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

RTW Biotech OpportunitiesAnnouncement

14/11/2025 07:00

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RNS Number : 4941H  RTW Biotech Opportunities Ltd  14 November 2025

LEI: 549300Q7EXQQH6KF7Z84

14 November 2025

 

RTW Biotech Opportunities Ltd

Monthly Valuation Update and Factsheet

RTW Biotech Opportunities Ltd (the "Company") announces that its monthly
factsheet and commentary as at 31 October 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 October 2025 was US$2.37 per share, an increase of +11.5% from the
previous month vs +10.0% for the Nasdaq Biotech Index and +14.5% for the
Russell 2000 Biotech Index. The Company has delivered +14.3% annualised NAV
per ordinary share performance since launch in October 2019.

 

Top 10 Positions

 Holding      Public / Private  % NAV
 PTC          Public "PTCT"     11.8%
 Corxel       Private           6.6%
 Stoke        Public "STOK"     5.1%
 UroGen       Public "URGN"     4.4%
 Akero        Public "AKRO"     4.1%
 UniQure      Public "QURE"     3.6%
 Kailera      Private           3.5%
 Immatics     Public "IMTX"     2.7%
 Insmed       Public "INSM"     2.6%
 Protagonist  Public "PTGX"     2.6%

 

Top YTD Contributors and Detractors

 Holding  % NAV  Contribution
 Avidity  0.9%   +9.4%
 Stoke    5.1%   +4.5%
 UniQure  3.6%   +4.4%
 Rocket   1.2%   (3.8%)
 Artios   1.7%   (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 RTW Bio 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 RTW Bio'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.

 

RTW Bio'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.

Sector Update

Biotech equities delivered strong gains in October, continuing the recovery
that began earlier this year. The Russell 2000 Biotech Index rose 14.5%, the
Nasdaq Biotech Index advanced 10.0%, and the AIC Biotechnology &
Healthcare Sector added 3.6%. Year-to-date, the sector is up 24-28%, broadly
in line with the Nasdaq and ahead of the S&P 500. After four years of
underperformance, this marks a clear shift in sentiment, supported by
improving fund flows and renewed interest from generalist investors. RTW Bio's
NAV performance year-to-date is ahead of both benchmarks and the AIC sector.

Recent performance has been supported by several factors. M&A activity
accelerated, led by Novartis' $12 billion acquisition of Avidity (an RTW Bio
position - see below), one of the largest development-stage transactions this
year. The deal highlights the strategic importance of late-stage assets and
the willingness of large pharmaceutical companies to secure future revenue
ahead of pivotal data. After month end, a bidding war between Pfizer and Novo
Nordisk for next-generation obesity company Metsera drew significant
attention. Pfizer's initial $7 billion offer was topped by Novo at $9 billion,
before Pfizer ultimately prevailed in early November with a $10 billion bid.
This level of competitive activity has been absent from the sector for many
years and signals a renewed appetite for acquisitions. With patent expirations
approaching, we expect large pharma to become increasingly aggressive in
pursuing innovative assets.

Policy developments remain a focus. MFN drug pricing negotiations are
progressing, with Pfizer setting an early precedent. Last week, Eli Lilly and
Novo Nordisk announced an agreement that RFK Jr described as "the most
important of all the MFN announcements we have made." This marks a significant
step in addressing pricing for obesity treatments, which have been a key point
of contention given their large direct-to-consumer franchises. The second
round of Medicare IRA negotiations is also nearing completion, and we expect
discounts to be incrementally more aggressive.

Regulatory uncertainty resurfaced in early November. Leadership changes at the
FDA and reversals on whether certain datasets were sufficient for approval
applications have raised concerns, although these issues are concentrated in
edge cases. The broader regulatory stance remains pro-innovation and most
programmes continue to progress without disruption. We expect stability to
improve as management challenges are addressed.

Looking ahead, we believe the sector is in the early stages of a cyclical
recovery. Valuations remain attractive, and strategic interest from large
pharma is strong. While regulatory headlines may create volatility, the
fundamental backdrop supports continued momentum for late-stage development
and early commercial opportunities.          

Portfolio Update

On 9 October, Novo Nordisk agreed to acquire Akero for $5.2 billion,
representing a 42% premium to Akero's closing share price on 19 May, prior to
market speculation. As of 30 September, Akero represented 3.4% of RTW Bio's
NAV.

On 14 October, private portfolio company Kailera announced that it had raised
$600 million in a Series B financing round, led by Bain Capital Private Equity
and with participation from investors including Canada Pension Plan Investment
Board (CPP Investments) and Qatar Investment Authority (QIA). RTW Bio invested
$7.4 million as part of the Series B, which represents a 1.4x step-up to the
Series A. The financing will support the advancement of Kailera's leading
obesity portfolio, including a global Phase 3 clinical programme of KAI-9531,
a novel dual GLP-1/GIP receptor agonist administered via once-weekly
subcutaneous injection with potentially best-in-category weight loss. As at 30
September, Kailera represented 4.0% of RTW Bio's NAV.

On 26 October, Novartis agreed to acquire Avidity for $12 billion,
representing a 46% premium to Avidity's prior closing share price. This is the
largest developmental-stage M&A deal of 2025 and Novartis' largest
acquisition in more than a decade. As of 30 September, Avidity was RTW Bio's
third-largest holding, representing 7.0% of NAV.

On 31 October, Savara announced that it entered into a $75 million royalty
funding agreement with funds managed by RTW Investments, LP.  RTW Bio will
participate in this investment through its commitment to the RTW-managed 4010
Royalty Fund. Savara is a clinical stage biopharmaceutical company focused on
rare respiratory diseases.

 

 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
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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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