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

RTW Biotech OpportunitiesAnnouncement

12/06/2025 07:00

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RNS Number : 4759M  RTW Biotech Opportunities Ltd  12 June 2025

LEI: 549300Q7EXQQH6KF7Z84

12 June 2025

 

RTW Biotech Opportunities Ltd

Monthly Valuation Update and Factsheet

RTW Biotech Opportunities Ltd (the "Company") announces that its monthly
factsheet as at 31 May 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 31 May 2025 was US$1.70 per ordinary share, a decrease of -2.9% from the
previous month. This outperformed the Nasdaq Biotech Index (-4.3%) and the
Russell 2000 Biotech Index (-7.8%). The Company has delivered +8.9% annualised
NAV performance since launch in October 2019.

 

Top Core Positions

 

 Holding      Public / Private  % NAV
 Avidity      Public "RNA"      10.8%
 Corxel       Private           8.3%
 Akero        Public "AKRO"     5.4%
 Artios       Private           5.3%
 Kailera      Private           4.9%
 Immunocore   Public "IMCR"     3.0%
 Ensoma       Private           2.9%
 Tarsus       Public "TARS"     2.5%
 RTW Royalty  Private           1.9%
 Milestone    Public "MIST"     1.7%

 

Top YTD Core Contributors and Detractors

 

 Holding  % NAV  Return   Contribution
 Akero    5.4%   +78.5%   +3.3%
 Avidity  10.8%  +6.5%    +0.8%
 Merus    1.1%   +33.3%   +0.3%
 Rocket   1.1%   (80.0%)  (4.3%)
 Urogen   -0.9%  (60.2%)  (1.3%)
 Tarsus   2.5%   (22.4%)  (1.2%)

Note: % NAV as at period end based on fair market value +/- accruals.

 

Sector Update

Policy sentiment has continued to be the main driver of sector performance in
May, as it has been since Trump's inauguration. With biotech indices finishing
the month within touching distance of historical lows, we believe that
valuations already reflect a lot of negativity. We see the key policy elements
as follows:

 

1.     Regulators: Concerns around personnel changes at HHS and FDA have
weighed on the biotech sector. However, recent media rounds from Marty Makary
(FDA Commissioner) and Vinay Prasad (Director of CBER) have indicated their
keenness to continue the trend of regulatory flexibility. We believe that the
FDA will not only continue to function, but it will likely become more
efficient.

 

2.     Tariffs: Tariffs on pharma products have not been announced, and we
believe the risk of their being implemented in size is receding as large
pharma companies have made material commitments to onshore manufacturing. In
any case, biotech companies are somewhat insulated due to their more localised
supply chains.

 

3.     Drug pricing: On 12 May, the Trump administration issued an
executive order setting out the policy goal of adopting "most favoured nation"
pricing for prescription drugs. We believe that this will be used in trade
negotiations such that other developed countries pay a little more so that US
consumers pay a little less. Facilitating direct-to-consumer sales to patients
should also help lower costs by cutting out the middlemen. Implementation is
challenging and biotech companies have limited direct impact due to their
being mostly development stage and/or with exclusive US distribution. However,
the uncertainty and headline risk remains the last major overhang for the
sector.

 

As policy uncertainty lifts, more M&A deals are being announced. With
Sanofi's recent acquisition of Blueprint Medicines, we have already seen $34
billion of deals so far this year versus $46 billion in 2024 as a whole. With
pharma patent cliffs on the horizon and attractive valuations for SMID-cap
biotech companies, we expect to see more deals.

 

Portfolio Update

Artios Pharma ("Artios"), which is developing new classes of medicines to
address hard-to-treat cancers, announced encouraging data in its ongoing Phase
1/2a study of ART0380. The Company first invested in Artios' Series C round in
2021 and subsequently increased its position significantly when it acquired
the assets of Arix Bioscience in 2024. Artios represented 5.3% of NAV as at
month-end.

Rocket Pharmaceuticals ("Rocket") announced positive clinical data for its
phase 1 trial of RP-A601 for PKP2-ACM, a rare heart disease. Later in the
month, Rocket announced that a patient participating in a separate 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. Rocket represented
1.1% of NAV at month-end.

Merus, an oncology company developing innovative antibody treatments,
announced compelling interim phase 2 data from its trial treating a type of
head and neck cancer. While current treatments utilise a single antibody
(pembrolizumab), the Merus trial combines this with petosemtamab, which
appears to deliver significantly improved results. Merus represented 1.1% of
NAV at month-end.

Taysha Gene Therapies ("Taysha"), a clinical-stage biotechnology company
focused on advancing gene therapies for the treatment of diseases affecting
the central nervous system, released positive clinical data from its phase 1/2
trials evaluating TSHA-102 in Rett syndrome. All patients across varying
disease severity gained or regained one or more developmental milestones, with
Taysha concluding that the likelihood of achieving such milestones was
improbable after age six, making the data particularly compelling. Taysha
represented 1.7% of NAV at month-end.

Enquiries:

 RTW Investments, LP - Investment Manager               +44 (0)20 7959 6361

 Woody Stileman (Business Development)                  biotechopportunities@rtwfunds.com

 Oliver Kenyon (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

 Freddie Barnfield

 Nathan Brown

 Euan 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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