The Board has also appointed Kepler Partners to produce, publish and promote research covering the Company. As part of their appointment, Kepler produce podcasts, videos and webinars featuring the Company, aimed in particular at retail investors.

KEY PERFORMANCE INDICATORS (KPIs)

The Board assesses the Company’s performance in meeting its objective against the following KPIs:

·   net asset value total return;

·   share price total return;

·   share price discount to net asset value per share; and

·   ongoing charges.

A full description of the Company’s performance is provided in the Chair’s Statement and the Portfolio Manager’s Review. The KPIs have not changed from the prior year:

NET ASSET VALUE PER SHARE TOTAL RETURN^

The Directors regard the Company’s net asset value per share total return as being the overall measure of value generated by the Portfolio Manager over the long term. The Board considers the principal comparator to be the NASDAQ Biotechnology Index (total return, net of withholding tax, sterling adjusted). OrbiMed’s investment style is such that performance is likely to deviate from that of the Benchmark.

During the year under review, the Company’s net asset value per share total return was 73.4%, outperforming the Benchmark by 38.4% (2025: -24.4%, underperforming the Benchmark by 18.4%). Since OrbiMed’s date of appointment (19 May 2005) to 31 March 2026, the Company’s net asset value per share total return is 1,320.3% compared with 1,215.0% for the Benchmark.

SHARE PRICE TOTAL RETURN^

The Directors also regard the Company’s share price total return to be a key indicator of performance. This reflects the Company's share price growth which the Board recognises is important to investors.

During the year under review the Company’s share price total return was 67.1% (2025: -24.2%). Since OrbiMed’s date of appointment (19 May 2005) to 31 March 2026, the Company’s share price total return is 1,236.9% compared with Benchmark performance of 1,215.0%.

SHARE PRICE (DISCOUNT)/PREMIUM TO NET ASSET VALUE PER SHARE^

The Board regularly reviews the level of the discount/ premium of the Company’s share price to the net asset value per share and considers ways in which share price performance may be enhanced, including the effectiveness of marketing, share issuance and buybacks, where appropriate. The Board has a discount control policy in place, the aim of which is to prevent the level of the share price discount to the net asset value per share exceeding 6%. Shareholders should note, however, that it remains possible for the discount to be greater than 6% for a period of days or indeed longer, particularly in volatile or muted markets. However, the Company remains committed to protecting a 6% share price discount over the longer term. 7,183,277 shares were repurchased by the Company during the year (2025: 6,374,607).

^   Alternative Performance Measure.

When the Company's shares trade at a premium to the net asset value per share, new shares can be issued at a premium to the net asset value per share.

The Board believes that the benefits of issuing new shares in such conditions are as follows:

·   to fulfil excess demand in the market in order to help manage the premium to the net asset value per share at which the Company’s shares trade;

·   to provide a small enhancement to the net asset value per share of existing shares through new share issuance at a premium to the estimated net asset value per share;

·   to grow the Company, thereby spreading operating costs over a larger capital base, which should reduce the ongoing charges ratio; and

·   to improve liquidity in the market for the Company’s shares.

As the Company's shares traded at a discount to the net asset value per share throughout the year, no new shares were issued during the year (2025: Nil).

The volatility of the net asset value per share in an asset class such as biotechnology is a factor over which the Board has no control. The making and timing of any share buybacks or share issuance is at the absolute discretion of the Board.

ONGOING CHARGES^

Ongoing charges represent the costs that the Company can reasonably expect to pay from one year to the next, under normal conditions. The Board continues to be conscious of expenses and seeks to maintain a sensible balance between high quality service and costs. The Board therefore considers the ongoing charges ratio to be a KPI and reviews the figure on a regular basis.

As at 31 March 2026 the ongoing charges figure was 1.2% (2025: 1.1%).

^   Alternative Performance Measure.

RISK MANAGEMENT

The Board is responsible for managing the risks faced by the Company. Through delegation to the Audit Committee, the Board has established procedures to manage risk, to review the Company’s internal control framework and to establish the level and nature of the principal risks the Company is prepared to accept in order to achieve its long-term strategic objective. The Audit Committee has carried out a robust assessment of the principal and emerging risks with the assistance of Frostrow (the AIFM). A risk management process has been established to identify and assess risks, their likelihood and the possible severity of their impact. Further information is provided in the Audit Committee Report. These principal risks are set out below with a high level summary of their management through mitigation and arrows to indicate any change in the Board's assessment during the year.

 PRINCIPAL RISKS AND UNCERTAINTIES        MANAGEMENT/MITIGATION

 MARKET RISK

                                         To an extent, this risk is accepted as
                                         being inherent to the Company's
                                         activities. However, the Board has set
                                         limits in the investment policy which
                                         ensure the portfolio is diversified.
                                         Compliance with the limits and
The Company’s portfolio is exposed to    guidelines contained in the Company’s
fluctuations in market prices (changes   investment policy is monitored daily by
in broad market measures, individual     Frostrow and OrbiMed and reported
security prices and foreign exchange     monthly to the Board.
rates) in the biotechnology sector and
the regions in which it invests, which   OrbiMed report at each Board meeting on
may result in a reduction in assets due  the Company’s performance including the
to market falls and higher volatility.   impact of wider market trends and
                                         events.
The biotechnology sector has
historically been more volatile than     The Portfolio Manager spreads
other equity sectors, reflecting         investment risk over a wide portfolio
factors inherent in biotech companies,   of investments. At the year end the
including emerging technologies,         Company’s portfolio comprised
uncertainty of drug approval outcomes,   investments in 67 companies.
regulatory and pricing policy.
                                         As part of its review of the going
More generally, geopolitical and         concern and long-term viability of the
economic uncertainties have affected     Company, the Board considers the
markets globally and are likely to       sensitivity of the portfolio to changes
continue to do so. These include the     in market prices and foreign exchange
instability caused by the                rates (see note   15 to the financial
administration in the USA, including     statements) and the ability of the
the consequences of trade wars and       Company to liquidate its portfolio if
tariffs, the continued impact of the     the need arose. Further details are
war in Ukraine and the effect of         included in the Going Concern and
sanctions against Russia, tensions       Viability Statements.
between the US/West and China, and
conflicts in the Middle East. Broad      The Board monitors and challenges the
economic risks include prolonged         Portfolio Manager's awareness of
inflation and elevated interest rates,   emerging climate change risks and the
slowing global economic growth and the   resources they have devoted to
fear or presence of recession.           assessing climate risks.

New regulations designed to combat       The Board is conscious that climate
climate change and uncertainties         change poses a general risk to the
associated with shifts in population     investment environment and, through
and resource availability/ demand may    discussions with the Portfolio Manager,
also have an impact on global markets.   has noted that the biotechnology
In addition, climate change events       industry is not a major contributor to
could have an impact on the business     greenhouse gas emissions. For this
models of the portfolio companies and    reason, the Portfolio Manager does not
their operations.                        consider climate change to be a
                                         material ESG consideration when
                                         engaging with investee companies.
                                         However energy management is noted as a
                                         material concern in the wider
                                         healthcare and pharmaceutical sectors,
                                         and this forms part of OrbiMed’s ESG
                                         monitoring.

 PORTFOLIO PERFORMANCE

                                         The Portfolio Manager has
                                         responsibility for selecting
                                         investments in accordance with the
                                         Investment Objective and Policy and
                                         seeks to ensure that investments in
Investment performance may not achieve   individual stocks fall within
the Investment Objective and the value   acceptable risk levels.
of the investments held in the
portfolio may fall materially out of     To manage this risk, the Board:
line with the sector.
                                             --  reviews and challenges, at each
The Portfolio Manager’s approach is              Board meeting, reports from
expected to lead to performance that             OrbiMed which cover portfolio
will deviate from comparators,                   composition, asset allocation,
including both market indices and other          concentration and performance;
investment companies investing in the        --  reviews investment performance
biotechnology sector.                            over the long term against the
                                                 Benchmark and the Company's
                                                 peer group; and
                                             --  formally reviews OrbiMed's
                                                 appointment, including their
                                                 performance, service levels and
                                                 contractual arrangements, each
                                                 year.
 SHARE PRICE PERFORMANCE

                                         To manage this risk, the Board:

                                             --  regularly reviews the level of
                                                 the share price
                                                 discount/premium to the net
                                                 asset value per share and
                                                 considers ways in which share
                                                 price performance may be
The Company’s share price fluctuates in          enhanced, including the
accordance with supply and demand and            effectiveness of marketing and
may not reflect the underlying NAV per           investor relations services,
share; where the share price is less             new share issuance and share
than the underlying NAV per share, the           buybacks, as appropriate;
difference is known as the “discount”.       --  has implemented a discount
Share price performance may be                   management policy, buying back
influenced not only by Company -                 the Company’s shares when the
specific factors but also by investor            level of the share price
sentiment towards the investment trust           discount to the net asset value
sector as a whole and its relative               per share exceeds 6% (in normal
attractiveness compared with other               market conditions);
investment vehicles. A sustained lack        --  may issue shares at a premium
of demand for the investment trust               to the net asset value per
sector, or for the Company’s shares,             share to help prevent a share
may result in a widening discount.               price premium reaching too high
Persistently poor share price                    a level;
performance or a wider discount may          --  engages with shareholders at
attract activist shareholders and/or             the AGM, investor meetings and
result in increased share buybacks               seminars, and other events;
which, over time, may significantly          --  reviews an analysis of the
reduce the Company’s assets.                     shareholder register at each
                                                 Board meeting and is kept
                                                 informed of shareholder
                                                 sentiment by the AIFM and the
                                                 Company's corporate
                                                 stockbroker; and
                                             --  regularly discusses the
                                                 Company’s future development
                                                 and strategy with the Portfolio
                                                 Manager and the AIFM.
 CYBER RISK

                                         The Board relies on controls in place
                                         at OrbiMed, Frostrow, J.P.   Morgan,
Cyber crime may lead to the disruption   MUFG Corporate Markets and other
or failure of systems covering dealing,  third-party service providers.
trade processing, administrative
services, financial and other            The Audit Committee reviews the
operational functions.                   internal controls reports of the
                                         principal service providers, as well as
                                         their data storage and information
                                         security arrangements.

 KEY PERSON RISK

                                         The Board manages this risk by:

                                             --  appointing OrbiMed, who in turn
                                                 have appointed Geoff Hsu and
                                                 Josh Golomb to manage the
                                                 Company’s portfolio. Mr Hsu and
                                                 Mr Golomb are supported by a
                                                 team of researchers and
                                                 analysts dedicated to the
                                                 biotechnology sector;
                                             --  receiving reports from OrbiMed
The risk that the individuals                    at each Board meeting, which
responsible for managing the Company’s           include any significant changes
portfolio may leave their employment or          in the make-up of the team
may be prevented from undertaking their          supporting the Company;
duties.                                      --  meeting the wider team at
                                                 OrbiMed’s offices and
                                                 encouraging the participation
                                                 of the wider OrbiMed team in
                                                 investor updates; and
                                             --  delegating to the Management
                                                 Engagement Committee the
                                                 responsibility to perform an
                                                 annual review of the service
                                                 received from OrbiMed,
                                                 including,   inter alia  , the
                                                 team supporting the portfolio
                                                 managers and their succession
                                                 plans.
 VALUATION RISK

                                         Unquoted investments comprised 0.5% of
                                         the Company's portfolio at the year
                                         end. Any directly held unquoted
Pursuant to the Investment Policy, the   investments are valued by an
Company may invest up to 10% of its      independent, third-party valuation
gross assets in unquoted investments at  agent. The Board has established a
the time of acquisition. The valuation   Valuation Committee to review the
of unquoted assets involves a degree of  valuations of the unquoted investments
subjectivity and there is a risk that    and the methodologies used in the
proceeds received on the disposal of     valuations. The valuations are
unquoted holdings may prove to be        recommended to the Committee by
significantly lower than the value at    Frostrow, the Company's AIFM, following
which the investment is held in the      review by its own valuations committee.
Company’s portfolio.                     The Valuation Committee makes
                                         recommendations to the Board, as
                                         appropriate. Further information can be
                                         found in the Audit Committee Report and
                                         note 1 to the financial statements.

 COUNTERPARTY RISK

                                         The most significant counterparty to
                                         which the Company is exposed is J.P.
                                         Morgan Securities LLC (J.P. Morgan),
                                         the Custodian and Prime Broker, which
                                         is responsible for the safekeeping of
                                         the Company’s assets and provides the
                                         loan facility to the Company. As part
                                         of the arrangements with J.P.   Morgan
                                         they may take assets as collateral up
                                         to 140% of the value of the loan drawn
                                         down. The assets taken as collateral by
                                         J.P. Morgan may be used, loaned, sold,
                                         rehypothecated or transferred. The
                                         level of the Company's gearing is at
                                         the discretion of the AIFM and the
                                         Board and the loan facility can be
                                         repaid at any time, at which point the
                                         assets taken as collateral will be
                                         released back to the Company. Any of
                                         the Company’s assets taken as
                                         collateral are not covered by the
                                         custody arrangements provided by J.P.
                                         Morgan.

                                         J.P. Morgan is a registered
The Company is exposed to credit risk    broker-dealer and is accordingly
arising from the use of counterparties.  subject to limits on rehypothecation
If a counterparty were to fail, the      imposed by the U.S. Securities and
Company could be adversely affected      Exchange Commission (SEC). In the event
through either a delay in settlement or  of J.P.   Morgan’s insolvency, the
a loss of assets.                        Company may be unable to recover in
                                         full assets held by it as Custodian or
                                         held as collateral.

                                         The risk is managed through the
                                         selection of a financially stable
                                         counterparty, limitations on the use of
                                         gearing and reliance on the SEC's
                                         robust regulatory regime. In addition,
                                         the Board monitors the credit rating of
                                         J.P. Morgan.

                                         J.P. Morgan is also subject to regular
                                         monitoring by J.P. Morgan Europe
                                         Limited, the Depositary, and the Board
                                         receives regular reports from the
                                         Depositary.

                                         During the year the Company entered
                                         into swap transactions with Goldman
                                         Sachs International, however there were
                                         no equity swaps in the portfolio at the
                                         year end.

                                         Further information can be found in
                                         note 15 to the financial statements.

 OPERATIONAL DISRUPTION

                                         To manage these risks, the Board (in
                                         some cases the Audit Committee):

                                             --  periodically meets
                                                 representatives from the
                                                 Company's key service providers
                                                 to gain a better understanding
                                                 of their control environment,
                                                 and the processes in place to
                                                 mitigate any disruptive events;
                                             --  receives a monthly report from
As an externally managed investment              Frostrow, which includes,
trust, the Company is reliant on the             inter      alia  , confirmation
systems of its service providers for             of compliance with applicable
dealing, trade processing,                       laws and regulations;
administration, financial and other          --  reviews the internal control
functions. If such systems were to fail          reports and key policies
or be disrupted (including, for                  (including disaster recovery
example, as a result of a pandemic,              procedures and business
war, network disruption or simply poor           continuity plans) of its
performance/ controls) this could                service providers;
prevent accurate reporting of the            --  maintains a risk matrix with
Company’s financial position or lead to          details of risks to which the
a failure to comply with applicable              Company is exposed, the
laws, regulations and governance                 approach to managing those
requirements and/or to a financial               risks, the key controls and the
loss.                                            frequency of the controls
                                                 operation;
                                             --  receives updates on pending
                                                 changes to the regulatory and
                                                 legal environment and progress
                                                 towards the Company’s
                                                 compliance with such changes;
                                                 and
                                             --  has considered the increased
                                                 risk of cyber-attacks and
                                                 received reports and assurance
                                                 from its service providers
                                                 regarding the information
                                                 security controls in place.

EMERGING RISKS

The Directors have carried out a robust assessment of the Company’s emerging risks and the procedures in place to identify emerging risks are described below. The International Risk Governance Council definition of an ‘emerging’ risk is one that is new, or is a familiar risk in a new or unfamiliar context or under new context conditions (re-emerging).

The Audit Committee reviews a risk schedule at each of its three meetings during the year. Emerging risks are discussed in detail as part of this process and also throughout the year to try to ensure that emerging (as well as established) risks are identified and, so far as practicable, mitigated.

NEW MARKET RISKS

During the year, the Audit Committee identified and discussed emerging elements of market risk such as regulatory uncertainty and the instability caused by the administration in the USA, including the consequences of trade wars, tariffs, constraints on pharmaceutical pricing and the possible rise of the anti-vaccine movement which may affect the biotechnology sector in general.

NEW CYBER RISKS

The Committee observed that cyber risks continue to evolve, with new threats emerging at an accelerated pace, as demonstrated by a series of high-profile cyber attacks in the retail sector.

ARTIFICIAL INTELLIGENCE

The Committee considered that the development of artificial intelligence, as well as providing significant investment opportunities, may also be exploited or used in ways that may adversely impact the Company's operations, competitive position, or compliance environment.

These risks will continue to be monitored and managed as set out in the Market Risk and Cyber Risk descriptions above.

GOING CONCERN

The financial statements have been prepared on a going concern basis. The Directors consider this is the appropriate basis as the Company has adequate resources to continue in operational existence until at least 2 June 2027, being 12   months from the date this report was approved. The Company’s portfolio, trading activity, cash balances, revenue and expense forecasts, and the trends and factors likely to affect the Company’s performance are reviewed and discussed at each Board meeting. The Board has considered a detailed assessment of the Company’s ability to meet its liabilities as they fall due, including stress tests which modelled the effects of substantial falls in portfolio valuations and liquidity constraints on the Company’s financial position. Further information is provided in the Audit Committee report.

Based on the information available to the Directors at the date of this report, including the results of these stress tests, the conclusions drawn in the Viability Statement below, the Company’s current cash balances, and the liquidity of the Company’s investments, the Directors are satisfied that the Company has adequate financial resources to continue in operation until at least 2 June 2027, being 12 months from the date this report was approved. Accordingly, the Directors are satisfied that it is appropriate to continue to adopt the going concern basis in preparing the financial statements.

VIABILITY STATEMENT

The Directors have carefully assessed the Company’s position and prospects as well as the principal risks and have formed a reasonable expectation that the Company will be able to continue in operation and meet its liabilities as they fall due over the next five financial years.

To make this assessment and in reaching this conclusion, the Audit Committee has considered the Company’s financial position, its ability to liquidate its portfolio and meet its liabilities as they fall due and, in particular, notes the following:

    --  The portfolio is principally comprised of investments traded on major
        international stock exchanges. Based on recent market volumes 96.4% of
        the current portfolio could be liquidated within seven trading days.
        There is no expectation that the nature of the investments held within
        the portfolio will be materially different in future.
    --  The Board has considered the viability of the Company under various
        scenarios, including periods of acute stock market and economic
        volatility, and concluded that it would expect to be able to ensure the
        financial stability of the Company through the benefits of having a
        diversified portfolio of (mostly) listed and realisable assets. As
        illustrated in note 15 to the financial statements, the Board has
        considered other price risk (the sensitivity of the value of
        shareholders' funds to changes in the fair value of the Company's
        investments), foreign currency sensitivity (the sensitivity to changes
        in key exchange rates to which the portfolio is exposed) and interest
        rate sensitivity (the sensitivity to changes in market interest rates).
    --  With an ongoing charges ratio of 1.2%, the expenses of the Company are
        predictable and modest in comparison with the assets and there are no
        capital commitments foreseen which would alter that position.
    --  The Company has a short-term loan facility which can be used to meet its
        liabilities. Details of the Company’s current liabilities are set out in
        note 12 to the financial statements.
    --  The Company has no employees. Consequently it does not have redundancy
        or other employment related liabilities or responsibilities.

The Audit Committee, as well as considering the potential impact of the Company’s principal risks and various severe but plausible downside scenarios, has made the following assumptions in considering the Company’s longer-term viability:

    --  There will continue to be demand for investment trusts;
    --  The Company invests principally in the securities of listed companies
        traded on international stock exchanges to which investors will wish to
        continue to have exposure;
    --  Shareholders will vote for the continuation of the Company at the Annual
        General Meeting to be held in July 2028. At the current time, the
        Directors have a reasonable expectation that the next vote will be
        passed;
    --  The closed-ended nature of the Company means that, unlike open-ended
        funds, it does not need to realise investments when shareholders wish to
        sell their shares;
    --  The Company will continue to be able to fund share buybacks when
        required. The Company bought back 7,183,277 ordinary shares in the year
        under review at a total cost of £69.5 million and experienced no problem
        with liquidity in doing so. It had shareholders’ funds in excess of
        £281.9 million at the year end; and
    --  The long-term performance of the Company will continue to be
        satisfactory.

STAKEHOLDER INTERESTS AND BOARD DECISION-MAKING (SECTION 172 OF THE COMPANIES ACT 2006)

The following disclosure, which is required by the Companies Act 2006 and the AIC Code of Corporate Governance, describes how the Directors have had regard to the views of the Company’s stakeholders in their decision-making.

 STAKEHOLDER GROUP        HOW THE BOARD HAS ENGAGED WITH THE COMPANY’S
                         STAKEHOLDERS

                         The Board’s key mechanisms of engagement with investors
                         include:

                         ·   The Annual and Half-yearly Reports

                         ·   The Annual General Meeting

                         ·   The Company’s website which hosts reports, articles
                         and insights, monthly fact sheets and video interviews
                         with the Portfolio Manager

                         ·   The Company’s distribution list which is maintained
                         by Frostrow and is used to communicate with
                         shareholders on a regular basis
 Investors
                         ·   Online and in person seminars with presentations
                         from the Portfolio Manager

                         ·   One-to-one investor meetings

                         The AIFM and the Portfolio Manager, on behalf of the
                         Board, completed a programme of investor relations
                         throughout the year, reporting to the Board on the
                         feedback received. This includes meetings with wealth
                         managers and independent financial advisers, as well as
                         preparing the documents and organising the events
                         listed above. The Board aims for at least one Director
                         to attend the in person and online events at which the
                         Portfolio Manager presents to investors.

                         The Board met regularly with the Portfolio Manager
                         throughout the year, both formally at quarterly Board
                         meetings and informally, as required. The Board engaged
                         primarily with key members of the portfolio management
                         team, discussing the Company’s overall performance as
                         well as developments at individual portfolio companies
 Portfolio Manager       and wider macroeconomic developments. The Directors
                         visited OrbiMed's offices in New York during the year,
                         to review the investment strategy, conduct ongoing due
                         diligience and meet with the OrbiMed team in person.

                         The Management Engagement Committee reviewed the
                         performance of the Portfolio Manager and the terms and
                         conditions on which they are engaged.

                         The Board met regularly with the AIFM, representatives
                         of which attend every quarterly Board meeting to
                         provide updates on risk management, accounting,
                         administration, corporate governance and marketing
                         matters.

                         The Management Engagement Committee reviewed the
                         performance of all the Company’s service providers,
                         receiving feedback from Frostrow in their capacity as
                         AIFM and Company Secretary. The AIFM, which is
                         responsible for the day-to-day operational management
 Other Service Providers of the Company, meets and interacts with the other
                         service providers including the Depositary, Custodian
                         and Registrar, on behalf of the Board, on a daily
                         basis. This can be through email, one-to-one meetings
                         and/or regular written reporting.

                         The Audit Committee reviewed the quality and
                         effectiveness of the audit and recommended to the Board
                         that it be proposed to shareholders that BDO LLP (BDO)
                         be re-appointed as Auditor. The Audit Committee also
                         met with BDO to review the audit plan and set their
                         remuneration for the year.

As an externally managed investment trust, the Company has no employees, customers, operations or premises. Therefore, the Company’s key stakeholders (other than its shareholders) are considered to be its service providers. The need to foster good business relationships with the service providers and maintain a reputation for high standards of business conduct are central to the Directors’ decision-making as the Board of an externally managed investment trust.

 KEY AREAS OF ENGAGEMENT                  MAIN DECISIONS AND ACTIONS TAKEN

                                         The Board and the Portfolio Manager
                                         provided updates via RNS, the Company’s
                                         website, the distribution list and the
                                         usual financial reports and monthly
                                         fact sheets.

                                         The Board continued to monitor share
                                         price movements closely. When the
    --  Ongoing dialogue with            discount of the share price to the net
        shareholders concerning the      asset value per share exceeded 6%, the
        strategy of the Company,         Company sought to buy back shares in
        performance and the portfolio.   the market. As a result, 7,183,277
    --  Share price performance.         shares were bought back during the
    --  Operation of the discount        year. No shares were issued at a
        management policy                premium to the net asset value per
    --  Portfolio performance            share during the year. Having nearly
        measurement                      exhausted the authority granted at the
    --  The continuation of the Company  2025 AGM, the Board asked shareholders
                                         to renew the Company's authority to buy
                                         back shares in the market at a General
                                         Meeting held on 12 November 2025.
                                         Shareholders approved the proposal with
                                         99.7% of the votes cast in favour.

                                         The Board engaged with shareholders
                                         ahead of and following the continuation
                                         vote, which was passed at the AGM in
                                         July 2025.

                                         The Board agreed that high standards of
                                         research had been maintained and the
                                         Portfolio Manager’s strategy had been
                                         implemented consistently. It was noted
                                         that performance had improved
                                         considerably and the Board agreed that
    --  Portfolio composition,           the Portfolio Manager's investment
        performance, outlook and         process remained robust. Therefore, the
        business updates.                Board concluded that it was in the
    --  The Portfolio Manager’s system   interests of shareholders for OrbiMed
        of internal controls and         to continue in their role as Portfolio
        investment risk management.      Manager.

                                         The Audit Committee concluded that the
                                         Portfolio Manager’s internal controls
                                         were satisfactory. Please refer to the
                                         Audit Committee Report, for further
                                         information.

                                         The Board concluded that it was in the
                                         interests of shareholders for Frostrow
                                         to continue in their role as AIFM.

    --  The promotion and marketing      The Board agreed that the Company’s
        strategy of the Company.         other service providers continued to
    --  Service providers’ internal      perform satisfactorily and should
        controls.                        continue in their roles.
    --  The effectiveness of the audit
        and the Auditor’s                The Board approved the Audit
        reappointment.                   Committee’s recommendation to propose
    --  The terms and conditions under   to shareholders that BDO LLP be
        which the Auditor is engaged.    re-appointed as the Company’s auditor
                                         for a further year. Please refer to the
                                         Audit Committee Report and the Notice
                                         of AGM beginning for further
                                         information.

ENVIRONMENTAL, SOCIAL, COMMUNITY AND HUMAN RIGHTS MATTERS

As an externally managed investment trust, the Company does not have any employees or maintain any premises, nor does it undertake any manufacturing or other physical operations itself. All its operational functions are outsourced to third-party service providers, which the Board oversees. Therefore, the Company itself has no material, direct impact on the environment or any particular community and, as a result, the Company has no environmental, human rights, social or community policies.

Under the UK Listing Rules, the Company is exempt from reporting against the Taskforce for Climate-Related Financial Disclosures (TCFD) framework. However, the Board recognises that climate change poses a general risk to the investment environment and has discussed with the Portfolio Manager the potential impact of climate change risk on the Company's investments.

The Board believes that consideration of environmental, social and governance (ESG) factors is important and has the potential to protect and enhance investment returns. The Portfolio Manager’s investment criteria ensure that ESG factors are integrated into their investment process and best practice in this area is encouraged by the Board. The Portfolio Manager engages with the Company’s underlying investee companies in relation to their corporate governance practices and the development of their policies on social, community and environmental matters.

The Board is committed to carrying out the Company’s business in an honest and fair manner with a zero-tolerance approach to bribery, corruption, and tax evasion. As such, policies and procedures are in place to prevent this. In carrying out the Company’s activities, the Board aims to conduct itself responsibly, ethically and fairly. The Board expects that the Company's principal service providers have appropriate policies in place and carries out an annual review of their arrangements.

PERFORMANCE AND FUTURE DEVELOPMENTS

A review of the Company’s year, its performance and the outlook for the Company can be found in the Chair’s Statement and in the Portfolio Manager’s Review.

The Company’s overall strategy remains unchanged.

By order of the Board

Frostrow Capital LLP

Company Secretary

2 June 2026

STATEMENT OF DIRECTORS’ RESPONSIBILITIES

The Directors are responsible for preparing the Annual Report and the financial statements in accordance with applicable law and regulations.

Company law requires the Directors to prepare financial statements for each financial year. Under that law, the Directors have elected to prepare the financial statements in accordance with UK-adopted international accounting standards. Under company law, the Directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the Company and of the profit or loss for the Company for that period.

In preparing these financial statements, the Directors are required to:

·   select suitable accounting policies and then apply them consistently;

·   make judgements and accounting estimates that are reasonable and prudent;

·   state whether they have been prepared in accordance with UK-adopted international accounting standards, subject to any material departures disclosed and explained in the financial statements;

·   prepare the financial statements on the going concern basis unless it is inappropriate to presume that the Company will continue in business; and

·   prepare a directors’ report, a strategic report and directors’ remuneration report which comply with the requirements of the Companies Act 2006.

The Directors are responsible for keeping adequate accounting records that are sufficient to show and explain the Company’s transactions and disclose with reasonable accuracy at any time the financial position of the Company and enable them to ensure that the financial statements comply with the Companies Act 2006.

They are also responsible for safeguarding the assets of the Company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities. The Directors are responsible for ensuring that the Annual Report and financial statements, taken as a whole, are fair, balanced, and understandable and provide the information necessary for shareholders to assess the Company's position, performance, business model and strategy.

WEBSITE PUBLICATION

The Directors are responsible for ensuring the Annual Report and the financial statements are made available on a website. Financial statements are published on the Company’s website in accordance with legislation in the United Kingdom governing the preparation and dissemination of financial statements, which may vary from legislation in other jurisdictions. The maintenance and integrity of the Company’s website is the responsibility of the Directors. The Directors’ responsibility also extends to the ongoing integrity of the financial statements contained therein.

RESPONSIBILITY STATEMENT OF THE DIRECTORS IN RESPECT OF THE ANNUAL REPORT

We confirm that to the best of our knowledge:

·   the financial statements have been prepared in accordance with the applicable set of accounting standards and give a true and fair view of the assets, liabilities, financial position and the return of the Company for the year ended 31 March 2026; and

·   the Annual Report includes a fair review of the development and performance of the business and the financial position of the Company, together with a description of the principal risks and uncertainties that they face.

The Directors consider the Annual Report, taken as a whole, is fair, balanced and understandable and provides the information necessary for shareholders to assess the Company’s position and performance, business model and strategy.

On behalf of the Board

Roger Yates

Chair

2 June 2026

INCOME STATEMENT

FOR THE YEAR ENDED 31 MARCH 2026

                                     2026                       2025

                            Revenue  Capital  Total    Revenue  Capital  Total

                     Notes  £’000    £’000    £’000    £’000    £’000    £’000

Income              2       426      –        426     1,111    –        1,111

Gains/(losses) on
investments held at 8       –        134,590  134,590 –        (77,090) (77,090)
fair value through
profit or loss

Foreign exchange            –        (461)    (461)   –        (1,553)  (1,553)
losses

AIFM and Portfolio  3       (121)    (2,293)  (2,414) (143)    (2,729)  (2,872)
management fees

Other expenses      4       (656)    (59)     (715)   (771)    (16)     (787)

 (Loss)/profit
before finance              (351)    131,777  131,426 197      (81,388) (81,191)
costs and taxation

Finance costs       5       (57)     (1,082)  (1,139) (66)     (1,259)  (1,325)

 (Loss)/profit              (408)    130,695  130,287 131      (82,647) (82,516)
before taxation

Taxation            6       (32)     –        (32)    (145)    –        (145)

 (Loss)/profit for          (440)    130,695  130,255 (14)     (82,647) (82,661)
the year

 Basic and diluted
earnings/(loss) per 7       (1.9)p   559.9p   558.0p  0.0p     (262.3)p (262.3)p
share

The Company does not have any income or expenses which are not included in the (loss)/profit for the year. Accordingly the “(loss)/profit for the year” is also the “total comprehensive (loss)/profit for the year”, as defined in IAS 1 (revised) and no separate Statement of Other Comprehensive Income has been presented.

The “Total” column of this statement represents the Company’s Income Statement, prepared in accordance with UK - adopted International Accounting Standards and with the requirements of the Companies Act 2006 as applicable to companies reporting under those standards The “Revenue” and “Capital” columns are supplementary to this and are prepared under guidance published by the Association of Investment Companies.

The accompanying notes are an integral part of this statement.

STATEMENT OF FINANCIAL POSITION

AS AT 31 MARCH 2026

                                                             2026    2025

                                                      Notes  £’000   £’000

 Non current assets

Investments held at fair value through profit or loss 8, 9  291,183  218,159

                                                            291,183  218,159

 Current assets

Other receivables                                     10    11,063   17

Cash and cash equivalents                             11    –        8,453

                                                            11,063   8,470

 Total assets                                               302,246  226,629

 Current liabilities

Other payables                                        12    8,004    5,423

Loan facility                                               12,319   –

                                                            20,323   5,423

 Net assets                                                 281,923  221,206

 Equity attributable to equity holders

Ordinary share capital                                13    4,982    6,778

Special reserve*                                            97,330   –

Share premium account*                                      –        79,951

Capital redemption reserve*                                 1,069    16,652

Capital reserve                                       18    179,961  118,804

Revenue reserve                                             (1,419)  (979)

 Total equity                                               281,923  221,206

 Net asset value per share                            14    1,414.6p 815.9p

*                 On 19 August 2025 the sums standing to the credit of the Company’s share premium account and the capital redemption reserve were cancelled and converted to a newly-created special reserve.

The financial statements were approved by the Board on 2 June 2026 and were signed on its behalf by:

Roger Yates

Chair

The accompanying notes are an integral part of this statement.

The Biotech Growth Trust PLC – Company Registration Number 03376377 (Registered in England and Wales)

STATEMENT OF CHANGES IN EQUITY

FOR THE YEAR ENDED 31 MARCH 2026

                     Ordinary            Share     Capital

                     Share     Special   premium   redemption  Capital  Revenue

                     capital   reserve*  account*  reserve*    reserve  reserve  Total

              Notes  £’000     £’000     £’000     £’000       £’000    £’000    £’000

At 1 April          6,778     –         79,951    16,652      118,804  (979)    221,206
2025

Net profit/
(loss) for          –         –         –         –           130,695  (440)    130,255
the year

Repurchase
of own              (1,796)   –         –         1,796       (69,538) –        (69,538)
shares for
cancellation

Transfer of
share
premium
account and         –         97,330    (79,951)  (17,379)    –        –        –
capital
redemption
reserve

At 31 March  13, 14 4,982     97,330    –         1,069       179,961  (1,419)  281,923
2026

*                 On 19 August 2025, the sums standing to the credit of the Company’s share premium account and the capital redemption reserve were cancelled and converted to a newly-created special reserve.

FOR THE YEAR ENDED 31 MARCH 2025

                     Ordinary            Share    Capital
                               Special                        Capital  Revenue
                     Share               premium  redemption                    Total
              Notes            reserve*                       reserve  reserve
                     capital             account  reserve                       £’000
                               £’000                          £’000    £’000
                     £’000               £’000    £’000

At 1 April          8,371     –         79,951   15,059      258,891  (965)    361,307
2024

Net loss for        –         –         –        –           (82,647) (14)     (82,661)
the year

Repurchase
of own              (1,593)   –         –        1,593       (57,440) –        (57,440)
shares for
cancellation

At 31 March  13, 14 6,778     –         79,951   16,652      118,804  (979)    221,206
2025

The accompanying notes are an integral part of this statement.

See note 17 for details of the amounts of reserves available for distribution.

STATEMENT OF CASH FLOWS

FOR THE YEAR ENDED 31 MARCH 2026

                                                              2026      2025

                                                       Notes  £’000     £’000

 Operating activities

Profit/(loss) before taxation*                               130,287   (82,516)

Finance costs                                                1,139     1,325

(Gains)/losses on investments held at fair value      8      (136,730) 75,033
through profit or loss

Foreign exchange losses                                      461       1,553

(Increase)/decrease in other receivables                     (47)      10

Increase/(decrease) in other payables                        86        (347)

Taxation paid                                         6      (32)      (145)

 Net cash outflow from operating activities                  (4,836)   (5,087)

 Investing activities

Purchases of investments                                     (551,687) (429,202)

Sales of investments                                         611,225   545,050

 Net cash inflow from investing activities                   59,538    115,848

 Financing activities

Repurchase of own shares for cancellation                    (73,874)  (54,483)

Finance costs – interest paid                                (1,139)   (1,325)

Drawdown/(repayment) of the loan facility                    11,934    (48,484)

 Net cash outflow from financing activities                  (63,079)  (104,292)

 Net (decrease)/increase in cash and cash equivalents        (8,377)   6,469

Cash and cash equivalents at start of year                   8,453     2,131

Effect of movement in foreign exchange rates on cash         (76)      (147)
and cash equivalents

 Cash and cash equivalents at end of year   †         11      –        8,453

*                 Includes dividends received during the year of £290,000 (2025: £964,000) and deposit interest of £91,000 (2025: £147,000).

†   Collateral cash held at Goldman Sachs £nil (2025: £1,553,000) and cash held in a liquidity fund £nil (2025: £6,913,000).

CHANGES IN NET DEBT ARISING FROM FINANCING ACTIVITIES

                                            2026   2025

                                            £’000  £’000

Balance as at 1 April                      –      47,078

Drawdown/(repayment) of the loan facility  11,934 (48,484)

Foreign exchange losses                    385    1,406

Loan facility balance at 31 March          12,319 –

The accompanying notes are an integral part of this statement.

NOTES TO THE FINANCIAL STATEMENTS

1. ACCOUNTING POLICIES

(A) BASIS OF PREPARATION

The financial statements of the Company have been prepared in accordance with UK-adopted International Accounting Standards and with the requirements of the Companies Act 2006 as applicable to companies reporting under those standards.

The material accounting policies adopted are set out below.

The financial statements have been prepared under the historical cost convention, except for the measurement at fair value of investments and derivatives. Where presentational guidance is set out in the Statement of Recommended Practice (the SORP) for Investment Trust Companies and Venture Capital Trusts produced by the Association of Investment Companies (AIC) issued in July 2022, the Directors have sought to prepare the financial statements on a basis compliant with the recommendations of the SORP provided that the SORP does not conflict with the requirements of IFRS.

The Company’s financial statements are presented in sterling and all values are rounded to the nearest thousand pounds (£’000) except when otherwise indicated.

Going concern

The Directors are required to make an assessment of the Company’s ability to continue as a going concern and have concluded that the Company has adequate resources to continue in operational existence until at least 2 June 2027, being 12 months from the date these financial statements were approved.

In making this assessment, the Directors have considered a wide variety of emerging and current risks to the Company, as well as the mitigation strategies that are in place. The Board has also reviewed stress-testing and scenario analyses prepared by the AIFM. The stress tests and scenario analyses considered the effect of various downturns, based on historic bear markets, on the asset value and expenses of the Company. The tests modelled the impact of decreases of up to 50% on the value of the investment portfolio.

These tests are carried out as an arithmetic exercise, which can apply equally to any set of circumstances in which asset value and income are significantly impaired. It was concluded that even in an extreme downside scenario, the Company would be able to continue to meet its liabilities as they fell due. Whilst the economic future is uncertain, the opinion of the Directors is that there is no foreseeable downside scenario that would threaten the Company’s ability to continue to meet its liabilities as they fall due.

Based on the information available to the Directors at the time of this report, including the results of the stress tests and scenario analyses, and having taken account of the liquidity of the investment portfolio, the Company’s cash flow and borrowing position, the Directors are satisfied that the Company has adequate financial resources to continue in operation until at least 2 June 2027, being 12 months from the date of signing these financial statements and that, accordingly, it is appropriate to adopt the going concern basis.

Judgements and key sources of estimation and uncertainty

The preparation of the financial statements requires the Directors to make judgements, estimates and assumptions that affect the amounts reported for assets and liabilities as at the Statement of Financial Position date and the amounts reported for revenues and expenses during the year. However, the nature of estimation means that actual outcomes could differ from those estimates. In the process of applying the Company’s accounting policies, the Directors have made the following estimates which are immaterial in relation to the unquoted investments, in the current year:

Fair value of the unquoted investments and warrant holdings estimate

The Board has established a Valuation Committee to review the valuations and the valuation methodologies of the Company’s unquoted investments and the warrant holdings. The Board has approved the valuations of the unquoted investments and the warrants on the recommendation of the Valuation Committee.

The unquoted investment in OrbiMed Asia Partners L.P. has been valued using the Net Asset Value presented in the Statement of Partner’s Capital Activity as at 31 December 2025, as permitted under the IPEV guidelines. The Statement of Partner’s Capital Activity as at 31 March 2026 was received in May 2026 and was not materially different from the valuation at 31 December 2025. The Consolidated Financial Statements of the partnership for the year ended 31 December 2025 were audited by KPMG LLP (New Jersey Headquarters) and were approved on 27 March 2026.

The investment in New Horizon Health is classed as unquoted due to the company being delisted from the Hong Kong Stock Exchange on 27 October 2025. The company subsequently entered into liquidation and the investment is valued at £nil at the year end.

The investment in Gracell Biotechnologies contingent value rights (CVR) has also been valued by Kroll. Gracell’s CVRs have been valued using the probability-weighted expected return method (PWERM), discounted for the lack of marketability.

In addition the Company holds six warrant positions in the following companies, C4 Therapeutics (2 positions), Cybin Inc, Immunic Therapeutics and Milestone Pharmaceuticals (2 positions). These warrants have been valued using the Black Scholes model, which calculates an estimate of fair value for each warrant based on certain inputs such as spot price of the underlying equity, strike price, volatilities, the risk-free interest rate and dividend yield. The most judgemental inputs are the volatility, which the Company uses Kroll, an independent valuer, to provide and time to expiration (for certain warrants where there is an optionality on expiration date), which is based on management information provided by OrbiMed. Additional information regarding the sensitivity of the fair value estimates of warrants held at year end has been provided in Note 15.

(B) INVESTMENTS

Investments consist of quoted investments, unquoted investments and derivatives and are recognised and de-recognised on the trade date.

As the Company’s business is investing in financial assets with a view to profiting from their total return in the form of dividends or increases in fair value, investments are classified as fair value through profit or loss (FVTPL) and are initially recognised at fair value. The Company manages and evaluates the performance of these investments on a fair value basis in accordance with its investment strategy, and information about the investments is provided internally on this basis to the Board.

Investments classified at fair value through profit or loss, which are quoted investments, are measured at subsequent reporting dates at fair value which is either the bid or the last trade price, depending on the convention of the exchange on which it is quoted.

In respect of unquoted investments, or where the market for a financial instrument is not active, fair value is established by using valuation techniques which may include using the PWERM, reference to the current fair value of another instrument that is substantially the same, discounted cash flow analysis and option pricing models, in line with IPEV guidelines. Where there is a valuation technique commonly used by market participants to price the instrument and that technique has been demonstrated to provide reliable estimates of prices obtained in actual market transactions, that technique is utilised.

Transfers between levels of fair value hierarchy are deemed to have occurred at the date of the event or change in circumstances that caused the transfer.

Gains and losses on disposal and fair value changes are also recognised in the Income Statement.

(C) PRESENTATION OF INCOME STATEMENT

In order to better reflect the activities of an investment trust company, and in accordance with guidance issued by the AIC, supplementary information which analyses the Income Statement between items of a revenue and capital nature has been presented alongside the Income Statement. Net revenue is the measure the Directors believe appropriate in assessing the Company’s compliance with certain requirements set out in section 1158 of the Corporation Tax Act 2010. The requirements are to distribute net revenue but only so far as there are positive revenue reserves.

(D) INVESTMENT INCOME

Dividends receivable on equity shares are recognised on the ex-dividend date. Where no ex-dividend date is quoted, dividends are recognised when the Company’s right to receive payment is established. Foreign dividends are grossed up at the appropriate rate of withholding tax, with the withholding tax recognised in the taxation charge.

Dividends from investments in unquoted shares and securities are also recognised when the Company’s right to receive payment is established.

Income from fixed interest securities is recognised on a time appointment basis so as to reflect the effective interest rate.

In deciding whether a dividend should be regarded as a capital or revenue receipt, the Company reviews all relevant information as to the reasons for and sources of the dividend on a case by case basis depending upon the nature of the receipt.

Special dividends of a revenue nature are recognised through the revenue column of the Income Statement. Special dividends of a capital nature are recognised through the capital column of the Income Statement.

(E) EXPENSES AND FINANCE COSTS

All expenses are accounted for on an accruals basis. Expenses are charged through the Income Statement as follows:

    --  transaction costs on the acquisition or disposal of an investment are
        charged to the capital column of the Income Statement;
    --  expenses are charged to the capital column of the Income Statement where
        a connection with the maintenance or enhancement of the value of the
        investment can be demonstrated, and accordingly:
    --  during the year, AIFM and Portfolio Management fees are charged 95% to
        the capital column of the Income Statement as the Directors expect that
        in the long term virtually all of the Company’s returns will come from
        capital;
    --  during the year, loan interest is charged 95% to the capital column of
        the Income Statement as the Directors expect that in the long term
        virtually all of the Company’s returns will come from capital.
    --  performance fees are charged 100% to the capital column of the Income
        Statement. Performance fees are recognised as a liability of the Company
        when they crystallise and become due for payment. Details of the
        performance fee are set out on pages 45 and 46 of the Annual Report; and
    --  all other expenses are charged to revenue column of the Income
        Statement.

(F) TAXATION

In line with the recommendations of the SORP, the allocation method used to calculate tax relief on expenses presented against capital returns in the supplementary information in the Income Statement is the “marginal basis”. Under this basis, if taxable income is capable of being offset entirely by expenses presented in the revenue column of the Income Statement, then no tax relief is transferred to the capital column.

Investment trusts which have approval under Section 1158 Corporation Tax Act 2010 are not liable for taxation on capital gains.

Current tax is provided at the amounts expected to be paid or recovered.

Deferred tax is the tax expected to be payable or recoverable on differences between the carrying amounts of assets and liabilities in the financial statements and the corresponding tax bases used in the computation of taxable profit, and is accounted for using the Balance Sheet liability method. Deferred tax liabilities are recognised for all taxable temporary differences and deferred tax assets are recognised to the extent that it is probable that taxable profits will be available against which deductible temporary differences can be utilised.

Deferred tax is calculated at the tax rates that are expected to apply in the period when the liability is settled or the asset is realised. Deferred tax is charged or credited in the Income Statement, except when it relates to items charged or credited directly to equity, or Other Comprehensive Income (OCI), in which case the deferred tax is also dealt with in equity or OCI respectively.

(G) FUNCTIONAL AND PRESENTATION CURRENCY

The financial information is shown in sterling, being the Company’s presentation currency. In arriving at the functional currency the Directors have considered the following:

(i)       the primary economic environment of the Company;

(ii)      the currency in which the original capital was raised;

(iii)    the currency in which distributions would be made;

(iv)    the currency in which performance is evaluated; and

(v)     the currency in which the capital would be returned to shareholders on a break up basis.

The Directors have also considered the currency to which the underlying investments are exposed and liquidity is managed. The Directors are of the opinion that sterling best represents the functional currency.

(H) RESERVES

Ordinary share capital

    --  represents the nominal value of the issued share capital.

Special reserve

This reserve was created upon the cancellation of the Share Premium Account on 19 August 2025; it is distributable and is used to fund any repurchases of the Company’s own shares.

Share premium account

    --  represents the surplus of net proceeds received from the issue of new
        shares over the nominal value of such shares. The Share premium account
        is non-distributable.

Capital redemption reserve

    --  a transfer will be made to this reserve on cancellation of the Company’s
        own shares purchased, equal to the nominal value of the shares. This
        reserve is non-distributable.

Capital reserves

The following are credited or charged to the capital column of the Income Statement and then transferred to the Capital Reserve:

    --  gains or losses on disposal of investments;
    --  exchange differences of a capital nature;
    --  expenses allocated to this reserve in accordance with the above
        policies;
    --  increases and decreases in the valuation of investments held at
        year-end; and
    --  shares which have been bought back by the Company for cancellation.

Realised Capital Reserves, including the unrealised gains/losses from investments readily convertible to cash, are distributable by way of a dividend.

Revenue reserve

    --  reflects all income and expenditure recognised in the revenue column of
        the Income Statement. Amounts standing to the credit of the Revenue
        Reserve are distributable by way of dividend.

(I) OPERATING SEGMENTS

IFRS 8 requires entities to define operating segments and segment performance in the financial statements based on information used by the Board of Directors. The Directors are of the opinion that the Company is engaged in a single segment of business, being the investment business. The results published in this report therefore correspond to this sole operating segment.

(J) FINANCIAL INSTRUMENTS INCLUDING DERIVATIVE FINANCIAL INSTRUMENTS

Financial assets and financial liabilities are recognised on the Statement of Financial Position when the Company becomes a party to the contractual provisions of the instrument. Financial assets are derecognised when the Company’s contractual right to the cash flows from the asset expires or substantially all the risks and rewards of ownership are transferred. Financial liabilities are derecognised when the contractual obligation is discharged, with gains and losses recognised in the income statement.

The Company uses derivative financial instruments, namely equity swaps and warrants. All derivative instruments are valued initially, and at subsequent reporting dates, at fair value in the Statement of Financial Position, with changes in fair value recognised in the Income Statement. The Company holds derivatives for investing purposes.

The equity swaps are accounted for as non-current assets or current liabilities.

(K) CASH AND CASH EQUIVALENTS

Cash and cash equivalents are defined as cash in hand, demand deposits and short-term deposits with a maturity of three months or less, highly liquid investments readily convertible to known amounts of cash and subject to insignificant risk of changes in value.

(L) ADOPTION OF NEW AND REVISED STANDARDS

Standards and amendments to existing standards effective 1 April 2025

The Company has applied the following standards and amendments for the first time for its annual reporting period commencing 1 April 2025:

    --   IAS 21 – Lack of exchangeability.  The IASB issued amendments to IAS 21
        The Effects of Changes in Foreign Exchange    Rates to specify how an
        entity should assess whether a currency is exchangeable and how it
        should determine a spot exchange rate when exchangeability is lacking.
        The amendments also require disclosure of information that enables users
        of its financial statements to understand how the currency not being
        exchangeable into the other currency affects, or is expected to affect,
        the entity’s financial performance, financial position and cash flows.

This amendment did not have any impact on the amounts recognised in either current or prior years.

New standards, amendments and interpretations effective after 1 April 2026 which have not been early adopted

The below new amendment and interpretations will become effective for annual periods beginning after 1 April 2026:

    --   IFRS 9 and IFRS 7 – Classification and measurement of financial
        instruments  (effective 1 January 2026).

The amendments address the following:

    --  The classification of financial assets.

    --  Provide guidance on the assessment of whether contractual cash flows are
        consistent with a basic lending arrangement. It is primarily to address
        stakeholder concerns on the classification of financial assets with
        environmental, social and corporate governance (ESG) and similar
        features.
    --  Financial assets with non-recourse features: Clarify for a financial
        asset has non-recourse features if an entity’s ultimate right to receive
        cash flows is contractually limited to the cash flows generated by
        specified assets.
    --  Contractually linked instruments: Clarify the characteristics of
        contractually linked instruments and some transactions that may contain
        multiple debt instruments and appear to have the characteristics of
        contractually linked instruments are in fact lending arrangements
        structured to provide enhanced credit protection to the creditor.
    --  Derecognition of liabilities settled through electronic payment systems:

When settling a financial liability in cash using an electronic payment system, it is permitted that an entity to deem the financial liability to be discharged before the settlement date if it meets certain specified criteria.

    --  Disclosures:

Amend IFRS 7 Financial Instruments: Disclosures to introduce disclosure requirements related to investments in equity instruments designated at fair value through other comprehensive income and contractual terms that could change the amount of contractual cash flows.

    --   Contracts Referencing Nature–dependent Electricity – Amendments to IFRS
        9 and IFRS 7  (effective 1 January 2026)

The amendments address the following:

    --  Explanation of the meaning of “contracts referencing nature-dependent
        electricity”.

    --  Clarification of the “own-use” requirements in IFRS 9 with respect to
        contracts referencing nature-dependent electricity.

Annual improvements to IFRS Accounting Standards – Volume 11   (effective 1 January 2026)

These annual improvements are part of the International Accounting Standards Board’s (IASB) routine maintenance process to clarify wording and correct minor inconsistencies without fundamentally changing accounting principles.

    --   IFRS 18 – Presentation and disclosure in financial statements
        (effective 1 January 2027). The IASB issued IFRS 18,    which replaces
        IAS 1 Presentation of Financial Statements. IFRS 18 introduces new
        requirements for presentation within the statement of profit or loss,
        including specified totals and subtotals. Furthermore, entities are
        required to classify all income and expenses within the statement of
        profit or loss into one of five categories: operating, investing,
        financing, income taxes and discontinued operations, whereof the first
        three are new. It also requires disclosure of newly defined
        management-defined performance measures, subtotals of income and
        expenses, and includes new requirements for aggregation and
        disaggregation of financial information based on the identified ‘roles’
        of the primary financial statements and the notes.
    --   IFRS 19 – Subsidiaries without Public Accountability: Disclosures
        (effective 1 January 2027).

    --  provides reduced disclosure requirements;
    --  that apply full IFRS recognition and measurement rules; and
    --  for eligible subsidiaries.

The above amendments are not expected to have a material effect on the financial statements of the Company, with the exception of IFRS 18, but the Board will continue to assess the impact.

2. INCOME

                          2026   2025

                          £’000  £’000

 Investment income

Overseas dividend income 290    964

 Other income

Deposit interest         136    147

 Total income            426    1,111

3. AIFM AND PORTFOLIO MANAGEMENT FEES

                                               2026                     2025

                             Revenue  Capital  Total  Revenue  Capital  Total

                             £’000    £’000    £’000  £’000    £’000    £’000

AIFM fee – Frostrow Capital  36       681      717   43       820      863
LLP

Portfolio management fee –   85       1,612    1,697 100      1,909    2,009
OrbiMed Capital LLC

                             121      2,293    2,414 143      2,729    2,872

During the financial year ended 31 March 2026, in accordance with the performance fee arrangements in place, no performance fee was earned (2025: nil).

As at 31 March 2026, no performance fees were accrued or payable (31 March 2025: £nil).

Further details of the AIFM fee, portfolio management fee and the performance fee basis can be found in the Report of the Directors.

4. OTHER EXPENSES

                                                            2026   2025

                                                            Total  Total

                                                            £’000  £’000

Directors’ emoluments                                      181    201

Fees payable to the Company’s auditor for the audit of the 54     52
Company’s financial statements

Registrar fees                                             53     45

Depositary fees                                            43     52

Marketing and PR costs                                     84     86

Legal and professional fees^                               28     32

Broker fees                                                43     63

Listing fees                                               18     35

Printing costs                                             35     30

Other costs                                                117    175

 Total expenses charged to Revenue                          656   771

Professional fees charged to Capital*                      59     16

 Total expenses                                             715   787

^   Includes quarterly valuation fees in relation to the valuation of the unquoted investments.

*   Professional fees in respect of acquisition of unquoted and pre-IPO investments and legal costs in relation to the cancellation of the Share Premium Account.

Details of the amounts paid to Directors are included in the Directors’ Remuneration Report.

5. FINANCE COSTS

                                          2026                     2025

                        Revenue  Capital  Total  Revenue  Capital  Total

                        £’000    £’000    £’000  £’000    £’000    £’000

Loan facility interest 57       1,082    1,139  66       1,259    1,325

                       57       1,082    1,139  66       1,259    1,325

6. TAXATION

(A) FACTORS AFFECTING TOTAL TAX CHARGE FOR YEAR

Approved investment trusts are exempt from tax on capital gains made within the company.

The tax assessed for the year is lower than the standard rate of corporation tax in the UK of 25% (2025: 25%). The differences are explained below:

                                              2026                       2025

                            Revenue  Capital  Total    Revenue  Capital  Total

                            £’000    £’000    £’000    £’000    £’000    £’000

Net (loss)/profit before   (408)    130,695  130,287  131      (82,647) (82,516)
taxation

Corporation tax at 25%     (102)    32,674   32,572   33       (20,662) (20,629)
(2025: 25%)

Effects of:

Non-taxable (gain)/loss on –        (33,532) (33,532) –        19,661   19,661
investments

Non-taxable overseas       (72)     –        (72)     (241)    –        (241)
dividends

Overseas tax suffered      32       –        32       145      –        145

Excess expenses unused     174      858      1,032    208      1,001    1,209

 Total taxation for the    32       –        32       145      –        145
year (see note 6(b))

(B) ANALYSIS OF CHARGE IN THE YEAR:

                                                2026                     2025

                              Revenue  Capital  Total  Revenue  Capital  Total

                              £’000    £’000    £’000  £’000    £’000    £’000

Overseas tax suffered        32       –        32     145      –        145

 Total taxation for the year 32       –        32     145      –        145

(C) PROVISION FOR DEFERRED TAX

No provision for deferred taxation has been made in the current or prior year.

The Company has not provided for deferred tax on capital profit or losses arising on the revaluation or disposal of investments, as it is exempt from tax on these items because of its status as an investment trust company.

At 31 March 2026, the Company had unutilised management expenses and other losses of £97,312,000 (2025: £93,248,000) that are available to offset future taxable revenue.

A deferred tax asset of £24,328,000 (25% tax rate) (2025: £23,312,000 (25% tax rate)) arising as a result of these excess management expenses and other losses has not been recognised because the Company is not expected to generate sufficient taxable income in future periods in excess of the available deductible expenses. Given the composition of the Company’s portfolio, it is not likely that this asset will be used in the foreseeable future and therefore no asset has been recognised in the financial statements.

7. BASIC AND DILUTED EARNINGS/(LOSS) PER SHARE

                                             2026                     2025

                           Revenue  Capital  Total  Revenue  Capital  Total

                           pence    pence    pence  pence    pence    pence

Earnings/(loss) per share (1.9)p   559.9p   558.0p 0.0p     (262.3)p (262.3)p

The total profit per share of 558.0p (2025: loss of 262.3p) is based on the total profit attributable to equity shareholders of £130,255,000 (2025: loss of £82,661,000).

The revenue loss per share 1.9p (2025: loss of 0.0p) is based on the revenue loss attributable to equity shareholders of £440,000 (2025: loss of £14,000). The capital gain per share of 559.9p (2025: loss of 262.3p) is based on the capital profit attributable to equity shareholders of £130,695,000 (2025: loss of £82,647,000).

The total profit per share is based on the weighted average number of shares in issue during the year of 23,341,371 (2025: 31,514,115).

There are no dilutive instruments issued by the Company (2025: none).

8. INVESTMENTS

As at 31 March 2026, all investments with the exception of the unquoted investments and derivatives have been classified as level 1. The unquoted investments have been classified as level 3. See note 15 for further details.

        

                                                    2026                                          2025

                                       Derivative*                                   Derivative

                Quoted                 Financial              Quoted                 Financial

                Investments  Unquoted  Instruments  Total     Investments  Unquoted  Instruments  Total

                £’000        £’000     £’000        £’000     £’000        £’000     £’000        £’000

Opening book   292,352      5,001     –            297,353   354,597      16,268    –            370,865
cost

Opening
investment     (77,132)     (2,807)   745          (79,194)  24,977       (1,130)   (418)        23,429
holding
(losses)/gains

Valuation at 1 215,220      2,194     745          218,159   379,574      15,138    (418)        394,294
April

Movement in
the year

Purchases at   554,865      –         3,653        558,518   429,394      46        –            429,440
cost

Sales proceeds (617,923)    –         (4,301)      (622,224) (533,092)    –         2,550 #      (530,542)

Transfer from  –            –         –            –         (859)        (13,408)  –            (14,267)

Transfer into  –            –         –            –         13,408       859       –            14,267

Net movement
in investment  128,573      (849)     9,006        136,730   (73,205)     (441)     (1,387)      (75,033)
holding gains/
(losses)

Valuation at   280,735      1,345     9,103        291,183   215,220      2,194     745          218,159
31 March

Closing book
cost at 31     258,407      5,001     3,428        266,836   292,352      5,001     –            297,353
March

Investment
holding gains/ 22,328       (3,656)   5,675        24,347    (77,132)     (2,807)   745          (79,194)
(losses) at 31
March

Valuation at   280,735      1,345     9,103        291,183   215,220      2,194     745          218,159
31 March




      

*   includes warrant holdings (see note 9)

#   sale of financial equity swaps. This has been shown as a positive movement due to the nature of the equity swap.

The sales proceeds of £622,224,000 (2025: £530,542,000) includes transaction costs of £1,097,000 (2025: £1,240,000). The book cost of these investments when they were purchased was £589,035,000 (2025: £502,952,000).

These investments have been revalued over time and until they were sold any unrealised gains/loss were included in the fair value of these investments.

GAINS/(LOSSES) ON INVESTMENTS

                                                          2026     2025

                                                          £’000    £’000

Gains/(losses) on investments                             136,730 (75,033)

Transaction costs                                         (2,140) (2,057)

Gains/(losses) on investments held at fair value through  134,590 (77,090)
profit or loss

The total transaction costs for the year were £2,140,000 (31 March 2025: £2,057,000) broken down as follows: purchase transaction costs for the year to 31 March 2026 were £1,043,000 (31 March 2025: £817,000), sale transaction costs were £1,097,000 (31 March 2025: £1,240,000). These costs consist mainly of commission. Transaction costs are recorded in the capital column of the Income Statement.

9. DERIVATIVE FINANCIAL INSTRUMENTS

                                               2026   2025

                                               £’000  £’000

Warrants                                       9,103 –

Fair value of OTC equity swaps (assets)*       –     745

Fair value of OTC equity swaps (liabilities)*  –     –

                                               9,103 745

*   There were no OTC equity swaps held at the year end.

(See note 1(J) for further details).

10. OTHER RECEIVABLES

                                2026    2025

                                £’000   £’000

Future settlements – sales      10,999 –

Prepayments and accrued income  64     17

                                11,063 17

11. CASH AND CASH EQUIVALENTS

                            2026   2025

                            £’000  £’000

Money market funds          –     6,913

 Current asset investments  –     6,913

Cash at bank                –     1,540

 Cash and cash equivalents  –     8,453

There was no cash held in the money market fund or at the bank at the year end.

12. OTHER PAYABLES

                                                                2026   2025

                                                                £’000  £’000

Future settlements – purchases                                  7,236 405

Amounts due to brokers in respect of shares repurchased by the  –     4,336
Company for cancellation

Other creditors and accruals                                    768   682

                                                                8,004 5,423

13. ORDINARY SHARE CAPITAL

                                                     2026         2025

                                                     Number of    Number of

                                                     Shares       Shares

Allotted, issued and fully paid at 1 April           27,112,591  33,487,198

Shares bought back for cancellation during the year  (7,183,277) (6,374,607)

At 31 March                                          19,929,314  27,112,591

                                               2026   2025

                                               £’000  £’000

Allotted, issued and fully paid shares of 25p  4,982 6,778

During the year 7,183,277 shares were bought back for cancellation for a consideration of £69,538,000 (2025: 6,374,607 shares were bought back for a consideration of £57,440,000).

14. NET ASSET VALUE PER SHARE

                           2026      2025

Net asset value per share  1,414.6p 815.9p

The net asset value per share is based on the net assets attributable to equity shareholders of £281,923,000 (2025: 221,206,000) and on 19,929,314 (2025: 27,112,591) shares in issue at 31 March 2026.

15. RISK MANAGEMENT POLICIES AND PROCEDURES

As an investment trust, the Company invests in equities and other investments for the long term in order to achieve its investment objective. In pursuing its investment objective, the Company is exposed to a variety of risks that could result in either a reduction or increase in the Company’s net assets or profits.

The Company’s financial instruments comprise securities and other investments, cash balances, debtors and creditors and a loan facility that arise directly from its operations (for example, in respect of sales and purchases awaiting settlement).

The main risks the Company faces from its financial instruments are (i) market price risk (comprising currency risk, interest rate risk and other price risk (i.e. changes in market prices other than those arising from interest rate or currency risk)), (ii) liquidity risk and (iii) credit risk. The Board also considers (iv) fair value measurement and (v) capital management.

The Board reviews and agrees policies regularly for managing and monitoring each of these risks.

OTC EQUITY SWAPS

The Company uses OTC equity swap positions to gain access to Chinese markets where the Company is not locally registered to trade directly. These swaps are revalued daily reflecting changes in the market value of the underlying equity. At the year end the Company did not hold any open equity swap contracts. See glossary for further details.

1. MARKET PRICE RISK:

The Company’s portfolio is exposed to fluctuations in market prices in the biotechnology sector and the regions in which it invests. Market-wide uncertainties which have recently caused increased volatility in the markets include the war in Ukraine, increasing political, military and commercial tensions between the US/West and China, and increased inflationary pressures.

The Company’s portfolio is exposed to market price fluctuations which are monitored by the AIFM and the Portfolio Manager in pursuance of the investment objective. Further information on the composition of the portfolio is set out on pages 8 and 9 of the Annual Report.

This market risk comprises three elements – foreign currency risk, interest rate risk and other price risk.

(a) Foreign currency risk:

The Company’s portfolio is denominated in currencies other than sterling (the Company’s functional currency,   in which it reports its results). As a result, movements in exchange rates can significantly affect the sterling value of those items.

Management of the risk

The AIFM and the Portfolio Manager monitor the Company’s exposure to foreign currencies on a continuous basis and report to the Board regularly. The Company does not hedge against foreign currency movements to manage market price risk.

The Company does not use financial instruments to mitigate the currency exposure in the period between the time that the income is included in the financial statements and its receipt.

Foreign currency exposure

At the date of the Statement of Financial Position the Company held £274,096,000 (2025: £200,735,000) of investments denominated in U.S. dollars and £17,087,000 (2025: £17,424,000) in other non-sterling currencies.

Foreign currency sensitivity

The fair value of the Company’s monetary items that have foreign currency exposure at 31 March 2026 is shown below.

Where the Company’s equity investments (which are not monetary items) are priced in a foreign currency they are shown separately in the analysis as to show the overall level of exposure.

                                                              2026      2025

                                                              £’000     £’000

Sterling equivalent of U.S.$ and other non-sterling exposure

Current assets                                                10,999   8,475

Creditors                                                     (7,236)  (405)

Spot currency contracts                                       (1)      (4,358)

Loan facility (non-sterling)                                  (12,309) –

Foreign currency exposure on net monetary items               (8,547)  3,712

Investments held at fair value through profit or loss         291,183  218,159
including derivative equity swap

Total net foreign currency exposure                           282,636  221,871

The tables below show   the sensitivity of the Company’s profit or loss after taxation for the year (investment values) to a 10% increase and decrease in the value of sterling compared with the U.S. dollar and other non-sterling currencies (2025: 10% increase and decrease).

The above percentages have been determined based on market volatility in exchange rates over the previous twelve months. The analysis is based on the Company’s foreign currency financial instruments held at each Statement of Financial Position date, after adjusting for an increase/decrease in the AIFM and portfolio management fees.

If sterling had weakened against the U.S. dollar and other non-sterling currencies, as stated above, this would have had the following effect:

                                                      2026    2025

                                                      £’000   £’000

Impact on revenue return                              –      –

Impact on capital return                              31,106 32,717

Total return after tax/effect on shareholders’ funds  31,106 32,717

If sterling had strengthened against the U.S. dollar and other non-sterling currencies, as stated above, this would have had the following effect:

                                                      2026      2025

                                                      £’000     £’000

Impact on revenue return                              –        –

Impact on capital return                              (25,449) (13,189)

Total return after tax/effect on shareholders’ funds  (25,449) (13,189)

(b) Interest rate risk:

Interest rate risk is the risk that the fair value of a financial instrument will fluctuate because of changes in market interest rates.

Interest rate exposure

The Company’s main exposure to interest rate risk is through its loan facility with J.P. Morgan Securities LLC which is repayable on demand. Interest is charged at the US overnight bank funding rate plus 45 basis points.

At the year end, financial assets and liabilities subject to interest rate risk were as follows:

                                                    Floating rate  Floating rate

                                                    2026           2025

                                                    £’000          £’000

Loan facility with J.P. Morgan Securities LLC       (12,319)      –

Gross exposure on OTC equity swaps                  –             7,540

Total liabilities subject to interest rate risk     (12,319)      7,540

Less cash held at Goldman Sachs and in a liquidity  –             8,453
fund

Total net liabilities subject to interest rate      (12,319       (913)
risk

Management of the risk

The level of borrowings is approved and monitored by the Board and the AIFM on a regular basis.

Interest rate sensitivity

The majority of the Company’s financial assets are equity shares and other investments which neither pay interest nor have a maturity date. The amount subject to interest rate risk as at 31 March 2026 was £12,319,000 (2025: £913,000). If   the rate increased or decreased by 1%, the impact on the profit or loss and net assets would be expected to be £123,190 or (£9,130) (2024: £513,000) or (£513,000).

(c) Other price risk

Other price risk may affect the value of the quoted investments.

If market prices at the date of the Statement of Financial Position had been 20% higher or lower (2025: 20% higher or lower) while all other variables had remained constant, the return and net assets attributable to shareholders for the year ended 31 March 2026 would have increased/decreased by £57,683,000 (2025: £44,711,000) after adjusting for an increase or decrease in the AIFM and the Portfolio management fees. The calculations are based on the portfolio valuations as at the respective Statement of Financial Position dates.

Other price risk exposure

                                   2026                             2025

                                   Net                              Net

             Assets   Liabilities  Fair Value  Assets  Liabilities  Fair Value

             £’000    £’000        £’000       £’000   £’000        £’000

Investments  282,080  –            282,080    217,414 –            217,414

Warrants     9,103    –            9,103      –       –            –

OTC equity   –        –            –          745     –            745
swaps

             291,183  –            291,183    218,159 –            218,159

The notional exposure of the OTC equity swaps calculated in accordance with AIFMR requirements, is £nil (2025: £8,286,000) see glossary for further details.

2. LIQUIDITY RISK:

At the year end, there were no cash or cash equivalents held by the Company. Liquidity risk is the risk that the Company will encounter difficulty in meeting obligations associated with financial liabilities.

Management of the risk

Liquidity risk is not significant as the majority of the Company’s assets are investments in quoted equities that are readily realisable within one week, in normal market conditions. Stress tests have been performed to understand how long the portfolio would take to realise in such situations. The Board is comfortable that in such situations the Company would be able to meet its liabilities as they fall due. Short-term funding flexibility can be achieved through the use of the   loan facility. The maximum amount of gearing permitted by the Board is 20% of net assets which equated to £56,385,000 at the year end (2025: £44,241,000).

The Board gives guidance to the Portfolio Manager as to the maximum amount of the Company’s resources that should be invested in any one company.

Liquidity exposure and maturity

Contractual maturities of the financial liabilities as at 31 March 2026, based on the earliest date on which payment can be required, are as follows:

                                     2026      2026       2025      2025

                                     3 months  3 to       3 months  3 to

                                     or less   12 months  or less   12 months

                                     £’000     £’000      £’000     £’000

Loan facility (repayable on demand)  12,319    –         –         –

Future settlements                   7,236     –         405       –

Derivative – OTC equity swaps        –         –         –         –

Other creditors and accruals         768       –         5,018     –

                                     20,323    –         5,423     –

3. CREDIT RISK:

Credit risk is the risk of failure of a counterparty to discharge its obligations resulting in the Company suffering a loss.

J.P. Morgan Securities LLC (J.P. Morgan) may take assets with a value of up to 140% of the loan facility as collateral. Such assets held by J.P. Morgan are available for rehypothecation † .

As at 31 March 2026, the maximum value of assets available for rehypothecation was £17,247,000 being 140% of the loan balance of £12,319,000 (31 March 2025: £65,909,000 being 140% of the loan balance of £47,078,000).

†   See glossary.

Management of the risk

The risk is not significant and is managed as follows:

J.P. Morgan

    --  by receiving and reviewing regular updates from the Custodian and Prime
        Broker and the Depository.
    --  by reviewing their Internal Control reports and regularly monitoring
        J.P. Morgan’s credit rating. J.P. Morgan has a credit rating of Aa3
        (Moody’s), AA- (S&P) and AA (Fitch).
    --  by reviewing on a monthly basis assets which are available for
        rehypothecation.

Other counterparties

    --  by only dealing with brokers which have been approved by OrbiMed Capital
        LLC and banks with high credit ratings such as Goldman Sachs
        International which has   a credit rating of A1 (Moody’s), A+ (S&P) and
        AA- (Fitch);

    --  by investing in markets that mainly operate DVP (delivery versus
        payment) settlement.
    --  all cash balances are held with approved counterparties. J.P. Morgan is
        the Custodian of the Company’s assets and all assets are segregated from
        J.P. Morgan’s own assets.

At 31 March 2026 the Company’s exposure to credit risk amounted to £10,999,000 and was in respect of receivables, cash held as collateral and held in a liquidity fund (2025: £8,453,000).

4. FAIR VALUE MEASUREMENT

Hierarchy of investments

As required under IFRS 13 “Fair Value Measurement”, the Company has classified its financial assets designated at fair value through profit or loss using a fair value hierarchy that reflects the significance of the inputs used in making the fair value measurements. The hierarchy has the following levels:

    --  Level 1 – quoted prices (unadjusted) in active markets for identical
        assets or liabilities;
    --  Level 2 – inputs other than quoted prices included with Level 1 that are
        observable for the asset or liability, either directly (i.e. as prices)
        or indirectly (i.e. derived from prices) such as volatilities; and
    --  Level 3 – inputs for the asset or liability that are not based on
        observable market data (unobservable inputs).

                                          Level 1  Level 2  Level 3  Total

 As of 31 March 2026                      £’000    £’000    £’000    £’000

Assets                                   280,735  –        1,345    282,080

Derivatives: warrants                    –        9,103    –        9,103

Financial investments held at fair value 280,735  9,103    1,345    291,183
through profit or loss

                                          Level 1  Level 2  Level 3  Total

 As of 31 March 2025                      £’000    £’000    £’000    £’000

Assets                                   215,220  –        2,194    217,414

Derivatives: equity swap (assets)        –        745      –        745

Financial investments held at fair value 215,220  745      2,194    218,159
through profit or loss

As at 31 March 2026, the investment in OrbiMed Asia Partners LP Fund has been classified as level 3. The OrbiMed Asia Partners Fund LP has been valued at the net asset value presented in its Statement of Partners Capital Activity as at 31   December 2025, as permitted under the IPEV guidelines. The Statement of Partner’s Capital Activity as at 31 March 2026 was received in May 2026 and was not materially different from the valuation at 31 December 2025. If the value of the OrbiMed Asia Partners Fund were to increase or decrease by 10%, while all other variables remain constant, the return and net assets attributable to shareholders for the year ended 31 March 2026 would have increased/decreased by £89,000 (2025: £89,000).

At 31 March 2026, the Company held three level 3 investments in addition to the OrbiMed Asia Fund:

    --  New Horizon Health;
    --  Gracell Biotechnology CVRs; and
    --  StemiRNA.

New Horizon Health has been valued at £nil, due to the Company delisting from the Hong Kong Stock Exchange on 27 October 2025. See note 1 for further details.

Gracell Biotechnology CVR has been valued by Kroll using the PWERM.

StemiRNA entered into liquidation during the year and is valued at £nil at the year end.

At 31 March 2026, the Company also held the following (Level 2) warrants:

    --  C4 Therapeutics*
    --  Cybin Inc*
    --  Immunic Therapeutics*
    --  Milestone Pharmaceuticals

*           do not have a fixed expiration date.

Three of the warrants held (C4 Therapeutics, Cybin Inc and Immunic Therapeutics) do not have a fixed expiration date and have been valued based on OrbiMed’s best estimate of future expiration date as at 31 March 2026.

If the future expiration date was estimated at reasonably possible alternatives, the fair value of the warrants would increase by £1.7m at the year end.

Level 3 Reconciliation

Please see below a reconciliation disclosing the changes during the year for the financial assets and liabilities designated at fair value through profit or loss classified as being Level 3. There has been no transfer between fair value hierarchy levels.

                                                          2026   2025

                                                          £’000  £’000

Assets

As at 1 April                                             2,194 15,138

Purchase of unquoted investments                          –     46

Sale of unquoted investment                               –     –

Transfer to level 1                                       –     (13,408)

Transfer to level 3                                       –     859

Net movement in investment holding gains during the year  (849) (441)

Assets as at 31 March                                     1,345 2,194

FAIR VALUE OF FINANCIAL ASSETS AND FINANCIAL LIABILITIES:

Financial assets and financial liabilities are either carried in the Statement of Financial Position at their fair value or at a reasonable approximation of fair value.

5. CAPITAL MANAGEMENT

The Company’s capital management objectives are:

    --  to ensure that it will be able to continue as a going concern; and
    --  to maximise the total return to its equity shareholders.

The Board’s policy is to limit gearing to a maximum of 20% of the Company’s net assets.

The capital structure of the Company consists of the equity share capital, retained earnings and other reserves shown in the Statement of Financial Position.

Shares may be repurchased by the Company as explained on pages 23 and 24 of the Annual Report.

The Company’s objectives, policies and processes for managing capital are unchanged from the preceding accounting period.

16. TRANSACTIONS WITH RELATED PARTIES

The Directors of the Company are considered to be related parties.

Details of the remuneration of the Directors of the Company can be found on page 58 of the Annual Report. Geoff Hsu has waived his Directors’ fees. Details of the Directors’ interests in the capital of the Company can be found on page 60 of the Annual Report.

17. TRANSACTIONS WITH THE MANAGERS

    --  Frostrow Capital LLP
    --  OrbiMed Capital LLC

Details of the relationship between the Company and Frostrow Capital LLP, the AIFM, and OrbiMed Capital LLC, the   Portfolio Manager, are disclosed on page 45 of the Annual Report. Geoff Hsu, who joined the Board on 16 May 2018, is a General Partner at OrbiMed. Details of fees paid to OrbiMed by the Company can be found in note 3. All material related party transactions have been disclosed in notes 3 and 4.

The Company holds an interest in OrbiMed Asia Partners Fund which equates to 0.4% of the investments held at 31   March 2026. Further details can be found on page 73 of the Annual Report.

Three current and two former partners at OrbiMed Capital LLC have a minority financial interest totalling 20% in Frostrow Capital LLP, the AIFM. Details of the fees paid to Frostrow Capital LLP by the Company can be found in note 3.

18. CAPITAL RESERVE

                           2026                          2025

                           Capital                       Capital
                          Reserves                      Reserves

                           Investment                    Investment

                           holdings                      holdings

                           gains/                        gains/

                  Other    (losses)    Total    Other    (losses)    Total

                  £’000    £’000       £’000    £’000    £’000       £’000

At 1 April       197,998  (79,194)    118,804  235,358  23,533      258,891

Net gains/
(losses) on      31,049   103,541     134,590  25,637   (102,727)   (77,090)
investments

Foreign exchange (461)    –           (461)    (1,553)  –           (1,553)
losses

Expenses charged (3,434)  –           (3,434)  (4,004)  –           (4,004)
to capital

Repurchase of
own shares for   (69,538) –           (69,538) (57,440) –           (57,440)
cancellation

At 31 March      155,614  24,347      179,961  197,998  (79,194)    118,804

Sums within the Total Capital Reserve less unrealised gains (those on investments not readily convertible to cash) are available for distribution. Investment holding gains in the table above are unrealised. The value of investments not readily convertible to cash amount to £1,345,000 (2025: £2,194,000).

19. SUBSEQUENT EVENTS

Subsequent to the Company’s year end, the net asset value per share of the Company had risen by 3.9% from 1,414.6p to 1,469.2p and the Company’s share price had risen by 4.1%% from 1,260.0p to 1,312.0p as at 29 May 2026.

The figures and financial information for 2025 are extracted from the published Annual Report for the year ended 31 March 2025 and do not constitute the statutory accounts for that year. The Annual Report for the year ended 31 March 2025 has been delivered to the Registrar of Companies and included the Independent Auditor’s Report which was unqualified and did not contain a statement under either section 498(2) or section 498(3) of the Companies Act 2006.

The figures and financial information for 2026 are extracted from the Annual Report for the year ended 31 March 2026 and do not constitute the statutory accounts for the year.   The Annual Report for the year ended 31 March 2026 includes the Independent Auditor’s Report which is unqualified and does not contain a statement under either section 498(2) or section 498(3) of the Companies Act 2006.   The Annual Report and financial statements have not yet been delivered to the Registrar of Companies.

ANNOUNCEMENT ENDS

Neither the contents of the Company's website nor the contents of any website accessible from hyperlinks on the Company's website (or any other website) is incorporated into, or forms part of, this announcement.