**Summary of The Biotech Growth Trust PLC Half-Year Financial Report (November 2025)**
**Overview**
The Biotech Growth Trust PLC reported strong performance for the six months ended September 30, 2025, with a net asset value (NAV) per share total return of **36.9%**, significantly outperforming the NASDAQ Biotechnology Index’s **10.6%** increase. This growth was driven by a resurgence in small-cap biotech stocks, increased merger and acquisition (M&A) activity, and positive clinical data from key holdings like Mineralys Therapeutics, Alnylam Pharmaceuticals, and Avidity Biosciences.
**Key Financial Highlights**
**NAV per share**Increased from **815.9p** at March 31, 2025, to **1,117.2p** at September 30, 2025.
**Share price**Rose from **754.0p** to **1,005.0p**, with a **10.0%** discount to NAV at period end.
**Gearing**Increased from **0%** to **9.3%**, contributing **1.6%** to NAV performance.
**Ongoing charges**: **1.3%**up from **1.1%** in March 2025.
**Active Share****76.2%**, reflecting the portfolio’s divergence from the benchmark.
**Portfolio Performance**
**Top contributors**Mineralys Therapeutics, Alnylam Pharmaceuticals, and Avidity Biosciences, driven by positive clinical data and M&A interest.
**Detractors**Vertex Pharmaceuticals and Gilead Sciences, impacted by regulatory setbacks and weaker product launches.
**China exposure**Increased mid-period to capture market recovery but later reduced due to geopolitical risks and reallocation to U.S. opportunities.
**Discount Management**
The Company actively manages its share price discount, buying back **4,029,569 shares** during the period at an average discount of **9.1%**. Shareholders approved a renewal of the share buyback authority, with over **99%** voting in favor.
**Company Continuation**
Shareholders approved a five-year continuation resolution at the July AGM, with **77%** in favor. The Board plans a one-off continuation vote in 2028 to address concerns about performance, size, and liquidity.
**Outlook**
The biotech sector is showing renewed momentum, supported by innovation in gene therapy, RNA-based treatments, and immuno-oncology. M&A activity is expected to remain robust, driven by large pharma companies seeking pipeline replenishment. However, challenges persist, including drug pricing reforms, geopolitical tensions, and competition in key therapeutic areas.
**Portfolio Strategy**
The Portfolio Manager remains focused on high-quality, innovative companies, with a significant overweight in small and mid-cap biotech stocks. Gearing is expected to stay in the **5-10%** range, and selective investments in Chinese biotech will continue, balancing opportunities with geopolitical risks.
**Board Updates**
Professor Dame Jenny Harries joined the Board in September 2025, bringing valuable healthcare expertise.
**Conclusion**
The Biotech Growth Trust PLC delivered strong performance in a volatile biotech sector, driven by strategic portfolio management and exposure to high-growth areas. Despite challenges, the Company remains optimistic about the sector’s long-term prospects, supported by innovation, favorable regulatory trends, and robust M&A activity.