RTW Biotech net asset value grows healthily in 2025; outlook positive
RTW Biotech Opportunities Ltd on Monday said it is ‘cautiously optimistic’ looking ahead as it reported a sharply higher net asset value per share.
The Guernsey-based investor in the life sciences sector said net asset value per share was $2.45 as at December 31, up 35% from $1.81 a year ago.
The NAV return for 2025 was plus 35.7%, outperforming the Nasdaq Biotech Index at plus 33.4% and the AIC Biotechnology & Healthcare Sector at 18.4%, although the Russell 2000 Biotech Index returned plus 44.6%
RTW Biotech said significant contributors to returns were Avidity following positive clinical data and its subsequent acquisition, as well as PTC Therapeutics, which benefited from regulatory and commercial progress across its core franchise.
More cautiously, the firm said: ‘By contrast, the IPO market remained subdued. Among the less than ten in 2026, Beta Bionics and Evommune came out of the group’s private book, illustrating the continued selectivity of public markets and reinforcing the importance of maintaining flexible routes to realisation beyond IPOs alone.’
Regarding detractors, Rocket Pharmaceuticals ‘was the only material negative contributor among our public positions,’ RTW Biotech said, after the death of a Danon disease trial patient led to a protocol modification to avoid an immunosuppressant that may have contributed to the event.
The company noted that after years of underperformance, biotech indices finished 2025 ahead with the Nasdaq Biotech index up 33%, and the Russell 2000 biotech index up 45%, compared to the S&P index which was up 16% and the Nasdaq which was up 20%.
RTW Biotech said: ‘Looking ahead, the board remains cautiously optimistic. In 2025, biotechnology ended a multi-year period of underperformance relative to the S&P 500, signalling the conclusion of a four-year bear market for the sector. While the recovery remains at an early stage, the underlying drivers appear durable and we believe the current dynamics provide a supportive environment for sustained near and long-term value creation.’
Roderick Wong, managing director and chief investment officer of RTW Investments LP, which is the investment manager of RTW Biotech, said: ‘The combination of regulatory clarity, record merger & acquisition demand, and a profound advancement of clinical assets points to a potentially powerful re-rating as we enter 2026. For investors, the sector remains attractively valued and under-owned. With our inclusion in the FTSE 250 and a narrowing discount, we believe RTW Bio offers a compelling vehicle for capturing the full value creation curve of modern medicine.’
RTW Biotech shares were 0.8% lower at $1.90 each on Monday morning in London.
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