HBM Healthcare Investments is set for a strong half-year. The company expects a profit of CHF 177 million for the first half of its 2026/2027 financial year. The main driver? Private biotech holdings. These companies added CHF 138 million to profits. That beat the listed portfolio by a wide margin.
Private firms made the difference. Dren Bio’s latest funding round alone boosted value by CHF 74 million. Eli Lilly’s buyout of Curevo Vaccine brought in another CHF 32 million. Neurelis added CHF 18 million after a revaluation in the second quarter. Some private holdings lost value, with adjustments totaling CHF 31 million. Still, the net result stayed firmly positive.
During the IPO of ADARx Pharmaceuticals, HBM Healthcare Investments increased its stake by purchasing an additional USD 15.3 million in shares, bringing its total investment to USD 19.3 million and resulting in ownership of approximately 1.2% of ADARx.
Public market volatility tempers overall gains
Listed assets added CHF 107 million to the result. Natera led with CHF 41 million. Harmony Biosciences and Argenx each contributed about CHF 22 million. Indian holdings together brought in CHF 37 million. But not every stock rose. Cathay Biotech shares fell, cutting CHF 27 million from results. Oculis dropped too, costing CHF 13 million. After a strong first quarter, net asset value (NAV) per share slipped 2.9% in the second quarter. Falling share prices in listed companies drove the drop.
Even with these setbacks, NAV per share still climbed 9.8% to CHF 297.30, adjusted for a CHF 9.00 dividend. The share price rose 7.8% on a dividend-adjusted basis to CHF 233.50. That’s still about 21 percent below NAV. A stronger US dollar against the Swiss franc gave the portfolio an extra boost.
IPO activity and portfolio turnover accelerate
Five private companies in the portfolio—Parabilis Medicines, Odyssey Therapeutics, Electra Therapeutics, ADARx Pharmaceuticals, and Freenome—went public during the half-year. That’s a wave of liquidity events and fast portfolio turnover. These exits show the value of HBM’s private investments. They keep delivering bigger returns than public holdings. According to an official company press release, ADARx Pharmaceuticals raised about USD 446.25 million in gross proceeds by issuing 26.25 million new shares at USD 17.00 each during its IPO.
All numbers are preliminary and unaudited. Final results and the full half-year report will be released on 23 October 2026. For more details, Dr Andreas Wicki can be reached at +41 41 710 75 77 or andreas.wicki@hbmhealthcare.com.
On the first trading day after the ADARx IPO, HBM's stake in the company was valued at approximately USD 25.4 million, representing an unrealized gain of about USD 6.1 million over invested capital.
HBM Healthcare Investments’ half-year numbers show how targeted private biotech bets can drive growth, even when public markets swing. The company keeps finding value through exits and revaluations. It manages the risks of listed holdings and keeps its edge in biotech investing. Investors will be watching for the final audited results. But the early figures already point to a clear win for HBM’s private market strategy.
