The pharmaceutical-focused investment company HBM Healthcare Investments has seemingly had a strong start to its new fiscal year 2024/2025. In the three months following the fiscal year-end in late March, the Zug-based company reported a profit of 26 million Swiss francs. According to a press release on Friday, the net asset value (NAV) of the company's shares increased by 1.6 percent in the first reporting quarter, while the share price rose by 5.9 percent.

Private company investments performed well, with their value increasing by 53 million francs. The most significant gain, however, came from the acquisition of Yellow Jersey Therapeutics by Johnson & Johnson, which added 59 million francs to HBM Healthcare's profits.

IPO in Hong Kong

In early July, after the June 30 reporting date, Fangzhou Jianke, an online platform for managing chronic diseases in China, went public in Hong Kong. Although the offering price of the new shares was above the book value of their investment at the quarter's end, the share price subsequently declined, impacting the NAV.

Public company investments performed poorly, reducing the overall results by 14 million francs. Additionally, the contribution from funds was negative (-4 million francs).

«Fundamentally Well Positioned»

HBM Healthcare reported that its asset allocation has changed little in the past three months. The portfolio comprises 43 percent in listed companies, 38 percent in private companies, 10 percent in funds, 7 percent in liquid assets, and 2 percent in other assets.

Fundamentally, the portfolio remains well-positioned and broadly diversified. The private portfolio companies are progressing well, with some expected to soon reach the next step through an IPO or strategic transaction, encouraging HBM Healthcare and its shareholders.

Following a significant loss in the previous period, the investment company presented an almost balanced result for the fiscal year 2023/2024.