Trading Desk
BB Biotech: On the Launch Pad
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Christian Ingerl
Redaktor
After hitting a three-year high, the stock has entered a correction phase. Strong quarterly results, a significant discount to intrinsic value, and a key technical support level could now signal the start of a rebound.
Biotech is back in vogue on the stock market. After years in which rising interest rates and dashed hopes for growth had held back many stocks in the sector, investors’ appetite for risk has noticeably returned. BB Biotech is also benefiting from this . The investment company’s stock has more than doubled since May 2025. Recently, however, the momentum has cooled: profit-taking weighed on the stock, and the rally stalled. From a fundamental perspective, though, the latest quarterly figures could mark a new turning point, while from a technical perspective, a moving average is fueling a comeback. The stock has found support almost exactly at its rising 200-day moving average. If this support holds, the upward climb could continue.
Profits are pouring in…
From an operational standpoint, there are certainly arguments in its favor. BB Biotech’s net asset value (NAV) rose by 5.6% in the third quarter, while the stock, including dividends, gained as much as 6.5%. The investment company was unable to keep pace with the Nasdaq Biotechnology Index, which rose by 12%. However, a key reason for this was the strong performance of Moderna and genomics specialists that are not part of the portfolio. Quarterly profit totaled CHF 175 million, down from CHF 448 million in the exceptionally strong same quarter of the previous year. It is therefore more meaningful to look at the first nine months: Here, net profit soared from CHF 106 million to CHF 605 million.
…Acquisitions are coming in
Strategically, too, the quarter was eventful. Three portfolio companies received drug approvals in the U.S. At the same time, the acquisitions of Crinetics by Vertex and of Nuvalent by GSK were completed. Including other transactions, five of BB Biotech’s portfolio companies had already been acquired by the end of 2026. Approximately CHF 280 million from the most recent M&A deals was immediately reinvested. Twelve new positions were added, and eight holdings were sold, bringing the portfolio total to 43 companies at the end of the quarter. New investments include Biogen, Incyte, and Axsome, among others; BB Biotech also re-entered Alnylam following a decline in its share price.
In doing so, management is consistently continuing the restructuring of the portfolio, while at the same time maintaining a robust core of established biotech giants: As of the end of September, Amgen, Gilead, Vertex, Argenx, and Regeneron together accounted for approximately 37 percent of the NAV. This provides a counterbalance to the smaller, clinically focused growth stocks.
Drug News
The news flow remains strong for the final quarter. Important clinical data is expected from Argenx, Biogen, and Oruka, and regulatory decisions are also anticipated for, among others, active ingredients from Vertex, BridgeBio, and Gilead. Such events can significantly impact the value of individual holdings. The biotech stock’s discount to its net asset value (NAV) adds to its appeal: The share price of CHF 51.60 contrasts with an NAV of CHF 57.40—a discount of 11.2%. This creates a two-pronged scenario for investors: If the portfolio holdings rise and the NAV discount narrows at the same time, the stock could see disproportionately strong gains.
Investment solutions
Investors with a penchant for trading can, depending on their risk tolerance, invest in two long mini-futures. The Dynamic Mini Future from Julius Bär LBIDJB currently has a leverage ratio of 3.44. The financing level is CHF 37.11, and the stop-loss level is CHF 38.23. The margin to the knock-out threshold is thus just under 26%. The Long Mini-Future from Leonteq MBIDJTis a more aggressive option. With a leverage ratio of 4.34, it reacts more strongly to movements in the BB Biotech stock. However, the stop-loss level of CHF 40.85 is closer to the current stock price, leaving a safety margin of about 21%.
Caution: If the BB Biotech stock falls to the respective stop-loss threshold, there is a risk of significant losses, including total loss. If, on the other hand, the 200-day moving average holds and the long-term uptrend continues, BB Biotech’s current pullback could, in hindsight, actually serve as a new springboard.
