Just after we sent out our Q3 newsletter, we received the news from our portfolio company Myokardia that it will be acquired by big pharma player Bristol Myers Squibb for $13.1 billion in cash. This offer of $225 per share represents a 61% premium from the closing share price last Friday.

We would like to see our NAV going up nicely every month, but history shows that is not how it works. While achieving a +71% net outperformance against the market (NBI), fluctuation is inevitable. This is further illustrated by the graph below. The decline of 11% over Q3 is partially due to the weakening of the $ versus the € (over 4% decline with 68% exposure to the $), a setback for portfolio company Galapagos and delays of some clinical studies due to Covid-19.

The fund’s net performance over the second quarter was +22,2%. The sector is regaining interest from generalist investors and this might be the start of a broader inclusion of public biotech as a fixed position in their investment portfolios, as well as those of wealth managers.