HBM Healthcare Investments (HBMN) Q3 2025 earnings summary

Executive summary

• Generated a profit of CHF 66 million for the first nine months of FY 2024/2025, with NAV per share up 4.3% and share price down 5.2% year-over-year.

• Performance was mainly driven by private companies, notably the sale of Yellow Jersey Therapeutics and four IPOs, contributing CHF 100 million.

• Asset allocation remains balanced: 31% private companies, 49% public companies (26% from former private), 10% funds, 8% cash, 2% other assets.

• New investment of CHF 8.4 million in Indian CDMO OneSource Speciality Pharma; follow-on financings of CHF 2 million in private companies.

• Currency hedge closed in October 2024 with a gain of CHF 5 million.

Financial highlights

• Net assets at CHF 1,700.9 million as of 31.12.2024, down from CHF 1,703.9 million at 31.3.2024.

• Net result for the period: CHF 66.5 million (vs. CHF -1.1 million previous year); basic EPS CHF 9.74 (vs. CHF -0.16).

• NAV per share CHF 251.17 (up from CHF 248.10 at 31.3.2024); share price CHF 176.00 (down from CHF 193.60).

• Distribution per share CHF 7.50; distribution yield 3.9%.

• Discount to NAV widened to -29.9%.

Outlook and guidance

• Macroeconomic environment remains challenging: China faces mild deflation, US expects higher inflation and interest rates.

• Healthcare indices have fallen post-US election; sector M&A expected to revive as policy clarity emerges in 2025.

• Portfolio positioned for further value growth; several IPOs and strategic transactions anticipated in 2025.

• Study results and regulatory decisions for public companies expected in 2025, likely to positively impact valuations.