Hbm Healthcare Investments Ag Temp · SIX:HBMNE
Hbm Healthcare Investments Ag Temp — HBM Healthcare Investments — Investor Presentation (October 2024)
58 slides from Hbm Healthcare Investments Ag Temp's investor presentation, October 2024
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 ISTED L IF E SCIENCES COM PA NIES O CT O BE R 2 0 2 4
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 1’783 million Net return Return Return (including Net assets (NAV) 1’664 million distribution) 2024 2023 2022 2021 p.a. p.a. Market capitalisation 1’318 million NAV 11.9% -8.3% -21.7% 19.0% 7.9% 11.3
Slide 5: Indexed Performance Over 10 Years
HBM Healthcare Investments Indexed Performance Over 10 Years 550 10Y Performance* 500 450 239.9%, 13.0% p.a. 190.8%, 11.3% p.a. 400 131.0%, 8.7% p.a. 108.7%, 7.6% p.a. 350 56.5%, 4.6% p.a. * Total return, distributions reinvested 300 250 200 150 100 50 0 Sep-14 Sep-15 Sep-16 Sep-17 Sep-18 Sep-19 Sep
Slide 6: Portfolio Highlights Over the last Years
HBM Healthcare Investments Portfolio Highlights Over the last Years Mineralys Therapeutics Closes $40 Million Series A Funding > 25 new private investments >20 IPOs 13 Trade sales Positive clinical data 7 market approvals Upcoming catalysts in 2024/25 Data as of 30 September 2024 6
Slide 7: Proven Track Record of more than 65 Trade Sales and IPOs in 10 Years
HBM Healthcare Proven Track Record Investments of more than 65 Trade Sales and IPOs in 10 Years HKD 195 $1.3 billion $4.1 billion $210 million $175 million $192 million $95 million $11.6 billion $100 million $168 million million Acquisition Acquisition IPO on IPO on IPO on IPO on Acquisition IPO on
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 # companies >700* ~200 ~25 10-15 per annum Investment Comprehensive Investment Deal Sourcing Initial Due Diligence Recommendation / Due Diligence Monitoring / Exit Decision • Appraisal of scientific, Monitoring activities • Company and • D
Slide 11: Public Equity Investment Process
HBM Healthcare Investments Public Equity Investment Process Idea Generation − Appraisal of scientific, technological, regulatory and political trends Due Diligence − Universe of >1,500 healthcare companies (approx. 15% are − Scientific and clinical review: Survey of scientific Idea covered by stock
Slide 12: Deal Sourcing of Private Equity Investments
HBM Healthcare Investments Deal Sourcing of Private Equity Investments HBM as Lead Investor Mineralys Therapeutics Closes $40 Million Series A Funding Backed team Other VCs or BoD relationship Relationship with Direct sourcing / Strategic fund previously founder/ HNWI / Family investments management
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: +2740% (12% p.a.) supportive for further outperformance MSCI World
Slide 15: Emerging Biotech Companies as the Backbone of Innovation
HBM Healthcare Emerging Biotech Companies as the Investments Backbone of Innovation Source of Origination for Share of R&D Pipeline by Company Type Novel Active Substances (NAS) Launched Number of NASs 100% 80 90% 70 80% 60 70% 60% 50 50% 40 40% 30 30% 20 20% 10% 10 0% 0 2001 2003 2005 2007 2009 201
Slide 16: New and Changing Treatment Modalities - Today and Tomorrow
HBM Healthcare New and Changing Treatment Modalities - Investments 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, bispecific
Slide 17: Vivid Environment with High M&A Premiums
HBM Healthcare Investments Vivid Environment with High M&A Premiums 2023/24 Acquisitions 2022 Acquisitions Company Company Date Acquirer Price Premium* Date Acquirer Price Premium* acquired acquired 8.7.24 $3,200m 79% 12.12.22 $27,800m 20% 29.4.24 $2,400m 75% 21.11.22 $1,350m 107% 10.4.24 $4,900m 67
Slide 18: Many Pharma Patent Expiries Due to Come
HBM Healthcare Investments Many Pharma Patent Expiries Due to Come 2023 2024 2025 2026 2027 2028 Product Product Product Product Product Product Company Company Company Company Company Company ('22 sales) ('23 sales) ('24 sales) ('25 sales) ('26 sales) ('27 sales) Humira ($21bn) Eylea ($10bn) Soliri
Slide 19: With so Much Firepower, M&A Likely to Continue
HBM Healthcare Investments With so Much Firepower, M&A Likely to Continue Pharma capacity available Cash, debt or capacity in $bn 90 Post $4bn Daiichi upfront Additional Debt 80 $76 Cash $73 Post $7bn TL1A & $2.7bn Carmot 70 Post $4.1bn RYZB, $65 Post $10bn IMGN $14bn KRTX Post €2.7bn MOR & $8.7bn C
Slide 20: Good Environment for Revisiting Healthcare/Biotech
HBM Healthcare Good Environment for Revisiting Investments Healthcare/Biotech Positive returns for healthcare/biotech during Reacceleration in public biotech financings rate-cutting cycles 60 $55.2 Follow-on Sector 1M 3M 6M 12M Convertible Biotechnology 5.3% 6.7% 11.9% 16.1% 50 7.1 PIPE Information
Slide 21: Investment Portfolio
Investment Portfolio 21
Slide 22: A Global Portfolio
HBM Healthcare Investments A Global Portfolio Vicore ArriVent Biopharma BioInvent Zymeworks Valo Health Biohaven Merus Odyssey Y-mabs Argenx Mineralys Upstream Bio Swixx BioPharma ALX Oncology NiKang Harmony Biosciences Numab Rocket Pharmaceuticals DrenBio Travere ConnectRN Beigene Neurelis Cathay N
Slide 23: Asset Allocation
HBM Healthcare Investments Asset Allocation in CHF million Cash, net 7%; 119 Public Equity 24%; 421 Public from Private Equity 25%; 444 Private Equity 32%; 577 Private Equity Funds 9%; 161 Other Assets 3%; 61 Other Liabilities -1%; -20 Financial Debt -6%; -99 -400 -200 0 200 400 600 800 Data as of 3
Slide 24: Diversified Investment Portfolio
HBM Healthcare Investments Diversified Investment Portfolio Sai Life Sciences 0.8% Valo Health 0.8% Nuance Biotech 0.9% Asset Allocation Travere Therapeutics 1.0% in % total assets Zymeworks 1.0% Tata 1mg 1.0% Other Assets; 3% Dren Bio 1.1% ConnectRN 1.1% Beigene 1.1% BioInvent 1.2% Cash; 7% NiKang
Slide 25: 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 6% Others CHF* 7% 3% Europe INR CHF 2-10 Asia 23% billion 30% 5% 21% CNY 12% USD* < CHF 2 59% billion EUR 14% 73% America 47% Data as of 30 September 2024, i
Slide 26: 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 Medtech / Medical Devices & Pre-Clinical 3% Diagnostics Diagnostics 5% 5% Orphan Phase I diseases 5% 7% Others 27% Digital health 8% Phase II Profitable Digital
Slide 27: Development of Asset Allocation
HBM Healthcare Investments Development of Asset Allocation 3’200 Public Equity Public from Private Equity Private companies Private Funds 2’800 Other assets Cash Financial Liabilities Other liabilities 306.4 CHFm 2’400 Cum. Dividend Cum. Share Buy-Back 2’000 520.8 CHFm 11% 1’600 2% 10% 1’200 35% 800
Slide 28: Development Stage of Lead Product
HBM Healthcare Investments Development Stage of Lead Product 100% 8% 9% 80% 16% 4% 60% 40% 63% 20% 0% 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 Product(s) on the market and/or profitable Phase III Phase II Phase I Preclinical Data as of the end of each
Slide 29: 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 210 110 200 100 Public Equity Public from Private Equity 90 Private Equity 80 70 60 50 40 30 20 10 0 Phase I / Preclinical Phase II Phase III Market Profita
Slide 30: 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 3’339 6.1 204.01) 11.4 diacids, carbohydrates, special (ex private) en
Slide 31: 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 Development of drugs for Phase III BHVN 4’016 0.9 37.8 2.1 treatment of neurological disorders based on Kv7 ion channel m
Slide 32: Largest Private Equity Investments
HBM Healthcare Investments Largest Private Equity Investments 201 Swixx BioPharma 21 NiKang Therapeutics − Full representation services for pharma/biotech in CEE, Eurasia, − Developing small molecules for oncology capitalizing on Latam and MENA structure-based drug design. NKT2152 is a HIF2α inhibit
Slide 33: Largest Public Equity Investments
HBM Healthcare Investments Largest Public Equity Investments 204 Cathay Biotech 45 Fangzhou (Jianke) − Synthetic biology company: long-chain dicarboxylic acids / bio- − China’s leading B2C SmartCare service platform for chronic based diamine 5 & bio-based polyamide / polyesteramide diseases manageme
Slide 34: Return Generation by M&As from Public Portfolio
HBM Healthcare Investments Return Generation by M&As from Public Portfolio Share price in USD Number of shares (in 000’) Share price in USD Number of shares (in 000’) 40 2’000 250 16 Multiple: 2.0x Multiple: 1.6x 14 Invested: CHF 15.6 million 200 Invested: CHF 8.3 million 30 1’500 12 10 150 20 1’000
Slide 35: M&As from Public Portfolio Companies
HBM Healthcare Investments M&As from Public Portfolio Companies Share price in USD Number of shares (in 000’) Share price in USD Number of shares (in 000’) 40 1’000 45 800 Multiple: 1.9x Multiple: 1.3x 700 Invested: CHF 8.8 million Invested: CHF 20.8 million 30 600 30 500 20 500 400 300 15 10 200 10
Slide 36: 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 1.8x | Ownership: 5% Vintage: 2015 | Commitment: $22 m | TVPI 2.0x | Ownership: 1
Slide 37: 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) Alumis 2024 5.0 1.10x 15.0 -21% Arrivent Biopharma 2024 12.0 1.10x 6.8 49% Mineralys Th
Slide 38: 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) Fangzhou (Jianke) 2024 20.0 1.00x 0.0 -23% Alumis 2024 5.0 1.10x 15.0 -35% Arrivent Bio
Slide 39: 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% 50% 40% 30% 20% 10% 1.5% 6.6% 0% -5.9% -0.5% -10% -1.4% -20% 13/14 14/15 15/16 16/17 17/18 18/19 19/20 20/21 21/22 22/23 23/24 Private
Slide 40: Case Studies HBM Portfolio Companies
Case Studies HBM Portfolio Companies 40
Slide 41: Swixx BioPharma Case Study
Company Profile − Swixx BioPharma is representing small and mid-sized biopharma and established pharmaceutical companies in those regions and countries where such firms choose not to enter, or plan to exit. Swixx Biopharma has a very strong position in Central and Eastern Europe (CEE) and Eurasia an
Slide 42: Numab Case Study
Company Profile − Discovery and development platform company for multi-specific antibody-based immunotherapies for inflammation and cancer. Based in Horgen (Zurich/Switzerland). − Founded by a team of Swiss scientists - many ex-Esbatech (HBM investment acquired by Alcon/Novartis for up to $589 milli
Slide 43: Merus Case Study
Company Profile − Merus is a public, clinical-stage biopharmaceutical company developing novel therapies for the treatment of cancer Investment Rationale - Market cap: $3.4 billion (listed on US − Lead program petosemtamab is a bispecific targeting EGFR and LGR5 in 1L and 2L head & neck cancer has s
Slide 44: Upstream Bio Case Study
Company Profile − Upstream Bio is a private, clinical-stage biopharmaceutical company developing novel therapies for the treatment of asthma and related diseases - Invested: USD 30.0 million for 6.4% Investment Rationale ownership − Inflammation and immunology spans a number of overlapping indicatio
Slide 45: Arrivent Biopharma Case Study
Company Profile − Arrivent Bio is a public, clinical-stage biopharmaceutical company developing novel therapies for the treatment of lung cancer - Invested before IPO: USD 12.0 million for Investment Rationale 3.0% ownership; invested additional USD 6.8 − Exon 20 and atypical mutation EGFR mutated N
Slide 46: Case Study Mineralys Therapeutics
Case Study Company Profile − Mineralys Therapeutics is a private, clinical-stage biopharmaceutical company Mineralys developing novel therapies for the treatment of hypertension and related diseases such as chronic kidney disease Therapeutics Investment Rationale − Lack of innovation in the area of
Slide 47: Healthcare & Biopharma Market Outlook
HBM Healthcare Investments Healthcare & Biopharma Market Outlook Selling pressure in the biopharma sector has notably eased, indicating a more stable market environment and a potential opportunity for investors to reconsider biotech investments Tailwinds Headwinds − A new cycle of major biotech inno
Slide 48: Expected Catalysts for 2024/25
HBM Healthcare Investments Expected Catalysts for 2024/25 Phase I Phase II Phase III Approval EYP-1901: Non- Zenocutuzumab MCLA- Furmonertinib: Proof-of- Evorpacept: Results from Troriluzole: top-line data, CRB-701: US dose phase I proliferative diabetic Obefazimod, phase III 128 (HER2 x HER3) FDA c
Slide 49: Main Catalysts for HBM Public Portfolio Co's
HBM Healthcare Investments Main Catalysts for HBM Public Portfolio Co’s Company Therapeutic area Phase Description of catalyst Oncology II Results from full enrollment in phase II ASPEN-06 in gastric cancer Oncology Ib Furmonertinib: proof-of-concept data in PACC EGFRm, non-small cell lung cancer Ne
Slide 50: 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 51: Appendix
Appendix 51
Slide 52: Investor Information
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 53: 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 54: 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 55: 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 Advisor to HBM Partners MBA from ASTON Business School, PhD in molecular biology and genetics from PhD and MSc in Medicinal and Indu
Slide 56: Public Equity Team
HBM Healthcare Investments Public Equity Team Miranda Guo (2020) Mirjam Heeb (2019) Thomas Heimann (2010) Investment Advisor (Hong Kong) Investment Advisor Head Operations & Investment MSc in Biomedical Engineering from the MSc in Molecular Biology from the Solutions Chinese University of HongKong.
Slide 57: 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 58: 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 58
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