International Biotechnology Trust plc (IBT) has reported a net asset value per share gain of 64.7% for the financial year ending 31 August 2026, significantly outpacing the Nasdaq Biotechnology Index return of 52.3% over the same period. The trust's share price rose 73.6% across the year, according to a results analysis published by Kepler Trust Intelligence. A wave of merger and acquisition activity within IBT's portfolio was identified as a central driver of performance, with 13 portfolio companies acquired over the year. Investors will be watching whether elevated M&A levels and the trust's expanded unquoted investment programme can sustain momentum into the new financial year.

Key Points

  • International Biotechnology Trust plc (IBT)
  • IBT delivered a 64.7% NAV per share gain for the financial year ending 31 August 2026, outperforming the Nasdaq Biotechnology Index by 12.4 percentage points
  • 13 portfolio companies were acquired during the year, representing approximately 27% of NAV; notable deals included Crinetics Pharmaceuticals acquired by Vertex and Apellis acquired by Biogen
  • Investors should watch IBT's expanded £25m Schroders Capital unquoted partnership and whether large-cap pharma's patent cliff continues to drive M&A activity

13 Portfolio Acquisitions Account for Approximately 27% of IBT's NAV in FY2026

Merger and acquisition activity was the principal engine of IBT's strong annual returns. Thirteen portfolio companies were bought out over the financial year, equating to roughly 27% of net asset value. Among the most significant contributors was Crinetics Pharmaceuticals, acquired by Vertex in July, alongside the purchases of Apellis by Biogen and Terns by Merck. Portfolio managers Ailsa Craig and Marek Pozsepczynski have managed the trust since March 2021 and expect M&A to remain elevated for the foreseeable future, citing approximately $400 billion of revenues at risk from patent expiries at large-cap pharmaceutical companies by 2033 as a structural incentive to acquire earlier-stage biotech targets.

IBT Expands Schroders Capital Unquoted Partnership Commitment from £10m to £25m

During the year, IBT entered a new partnership with Schroders Capital to access unquoted investment opportunities, with its commitment increased from £10 million to £25 million. As of 30 June 2026, investments through this arrangement were valued at £6.2 million, spread across three funds: TCGX Asia Life Sciences I, TCGX III, and Third Rock Ventures VII. These vehicles collectively provide exposure to China-linked life sciences, clinical-stage crossover investing, and US company creation, broadening IBT's reach beyond listed biotech securities and offering diversification across geographies and development stages within the life sciences sector.

Post-Period Sector Sell-Off and US Rate Concerns Weigh on IBT's NAV

Since the end of the financial year on 31 August 2026, the analysis notes that much of the biotech industry has sold off and IBT's NAV has declined alongside it. The Kepler Trust Intelligence report attributes this partly to a US interest rate rise and the prospect of further increases, given the sensitivity of biotech valuations to US rates. However, the analysis also highlights that large-cap pharmaceutical companies' motivation to acquire pipeline assets ahead of patent expirations is not rate-sensitive. Notably, Merck has already returned to acquire IBT holding Silence Therapeutics at a 130% premium to its pre-announcement closing price in the current financial year.