolio company. over time into a portfolio company. total investment made with increments through a given period.
Ongoing Charges Ratio The recurring costs that the Group has incurred during the period excluding A measure of the minimum gross profit that the Group needs to produce to make Calculated in accordance with the AIC methodology detailed at the web link
performance fees and one-off legal and professional fees, expressed as a a positive return for shareholders. below:
percentage of the Group's average NAV for the period. https://www.theaic.co.uk/sites/default/files/documents/AICOngoingChargesCalculationMay12.pdf
(https://www.theaic.co.uk/sites/default/files/documents/AICOngoingChargesCalculationMay12.pdf)
Leverage As defined by the AIFMD, any method by which the AIFM increases the exposure A measure of the excess of the Group's investments exposure over its total net Calculated in accordance with the AIFMD's gross and commitment methodologies
of an AIF it manages, whether through borrowing of cash securities, or assets. as outlined in Articles 7 and 8 of the Delegated Regulation 231/2013:
leverage embedded in derivative positions or by any other means. https://eur-lex.europa.eu/legal-content/EN/TXT/?uri=CELEX%3A32013R0231
(https://eur-lex.europa.eu/legal-content/EN/TXT/?uri=CELEX%3A32013R0231)
Economic Exposure Economic exposure represents the Group's total economic interest in an Economic exposure is presented to reflect the Group's aggregate economic Closing price multiplied by the shares held or referenced across all
underlying security, measured as the closing price of the security multiplied interest in an underlying security across all instruments on a consistent and instruments.
by the number of shares held or referenced across all instruments held by the comparable basis.
Group.
Ongoing Charges 2025 2024
US$ US$
Fees to Investment Manager 7,999,581 7,611,701
Legal and professional fees 1,594,757 1,432,954
Research costs 1,544,005 849,452
Administration fees ( 1 ) 808,518 749,649
Audit fees 352,336 366,984
Directors' remuneration 308,796 262,477
Other expenses 1,084,480 887,540
Total expenses 13,692,473 12,160,757
Non-recurring expenses (1,728,059) (955,871)
Total ongoing expenses 11,964,414 11,204,886
Average NAV 688,298,505 638,541,373
Annualised ongoing charges (using AIC methodology) 1.74% 1.75%
-- ENDS --
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