BB Biotech reported a net loss of 241 million francs for the first quarter of 2025. In the same period last year, the company had posted a profit of 260 million francs.

The Net Asset Value (NAV) declined by 10,8 percent in francs and by 12.3 percent in euros during the first quarter, according to a statement released on Friday. Including the dividend payout of 1.80 francs per share made in March, the total return amounts to -8,8 percent in Swiss francs and -10,3 percent in euros. The share price at the end of the quarter was about 14 percent below the NAV—roughly at the level of late 2024, the statement continues.

Pharma Valuations Under Pressure

The quarter was marked by heightened market volatility and increasing macroeconomic uncertainty, triggered by geopolitical developments and trade tensions. Valuations in the biotechnology sector—especially among small- and mid-cap companies—remained under pressure, the company reports.

It further stated that the portfolio focus was sharpened amid ongoing volatility. The company continues to invest selectively in biotech firms with solid fundamentals. The quality of these investments is expected to pay off in the medium to long term.

Number of Holdings Declined

Holdings in several companies were sold. Overall, the number of portfolio companies was reduced to 23. The focus now lies on larger firms with a market capitalization of more than 1 billion dollars. Small molecules—chemically manufactured drugs—play a central role and account for about half of the portfolio. New positions were also initiated, including in Akero Therapeutics.

Direct dependence on international trade risks or the political situation in the U.S. is considered limited. Many portfolio companies produce locally or offer niche medications, such as treatments for rare diseases. These areas are characterized by strong pricing power and lean cost structures.

FDA Under Pressure

At the regulatory level, concerns remain regarding the independence of the FDA from the overarching Department of Health and Human Services (HHS). Additionally, there is growing concern that political influence is increasingly replacing evidence-based decision-making. Challenges such as resource shortages are also cited.

«Particularly concerning are recent statements by U.S. Health Secretary Robert F. Kennedy—including doubts about the safety of vaccines, skepticism regarding the proximity between industry and regulatory bodies, and reservations about potential financial conflicts of interest related to so-called user fees,» the investment firm writes.

Some companies in early development stages report decreasing transparency and weaker coordination with the FDA.