HBM Healthcare Investments Ltd

Latest Results (07.12.2025):

HBM Healthcare Investments Ltd — quarter ended 30 June 2025 (first quarter of the 2025/2026 financial year): the Company reported a net loss of CHF 140.1 million (basic EPS –CHF 20.85) and NAV per share of CHF 216.35, driven mainly by strong appreciation of the Swiss franc versus the portfolio currencies despite a small positive portfolio return in investment currencies.

Key financials

Net result for the period: –CHF 140.1m; Basic earnings per share: –CHF 20.85; NAV per share: CHF 216.35 (down 8.4% quarter-on-quarter); Share price: CHF 171.00 (down 5.5%); Consolidated cash & cash equivalents ~CHF 90.3m; Distribution per share approved CHF 7.50 (CHF 4.90 dividend + CHF 2.60 par value repayment, payable 4 July 2025).

Performance drivers

The portfolio rose 0.5% in investment currencies, but currency translation effects (notably USD –10.3%, CNY –9.2%, INR –10.7%) reduced performance by ~8.9% in reporting currency, producing the reported NAV decline of 8.4% and the CHF 140m quarterly loss.

Private-portfolio highlights

Private holdings were positive in investment-currency terms but hit by negative FX effects (CHF 40m) and an overall impairment of CHF 33m. Material transaction: Sanofi completed acquisition of Dren‑0201 (Dren Bio spin-off) generating a cash inflow of USD 44m to HBM with up to USD 114m additional contingent payments. Swixx BioPharma/Swixx Healthcare appreciated (total +CHF 11m); Odyssey Therapeutics down-round reduced valuation by CHF 10m. No new private-company platform investments; CHF 7m of follow‑on financings were made.

Public-portfolio & clinical / regulatory catalysts

Public portfolio lost CHF 79m in value, largely from currency moves (CHF 83m adverse). Operationally several portfolio companies delivered encouraging data or progressed trials: Merus (promising interim phase II combo data; phase III under way), ArriVent (completed global phase III recruitment; additional phase Ib interim data prompting planned phase III), and Mineralys Therapeutics (positive phase II/III data for lorundrostat across hypertension and CKD cohorts). These operational positives underpin near‑term catalysts despite mark-to-market declines.

Funds, provisions and other items

Funds portfolio fell by CHF 15m (after CHF 18m adverse FX). HBM carries contingent / milestone receivables (other financial assets) with book value CHF 53.7m and potential upside multiple times book value if milestones are met. A provision of CHF 22.3m was recognised for potential taxes on capital gains and similar taxes (China, India) related to past/possible disposals.

Capital structure, buy-backs and liquidity

Share capital after corporate actions: CHF 13.48m (6.74m shares at CHF 2 par). The Board cancelled 220k treasury shares following shareholder approval. A straight bond (CHF 100m par, coupon 1.125%, maturing July 2027) remains outstanding; fair value ~CHF 100.3m. Approved distribution (CHF 7.50) was paid 4 July 2025. Net asset allocation at 30/6/2025: ~33% private companies, 48% public companies (26% of total previously private), 10% funds, 5% cash.

Currency and concentration risk

HBM’s portfolio currency mix is heavily US‑dollar biased (~53% USD, 17% EUR, 12% CNY, 8% INR), leaving reported results sensitive to CHF appreciation; the quarter illustrates FX can dominate underlying investment performance.

Outlook

Management expects continued market uncertainty (geopolitics, drug‑pricing discussions, FX volatility) but anticipates operational progress across private holdings, key readouts and regulatory decisions for public names, and increased M&A momentum in H2. The firm emphasises disciplined, selective investing and expects further portfolio catalysts through the rest of the financial year.