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

RTW Biotech OpportunitiesAnnouncement

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RNS Number : 2415V  RTW Biotech Opportunities Ltd  14 August 2025

LEI: 549300Q7EXQQH6KF7Z84

14 August 2025

 

RTW Biotech Opportunities Ltd

Monthly Valuation Update and Factsheet

RTW Biotech Opportunities Ltd (the "Company") announces that its monthly
factsheet and with commentary as at 31 July 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 July 2025 was US$1.83 per share, an increase of +7.8% from the previous
month vs +5.5% for the Nasdaq Biotech Index and +5.5% for the Russell 2000
Biotech Index. The Company has delivered +10.1% annualised NAV per ordinary
share performance since launch in October 2019.

 

Top Core Positions

 Holding           Public / Private  % NAV
 Avidity           Public "RNA"      8.7%
 Corxel            Private           8.7%
 Urogen            Public "URGN"     6.0%
 Kailera           Private           4.6%
 Akero             Public "AKRO"     4.4%
 Ensoma            Private           2.4%
 Artios            Private           2.2%
 Tarsus            Public "TARS"     2.1%
 GH Research       Public "GHRS"     2.0%
 RTW Royalty Fund  Private           1.8%

 

Top YTD Core Contributors and Detractors

 Holding  % NAV  Contribution
 Akero    4.4%   +3.1%
 UroGen   6.0%   +3.0%
 Avidity  8.7%   +2.1%
 Rocket   1.2%   (3.9%)
 Artios   2.2%   (2.7%)
 Tarsus   2.1%   (1.4%)

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

 

Sector Update

In the U.S., political scrutiny of drug pricing intensified. President Trump
demanded "binding commitments" from 17 pharmaceutical companies to lower
prices by September, including applying "most favoured nation" pricing to
Medicaid and offering direct-to-consumer sales. Bristol Myers Squibb and
Pfizer announced a direct-to-consumer option for Eliquis, a blood thinning
drug, at a discounted rate of more than 40% less than the list price.
Furthermore, Roche responded by entering talks to bypass pharmacy benefit
managers (PBMs), which take a significant share of drug profits, and sell
directly to patients.

Dr Vinay Prasad stepped down as head of CBER in July but rejoined the agency
in August. Dr. Prasad's return as head of CBER at the FDA has been met with
relative market calm. Unlike his initial appointment, which stirred headlines
and speculation, his reappointment in August has not triggered volatility in
rare disease or gene therapy stocks, suggesting that the market is now more
familiar with his views and less reactive to leadership changes. Importantly,
Prasad's commitment to streamlining rare disease drug development aligns with
the broader FDA leadership, including Commissioner Makary and CDER Director
Tidmarsh, reinforcing a shared vision for regulatory pragmatism and
accelerated approvals.

Against this backdrop, M&A deals continued to be announced, including
Merck's $10 billion acquisition of Verona (a Company holding - see next
section), Sanofi's $1.2 billion acquisition of Vicebio, and Novartis's $1
billion acquisition of Matchpoint. In addition, GSK entered into an alliance
with Chinese biopharma Hengrui, focused on developing twelve drugs; if all
milestones are met, the deal would be worth $12 billion. China's lower R&D
costs, faster clinical trials, and expanding pool of researchers have made it
an attractive source of innovation for large pharma companies.

In July, Chinese biotech valuations were up 122% year-to-date, South Korea
40%, and Europe 16%, compared to less than 1% growth in the U.S. market. This
divergence reflects the drag of political uncertainty in the U.S., which has
weighed heavily on sentiment. In contrast, countries without such headwinds
have seen steady inflows from generalist investors and retail, fuelling a
broad-based recovery. We expect that, once U.S. political uncertainty lifts,
US-listed biotech names may follow suit.

Portfolio Update

Kailera, a clinical-stage biopharma company focused on next-generation obesity
treatments, announced positive Phase 3 results in China for its lead candidate
KAI-9531 (HRS9531), a once-weekly dual GLP-1/GIP receptor agonist. The trial
met both primary endpoints, showing superior weight loss and a favourable
safety profile. Partner Hengrui Pharma plans to file for regulatory approval
in China, while Kailera advances global trials. As at 31 July, Kailera
represented 4.6% of NAV.

Merck announced its intention to acquire UK-based portfolio company Verona
Pharma for $107 per American Depositary Share, valuing the transaction at
approximately $10 billion. This represents a 23% premium to Verona's share
price prior to the announcement and marks Merck's largest acquisition since
its 2023 purchase of Prometheus Biosciences, itself an RTW Biotech holding.
The deal is expected to close in Q4 2025, pending shareholder and regulatory
approvals. RTW Bio's position in Verona added 0.9% to NAV per Ordinary Share
over July and the position has been sold.

Avidity Biosciences is reportedly evaluating a potential acquisition offer
from Novartis, which is seeking to strengthen its pipeline amid looming patent
expirations. Avidity is advancing three clinical-stage therapies for muscular
dystrophy. On the day the potential transaction was reported in the press,
Avidity's share price closed up 26%. While discussions are still early and a
deal is not guaranteed, the interest from Novartis highlights Avidity's
strategic position in rare disease innovation and its appeal in the current
biotech M&A landscape. Avidity's share price increased 29.3% over July,
and, as at 31 July, Avidity represented 8.7% of NAV.

 

 

 

 

 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.

 

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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
"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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