Hbm Healthcare Investments Ag Temp · SIX:HBMNE
Hbm Healthcare Investments Ag Temp — HBM Healthcare Investments — Investor Presentation (June 2023)
55 slides from Hbm Healthcare Investments Ag Temp's investor presentation, June 2023
Slide 1: HBM Healthcare Investments
HBM Healthcare Investments U N IQUE IN VE ST M E NTS IN P RIVA T E A N D L IST E D L IF E SCIE N CE S CO M P A NIE S J UNE 2 0 2 3
Slide 2: About HBM Healthcare Investments
About HBM Healthcare Investments 2
Slide 3: Profile
HBM Healthcare Investments Profile Swiss investment company with $2.1 billion assets holding a global portfolio of emerging life sciences companies Unique Investments Portfolio Expertise Swiss-based, permanent focusing on growth companies Dedicated investment capital, healthcare- companies in the bi
Slide 4: At a Glance
HBM Healthcare Investments At a Glance Registered Shares (CHF) Performance (CHF) 5Y 10Y Total assets 1’905 million Net return Return Return (including Net assets (NAV) 1’729 million distribution) 2023 2022 2021 2020 p.a. p.a. Market capitalisation 1’413 million NAV -2.0% -21.7% 19.0% 36.7% 11.2% 16.
Slide 5: Indexed Performance Over 10 Years
HBM Healthcare Investments Indexed Performance Over 10 Years 550 10Y Performance* 500 450 413.3%, 17.8% p.a. 359.3%, 16.5% p.a. 400 144.1%, 9.3% p.a. 118.2%, 8.1% p.a. 350 117.3%, 8.1% p.a. * Total return, distributions reinvested 300 250 200 150 100 50 0 May-13 May-14 May-15 May-16 May-17 May-18 Ma
Slide 6: Portfolio Highlights Over the last 3 Years
HBM Healthcare Investments Portfolio Highlights Over the last 3 Years > 25 new private investments >20 IPOs 12 Trade sales Positive clinical data 7 market approvals Upcoming catalysts in 2023 Data as of 31 May 2023 6
Slide 7: Proven Track Record of more than 60 Trade Sales and IPOs in 10 Years
HBM Healthcare Proven Track Record Investments of more than 60 Trade Sales and IPOs in 10 Years $4.1 billion $192 million $95 million $11.6 billion $100 million $168 million $260 million $145 million $120 million $159 million Acquisition IPO on IPO on Acquisition IPO on IPO on IPO on IPO on IPO on I
Slide 8: Investment Strategy
HBM Healthcare Investments Investment Strategy − Investment focus on companies with innovative platforms and drug Innovation candidates Private and − Portfolio of private and small-cap public companies (generally market Public capitalisation below USD 2 bn) − Investments typically first made in a ve
Slide 9: Investment Approach
HBM Healthcare Investments Investment Approach Investment Approach − Fundamental long with private and public healthcare Bellwethers investments − Bottom-up selection of investments with solid long- Emerging Leaders term growth potential Investments in Listed − Diversified portfolio approach Potenti
Slide 10: Private Equity Investment Process
HBM Healthcare Investments Private Equity Investment Process Personal contacts, Investment Other Direct industry network banks VCs Deal Flow (>700 deals p.a., 45% USA/Canada, 40% Western Europe, 15% RoW)* Initial Due Diligence (~200 deals p.a.) Comprehensive Due Diligence (~25 deals p.a.) Investment
Slide 11: Public Equity Investment Process
HBM Healthcare Investments Public Equity Investment Process Idea Generation − Universe of 750+ companies − Tracking of healthcare trends incl. Idea conference attendances and close Due Diligence relationship to experts and − Fundamental qualitative and executives quantitative analysis − Company pre-
Slide 12: Deal Sourcing of Private Equity Investments
HBM Healthcare Investments Deal Sourcing of Private Equity Investments HBM as Lead Investor Backed team Other VCs or BoD relationship Relationship with Direct sourcing / Strategic fund previously founder/ HNWI / Family investments management Offices Investments > CHF 5 million; data as of 31 March 2
Slide 13: Healthcare Sector
Healthcare Sector 13
Slide 14: Attractive Growth Sector with Strong Fundamentals and Drivers
HBM Healthcare Attractive Growth Sector Investments with Strong Fundamentals and Drivers Biotech Outperformed the Market Over Short & Long Term − Healthcare sector’s fundamentals remain intact and are 6400 NASDAQ Biotechnology Index: +2326% (12% p.a.) supportive for further outperformance MSCI World
Slide 15: Healthcare Sector Looks a Lot Different Today
HBM Healthcare Investments Healthcare Sector Looks a Lot Different Today It is not all about pharma 2001 2011 2021 Market cap: $2’022 billion Market cap: $2’351 billion Market cap: $7’788 billion 3% 9% 1% 12% 12% 7% 5% 38% 12% 16% 8% 65% 79% 21% 12% Pharmaceuticals Biotechnology Healthcare equipment
Slide 16: Over 6'500 Clinical Programs Worldwide
HBM Healthcare Investments Over 6’500 Clinical Programs Worldwide Over 6’500 clinical programs worldwide and 70 percent originate from Biotech Number of clinical programs Oncology 1'563 Biotech 4'763 Neurology 491 Infectious Disease 330 Immunology 364 Pharma 1'916 All Others 1'611 0 2’000 4’000 0 80
Slide 17: Steady Flow of New Investment Opportunities
HBM Healthcare Investments Steady Flow of New Investment Opportunities Global venture investments into biotech Biotech IPOs on western exchanges 30 514 700 16 120 102 573 483 14 600 97 76 25 548 543 100 512 528 381 12 500 78 20 493 80 10 68 400 15 8 55 60 28.5 50 14.5 300 45 22.6 6 12.7 21.7 10 40 1
Slide 18: Biotech Drugs Become Market Leaders
HBM Healthcare Investments Biotech Drugs Become Market Leaders By 2026 biotech drugs will account for more than half the 100 top selling medicines 90% 81% 79% 79% 78% Technology % of Prescription & OTC Sales 80% 76% 75% 73% 71% 70% 70% % of sales of top 66% 66% 66% 65% 64% 100 drugs: 2012 63% % of t
Slide 19: Treatment Modalities – Today and Tomorrow
HBM Healthcare Investments Treatment Modalities – Today and Tomorrow «Advanced cell therapies» (CAR-Ts, TILs; stem cells; various other cell types) Gene therapy «RNA therapeutics» (ASOs, RNAi, mRNA, Gene editing rSMs) Next-Generation Small Molecules Antibodies: fragments, bispecifics, ADCs etc. Matu
Slide 20: Pharma and Biotech M&A Activity
HBM Healthcare Investments Pharma and Biotech M&A Activity On average 50% premium over stock price before acquisition ▪ Allergan / Actavis ▪ Celgene / Bristol Deal-Volume in $ bn ▪ Forest / Actavis Myers Squibb ▪ Cubist / Merck & Co ▪ Allergan / AbbVie 300 ▪ Intermune / Roche ▪ Array / Pfizer ▪ Iden
Slide 21: Annual New Drug Approvals
HBM Healthcare Investments Annual New Drug Approvals Number of New Drug Approvals and Applications at the US FDA 70 64 65 Average: 33 60 57 53 50 51 50 45 43 43 41 41 41 41 38 38 40 36 35 36 36 35 32 34 30 28 30 26 26 26 59 53 22 23 53 26 48 50 45 46 20 39 39 41 35 36 37 29 30 27 30 27 25 24 24 26 1
Slide 22: Investment Portfolio
Investment Portfolio 22
Slide 23: A Global Portfolio
HBM Healthcare Investments A Global Portfolio BioInvent Insmed Y-mabs Zymeworks Odyssey Argenx Seagen Mineralys ValoHealth Monte Rosa Swixx BioPharma Biomea NiKang Harmony Biosciences Numab DrenBio ConnectRN Rocket Beigene Neurelis Pacira Natera Cathay Fangzhou (Jianke) Nuance Travere Tata 1mg SAI L
Slide 24: Asset Allocation
HBM Healthcare Investments Asset Allocation In CHF million Cash, net 12%; 232 Public Equity 17%; 335 Public from Private Equity 26%; 512 Private Equity 35%; 672 Private Equity Funds 9%; 174 Other Assets 1%; 29 Other Liabilities -1%; -32 Financial Debt -8%; -149 -400 -200 0 200 400 600 800 Data as of
Slide 25: Diversified Investment Portfolio
HBM Healthcare Investments Diversified Investment Portfolio Monte Rosa Therapeutics 0.5% Biomea Fusion 0.5% Investment Portfolio in % Insmed 0.6% Zymeworks Total Assets 0.6% BioInvent 0.7% Natera 0.8% Y-mAbs Therapeutics 0.8% Valo Health 0.8% Odyssey Therapeutics 0.8% SAI Life Sciences 0.8% Pacira B
Slide 26: Portfolio Breakdown by Market Cap, Geography and Currency
HBM Healthcare Portfolio Breakdown Investments by Market Cap, Geography and Currency Market Capitalisation Geography Currency > CHF 10 billion 4% Others 4% INR Europe 4% CHF 19% 5% CHF 2-10 Asia billion 35% EUR 30% 11% < CHF 2 USD billion 59% CNY 17% 67% North and South America 46% Data as of 31 Mar
Slide 27: Portfolio Breakdown by Sector, Therapy and Development Stage
HBM Healthcare Portfolio Breakdown Investments by Sector, Therapy and Development Stage Sector Breakdown Therapeutic Area Development Stage Specialty Pharma Medtech / 2% Diagnostics Pre-Clinical 7% Orphan Medical Devices & 6% diseases Diagnostics 6% 6% Immunology / Phase I Inflammation 7% 6% Others
Slide 28: Development of Asset Allocation
HBM Healthcare Investments Development of Asset Allocation 2’600 2’200 1’800 12% 1% 9% 1’400 35% 1’000 600 26% 200 17% -8% -200 -1% 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 Public Equity Public from Private Equity Private companies Private Funds
Slide 29: Development Stage of Lead Product
HBM Healthcare Investments Development Stage of Lead Product 100% 7% 7% 80% 13% 5% 60% 40% 68% 20% 0% 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 Product(s) on the market and/or profitable Phase III Phase II Phase I Preclinical Data as of the end of
Slide 30: Portfolio by Development Stage of Lead Asset
HBM Healthcare Investments Portfolio by Development Stage of Lead Asset Well balanced portfolio from a risk perspective HBM book value in CHF m 110 340 330 100 Public Equity Public from Private Equity 320 90 Private Equity 80 160 70 150 60 50 40 30 20 10 0 Phase I / Preclinical Phase II Phase III Ma
Slide 31: Largest Investments (1/2)
HBM Healthcare Investments Largest Investments (1/2) Market Book % of Company Capitalisation Owner- Value Total Company Core Business Stage Ticker (CHF m) ship (%) (CHF m) Assets Synthetic biology (long chain Profitable 688065 CH 4’791 7.1 333.01) 17.0 diacids, carbohydrates, special (ex private) en
Slide 32: Largest Investments (2/2)
HBM Healthcare Investments Largest Investments (2/2) Market Book % of Company Capitalisation Owner- Value Total Company Core Business Stage Ticker (CHF m) ship (%) (CHF m) Assets Developing therapies for the Phase II MLYS 586 7.1 41.6 2.1 treatment of uncontrolled and (ex private) resistant hyperten
Slide 33: Largest Private Equity Investments
HBM Healthcare Investments Largest Private Equity Investments 164 Swixx BioPharma 48 ConnectRN − Full representation service in Central and Eastern Europe (CEE) − Tech-enabled platform providing online community and work − Profitable company with net sales exceeded EUR 700 million in opportunities t
Slide 34: Largest Public Equity Investments
HBM Healthcare Investments Largest Public Equity Investments 333 Cathay Biotech1) 37 Argenx − Synthetic biology company: long-chain dicarboxylic acids / bio- − Drugs for autoimmune diseases – lead drug market approved based diamine 5 & bio-based polyamide / polyesteramide. VYVGART for the treatment
Slide 35: 2022 M&As in the HBM Portfolio – Ex Private
HBM Healthcare Investments 2022 M&As in the HBM Portfolio – Ex Private Share Price in USD # shares held (in ‘000) 150 1.4 125 1.2 1.0 100 Oral migraine treatment 0.8 About to be acquired by Pfizer for $11.6 billion ($148.50 per share) 75 0.6 Multiple: 2.4x 50 0.4 (incl. Bioshin private investment) 2
Slide 36: 2022 M&As in the HBM Portfolio – Public
HBM Healthcare Investments 2022 M&As in the HBM Portfolio – Public Share Price in USD # shares held (in ‘000) Share Price in USD # shares held (in ‘000) 75 1.0 60 0.8 0.9 50 Multiple: 2.2x 0.7 0.8 Invested: $18.4 million 0.6 0.7 50 40 0.6 0.5 0.5 30 0.4 0.4 0.3 25 20 Multiple: 1.9x 0.3 0.2 0.2 Inves
Slide 37: Winners During Turbulent Times
HBM Healthcare Investments Winners During Turbulent Times Share Price in USD # shares held (in million) Share Price in USD # shares held (in ‘000) 70 5.0 450 4.5 500 400 60 Multiple: 4.9x 4.0 350 Invested: $40.3 million 400 50 3.5 (thereof $36.4 million private) 300 3.0 40 250 300 2.5 Multiple: 5.0x
Slide 38: Strategic Fund Investments
HBM Healthcare Investments Strategic Fund Investments Sector Focus (Early Stage Genomics and Medical Devices) Geographic Focus (China and India) HBM Genomics 6 Dimension Capital Vintage: 2018 | Commitment: $25 m | TVPI 1.9x | Ownership: 5% Vintage: 2015 | Commitment: $22 m | TVPI 2.0x | Ownership: 1
Slide 39: Latest IPOs from Private Equity Portfolio
HBM Healthcare Investments Latest IPOs from Private Equity Portfolio $ Amount Invested Multiple to IPO $ Amount Post IPO Performance Company Year of IPO Private Price Invested at IPO (until end of Period or Sale) Mineralys Therapeutics 2023 19.0 2.45x 0.3 -10% Acrivon Therapeutics 2022 8.0 0.89x 0.0
Slide 40: Contribution to Net Asset Value
HBM Healthcare Investments Contribution to Net Asset Value Private and Ex Private Equity Positions Account for a Majority of Contribution NAV change per year 70% 60% 1% 19% 50% 15% 40% 1% 30% 12% 1% 44% 2% 46% 20% 7% 2% 10% 17% 13% 21% 14% 16% 7% 4% 1% 0% 3% -3% -3% -4% -3% -4% -2% -5% -7% -2% -4% -
Slide 41: Case Study Cathay Biotech
Case Study Company Profile − Cathay was founded in 2000 and engages in the research, development, Cathay Biotech production and sales of new bio-based materials based on synthethic biology and other technologies utilising bio-manufacturing technology Investment Rationale − Cathay is the leading supp
Slide 42: Case Study Swixx BioPharma
Case Study Company Profile − Swixx BioPharma is designed to replace biopharma, OTC and medical device Swixx BioPharma multinationals’ subsidiaries or business units in those countries, or therapeutic areas of Central and Eastern Europe (CEE) and Russia, that the multinational chooses not to enter, o
Slide 43: Case Study Harmony Biosciences
Case Study Company Profile − U.S. commercial-stage company focusing on innovative therapies for people Harmony living with rare neurological disorders. Lead asset WakixTM is a safe, tolerable and innovative drug to treat excessive daytime sleepiness Biosciences Investment Rationale − Unmet medical n
Slide 44: Case Study Neurelis
Case Study Company Profile − Specialty pharma company focusing on the development of product Neurelis candidates for the broader central nervous system (CNS), including epilepsy and psychiatry; lead product is Diazepam nasal spray (NRL-for use in breakthrough epilepsy seizures). Investment Rationale
Slide 45: Healthcare Market Outlook
HBM Healthcare Investments Healthcare Market Outlook The market is well positioned for further upside given attractive relative valuations, which could be complemented by an acceleration in M&A activity Tailwinds Headwinds − A new cycle of major biotech innovation and − Macropolitical uncertainties
Slide 46: Expected Catalysts for 2023
HBM Healthcare Investments Expected Catalysts for 2023 Phase I Phase II Phase III Approval Efgartigimod SC: ADHERE BI-1808: Phase I Aficamten: Phase III MCLA-129: Phase I dose Lirentelimab: Phase II data Pitolisant: Proof-of-concept phase III results, chronic Brukinsa: US Approval, combination study
Slide 47: Reasons to Invest
HBM Healthcare Investments Reasons to Invest − Access to a well-diversified portfolio of private and listed healthcare companies with value increasing potential − Experienced investment team with specialized sector expertise and proven 1. Investment in the track record innovation and the growth of t
Slide 48: Appendix
Appendix 48
Slide 49: Investor Informationen
HBM Healthcare Investments Investor Informationen Share Information Largest shareholders Swiss security number 1.262.725 % Shareholder Notification German security number 984345 15-20 Nogra SA, Luxemburg 9.11.2016 ISIN CH0012627250 CUSIP H 3553X112 Distribution policy Telekurs 126,126272 Withholding
Slide 50: Board of Directors
HBM Healthcare Investments Board of Directors Hans Peter Hasler (2009) Mario G. Giuliani (2012) Dr Elaine V. Jones (2021) Chairman Member Member Swiss Federal Commercial Diploma. Economist. Executive positions and Ph.D. in Microbiology. Formerly various Various international management directorships
Slide 51: Management
HBM Healthcare Investments Management Dr Andreas Wicki (2001) Erwin Troxler (2005) Jean-Marc Lesieur (2001) CEO CFO Managing Director HBM Cayman Economist and Swiss Certified Associate of the Chartered Institute of Doctorate in chemistry and Accountant. Bankers (ACIB trustee), a member of the bioche
Slide 52: Private Equity Team
HBM Healthcare Investments Private Equity Team Dr Alexander Asam, MBA (2007) Dr Priyanka Belawat (2007) Dr Emil Bujak, CFA (2015) Investment Advisor Investment Advisor Investment Advisor MBA from ASTON Business School, PhD in molecular biology and genetics from PhD and MSc in Medicinal and Industria
Slide 53: Public Equity Team
HBM Healthcare Investments Public Equity Team Steve Chen, CFA (2019) Miranda Guo (2020) Mirjam Heeb (2019) Investment Advisor (Hong Kong) Investment Advisor (Hong Kong) Investment Advisor MBA from Wharton Business School, MSc MSc in Biomedical Engineering from the MSc in Molecular Biology from the i
Slide 54: Disclaimer
HBM Healthcare Investments Disclaimer Marketing Communication This document constitutes marketing material and is intended to be for information purposes only. The material is not intended as an offer or solicitation for the purchase or sale of any financial instrument and should therefore not be re
Slide 55: Contact Information
HBM Healthcare Investments Contact Information HBM Healthcare Investments Ltd Bundesplatz 1 6301 Zug Switzerland Phone +41 41 710 75 77 Fax +41 41 710 75 78 investor.relations@hbmhealthcare.com www.hbmhealthcare.com 55
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