RTW Biotech NAV rises 15% as public investments drive returns

RTW Biotech Opportunities Ltd on Monday reported a positive net asset value return for the first half of 2026, supported by improving biotechnology sector sentiment, M&A activity and clinical progress across its portfolio.

The London-listed investor in the life sciences sector said its NAV per share return was positive 17% in the six months ended June 30, while its share price return was positive 12%.

NAV per share increased 17% to USD2.86 at June 30 from USD2.45 at the end of December, while total NAV rose 15% to USD922.0 million from USD800.9 million.

The performance was compared with positive returns of 28% for the Russell 2000 Biotech index, 15% for the Nasdaq Biotech Index and 0.5% for the Association of Investment Companies Biotechnology & Healthcare sector.

Since its initial public offering in 2019, RTW Biotech said NAV per share has returned 175%, equivalent to an annualised return of 16%, while total shareholder return has been 133%.

Public investments, which represented 86% of NAV at the end of June, returned 22% during the first half and were the main driver of performance.

Kailera Therapeutics was the largest single contributor to NAV, adding 3.8 percentage points after listing on Nasdaq in April. The RTW co-incubated obesity drug developer raised USD625 million in what was, at the time, the largest biotechnology IPO on record and closed 63% above its offer price on its first day of trading.

Oruka Therapeutics was another leading contributor, adding 3.8 percentage points following positive phase two data in plaque psoriasis, while Tango Therapeutics benefited from encouraging pancreatic cancer trial data.

Insmed was the largest public investment detractor, amid concerns over prescription trends and the sustainability of early demand for Brinsupri, while Verastem also weighed on performance.

RTW Biotech said merger and acquisition activity remained strong, with five public portfolio companies – Penumbra, RAPT, Apellis, Centessa and Apogee – announcing acquisitions during the period. Ten portfolio companies have been subject to announced M&A over the preceding 12 months.

The five deals announced during the first half were agreed at premiums ranging from 19% to 163%. They included AbbVie Inc's USD10.9 billion acquisition of Apogee in June at a 50% premium.

Private investments returned 0.8% during the period and represented 18% of NAV at June 30.

Corxel remained the company's largest private holding, accounting for 28% of private investments. Its obesity and cardiometabolic drug candidate CX11 reported positive phase two topline results in June, with a global phase three US study expected to launch in early 2027.

Ensoma was the largest private detractor, reducing NAV by 1.6 percentage points amid concerns over its cash runway, future financing and a lack of positive clinical data for its lead asset. The investment was subsequently written down by 86%.

Royalty investments, representing 1.8% of NAV, added 0.2 percentage points to first-half NAV.

Chief Investment Officer Roderick Wong said: "The first half of 2026 demonstrated both the resilience of the biotechnology sector and the strength of RTW Bio's full life cycle investment strategy."

"Despite heightened geopolitical volatility during the first quarter, the sector recovered strongly in the second quarter, supported by improving capital markets activity, accelerating M&A and positive clinical data," he added.

Looking ahead, Wong said the company remains constructive on biotechnology, citing improving market sentiment, active M&A, a more supportive regulatory environment and advances in genomics, new therapeutic technologies and artificial intelligence-driven drug discovery.

RTW Biotech does not pay dividends, instead reinvesting returns in line with its investment strategy.

Shares in RTW Biotech Opportunities were 1.3% lower at USD2.33 in London late on Monday morning.

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