| ANNUALIZED SINCE INCEPTION | QUARTERLY | YTD |
|---|---|---|
| 13.5% | -1.3% | -1.3% |
RTW Biotech Opportunities delivered a -1.3% NAV return in Q1 2026, underperforming biotech indices but demonstrating the fund's focus on transformative life sciences assets. The portfolio manager emphasizes that biotech showed relative resilience despite broader market volatility, supported by accelerating M&A activity that reached $48.5 billion year-to-date. Two portfolio companies were acquired at significant premiums: Apellis by Biogen for $5.6 billion (163% premium) and Centessa by Eli Lilly for $6.3 billion (70% premium). Capital markets are reopening with follow-on activity increasing substantially to $11 billion in Q1 versus $4 billion in the prior year. The fund maintains a concentrated portfolio of 50 positions with top holdings including CG Oncology, Stoke Therapeutics, and argenx. Key risks include geopolitical volatility and AI disruption concerns in MedTech. The outlook remains constructive with major oncology catalysts expected at upcoming medical conferences and biotech remaining under-owned and attractively valued.
RTW Biotech Opportunities focuses on identifying transformative assets across the life sciences sector by applying deep scientific and commercial expertise with a long-term investment horizon across the full private and public life cycle.
The sector enters a catalyst-rich period with major oncology updates expected at medical meetings. Biotech remains under-owned and attractively valued, with continued advances in novel modalities and AI-driven drug discovery supporting a favourable medium-term outlook.
| Date | Letter | Tickers | Keywords | Pitches | Quick Takes |
|---|---|---|---|---|---|
| Apr 15 2026 | 2026 Q1 | ARGX, CELC, CGON, ERAS, PTCT, STOK, TNGX, URGN | Biotechnology, Capital markets, Clinical Trials, Drug Development, healthcare, M&A, Pharmaceuticals | - | RTW Biotech delivered -1.3% in Q1 amid market volatility but benefited from accelerating M&A activity including two portfolio acquisitions at significant premiums. Capital markets are reopening with follow-on activity tripling year-over-year. The concentrated biotech portfolio focuses on transformative life sciences assets with major oncology catalysts expected at upcoming medical conferences. |
| Jan 15 2026 | 2025 Q4 | ALNY, ARGX, AVID, DYN, IMTX, INSM, MDGL, PTCT, RCKT, STOK, TARS, UCB, URGN | Biotechnology, Drug Discovery, Gene Therapy, healthcare, M&A, Pharmaceuticals, Rare Diseases | - | RTW delivered 35.7% YTD returns as biotech ended four years of underperformance with major indices beating broader markets. Strong M&A activity ($105B) and policy clarity drove the turnaround. The firm expects continued outperformance in 2026 from innovation, financing strength, and further consolidation as the sector enters early innings of a new bull cycle. |
| Oct 14 2025 | 2025 Q3 | AKRO, PTCT, QURE, RNA, STOK, TARS, URGN, VSTM | Biotechnology, Commercial, Development, Gene Therapy, M&A, Oncology, Rare Diseases | - | RTW Biotech delivered 25% Q3 returns, outpacing benchmarks with 17.5% YTD performance. M&A activity surged with $15+ billion in deals including Merus acquisition. Portfolio benefits from positive clinical data and focus on late-stage commercial biotechs. Policy overhangs resolving while IPO market remains closed, creating opportunities in high-quality publicly-traded companies with accelerating commercial success. |
| Aug 14 2025 | 2025 Q2 | AKRO, GHRS, RNA, TARS, URGN | Biotechnology, China, FDA, Gene Therapy, GLP-1, M&A, Obesity, Rare Disease | - | RTW Biotech delivered 7.8% in July driven by M&A activity including Merck's $10B Verona acquisition and Avidity's acquisition speculation. Strong clinical results from Kailera's GLP-1 obesity program added to performance. Despite U.S. political pricing pressures weighing on sentiment, international biotech markets surged with China up 122% YTD, suggesting recovery potential once uncertainty lifts. |
| Mar 31 2025 | 2025 Q1 | AKRO, IMCR, RCKT, RNA, TARS | Biopharma M&A, Biotechnology, Clinical Trials, Gene Therapy, Life Sciences, Oncology, Rare Diseases, small cap | - | RTW Bio outperformed biotech indices despite -6.4% Q1 return as sector valuations hit new lows. Portfolio concentrated in high unmet need rare diseases and oncology with strong FDA support. Manager sees significant deployment opportunity amid unwarranted valuations, supported by M&A-friendly regulatory environment and improving commercial dynamics. Well-positioned for recovery with 53% exposure in Phase 3 trials. |
| Dec 31 2024 | 2024 Q4 | AKRO, IMCR, RCKT, RNA, TARS | Biotechnology, FDA, Gene Therapy, GLP1, innovation, M&A, Rare Diseases | - | RTW Biotech delivered -4.6% in 2024 but achieved 86% five-year returns, outperforming biotech indices. The fund focuses on transformative life sciences assets with 54 core positions spanning genetic medicines, obesity treatments, and rare diseases. Despite sector headwinds from rates and regulatory uncertainty, management sees early signs of recovery with record FDA approvals and attractive valuations. |
| QUARTER | THEMES | TAGS |
|---|---|---|
| 2026 Q1 |
Biopharma M&AM&A activity accelerated meaningfully through Q1 2026, with March alone accounting for 10 transactions totalling up to $31.5 billion and bringing year-to-date value to $48.5 billion. Large-cap pharma remains active, driven by the need to offset upcoming patent expiries and supported by significant cash flows, particularly from obesity franchises. Two of RTW Bio's portfolio companies were acquired in March: Apellis by Biogen for $5.6 billion at a 163% premium and Centessa by Eli Lilly for $6.3 billion at a 70% premium. |
M&A Acquisitions Pharma Biotech Premiums |
Capital MarketsCapital markets showed clear signs of reopening with follow-on activity remaining robust at c. $3.5 billion raised in March and c. $11 billion across 67 deals in Q1, a substantial increase versus c. $4 billion across 27 deals in Q1 2025. IPO activity, while still muted, is beginning to recover with six offerings year-to-date compared to eight for the entirety of 2025. The improving financing environment reflects renewed investor engagement and is expected to support continued innovation. |
IPO Follow-on Financing Biotech Recovery | |
BiotechnologyBiotech demonstrated relative resilience in Q1 2026 despite broader market volatility, supported by strong M&A activity and a materially improved financing backdrop. The asset class continues to benefit from growing recognition of scientific progress, with innovation increasingly translating into clinical and commercial success. The sector remains under-owned and attractively valued, with continued advances in novel modalities and AI-driven drug discovery supporting a favourable medium-term outlook. |
Biotech Innovation Valuation Scientific Progress | |
AIIn MedTech, valuations came under pressure despite solid operating performance, reflecting investor concerns around potential AI-driven disruption as well as evolving policy narratives focused on healthcare system economics. More broadly, continued advances in AI-driven drug discovery are supporting a favourable medium-term outlook for biotech. |
AI Drug Discovery MedTech Disruption Innovation | |
| 2025 Q4 |
Healthcare ITCareCloud helps smaller U.S. health practices manage data and collect payments. High switching costs lock in practices but also lock out competitors. Most RCMs have high fixed costs and too few clients, creating consolidation opportunities for CareCloud to buy cheaply and cut costs. |
EHR RCM Healthcare Consolidation Switching Costs |
CementICG owns cement plants in Kazakhstan and Tajikistan with significant energy and transport cost advantages. Newest dry process plants with heat recovery versus competitors' older wet process plants. Geographic proximity to customers reduces transport costs substantially. |
Energy Efficiency Transport Kazakhstan Cost Advantage Infrastructure | |
ConstructionCTR Holdings builds structural frames and handles finishing work in Singapore. Most projects are public with stable government payments guaranteeing cash flow. Company had significant net cash position and signed project backlog. |
Singapore Government Cash Flow Backlog Public Projects | |
| 2025 Q3 |
Biopharma M&ADevelopment stage M&A activity accelerated in September with three significant acquisitions announced over two weeks. Roche acquired MASH company 89Bio for $2.4 billion, Pfizer bought Metsera's obesity pipeline for $4.9 billion, and Genmab acquired Merus for $8 billion. Multinational pharmas have worked through manufacturing and tariff uncertainties and have more clarity on their budgets, leading to expectations of more development stage deals. |
M&A Acquisitions Development Pharma Biotech |
BiotechnologyThe number of biotechs succeeding commercially is accelerating, with more opportunities to own high revenue growth biotech businesses than ever before. Despite solid public market performance, the IPO market failed to re-open in September with only LB Pharma making it out. The lack of IPOs creates less distraction for high quality, late-stage, publicly traded companies. |
Biotech Commercial Revenue IPO Growth | |
Rare DiseasesPortfolio includes significant exposure to rare disease therapeutics through companies like PTC Therapeutics developing medicines for rare neurologic and metabolic conditions, and uniQure with positive results from its Huntington's Disease program. The rare disease focus represents a key investment theme with multiple companies in various development stages. |
Rare Neurologic Metabolic Huntington Therapeutics | |
Gene TherapyPortfolio has meaningful exposure to genetic medicine including gene and RNA therapies representing 24% of exposure by modality. uniQure announced positive topline results from its pivotal Phase 1/2 study of AMT-130 in Huntington's Disease patients, demonstrating statistically significant slowing of disease progression at 36 months. |
Gene RNA Genetic AMT-130 Therapy | |
OncologyOncology represents 16% of portfolio exposure by disease area. The portfolio includes companies developing treatments for various cancer types including urothelial and specialty cancers through UroGen Pharma, and RAS/MAPK pathway-driven cancers through Verastem. |
Cancer Oncology Urothelial RAS MAPK | |
| 2025 Q2 |
Biopharma M&ASignificant M&A activity continued with Merck's $10 billion acquisition of Verona Pharma, Sanofi's $1.2 billion acquisition of Vicebio, and Novartis's $1 billion acquisition of Matchpoint. Avidity Biosciences is reportedly evaluating a potential acquisition offer from Novartis. |
M&A Acquisitions Consolidation Valuations Strategic |
GLP1Kailera announced positive Phase 3 results in China for its lead candidate KAI-9531, a once-weekly dual GLP-1/GIP receptor agonist, showing superior weight loss and favorable safety profile. Partner Hengrui Pharma plans to file for regulatory approval in China. |
GLP-1 Obesity Weight Loss Diabetes Metabolic | |
Rare DiseasesPortfolio includes significant exposure to rare disease treatments with 22% allocation to rare disease companies. Dr. Prasad's commitment to streamlining rare disease drug development aligns with broader FDA leadership for regulatory pragmatism and accelerated approvals. |
Rare Disease Orphan Drugs FDA Regulatory Accelerated | |
Gene TherapyPortfolio maintains exposure to genetic medicine companies developing in vivo treatments for immuno-oncology and genetic diseases, with 23% exposure to genetic medicine modalities including gene and RNA therapies. |
Gene Therapy RNA Genetic Medicine In Vivo Modality | |
| 2025 Q1 |
BiotechnologyRTW Bio focuses on identifying transformative assets across the life sciences sector with deep scientific and commercial expertise. The portfolio includes 56 core positions across therapeutics and medtech, with exposure spanning small molecules, genetic medicines, proteins, and antibodies. Development stage companies are concentrated in Phase 3 trials representing 53% of exposure. |
Drug Development Clinical Trials Life Sciences Therapeutics Medtech |
Rare DiseasesOver 90% of development stage companies focus on high unmet need diseases, with rare diseases representing 23% of disease area exposure. The manager favors areas with greatest FDA and patient support including rare, CNS, and genetic diseases. Companies like Rocket Pharmaceuticals develop gene therapies for rare pediatric diseases including Fanconi anemia and Danon disease. |
Gene Therapy Orphan Drugs Pediatric Diseases Unmet Need FDA Support | |
OncologyOncology represents 19% of disease area exposure in the portfolio. Companies like Immunocore focus on T-cell receptor therapy for oncology and infectious diseases, while Artios develops breakthrough cancer treatments targeting DNA Damage Response pathways. The portfolio includes both established commercial companies and early-stage development programs. |
Cancer Treatment Immunotherapy DNA Repair T-cell Therapy Targeted Therapy | |
Biopharma M&AThe new FTC chair is perceived as more M&A friendly, which should lead to greater number of bigger transactions benefiting small and midcap biotechs that RTW Bio is invested in. Pharma deals for early-stage Chinese assets continued in the first quarter. Corxel Pharmaceuticals received a dividend distribution related to proceeds from the sale of Aficamten to Sanofi. |
Mergers Acquisitions FTC Deal Activity Valuations | |
Gene TherapyGenetic medicines represent 24% of portfolio exposure by modality. Companies like Rocket Pharmaceuticals have five clinical programs for rare diseases, while Ensoma develops in vivo treatments that engineer hematopoietic system cells. The portfolio includes both gene and RNA therapies targeting various genetic conditions. |
Genetic Medicine RNA Therapy In Vivo Hematopoietic Clinical Programs | |
| 2024 Q4 |
BiotechnologyThe fund focuses on identifying transformative assets across the life sciences sector with deep scientific and commercial expertise. Medical science innovation has never been better, and the FDA appears willing to support it with 56 novel drugs approved this year. The sector is experiencing attractive valuations and improving financing and M&A activities. |
Drug Development FDA Approval Life Sciences Innovation Clinical Trials |
GLP1Obesity remains a significant priority for 2025 with an exciting portfolio of private obesity assets. RTW-founded Corxel in-licensed ex-China rights to CX11, an oral small molecule GLP-1 for obesity that showed competitive weight loss with Lilly's Orforglipron in China Phase 2 trials. The fund believes orals are one of the largest unmet needs in obesity. |
Obesity Weight Loss Oral Therapies Metabolic Diseases Small Molecule | |
Gene TherapyThe fund has significant exposure to genetic medicine companies including Avidity Biosciences and Rocket Pharmaceuticals. Despite setbacks in clinical and regulatory timelines, both Danon and Fanconi continue to have transformative potential for patients. The FDA approved two gene therapies this year among novel modalities. |
Genetic Medicine Rare Diseases RNA Medicines Clinical Development Patient Treatment | |
Biopharma M&AM&A activity was limited with billion-dollar-plus acquisition volumes near record highs but dollar value dropped to $45B versus $145B in 2023. There was a shift towards earlier stage assets, though western biotech has the late-stage assets needed to fill pipeline needs. A more friendly Federal Trade Commission should lower barriers that have discouraged bigger deals. |
Acquisitions Pipeline Assets Deal Value Regulatory Environment Strategic Buyers |
| Date | Pitch Type | Author | Ticker | Company | Industry | Sub Industry | Bull / Bear | Exchange | Keywords | Action |
|---|---|---|---|---|---|---|---|---|---|---|
| No Elevator Pitches found | ||||||||||
| TICKER | COMMENTARY |
|---|---|
| CGON | CG Oncology is developing therapies for bladder cancer and represented 5.7% of NAV. The company has Phase 3 topline data expected in Q2 2026 and was one of the top 3 contributors year-to-date with +1.2% attribution. |
| STOK | Stoke Therapeutics is restoring protein expression by harnessing the body's potential with RNA medicine, representing 5.4% of NAV. The company is in pivotal stage with a possible faster filing path expected mid 2026. |
| ARGX | argenx is developing antibody-based medicines to treat autoimmune diseases and represented 5.1% of NAV. The company is in commercial stage with Vygart earnings as a proximate catalyst and was one of the top 3 detractors year-to-date with -0.8% attribution. |
| PTCT | PTC Therapeutics is developing medicines for people living with rare neurologic and metabolic conditions disorders, representing 5.0% of NAV. The company is in commercial stage with Sephience earnings as a catalyst and was the top detractor year-to-date with -1.5% attribution. |
| CELC | Celcuity is developing therapies to address cellular abnormalities that drive tumour growth, representing 4.2% of NAV. The company has Phase 3 data expected in Q2 2026. |
| URGN | UroGen is a biotech company developing innovative solutions to treat urothelial and specialty cancers, representing 4.0% of NAV. The company is in commercial stage with Zusduri earnings as a catalyst and was among the top 3 detractors year-to-date with -1.3% attribution. |
| TNGX | Tango Therapeutics is leveraging the principle of synthetic lethality to develop medicines that take direct aim at specific tumours, representing 3.4% of NAV. The company has Phase 1/2 data expected in H1 2026 and was one of the top 3 contributors year-to-date with +1.2% attribution. |
| ERAS | Erasca is a precision oncology company targeting the RAS/MAPK pathway to treat a wide range of cancers, representing 3.2% of NAV. The company has Phase 1 data expected in H1 2026. |
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