Company Announcements

LEI: 549300Q7EXQQH6KF7Z84

12 June 2025

RTW Biotech Opportunities Ltd

Monthly Valuation Update and Factsheet

RTW Biotech Opportunities Ltd (the "Company") announces that its monthly factsheet as at 31 May 2025 is now available at https://www.rtwfunds.com/rtw-biotech-opportunities-ltd/factsheets-letters/.

The Company's unaudited net asset value attributable to its ordinary shares as at 31 May 2025 was US$1.70 per ordinary share, a decrease of -2.9% from the previous month. This outperformed the Nasdaq Biotech Index (-4.3%) and the Russell 2000 Biotech Index (-7.8%). The Company has delivered +8.9% annualised NAV performance since launch in October 2019.

Top Core Positions

Top YTD Core Contributors and Detractors

Note: % NAV as at period end based on fair market value +/- accruals.

Sector Update

Policy sentiment has continued to be the main driver of sector performance in May, as it has been since Trump's inauguration. With biotech indices finishing the month within touching distance of historical lows, we believe that valuations already reflect a lot of negativity. We see the key policy elements as follows: 

1.     Regulators: Concerns around personnel changes at HHS and FDA have weighed on the biotech sector. However, recent media rounds from Marty Makary (FDA Commissioner) and Vinay Prasad (Director of CBER) have indicated their keenness to continue the trend of regulatory flexibility. We believe that the FDA will not only continue to function, but it will likely become more efficient.   

2.     Tariffs: Tariffs on pharma products have not been announced, and we believe the risk of their being implemented in size is receding as large pharma companies have made material commitments to onshore manufacturing. In any case, biotech companies are somewhat insulated due to their more localised supply chains.  

3.     Drug pricing: On 12 May, the Trump administration issued an executive order setting out the policy goal of adopting "most favoured nation" pricing for prescription drugs. We believe that this will be used in trade negotiations such that other developed countries pay a little more so that US consumers pay a little less. Facilitating direct-to-consumer sales to patients should also help lower costs by cutting out the middlemen. Implementation is challenging and biotech companies have limited direct impact due to their being mostly development stage and/or with exclusive US distribution. However, the uncertainty and headline risk remains the last major overhang for the sector.

As policy uncertainty lifts, more M&A deals are being announced. With Sanofi's recent acquisition of Blueprint Medicines, we have already seen $34 billion of deals so far this year versus $46 billion in 2024 as a whole. With pharma patent cliffs on the horizon and attractive valuations for SMID-cap biotech companies, we expect to see more deals.  

Portfolio Update

Artios Pharma ("Artios"), which is developing new classes of medicines to address hard-to-treat cancers, announced encouraging data in its ongoing Phase 1/2a study of ART0380. The Company first invested in Artios' Series C round in 2021 and subsequently increased its position significantly when it acquired the assets of Arix Bioscience in 2024. Artios represented 5.3% of NAV as at month-end. 

Rocket Pharmaceuticals ("Rocket") announced positive clinical data for its phase 1 trial of RP-A601 for PKP2-ACM, a rare heart disease. Later in the month, Rocket announced that a patient participating in a separate phase 2 pivotal trial of RP-A501 to treat Danon disease experienced an unexpected Serious Adverse Event ("SAE") and subsequently died. The FDA placed a clinical hold on the trial to allow for further evaluation. Rocket is in active dialogue with the FDA to confirm the root cause of the SAE. Rocket represented 1.1% of NAV at month-end. 

Merus, an oncology company developing innovative antibody treatments, announced compelling interim phase 2 data from its trial treating a type of head and neck cancer. While current treatments utilise a single antibody (pembrolizumab), the Merus trial combines this with petosemtamab, which appears to deliver significantly improved results. Merus represented 1.1% of NAV at month-end. 

Taysha Gene Therapies ("Taysha"), a clinical-stage biotechnology company focused on advancing gene therapies for the treatment of diseases affecting the central nervous system, released positive clinical data from its phase 1/2 trials evaluating TSHA-102 in Rett syndrome. All patients across varying disease severity gained or regained one or more developmental milestones, with Taysha concluding that the likelihood of achieving such milestones was improbable after age six, making the data particularly compelling. Taysha represented 1.7% of NAV at month-end. 

Enquiries:

About RTW Biotech Opportunities Ltd:

RTW Biotech Opportunities Ltd (LSE: RTW) is an investment fund focused on identifying transformative assets with high growth potential across the biopharmaceutical and medical technology sectors. Driven by a long-term approach to support innovative businesses, RTW Biotech Opportunities Ltd invests in companies developing next-generation therapies and technologies that can significantly improve patients' lives. RTW Biotech Opportunities Ltd is managed by RTW Investments, LP, a leading healthcare-focused entrepreneurial investment firm with deep scientific expertise and a strong track record of supporting companies developing life-changing therapies.

Visit the website at www.rtwfunds.com/rtw-biotech-opportunities-ltd for more information.

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The information in this announcement may include forward-looking statements, which are based on the current expectations and projections about future events, and in certain cases can be identified by the use of terms such as "may", "will", "should", "expect", "anticipate", "project", "estimate", "intend", "continue", "target", "believe" (or the negatives thereon) or other variations thereon or comparable terminology. These forward-looking statements, as well as those included in any related materials, are subject to risks, uncertainties and assumptions about the Company and/or its underlying investments, including, among other things, the development of the applicable entity's business, trends in its operating industry, expected use of financing proceeds and future capital expenditures and acquisitions. In light of these risks, uncertainties and assumptions, the events in the forward-looking statements may not occur.

The information contained in this announcement is given at the date of its publication (unless otherwise marked). No reliance may be placed for any purpose whatsoever on the information or opinions contained in this announcement or on its completeness, accuracy or fairness.

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