HBM Healthcare Investments (HBMN) Q1 2025 earnings summary

Executive summary

• Achieved a quarterly profit of CHF 26 million for Q1 2024/2025, with NAV per share up 1.6% and share price up 5.9% compared to the previous quarter.

• Value growth was driven by private companies, notably the sale of a Numab Therapeutics spin-off, while public companies and funds detracted from results.

• Portfolio remains diversified across private and public companies, with asset allocation largely unchanged.

• Cautious approach maintained amid macroeconomic uncertainty, with one-third of USD currency risk hedged.

Financial highlights

• Net assets at 30 June 2024 were CHF 1,722.4 million, up from CHF 1,703.9 million at 31 March 2024.

• Net result for the period was CHF 25.5 million, compared to a loss of CHF 1.1 million in the previous quarter.

• Basic earnings per share for the quarter were CHF 3.72, versus CHF -0.16 in the previous quarter.

• Cash and cash equivalents stood at CHF 132.1 million, down from CHF 203.4 million at 31 March 2024.

• NAV per share was CHF 252.07, with the share price at CHF 205.00, reflecting an 18.7% discount.

Outlook and guidance

• Macroeconomic environment remains challenging, with central bank measures impacting sentiment and anticipated interest rate cuts expected to benefit growth companies.

• Portfolio is fundamentally strong and diversified, with several private companies progressing toward IPOs or strategic transactions.

• Public portfolio companies such as ALX Oncology, ArriVent, Biohaven, BioInvent, IO Biotech, Mineralys Therapeutics, and Natera are expected to release key study data in H2 2024.

• Continued cautious investment approach planned for the remainder of the year.