BB Biotech : Interim report as at September 30, 2025

About this update from Bb Biotech Ag

BB Biotech Belevue Heathcae Investments Interim Report as at 30.09.2025 Table of contents Business Report 3-13 Performance/Multi-year comparison 3 Shareholder letter 7 Portfolio at a glance 13 Financial Report 14-25 Consolidated interim financial statements 14 Selected explanatory notes to the consolidated interim financial statements 18 Report of the statutory auditors 25 About us 26-36 Company profile 26 Investment strategy 27 Investment process 29 Board of Directors 31 Investment Manager 31 Shareholder information 32 Facts & figures 33 Corporate calendar 34 Contact 35 Performance/Multi-year comparison Indexed performance since launch BB Biotech AG (SIX)-CHF 0 NAV CHF indexed Share Price CHF indexed Nasdaq Biotech Index (NBI) TR indexed Rolling performance Annual performance SHARE NAV NBI TR SHARE NAV NBI TR 30.09.2024 - 30.09.2025 5.3% 7.9% (2.9%) 2024 (13.5%) 3.0% 7.6% 30.09.2023 - 30.09.2024 (8.1%) 5.2% 12.3% 2023 (18.1%) (7.4%) (4.8%) 30.09.2022 - 30.09.2023 (17.1%) (12.8%) (1.7%) 2022 (24.3%) (11.0%) (9.1%) 30.09.2021 - 30.09.2022 (33.7%) (22.7%) (21.3%) 2021 8.3% (11.5%) 3.0% 30.09.2020 - 30.09.2021 31.1% 24.5% 21.9% 2020 19.3% 24.3% 15.8% Cumulated performance 30.09.2025 Annualized performance 30.09.2025 SHARE NAV NBI TR SHARE NAV NBI TR YTD 8.2% 5.0% (0.3%) 1 year 5.3% 7.9% (2.9%) 1 year 5.3% 7.9% (2.9%) 3 years (7.1%) (0.4%) 2.3% 3 years (19.8%) (1.1%) 7.2% 5 years (7.0%) (1.0%) 0.6% 5 years (30.3%) (4.8%) 2.9% 10 years 1.6% 1.7% 3.0% 10 years 16.8% 18.2% 33.9% since inception 1) 9.6% 10.0% 8.6% since inception 1) 1 753% 2 019% 1 290% 1 09.11.1993 1 09.11.1993 BB BIOTECH AG (XETRA)-EUR 0 NAV EUR indexed Share Price EUR indexed Nasdaq Biotech Index (NBI) TR indexed Rolling performance Annual performance SHARE NAV NBI TR SHARE NAV NBI TR 30.09.2024 - 30.09.2025 4.8% 8.5% (2.2%) 2024 (14.1%) 1.7% 6.3% 30.09.2023 - 30.09.2024 (4.7%) 8.2% 15.4% 2023 (15.2%) (1.3%) 1.3% 30.09.2022 - 30.09.2023 (17.3%) (12.9%) (2.1%) 2022 (19.0%) (6.7%) (4.5%) 30.09.2021 - 30.09.2022 (26.1%) (13.9%) (11.7%) 2021 13.3% (7.8%) 7.4% 30.09.2020 - 30.09.2021 29.6% 24.5% 21.8% 2020 18.1% 24.8% 16.1% Cumulated performance 30.09.2025 Annualized performance 30.09.2025 SHARE NAV NBI TR SHARE NAV NBI TR YTD 8.6% 5.6% 0.3% 1 year 4.8% 8.5% (2.2%) 1 year 4.8% 8.5% (2.2%) 3 years (6.2%) 0.8% 3.4% 3 years (17.4%) 2.3% 10.5% 5 years (4.6%) 1.9% 3.5% 5 years (20.8%) 9.7% 18.9% 10 years 3.0% 3.3% 4.6% 10 years 33.8% 37.8% 56.2% since inception 1) 10.7% 11.3% 10.4% since inception 1) 1 602% 1 867% 1 464% 1 10.12.1997 1 10.12.1997 Multi-year comparison 30.09.2025 2024 2023 2022 2021 Market capitalization at the end of the period (in CHF mn) 2 008.3 1 961.2 2 368.4 3 058.1 4 274.1 Net Asset Value at the end of the period (in CHF mn) 2 307.1 2 286.3 2 323.2 2 686.1 3 283.5 Number of shares (in mn) 55.4 55.4 55.4 55.4 55.4 Trading volume (in CHF mn) 698.5 974.0 906.3 1 482.0 2 101.0 Profit/(loss) (in CHF mn) 106.4 75.9 (206.6) (357.8) (404.8) Closing price at the end of the period in CHF 36.25 35.40 42.75 55.20 77.15 Closing price at the end of the period in EUR 38.50 37.45 45.50 56.70 74.05 Stock performance (incl. distributions) 1) 8.2% (13.5%) (18.1%) (24.3%) 8.3% High/low share price in CHF 40.65/25.25 49.35/35.30 60.70/35.60 78.15/51.00 92.20/73.40 High/low share price in EUR 43.00/27.15 52.00/37.45 60.50/37.10 75.40/49.60 86.20/67.80 Premium/(discount) (annual average) (12.7%) (6.6%) 7.5% 20.5% 19.5% Dividend in CHF N.A. 1.80 2.00 2.85 3.85 Degree of investment (quarterly figures) 97.4% 111.3% 113.7% 112.8% 108.6% Total Expense Ratio (TER) p.a. 2) 1.39% 1.33% 1.34% 1.27% 1.22% 1 All figures in CHF %, total return-methodology 2 Based on market capitalization Shareholder letter Dear Shareholders After a volatile first half, BB Biotech delivered a strong third quarter. Our share price and NAV outpaced the Nasdaq Biotechnology Index (NBI), while a sequence of clinical, regulatory, and M&A milestones reinforced the momentum building across the biotechnology sector. Macro conditions have turned incrementally more constructive: in September, the US Federal Reserve enacted its first rate cut of 2025, lowering the target range to 4.00-4.25% and signalling a gradual normalization of financing conditions for capital-intensive industries. Markets are now beginning to price a path toward additional easing as inflation cools, offering renewed support to innovative growth sectors such as biotechnology. Beyond cyclical relief, signs of structural improvement are emerging across the industry's long-term economics. Early signs of recovery are visible as global pharmaceutical pricing begins to adjust to new market realities, formed by tariffs and price referencing. At the same time, the sector is approaching the largest patent cliff in its history, prompting renewed strategic M&A and partnership activity. These dynamics are compressing timelines between scientific discovery and value recognition, benefiting differentiated innovators. Despite this improving backdrop, valuations remain attractive. As financing costs decline and balance sheets remain solid, the setting for a multi-year re-rating is emerging. The long-term fundamentals of biotechnology remain robust. A growing and aging population continues to drive demand for therapies addressing chronic and age-related diseases. Innovation is accelerating, with progress in RNA medicines, next-generation biologics, targeted small molecules, and other precision approaches. These advances, combined with data-driven research and AI-assisted design, are reshaping the global biomedical development and collaboration. Public research funding is being reorganized, and governments are reshaping how medicines are priced and reimbursed through tariffs, reference systems, and new industry agreements. Despite these adjustments, incentives for developing truly innovative therapies remain strong. The FDA is also refining its processes, becoming faster in some areas and more selective in others, while continuing to set the global regulatory standard. Recent initiatives such as the new National Priority Voucher program underline the agency's commitment to accelerating reviews for therapies addressing high unmet medical needs. During the recent government shutdown, the agency maintained review operations but paused new submissions, allowing ongoing evaluations to proceed largely as planned. Together, these developments point to a sector whose fundamentals are strengthening even as its valuation base resets. The signs of renewed momentum are clear: capital is returning, strategic acquirers are active, and science continues to accelerate. For BB Biotech, this environment reinforces our conviction that a disciplined, innovation-driven, and patient investment approach is the best way to capture the next phase of value creation. Importantly, our own sustainability journey also reached a new milestone: as of September 22, BB Biotech was included in the SPI ESG Index on the SIX Swiss Exchange, recognizing our long-standing commitment to responsible investing and transparent corporate governance. Strong Q3 2025 performance and encouraging momentum BB Biotech delivered a strong third quarter, marked by a convincing absolute and relative performance. Both the share price and NAV rose sharply, clearly outpacing the Nasdaq Biotechnology Index (NBI). The combination of lower interest rates, broad sector recovery, and solid operational execution across key holdings translated into a significant uplift in value. Notable NAV performance . The Net Asset Value (NAV) advanced by 24.0% in CHF and EUR and 23.5% in USD, outperforming the NBI (+15.7%) by a wide margin. The quarter closed with a net profit of CHF 448 mn, one of the strongest results in recent years and a clear reversal from the CHF 157 mn loss in Q3 2024. Strong share price recovery. BB Biotech's share price increased by 20.0% in CHF, 20.1% in EUR and 19.5% in USD, again outpacing the NBI across all currencies. Stable valuation and rising engagement. While the discount to NAV remained broadly unchanged, higher trading activity and increased investor participation signaled a clear rebound in sentiment toward the biotech sector and BB Biotech's focused portfolio. Performance Q3 2025 Q3 2024 Currency CHF EUR USD CHF EUR USD BB Biotech share price 20.0% 20.1% 19.5% -9.2% -6.7% -3.5% BB Biotech NAV 24.0% 24.0% 23.5% -6.6% -4.4% -0.6% NBI Index 15.7% 15.7% 15.6% -1.2% 1.0% 5.1% Net profit/loss 448 mn -157 mn Together, these results confirm that BB Biotech has regained clear momentum. The portfolio benefited from strong operational execution among core holdings, selective exposure to M&A activity, and the supportive macroeconomic environment following the September rate cut. With conviction positions intact and valuations still attractive, BB Biotech enters the fourth quarter from a position of strength. With conviction positions intact and valuations still attractive, BB Biotech enters the fourth quarter from a position of strength. Portfolio highlights: innovation driving progress in Q3 Q3 2025 brought a number of important milestones across our portfolio, underscoring our conviction that scientific innovation is the most enduring driver of long-term value creation. Our holdings made meaningful progress on regulatory, commercial, and clinical fronts. Some highlights include: Regulatory and commercial execution Ionis Pharmaceuticals : September was a landmark month for Ionis. The company announced positive Phase III results for Olezarsen in severe hypertriglyceridemia, confirming significant triglyceride reduction and a favorable safety profile. Later in the month, Ionis reported encouraging Phase I/II results for Zilganersen in Alexander disease, showing the first clinical evidence of disease stabilization. Together with the August FDA approval of Donidalorsen (Dawnzera) for hereditary angioedema, these achievements further cement Ionis's leadership in RNA-based medicines. Alnylam Pharmaceuticals : Strong launch momentum for Amvuttra in transthyretin amyloidosis and positive interim data from next-generation candidates supported broad franchise expansion. Argenx : Continued uptake of Vyvgart across both intravenous and subcutaneous formulations drove solid commercial growth, while regulatory submissions for additional indications advanced globally. Agios Pharmaceuticals : Progress toward the expected approval of Mitapivat in thalassemia and further clinical expansion into sickle cell disease strengthened its rare-disease positioning. Clinical breakthroughs and translational momentum Revolution Medicines : Early data for Daraxonrasib (KRAS-Multi) and Zoldonrasib (KRAS-G12D) confirmed high response rates and strong investor interest following Breakthrough Therapy designation. Scholar Rock : Preparation of a resubmission for Apitegromab following the FDA's manufacturing-related Complete Response Letter kept this potential first-in-class SMA therapy on track for 2026 launch. Vertex Pharmaceuticals : Continued post-launch strength of Journavx (VX-548) and encouraging progress in its autoimmune kidney disease programs underlined Vertex's ambition to build franchises beyond cystic fibrosis. Rivus Pharmaceuticals : Positive Phase II data in MASH confirmed the differentiation of its controlled mitochondrial uncoupling approach. Relay Therapeutics : Readiness for pivotal Phase III initiation of RLY-2608 (PI3Kα) in HR⁺/ HER2⁻ breast cancer supports its evolution into a late-stage precision-oncology company. Collectively, these achievements demonstrate how BB Biotech's conviction in scientifically differentiated, well-capitalized mid-cap innovators continues to translate into both portfolio resilience and performance. Sharpening the portfolio: active rotation and strategic focus Disciplined capital allocation and portfolio rotation remain central to our investment strategy. We continuously refine the portfolio to concentrate on companies with the most differentiated science, clear value-creation pathways, and sustainable financial strength. During the third quarter, we adjusted the portfolio from 23 to 21 holdings, keeping the investment level broadly stable at 96.6%. Exits: Moderna, Black Diamond Therapeutics and Blueprint Medicines. We fully exited our positions in Moderna, Black Diamond Therapeutics and Blueprint Medicines. Moderna's long-term vaccine outlook remains uncertain amid changing public health priorities and lower demand for COVID-related products under the current US administration. In addition, increased regulatory scrutiny and societal skepticism toward vaccines continue to weigh on sentiment, reducing the visibility of near-term catalysts. We also sold our stake in Black Diamond Therapeutics following a reassessment of its clinical competitiveness and strategic optionality. Despite progress in early oncology programs, the company faced intensifying competition and limited differentiation versus peers. These two exits freed capital for higher-conviction opportunities within the portfolio. Our position in Blueprint Medicines was closed following the completion of Sanofi's acquisition in July. New investment: Avidity Biosciences . In Q3, we initiated a position in Avidity Biosciences, a leader in antibody-oligonucleotide conjugates (AOC). The company's proprietary AOC platform combines targeted delivery with RNA-based precision, addressing key challenges in muscle and rare genetic diseases. Recent clinical progress in myotonic dystrophy (DM1) and facioscapulohumeral muscular dystrophy (FSHD) demonstrates proof of concept and underpins meaningful upside potential. Avidity's strong balance sheet and diversified partnership base further support its long-term growth profile. Selective reinvestment . Positions increased notably in Revolution Medicines, Akero Therapeutics, Scholar Rock and other mid-cap innovators, reflecting both strong share- price performance and targeted capital redeployment. The addition of Avidity Biosciences further enhanced exposure to next-generation RNA therapeutics. These portfolio adjustments reflect our commitment to maintaining a focused group of highquality innovators while reallocating capital toward the most compelling scientific and financial opportunities. By staying selective and responsive, BB Biotech remains well positioned to capture emerging value across the sector. The announced acquisition of Akero Therapeutics by Novo Nordisk in early October, shortly after the quarter's close, illustrates how strategic buyers continue to reward differentiated science. Generally the third quarter was marked by a series of major acquisitions in the biopharmaceutical industry - including transactions by Pfizer (Metsera), Roche (89bio), Genmab (Merus) and Merck (Verona Pharma), each involving multi-billion-dollar valuations. These developments highlight the continued strong interest of large pharmaceutical companies in innovative, scientifically differentiated platforms and leading biotech assets, as well as their willingness to pay substantial premiums for quality innovation. The portfolio currently sits at the lower end of our target range in terms of the number of holdings. This creates room to expand the tail with new, high-potential positions while maintaining our core convictions. With a solid cash position, an enlarged US research team providing deeper market coverage, and a broad set of attractively valued opportunities across the biotech universe, BB Biotech is well equipped to deploy capital selectively and to strengthen both the depth and diversity of its portfolio in the coming quarters. Portfolio breakdown of BB Biotech as of September 30, 2025 Advancing our strategy: executing with discipline, evolving with insight, deepening shareholder alignment The third quarter reaffirmed that sustainable long-term value in biotechnology comes from a combination of conviction, adaptability, and continuous improvement. Our strategic framework continues to rest on three key principles: High-conviction concentration: We maintain a focused portfolio of 21 companies, currently at the lower end of our 20-35 position range. This concentration allows us to back the most compelling innovation platforms with meaningful capital while keeping flexibility to expand the tail as new opportunities emerge. Our permanent capital structure enables us to act on long-term conviction - investing through volatility and capturing value as science and market sentiment realign. Q3's strong performance, driven by Ionis Pharmaceuticals, Alnylam Pharmaceuticals, Argenx, and Agios Pharmaceuticals, highlights the benefit of holding mid-cap innovators at clear clinical and commercial inflection points. Dynamic capital allocation: Our S-curve investment model continues to guide capital toward companies moving from research to commercialization, where valuation upside is promising. During the quarter, we exited Moderna and Black Diamond Therapeutics and initiated a new position in Avidity Biosciences, strengthening our exposure to next-generation RNA therapeutics. This approach keeps the portfolio agile and focused on the most attractive opportunities across therapeutic areas. Process evolution and agentic AI integration: We continue to refine our investment process through a more systematic framework for managing risk, exposure, and time horizons. A structured, gate-based approach helps maintain long-term focus while enabling tactical agility within defined conviction ranges. By progressively digitalizing our workflow, we are enhancing transparency, measurability, and analytical depth across all stages of the investment process. The ongoing integration of AI-assisted tools supports earlier identification of opportunity, clearer assessment of risk-adjusted returns, and improved decision consistency - strengthening both human and data-driven insight over time. BB Biotechʼs S-curve model Outlook: turning innovation into enduring value As we look ahead to the remainder of 2025 and into 2026, we maintain a constructive, however realistic view of the environment for biotech investing. The macroeconomic backdrop continues to improve. The Federal Reserve's first rate cut in September lowered the policy range to 4.00-4.25%, reinforcing expectations for further easing in 2026 as inflation moderates. Lower funding costs are beginning to support capital-intensive sectors such as biotechnology. Policy visibility has improved as recent developments in US healthcare legislation and the Pfizer agreement have brought greater clarity to drug pricing and trade dynamics. The debate around pharmaceutical tariffs and Most-Favored-Nation frameworks has stabilized, and the rollout of Medicare negotiations under the Inflation Reduction Act is progressing in a more predictable way. At the same time, the FDA's review activity remains consistent, providing a supportive regulatory environment for innovation. Moreover, scientific innovation is accelerating. BB Biotech's portfolio companies are advancing multiple programs with the potential to deliver value-defining catalysts over the coming quarters. Recent approvals such as Donidalorsen (Ionis) and strong late-stage data for Olezarsen highlight the strength of RNA-based medicine. Expected regulatory approvals and launches: Mitapivat (Agios Pharmaceuticals) - α/β-thalassemia Troriluzole (Biohaven) - spinocerebellar ataxia Apitegromab (Scholar Rock) - spinal muscular atrophy (resubmission expected for 2026) Pivotal data and late-stage catalysts expected for Q4 2025: Mitapivat (Agios Pharmaceuticals) - Phase III results in sickle cell disease WVE-006 (Wave Life Sciences) - Phase I/II data RNA editing in alpha-1-antitrypsin- deficiency (AATD) NBI-'770 (Neurocrine Biosciences) - Phase II results in major depressive disorder EDG-7500 (Edgewise Therapeutics) - CIRRUS-HCM Part D Phase II data in hypertrophic cardiomyopathy (HCM) INCB160058 (Incyte) - Phase I/II data for JAK2 V617F in myeloproliferative neoplasms RLY-2608 (Relay Therapeutics) - Phase I/II PI3Kα triplet data in first-line breast cancer Looking ahead, our portfolio is positioned to benefit from a series of expected milestones, including pivotal and proof-of-concept readouts across key holdings in metabolic, cardiovascular, and neurological diseases. These clinical and commercial inflection points reflect the continued shift of innovation toward specialized, well-capitalized mid-cap companies - precisely the area where BB Biotech is most active. Beyond portfolio activity, we continue to strengthen our analytical and technological foundation. The gradual rollout of AI-assisted research tools and the expansion of our US research capabilities are enhancing our ability to assess opportunity, manage risk, and communicate insights transparently with shareholders. Biotech valuations remain near historic lows, even as fundamentals improve and innovation gathers pace. This combination of attractive entry points, accelerating science, and improving capital conditions represents one of the most compelling circumstances for longterm investors in recent years. We enter the final quarter of 2025 with confidence. The convergence of breakthrough science, intelligent infrastructure, and a long-term investment horizon gives BB Biotech a clear edge in identifying and capturing enduring value for shareholders. Thank you for your continued trust and partnership. The Board of Directors of BB Biotech AG Dr. Thomas von Planta Chairman Laura Hamill Member Camilla Soenderby Member Dr. Clive Meanwell Vice-Chairman Dr. Pearl Huang Member Prof. Dr. Mads Krogsgaard Thomsen Member Portfolio at a glance Securities as at September 30, 2025 Company Number Change Local Share Market In % of In % of In % of of since currency price value securities shareholders' company securities 31.12.2024 in CHF mn equity Ionis Pharmaceuticals 6 224 838 (1 625 162) USD 65.42 324.3 14.6% 14.1% 3.9% Argenx SE 535 322 (55 678) USD 737.56 314.4 14.1% 13.6% 0.9% Revolution Medicines 5 567 000 1 192 700 USD 46.70 207.0 9.3% 9.0% 3.0% Neurocrine Biosciences 1 760 000 (60 000) USD 140.38 196.8 8.8% 8.5% 1.8% Alnylam Pharmaceuticals 438 679 (321 321) USD 456.00 159.3 7.1% 6.9% 0.3% Vertex Pharmaceuticals 457 800 (17 200) USD 391.64 142.8 6.4% 6.2% 0.2% Agios Pharmaceuticals 3 714 736 199 586 USD 40.14 118.8 5.3% 5.1% 6.4% Incyte 1 435 855 (714 145) USD 84.81 97.0 4.4% 4.2% 0.7% Scholar Rock Holding 3 237 377 750 670 USD 37.24 96.0 4.3% 4.2% 3.4% Akero Therapeutics 2 382 755 2 382 755 USD 47.48 90.1 4.0% 3.9% 3.0% Immunocore 2 796 803 1 591 339 USD 36.33 80.9 3.6% 3.5% 5.6% Avidity Biosciences 2 152 862 2 152 862 USD 43.57 74.7 3.4% 3.2% 1.6% Celldex Therapeutics 3 557 669 486 054 USD 25.87 73.3 3.3% 3.2% 5.4% Beam Therapeutics 2 889 288 1 371 167 USD 24.27 55.8 2.5% 2.4% 2.9% Rivus Pharmaceuticals 1) USD 43.4 1.9% 1.9% Edgewise Therapeutics 2 775 997 1 347 068 USD 16.22 35.9 1.6% 1.6% 2.6% Relay Therapeutics 8 343 318 968 318 USD 5.22 34.7 1.6% 1.5% 4.8% Biohaven 2 802 853 762 000 USD 15.01 33.5 1.5% 1.5% 2.6% Wave Life Sciences 4 094 458 - USD 7.32 23.9 1.1% 1.0% 2.6% Macrogenics 9 919 992 (9 971) USD 1.68 13.3 0.6% 0.6% 15.7% Annexon 5 157 290 - USD 3.05 12.5 0.6% 0.5% 4.7% Blueprint Medicines - Contingent Value Right 284 900 284 900 USD 0.46 0.1 0.0% 0.0% Total securities 2 228.5 100.0% 96.6% Other assets 82.2 3.6% Other payables (3.7) (0.2%) Net Asset Value 2 307.1 100.0% 1 Unlisted company Exchange rate as at 30.09.2025: USD/CHF: 0.7964 Consolidated balance sheet in CHF 1 000 Notes 30.09.2025 31.12.2024 Current assets 3 4 5 5 Cash and cash equivalents 81 938 458 Securities 2 228 530 2 406 881 Other assets 290 60 2 310 758 2 407 399 Total assets 2 310 758 2 407 399 Current liabilities Short-term borrowings from banks - 117 500 Payables to brokers 692 - Other short-term liabilities 2 878 3 513 Tax liabilities 88 94 3 658 121 107 Total liabilities 3 658 121 107 Shareholders' equity Share capital 11 080 11 080 Treasury shares (8 169) (39 640) Retained earnings 2 304 189 2 314 852 2 307 100 2 286 292 Total liabilities and shareholders' equity 2 310 758 2 407 399 Net asset value per share in CHF 41.85 41.75 The notes are an integral part of the condensed consolidated interim financial statements. The condensed consolidated interim financial statements were approved by the Board of Directors of BB Biotech AG on October 21, 2025. Consolidated statement of comprehensive income in CHF 1 000 Notes 01.01.-30.09.2025 01.01.-30.09.2024 01.07.-30.09.2025 01.07.-30.09.2024 Operating income 3 3 6 7 8 8 Gains from securities 133 375 44 460 454 976 - Interest income 898 32 393 - Other income 1 279 6 - 1 135 552 44 498 455 369 1 Operating expenses Losses from securities - - - (148 448) Interest expenses (55) (4 202) - (1 197) Foreign exchange losses (8 330) (51) (1 029) (41) Administrative expenses (16 629) (20 896) (5 583) (6 572) Other expenses (4 045) (3 049) (1 120) (893) (29 059) (28 198) (7 732) (157 151) Profit/(loss) before tax 106 493 16 300 447 637 (157 150) Income taxes (45) (57) (15) (19) Profit/(loss) for the period 106 448 16 243 447 622 (157 169) Total comprehensive profit/(loss) for the period 106 448 16 243 447 622 (157 169) Earnings per share in CHF 1.94 0.30 8.16 (2.87) Diluted earnings per share 1.94 0.30 8.16 (2.87) in CHF The notes are an integral part of the condensed consolidated interim financial statements. Consolidated statement of changes in equity in CHF 1 000 Share capital Treasury shares Retained earnings Total Balances at January 1, 2024 11 080 (36 508) 2 348 645 2 323 217 Dividend (CHF 2.00 per share) - - (109 692) (109 692) Trade with treasury shares - (813) - (813) Total comprehensive income for the period - - 16 243 16 243 Balances at September 30, 2024 11 080 (37 321) 2 255 196 2 228 955 Balances at January 1, 2025 11 080 (39 640) 2 314 852 2 286 292 Dividend (CHF 1.80 per share) - - (98 487) (98 487) Trade with treasury shares - 31 471 (18 624) 12 847 Total comprehensive income for the period - - 106 448 106 448 Balances at September 30, 2025 11 080 (8 169) 2 304 189 2 307 100 The notes are an integral part of the condensed consolidated interim financial statements. Consolidated statement of cash flows in CHF 1 000 Notes 01.01.-30.09.2025 01.01.-30.09.2024 Cash flows from operating activities Proceeds from sales of securities 3 722 841 390 279 Purchase of securities 3 (410 424) (218 544) 32 -(24 595) (69) 147 103 (109 692) Interest receipts 898 Other proceeds 1 279 Payments for services (21 562) Income taxes paid (27) Total cash flows from operating activities 293 005 Cash flows from financing activities Dividend (98 487) Proceeds from sales of treasury shares 5 17 884 - Purchase of treasury shares 5 (5 037) (813) Repayment of borrowings 4 (117 500) (30 600) Interest payments (55) (4 202) Total cash flows from financing activities (203 195) (145 307) Foreign exchange difference (8 330) (51) Change in cash and cash equivalents 81 480 1 745 Cash and cash equivalents at the beginning of the period 458 501 Cash and cash equivalents at the end of the period 81 938 2 246 The notes are an integral part of the condensed consolidated interim financial statements. Notes to the consolidated financial statements The Company and its principal activity BB Biotech AG (the Company) is listed on the SIX Swiss Exchange as well as in the «Prime Standard Segment» of the German Exchange and has its registered office in Schaffhausen, Schwertstrasse 6. Its principal activity is to invest in companies active in the biotechnology industry for the purpose of capital appreciation. The investments are held through its wholly owned subsidiaries. Company Capital in CHF 1 000 Capital and voting interest in % Biotech Focus N.V., Curaçao 11 100 Biotech Growth N.V., Curaçao 11 100 Biotech Invest N.V., Curaçao 11 100 Biotech Target N.V., Curaçao 11 100 Accounting policies The condensed consolidated interim financial statements of the Company and its subsidiary companies (the Group) have been prepared in accordance with International Accounting Standards (IAS) 34 «Interim Financial Reporting», as well as the provisions of the rules of the SIX Swiss Exchange for Investment Companies and should be read in conjunction with the consolidated annual financial statements for the year ended December 31, 2024. The preparation of the condensed consolidated interim financial statements requires management to make assumptions and estimates that have an impact on the balance sheet values and items of the statement of comprehensive income in the current financial period. In certain circumstances, the actual values may diverge from these estimates. The condensed consolidated interim financial statements have been prepared in accordance with the accounting policies set out in the consolidated annual financial statements. The following amended standard, valid since January 1, 2025, has been applied in these condensed consolidated interim financial statements: IAS 21 (amended, effective January 1, 2025) - Lack of Exchangeability The following new and amended standards were approved, but will only be applicable for the Group prospectively and were not early adopted in these condensed consolidated interim financial statements: IFRS 9/IFRS 7 (amended, effective January 1, 2026) - Classification and Measurement of Financial Instruments IFRS 18 (effective January 1, 2027) - Presentation and Disclosure in Financial Statements IFRS 19 (effective January 1, 2027) - Subsidiaries without Public Accountability: Disclosures The Group assessed the potential impact of the above-mentioned new and amended standards. Based on the analysis, the Group concludes that these new and amended standards have no material impact on the Group's accounting policies and overall results and financial position. The following exchange rates have been used for the preparation of these condensed consolidated interim financial statements: Currency 30.09.2025 31.12.2024 USD 0.79640 0.90740 XCG 1) 0.44742 0.50978 EUR 0.93450 0.94008 GBP 1.07090 1.13560 1 since April 1, 2025, Caribbean Guilder, before ANG (Antillean Guilder) Financial assets Fair Values The following table presents the Group's assets that are measured at fair value (in CHF 1 000): 30.09.2025 Level 1 Level 2 Level 3 Total Assets Securities - Shares 2 185 004 - 43 422 2 228 426 - Derivative instruments - 104 - 104 Total assets 2 185 004 104 43 422 2 228 530 31.12.2024 Assets Securities - Shares 2 369 436 - 37 444 2 406 881 - Derivative instruments - - - - Total assets 2 369 436 - 37 444 2 406 881 The table below summarizes the transactions in level 3 instruments (in CHF 1 000): 01.01.-30.09.2025 01.01.-30.09.2024 Opening balance 37 444 14 725 Purchases 12 079 15 139 Unrealized gains/(losses) included in gains/losses from securities (6 101) 5 030 Closing balance 43 422 34 894 Gains/(losses) on level 3 instruments included in gains/losses from securities (6 101) 5 030 There were no transfers between level 1, 2 and 3 during the reporting period. The fair value of level 3 instruments at initial recognition represents the transaction price (purchase of preferred stocks of Rivus Pharmaceuticals in August 2022 for TCHF 16 875, August 2024 for TCHF 15 139 and January 2025 for TCHF 12 079), which was paid in financing rounds together with other investors. For the valuation as at September 30, 2025, it is deemed to be appropriate to use the latest transaction price in USD, as it is a reasonable approximation of fair value at the valuation date, based on the information available and in the absence of developments that would reasonably be expected to materially affect fair value. In August 2022, 8 733 538 Radius Health - Contingent Value Rights were allocated from a corporate action. In February 2025 BB Biotech received USD 1 per Right. For assets and liabilities carried at amortised cost, their carrying values are a reasonable approximation of fair value. Securities The changes in value of securities at fair value through profit or loss by investment category are as follows (in CHF 1 000): Listed shares Unlisted shares Derivative instruments Total Opening balance as at 01.01.2024 at fair values 2 619 989 14 725 - 2 634 714 Purchases 206 303 15 139 316 221 758 Sales (561 097) - (42) (561 139) Gains/(losses) from securities 104 241 7 581 (274) 111 548 Realized gains 107 900 - - 107 900 Realized losses (46 182) - (274) (46 456) Unrealized gains 480 172 7 581 - 487 753 Unrealized losses (437 649) - - (437 649) Closing balance as at 31.12.2024 at fair values 2 369 436 37 444 - 2 406 881 Opening balance as at 01.01.2025 at fair values 2 369 436 37 444 - 2 406 881 Purchases 399 037 12 079 - 411 116 Sales (714 941) - (7 900) (722 841) Gains/(losses) from securities 131 471 (6 101) 8 004 133 375 Realized gains 162 350 - 7 900 170 250 Realized losses (76 110) - - (76 110) Unrealized gains 240 414 - 104 240 518 Unrealized losses (195 183) (6 101) - (201 284) Closing balance as at 30.09.2025 at fair values 2 185 004 43 422 104 2 228 530 Securities comprise the following: Company Number 31.12.2024 Change Number 30.09.2025 Market price in original currency 30.09.2025 Valuation CHF mn 30.09.2025 Valuation CHF mn 31.12.2024 Ionis Pharmaceuticals 7 850 000 (1 625 162) 6 224 838 USD 65.42 324.3 249.0 Argenx SE 591 000 (55 678) 535 322 USD 737.56 314.4 329.8 Revolution Medicines 4 374 300 1 192 700 5 567 000 USD 46.70 207.0 173.6 Neurocrine Biosciences 1 820 000 (60 000) 1 760 000 USD 140.38 196.8 225.4 Alnylam Pharmaceuticals 760 000 (321 321) 438 679 USD 456.00 159.3 162.3 Vertex Pharmaceuticals 475 000 (17 200) 457 800 USD 391.64 142.8 173.6 Agios Pharmaceuticals 3 515 150 199 586 3 714 736 USD 40.14 118.8 104.8 Incyte 2 150 000 (714 145) 1 435 855 USD 84.81 97.0 134.7 Scholar Rock Holding 2 486 707 750 670 3 237 377 USD 37.24 96.0 97.5 Akero Therapeutics - 2 382 755 2 382 755 USD 47.48 90.1 - Immunocore 1 205 464 1 591 339 2 796 803 USD 36.33 80.9 32.3 Avidity Biosciences - 2 152 862 2 152 862 USD 43.57 74.7 - Celldex Therapeutics 3 071 615 486 054 3 557 669 USD 25.87 73.3 70.4 Beam Therapeutics 1 518 121 1 371 167 2 889 288 USD 24.27 55.8 34.2 Edgewise Therapeutics 1 428 929 1 347 068 2 775 997 USD 16.22 35.9 34.6 Relay Therapeutics 7 375 000 968 318 8 343 318 USD 5.22 34.7 27.6 Biohaven 2 040 853 762 000 2 802 853 USD 15.01 33.5 69.2 Wave Life Sciences 4 094 458 - 4 094 458 USD 7.32 23.9 46.0 Macrogenics 9 929 963 (9 971) 9 919 992 USD 1.68 13.3 29.3 Annexon 5 157 290 - 5 157 290 USD 3.05 12.5 24.0 Intra-Cellular Therapies 2 425 000 (2 425 000) - USD n.a. - 183.8 Moderna 1 600 000 (1 600 000) - USD 25.83 - 60.4 Arvinas 2 380 000 (2 380 000) - USD 8.52 - 41.4 Sage Therapeutics 4 460 693 (4 460 693) - USD n.a. - 22.0 Esperion Therapeutics 9 944 064 (9 944 064) - USD 2.65 - 19.9 Black Diamond Therapeutics 8 517 839 (8 517 839) - USD 3.79 - 16.5 Fate Therapeutics 4 839 779 (4 839 779) - USD 1.26 - 7.2 Blueprint Medicines - - - USD n.a. - - Listed shares 2 185.0 2 369.5 Rivus Pharmaceuticals USD 43.4 37.4 Unlisted shares 43.4 37.4 Total shares 2 228.4 2 406.9 Blueprint Medicines - Contingent Value Right - 284 900 284 900 USD 0.46 0.1 - Molecular Templates - Warrants, 2.4.29 769 334 (769 334) - USD n.a. - - Radius Health - Contingent Value Right 8 733 538 (8 733 538) - USD n.a. - - Total derivative instruments 0.1 - Total securities 2 228.5 2 406.9 Short-term borrowings from banks At September 30, 2025, there is no short-term loan outstanding (December 31, 2024: CHF 117.5 mn at 0.90% p.a.). Shareholders' equity The share capital of the Company consists of 55.4 mn fully paid registered shares (December 31, 2024: 55.4 mn) with a par value of CHF 0.20 each (December 31, 2024: CHF 0.20). Treasury shares The Company can buy and sell treasury shares in accordance with the Company's articles of association and Swiss company law and in compliance with the listing rules of the SIX Swiss Exchange. During the period from January 1, 2025, to September 30, 2025, the Company has bought 166 750 treasury shares and has sold 554 000 treasury shares (01.01.-30.09.2024: Purchase of 20 000 treasury shares, no sales). As at September 30, 2025, the Company holds 250 750 treasury shares (December 31, 2024: 638 000 shares). The treasury shares as at September 30, 2025, were treated as a deduction from the consolidated shareholders' equity using cost values of TCHF 8 169 (December 31, 2024: TCHF 39 640). Share buyback 2 nd line (bought for cancellation) The Board of Directors has approved the repurchase of a maximum of 5 540 000 own registered shares with a nominal value of CHF 0.20 each. Until the end of the program at April 11, 2025, 250 750 registered shares were repurchased via a second trading line for the purpose of capital reduction (December 31, 2024: 84 000 shares). ‌6. Administrative expenses Administrative expenses comprise the following: in CHF 1 000 01.01.-30.09.2025 01.01.-30.09.2024 Investment manager - Management fees 15 005 19 295 Personnel - Board of Directors remuneration 1 245 1 250 - Wages and salaries 274 251 - Social insurance contributions and duties 105 100 16 629 20 896 The remuneration model of BB Biotech AG is determined by the Board of Directors. Since 2014 the remuneration paid to the investment manager is based upon a 1.1% p.a. all-in fee on the average market capitalization without any additional fixed or performance-based elements of compensation. The compensation of the Board of Directors consists since 2014 of a fixed compensation. Segment reporting The sole operating segment of the Group reflects the internal management structure and is evaluated on an overall basis. Revenue is derived by investing in a portfolio of companies active in the biotechnology industry for the purpose of capital appreciation. The following results correspond to the sole operating segment of investing in companies active in the biotechnology industry. The geographical analysis of the profit/(loss) before tax is as follows - all income from financial assets are attributed to a country based on the domiciliation of the issuer of the instrument. Profit/(loss) before tax in CHF 1 000 01.01.-30.09.2025 01.01.-30.09.2024 USA 182 777 (35 702) Netherlands 14 470 97 442 Great Britain 5 710 (32 457) Canada - (3 380) Switzerland (12 102) (9 726) Curaçao (16 054) (24 613) Singapore (22 089) 11 727 British Virgin Islands (46 219) 13 009 106 493 16 300 Earnings per share 01.01.-30.09.2025 01.01.-30.09.2024 Total comprehensive profit/(loss) for the period (in CHF 1 000) 106 448 16 243 Weighted average number of shares in issue 54 753 976 54 842 000 Earnings per share in CHF 1.94 0.30 Income used to determine diluted earnings per share (in CHF 1 000) 106 448 16 243 Weighted average number of shares in issue following the dilution 54 753 976 54 842 000 Diluted earnings per share in CHF 1.94 0.30 Assets pledged At September 30, 2025, securities in the amount of CHF 2 228.5 mn (December 31, 2024: CHF 2 406.9 mn) are collateral for a credit line of CHF 700 mn (December 31, 2024: CHF 700 mn). At September 30, 2025, there is no short-term loan outstanding (December 31, 2024: CHF 117.5 mn). Transactions with the Investment Manager and related party transactions Detailed information regarding the remuneration model for the Board of Directors and the investment manager are mentioned under note «6. Administrative Expenses». Commitments, contingencies and other off-balance sheet transactions The Group had no commitments or other off-balance sheet transactions open at September 30, 2025 and December 31, 2024. The operations of the Group are affected by legislative, fiscal and regulatory developments for which provisions are made where deemed necessary. The Board of Directors concludes that as at September 30, 2025, no proceedings existed which could have any material effect on the financial position of the Group (December 31, 2024: none). Subsequent events There have been no events subsequent to September 30, 2025, which would affect the condensed consolidated interim financial statements. Report on the review of condensed consolidated interim financial statements Introduction We have reviewed the accompanying condensed consolidated balance sheet of BB Biotech AG as of September 30, 2025 and the related condensed consolidated statements of income, changes in equity and cash flows for the nine-month period then ended, and a summary of significant accounting policies and other explanatory notes. The Board of Directors is responsible for the preparation and presentation of this interim financial information in accordance with International Accounting Standard 34 «Interim Financial Reporting» and article 14 of the Directive on Financial Reporting of the SIX Swiss Exchange. Our responsibility is to express a conclusion on this interim financial information based on our review. Scope of Review We conducted our review in accordance with the Swiss Auditing Standard 910 (SAS 910) «Engagements to Review Financial Statements» and the International Standard on Review Engagements (ISRE) 2410 «Review of interim financial information performed by the independent auditor of the entity». A review of interim financial information consists of making inquiries, primarily of persons responsible for financial and accounting matters, and applying analytical and other review procedures. A review is substantially less in scope than an audit conducted in accordance with International Standards on Auditing and consequently does not enable us to obtain assurance that we would become aware of all significant matters that might be identified in an audit. Accordingly, we do not express an audit opinion. Conclusion Based on our review, nothing has come to our attention that causes us to believe that the accompanying condensed consolidated interim financial information for the nine months ended September 30, 2025 are not prepared, in all material respects, in accordance with International Accounting Standard 34 Interim Financial Reporting and article 14 of the Directive on Financial Reporting of the SIX Swiss Exchange. Deloitte AG Chris Krämer Licensed Audit Expert Auditor in Charge Mathieu Valette Licensed Audit Expert Zurich, 22 October 2025 Deloitte AG, Pfingstweidstrasse 11, CH-8005 Zurich Phone: +41 (0)58 279 60 00, Fax: +41 (0)58 279 66 00, https://www.deloitte.ch Company profile Commitment to Biotech Investments The access to fast growing biotechnology companies BB Biotech invests in companies in the fast growing market of biotechnology and is one of the world's largest investors in this sector with more than 30 years of experience. The shares of BB Biotech are listed on the SIX Swiss Exchange and the Frankfurt Stock Exchange. Its investments are focused on listed companies that are developing and commercializing novel drugs that offer sound value for the healthcare system. The competent Board of Directors with its long-standing experience set the investment strategy and guidelines. Investment decisions are taken by the experienced investment management team of Bellevue Asset Management AG based on their extensive investment research. Mega trends such as increasing life expectancy and a Westernized diet and lifestyle are powerful growth drivers. These mega trends have led to a tremendous increase in healthcare costs, which, in turn, only amplifies the need for more efficient and effective drugs. Investment strategy BB Biotech invests in fast-growing biotechnology companies that are developing and marketing innovative drugs. It focuses on biotech companies whose products address areas of significant unmet medical needs and thus have above-average sales and profit-growth potential. Besides profitable large cap companies, BB Biotech is building up its investments in promising small and mid cap companies. The team of investment experts is concentrating not only on established target areas such as oncology, orphan diseases and neurological indications, but also on the technologies of tomorrow that could lead to novel treatment methods with attractive therapeutic profiles and substantial economic rewards. These future technologies include RNA platforms and cell and gene therapies. An overall weighted average cost of capital (WACC) of at least 15% is applied to the discounted cash flow models of our portfolio, aligned with our mid-to long term investment objectives. The asset classes available to BB Biotech are direct investments in the shares of listed companies, equity interests in unlisted companies, corporate bonds, and options on a range of underlying assets. BB Biotech invests almost exclusively in stocks for liquidity and risk/ return reasons. At least 90% of its shareholdings must be in listed companies, while always holding more than 50% of its assets in equity investments. Corporate bonds are an alternative primarily when stock market trends are negative. Options on the stocks of portfolio companies can be bought and sold at opportune times and as a means of hedging currency exposure. We are focussing on the technologies of tomorrow. Multi-stage due diligence process based on bottom-up fundamental analysis Exhaustive, multi-stage due diligence precedes the selection of individual investments. We must have a thorough understanding of every company we invest in. Before an investment is made, the team analyzes a company's financial statements in detail and assesses its competitive environment, R&D pipeline, and patent portfolio as well as its customers' perceptions of its products and services. Close contact with company executives is of high importance to us in this due diligence process, but also afterwards, as we believe that it takes strong leaders to achieve strong results. BB Biotech relies on the long-standing experience of its distinguished Board of Directors and on the fundamental analysis of the experienced Investment Management Team of Bellevue Asset Management AG when making its investment decisions. It can also turn to an extensive international network of physicians and specialists in individual sub-segments of the biotech industry for further support and advice. The Investment Management Team creates detailed financial models for all portfolio holdings and they must provide compelling arguments that these holdings have the potential to double in value over a four-year time frame. The team is guided by its convictions, not by benchmark considerations. Upside potential is driven in most cases by the power of innovation, the launch of new products for serious or significant illnesses, and successful company management. Each investment case is constantly monitored and evaluated within the scope of our stringent and disciplined risk management process and corrective action will be taken if and when necessary. We follow our own conviction, not a benchmark. High conviction portfolio consisting of a maximum of 35 positions BB Biotech's investment portfolio will usually consist of between 20 to 35 biotechnology companies. There are estblished large cap companies as well as small and mid cap companies in the portfolio. Smaller positions will be taken in innovative biotech companies with promising R&D pipelines. From a regional perspective, the US biotech sector has displayed a high level of innovation and so this regional bias is also reflected in BB Biotech's portfolio. The predominance of the US biotech industry can be traced to the country's stellar research clusters, industry-friendly regulatory frameworks and myriad financing options, among other factors. New investments in small and mid cap companies will have a weighting of between 0.5% and a maximum of 4% to ensure that both upside potential and R&D risks are adequately addressed. Because it is a holding company, BB Biotech has the flexibility to increase portfolio weightings considerably over time as a position increases in value. Smaller positions may become a top holding as their business develops and milestones such as positive Phase III outcomes, drug approvals, the successful marketing of products, and a sustainable flow of profits are achieved. All positions and their valuations are continually monitored, taking into account their growth potential and other aspects, and will be reduced if and when appropriate. Investment process During the investment selection process, BB Biotech relies on the well established experience of its Board of Directors and the fundamental analyses by the experienced management team of Bellevue Asset Management AG, with access to a network of physicians and specialists for the sectors in question. Investment process Source: Bellevue Asset Management Using a multi-stage process, the universe of around 1000 companies is systematically analyzed and evaluated. The use of artificial intelligence is being explored to deepen our knowledge and understanding. A detailed financial model is created for each investment, which must convincingly demonstrate the potential to double in value over a four-year period. This potential to double in value is based on innovative strength, new products for serious diseases and outstanding management. Each investment is systematically reviewed for sustainability risks and breaches of elementary human rights. Bellevue Asset Management AG is a signatory of UN Principles for Responsible Investment. Besides upholding strict exclusion criteria - such as serious controversies that violate universal norms regarding the environment, human rights or good corporate governance - environmental, social and governance factors are integrated into the fundamental analysis of every company through an ESG integration process in which the associated financial risks or opportunities are evaluated with respect to future stock market performance. The Investment Management Team strive to have an active and constructive dialogue with the management or other relevant stakeholders of the portfolio companies regarding environmental, social and governance aspects - and via proxy voting we use our voting rights actively at the general meetings. With all of BB Biotech´s investments focusing on biotechnology as a subsector of the healthcare industry, the UN's Sustainable Development Goal number 3: "Good Health and Well-being", is at the core of BB Biotech's investment strategy and our portfolio companies. The investments of BB Biotech AG provide companies with capital in order to allow for drug development to ensure and improve healthy lives and well-being. Therapies to address high unmet medical needs such as for patients suffering from rare disorders, cancer, neurological diseases and chronic cardiovascular and metabolic disorders etc. are key investment selection criteria. Sustainability at portfolio level Our investment process fully implements Bellevue Asset Management's formal ESG investment guidelines and therewith all BB Biotech investments are systematically reviewed for sustainability risks and breaches of elementary human rights (as defined, for example, by UN Global Compact principles). Besides upholding strict exclusion criteria - such as serious controversies that violate universal norms regarding the environment, human rights or good corporate governance - environmental, social and governance factors are integrated into the fundamental analysis of every company through an ESG integration process in which the associated financial risks or opportunities are evaluated with respect to future price development. ESG ratings compiled by the global leading ESG research provider MSCI ESG Research are referenced in this process, all the while exercising the necessary prudence and, in some cases, questioning the ESG score. Before making a positive investment decision, intensive contact is established with the target company's management, since we are convinced that a superior performance can only be achieved with well managed companies. After being incorporated into BB Biotech's portfolio, intense personal contact is maintained with members of the management of the relevant holdings. This closely knit monitoring of the portfolio companies enables BB Biotech to utilize all strategic options on a timely basis, including the early disposal of an equity interest should the fundamental situation significantly deteriorate.

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