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

RTW Biotech OpportunitiesAnnouncement

15/01/2026 07:00

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RNS Number : 9582O  RTW Biotech Opportunities Ltd  15 January 2026

LEI: 549300Q7EXQQH6KF7Z84

15 January 2026

 

RTW Biotech Opportunities Ltd

Monthly Valuation Update and Factsheet

RTW Biotech Opportunities Ltd (the "Company") announces that its monthly
factsheet and fourth quarter as at 31 December 2025 is now available at
https://www.rtwbio.com/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 31 December 2025 was US$2.45 per share, a decrease of -4.2% from the
previous month vs -1.9% for the Nasdaq Biotech Index and +0.5% for the Russell
2000 Biotech Index. The Company has delivered +14.5% annualised NAV per
ordinary share performance since launch in October 2019.

 

Top 10 Positions

 Holding   Public / Private  % NAV
 PTC       Public "PTCT"     11.6%
 Corxel    Private           6.2%
 Stoke     Public "STOK"     5.2%
 UroGen    Public "URGN"     5.0%
 Insmed    Public "INSM"     3.9%
 Kailera   Private           3.4%
 Tarsus    Public "TARS"     2.8%
 Immatics  Public "IMTX"     2.7%
 argenx    Public "ARGX"     2.2%
 Madrigal  Public "MDGL"     1.9%

 

Top YTD Contributors and Detractors

 Holding  % NAV  Contribution
 Avidity  0.0%   +9.5%
 PTC      11.6%  +5.1%
 Stoke    5.2%   +4.9%
 Rocket   1.0%   (3.9%)
 Artios   1.6%   (2.9%)
 Dyne     0.0%   (1.9%)

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

 

Company Update

Following a series of successful M&A transactions across the portfolio, on
20 October the Company announced an additional $15 million allocation to
NAV-accretive share buybacks under the Capital Allocation Plan. This decision
reflects the material gains arising from recent portfolio take-outs and the
continued demonstration of value within the Company's public and private
assets. The new allocation is incremental to the previously announced $30
million programme, of which $24.2 million was deployed and $5.8 million
remained outstanding at the point of announcement.

The Company's Capital Allocation Plan remains unchanged, anchored in the core
objective of long-term capital growth while recognising that maintaining
sufficient liquidity is critical to protect and grow value in our portfolio
companies over time. We believe that the sector is likely now entering the
second inning of a new cyclical bull market, with net flows and generalist
investors returning. This is an ideal time to deploy investors' capital into
exciting opportunities at an attractive value inflection point.

The Company held its first webinar exclusively for existing and potential
retail shareholders on 2 December. It was presented by the chair of the
Company, William Simpson, along with Woody Stileman and Oliver Kenyon of RTW
Investments. The webinar recording can be found on the Company's website.

On 4 December, the Company's Ordinary Shares were included in the FTSE 250
Index. This follows their inclusion in the FTSE All-Share Index on 22
September. We believe that inclusion in the FTSE 250 Index is likely to
further enhance liquidity in our shares, deepen our investor base, and develop
greater UK and international investor awareness of the Company.

In the quarter, RTW Senior Independent Director, Baroness Blackwood, was
appointed by the UK Government as Chair of the Health Data Research Service
(HDRS), which is supported by up to £600 million in funding from the
Government and the Wellcome Trust. HDRS will provide a secure, centralised
gateway to NHS datasets, reduce administrative barriers, and uphold stringent
privacy and ethical standards to accelerate research and the development of
innovative treatments.

Performance Update

Over the fourth quarter, the Company's NAV per share returned +15.5% vs +29%
for the Russell 2000 Biotech Index (R2kB), +17% for the Nasdaq Biotech Index
(NBI), and +10.1% for the AIC Biotechnology and Healthcare sector. Year to
date, the Company's NAV per share has returned +35.7% vs. +44.6% for the R2kB,
+32.4% for the NBI, and +18.4% for the AIC Biotechnology and Healthcare
sector.

The Company's NAV per share has delivered an annualised return of 14.5% per
annum since launch on 30 October 2019, outperforming the R2kB 7.2% p/a, the
NBI 8.6% p/a, and the AIC Biotechnology and Healthcare sector 4.2% p/a.

Sector Update

After a record four years of underperformance vs the S&P and Nasdaq
('21-24 total returns: NBI -6.5%, R2kB -43.1%, S&P 500 +66.3%, Nasdaq
+54.7%), biotech indices finished this year ahead (NBI +32.4%, R2kB +44.6%,
S&P 500 +16.4%, Nasdaq +20.4%).

Declining policy uncertainty got things started.  In the summer,
multinational pharmas avoided tariffs by committing to reshore over $300B in
manufacturing.  In September, Pfizer laid the blueprint for
most-favoured-nation (MFN) drug pricing deals.  Shortly after, the first
Medicare negotiations under Trump 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.

Combined with a friendlier FTC, by fall, pharmas had enough policy clarity to
pursue larger deals.  RBC reports $105B in M&A, more than double the year
prior and fourth highest in the last decade.

The recovery is likely still in the early innings.  Fear dominated for much
of the year, resulting in significant net capital outflows.  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 $50B+ market cap biotechs (latest additions:
Alnylam, ArgenX, UCB).  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 Action
had on cancer small molecules.

In summary, Q4 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 and biotech ETF net inflows
turning positive for the year (~$918m). 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.

Portfolio Update -  December

On 18 December, the Company announced an investment into Yarrow Bioscience, a
clinical-stage private biotechnology company founded to develop transformative
therapies for autoimmune thyroid diseases. the Company invested $5.9 million
in the Series A financing, representing 0.7% of NAV as of 30 November. Yarrow
is the seventh company creation by RTW Investments, LP. On 17 December, Yarrow
announced that it had entered into a definitive merger agreement with VYNE
Therapeutics, expected to close in the second quarter of 2026.

 

 

 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

 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 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.

 

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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
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proceeds and future capital expenditures and acquisitions. In light of these
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announcement or on its completeness, accuracy or fairness.

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