REG - RTW Biotech Opp. - Monthly Valuation Update and Factsheet

RTW Biotech OpportunitiesAnnouncement

Tue 07:00

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RNS Number : 0146R  RTW Biotech Opportunities Ltd  15 July 2025

LEI: 549300Q7EXQQH6KF7Z84

15 July 2025

 

RTW Biotech Opportunities Ltd

Monthly Valuation Update and Factsheet

RTW Biotech Opportunities Ltd (the "Company") announces that its monthly
factsheet and second quarter update as at 30 June 2025 is now available at
https://www.rtwfunds.com/rtw-biotech-opportunities-ltd/factsheets-letters/
(https://www.rtwfunds.com/rtw-biotech-opportunities-ltd/factsheets-letters/) .

 

The Company's unaudited net asset value attributable to its ordinary shares as
at 30 June 2025 was US$1.70 per share, an increase of 0.2% from the previous
month vs +3.6% for the Nasdaq Biotech Index and +7.0% for the Russell 2000
Biotech Index. The Company has delivered +8.8% annualised NAV per ordinary
share performance since launch in October 2019.

 

Top Core Positions

 Holding           Public / Private  % NAV
 Corxel            Private           9.4%
 Avidity           Public "RNA"      8.7%
 Akero             Public "AKRO"     5.2%
 Kailera           Private           5.0%
 UroGen            Public "URGN"     4.6%
 Ensoma            Private           2.5%
 Tarsus            Public "TARS"     2.4%
 Artios            Private           2.3%
 RTW Royalty Fund  Private           2.0%
 GH Research       Public "GHRS"     1.9%

 

Top YTD Core Contributors and Detractors

 Holding  % NAV  Contribution
 Akero    5.2%   +3.8%
 UroGen   4.6%   +1.5%
 Corxel   9.4%   +1.1%
 Rocket   1.1%   (4.4%)
 Artios   2.3%   (3.0%)
 Tarsus   2.4%   (1.4%)

Note: % NAV as at period end based on economic exposure.

 

Company Update

RTW Bio held its annual general meeting on 9 June, with each of the proposed
resolutions passing without amendment. Shareholders renewed the Company's
authorisation to continue repurchasing its Ordinary Shares. Over the second
quarter, the Company repurchased 4,700,000 shares ($5.5 million) representing
1.4% of the Company's shares in issue (excluding treasury shares) and 20.3% of
total volumes traded.

Performance Update

Over the second quarter, RTW Bio's NAV per share returned +0.4% vs. +2.6% for
the Russell 2000 Biotech Index and -0.4% for the Nasdaq Biotech Index. Year to
date, RTW Bio's NAV per share has returned -6.0% vs. -11.4% for the Russell
2000 Biotech Index and -1.9% for the Nasdaq Biotech Index.

The Company's NAV per share has delivered an annualised return of +8.8% per
annum since launch on 30 October 2019, outperforming the Russell 2000 Biotech
Index (+2.6%), the Nasdaq Biotech Index (+3.9%), and the AIC Biotechnology and
Healthcare sector (+1.5%).

Sector Update

Later in the second quarter, we saw some easing of the negative policy
sentiment that has affected the biotech sector year to date, with two of the
three major policy risks we've been tracking trending positively. The FDA's
new leadership - Commissioner Marty Makary and Chief Medical and Science
Officer Vinay Prasad - has reaffirmed support for regulatory flexibility and
is actively identifying ways to accelerate innovation. This momentum has
extended to the Department of Health and Human Services, where RFK Jr.
recently launched the "Make American Biotech Accelerate" (MABA) initiative - a
clear indication of the sector's importance to the U.S. and the Trump
administration.

The threat of drug-specific tariffs, introduced alongside broader trade
measures, has already prompted over half of multinational pharmaceutical
companies to commit nearly $300 billion to "re-shore" manufacturing in the
U.S. (including $55 billion by J&J, $50 billion by Roche, and $40 billion
by Bristol Myers Squibb). We believe this swift industry response will likely
soften the eventual impact of any manufacturing-related tariffs, potentially
through exemptions or phased implementation.

The remaining policy concern weighing on the biotech sector is the potential
implementation of "most favoured nation" (MFN) drug pricing. The White House
is considering various approaches to lower drug prices in the U.S. and we are
cautiously optimistic that reasonable deals can get done. What's more, the
Administration has made it clear that it is also interested in
direct-to-consumer solutions to lower prices for patients. We are also hearing
progress on the European side that could mitigate MFN policies put in place in
the U.S.  In the worst-case scenario where no deal is reached, MFN is largely
a pharma rather than a biotech problem.  As previously noted, there would be
limited financial impact to biotech because small companies largely focus on
the U.S. market, either out-licencing ex-US rights or, given poor economics,
increasingly forgoing ex-U.S. commercialisation.  Most importantly, RTW Bio's
portfolio has limited exposure.

Outside policy, early-stage science companies continue a gradual process of
consolidation, which still has a way to go. China competition adds pressure to
this as the supply of high-quality, early-stage, innovative assets has
increased and, we believe, it is vitally important to have coverage there. We
are also happy to see new FDA leadership expressing strong desire to make
reforms to ensure the U.S. remains the best place to innovate, as outlined
above.

M&A activity has started to pick up, with total deal value at the end of
June approximating that for the whole of 2024. Notable transactions in the
second quarter included the acquisition of Blueprint by Sanofi ($9.5 billion),
the acquisition of SpringWorks by Merck ($3.4 billion), and the strategic
partnership announced between BioNTech and Bristol Myers Squibb ($11.1
billion).

Portfolio Update

UroGen Pharma (NASDAQ: URGN) was the largest contributor in the quarter having
received FDA approval of ZUSDURI™, a non-surgical treatment for a type of
bladder cancer that affects approximately 60,000 patients annually. Corxel
Pharmaceuticals (private company) announced major developments for its lead
candidate, CX11, an oral GLP-1 receptor agonist for obesity and overweight:
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. Akero (NASDAQ: AKRO) presented
new data on 9 May that showed the potential of its investigational drug,
efruxifermin, to reverse liver cirrhosis among patients, underscoring its
potential to be a first- and best-in-class therapy. The GSK acquisition of
Boston Pharmaceuticals in May demonstrated pharma's strategic interest in the
in the liver space. On 20 May, Akero was rumoured to be exploring a potential
sale, which sent its share price up 25% on the day.

Artios Pharma (private company) saw its carrying value reduced in June. In
May, Artios announced encouraging Phase 1/2a data from its lead clinical
oncology candidate, ART0380. Importantly, these data hit multiple indications,
meaning that development costs (and therefore capital requirements) will
likely be higher than expected. We remain positive on the promising clinical
trial data from ART0380, which offers the potential to transform outcomes for
individuals with hard-to-treat cancers, an area of high unmet need. Rocket's
(NASDAQ: RCKT) share price declined in May after it announced that a patient
participating in its Phase 2 pivotal trial of RP-A501 to treat Danon disease
experienced an unexpected Serious Adverse Event ("SAE") and subsequently died.
The FDA placed a clinical hold on the trial to allow for further evaluation.
Rocket is in active dialogue with the FDA to confirm the root cause of the
SAE. We remain hopeful there is a path forward given the benefits seen in
earlier patients and clear course correction potential. Tarsus (NASDAQ: TARS)
was the third largest detractor in the second quarter but without material
specific news.

RTW Bio announced one new private investment and one "go-public" event in the
quarter. AIRNA (private company) is a preclinical biotech developing RNA
editing therapeutics to patients with chronic diseases and RTW Bio invested in
its Series B. Its lead candidate targets a genetic mutation linked to liver
and lung disease. In April, Jade Biosciences, a biotech developing potentially
best-in-class therapies for autoimmune diseases, merged with public company,
Aerovate Therapeutics, and began trading on Nasdaq under the ticker symbol
"JBIO".

 

 Enquiries:

 RTW Investments, LP - Investment Manager

 Oliver Kenyon                              +44 (0)20 7959 6362

 Woody Stileman                             biotechopportunities@rtwfunds.com

 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

 Freddie Barnfield

 Nathan Brown

 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 RTW 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.rtwfunds.com/rtw-biotech-opportunities-ltd
(http://www.rtwfunds.com/rtw-biotech-opportunities-ltd)  for more
information.

 

***********

The information in this announcement may include forward-looking statements,
which are based on the current expectations and projections about future
events, and in certain cases can be identified by the use of terms such as
"may", "will", "should", "expect", "anticipate", "project", "estimate",
"intend", "continue", "target", "believe" (or the negatives thereon) or other
variations thereon or comparable terminology. These forward-looking
statements, as well as those included in any related materials, are subject to
risks, uncertainties and assumptions about the Company and/or its underlying
investments, including, among other things, the development of the applicable
entity's business, trends in its operating industry, expected use of financing
proceeds and future capital expenditures and acquisitions. In light of these
risks, uncertainties and assumptions, the events in the forward-looking
statements may not occur.

The information contained in this announcement is given at the date of its
publication (unless otherwise marked). No reliance may be placed for any
purpose whatsoever on the information or opinions contained in this
announcement or on its completeness, accuracy or fairness.

***********

 

 

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