BB Biotech AG

Interim / Quarterly Report • Oct 22, 2021

INTERIM REPORT Q3

AS AT 30.09.2021

TABLE OF CONTENTS

PERFORMANCE / MULTI-YEAR COMPARISON	3
SHAREHOLDER LETTER	8
PORTFOLIO AT A GLANCE	13
CONSOLIDATED INTERIM FINANCIAL STATEMENTS	15
SELECTED EXPLANATORY NOTES TO THE CONSOLIDATED INTERIM FINANCIAL STATEMENTS	19
REPORT OF THE STATUTORY AUDITORS	25
COMPANY PROFILE	26
INVESTMENT STRATEGY	27
INVESTMENT PROCESS	29
BOARD OF DIRECTORS & INVESTMENT TEAM	32
SHAREHOLDER INFORMATION	38
FACTS & FIGURES	39
CORPORATE CALENDAR	40
CONTACT	41

PERFORMANCE / MULTI-YEAR COMPARISON

Indexed performance since launch (in CHF)

BB Biotech AG (SIX)-CHF

Rolling performance

	SHARE	NAV	NBI TR
30.09.2020 – 30.09.2021	31.1%	24.5%	21.9%
30.09.2019 – 30.09.2020	15.9%	21.0%	26.4%
30.09.2018 – 30.09.2019	(10.6%)	(14.1%)	(16.2%)
28.09.2017 – 28.09.2018	15.6%	1.0%	12.1%
29.09.2016 – 29.09.2017	35.8%	29.9%	17.6%

Cumulated performance

30.09.2021

	SHARE	NAV	NBI TR
YTD	18.2%	3.2%	13.3%
1 year	31.1%	24.5%	21.9%
3 years	35.8%	29.4%	29.1%
5 years	115.1%	65.7%	65.9%
since inception 1)	3 384%	2 672%	1 547%

Annual performance

	SHARE	NAV	NBI TR
2020	19.3%	24.3%	15.8%
2019	18.5%	23.4%	23.0%
2018	(5.2%)	(14.5%)	(8.0%)
2017	22.9%	23.4%	16.4%
2016	0.2%		(19.3%) (20.0%)

Annualized performance

30.09.2021

	SHARE	NAV	NBI TR
1 year	31.1%	24.5%	21.9%
3 years	10.7%	8.9%	8.9%
5 years	16.5%	10.6%	10.6%
since inception 1)	13.6%	12.6%	10.6%

¹ 09.11.1993

¹ 09.11.1993

BB BIOTECH AG (XETRA)-EUR

Rolling performance

	SHARE	NAV	NBI TR
30.09.2020 – 30.09.2021	29.6%	24.5%	21.8%
30.09.2019 – 30.09.2020	17.5%	22.0%	27.3%
30.09.2018 – 30.09.2019	(5.8%)	(10.0%)	(12.6%)
28.09.2017 – 28.09.2018	15.4%	1.3%	13.0%
29.09.2016 – 29.09.2017	28.5%	23.0%	11.5%

Cumulated performance

30.09.2021

	SHARE	NAV	NBI TR
YTD	18.9%	3.5%	13.5%
1 year	29.6%	24.5%	21.8%
3 years	43.4%	36.8%	35.5%
5 years	115.9%	67.7%	67.5%
since inception 1)	2 687%	2 132%	1 502%

Annual performance

	SHARE	NAV	NBI TR
2020	18.1%	24.8%	16.1%
2019	23.4%	28.1%	27.6%
2018	(2.2%)	(11.1%)	(4.3%)
2017	12.9%	12.5%	6.7%
2016	1.7%	(17.8%)	(19.0%)

Annualized performance

30.09.2021

	SHARE	NAV	NBI TR
1 year	29.6%	24.5%	21.8%
3 years	12.7%	11.0%	10.6%
5 years	16.6%	10.9%	10.9%
since inception 1)	15.0%	13.9%	12.3%

¹ 10.12.1997

¹ 10.12.1997

BB BIOTECH AG (MILAN)-EUR

Rolling performance

	SHARE	NAV	NBI TR
30.09.2020 – 30.09.2021	30.6%	24.5%	21.8%
30.09.2019 – 30.09.2020	17.2%	22.0%	27.3%
30.09.2018 – 30.09.2019	(6.3%)	(10.0%)	(12.6%)
28.09.2017 – 28.09.2018	16.6%	1.3%	13.0%
29.09.2016 – 29.09.2017	28.3%	23.0%	11.5%

Cumulated performance

30.09.2021

	SHARE	NAV	NBI TR
YTD	18.4%	3.5%	13.5%
1 year	30.6%	24.5%	21.8%
3 years	43.4%	36.8%	35.5%
5 years	115.4%	67.7%	67.5%
since inception 1)	546%	415%	214%

Annual performance

	SHARE	NAV	NBI TR
2020	19.7%	24.8%	16.1%
2019	22.6%	28.1%	27.6%
2018	(1.3%)	(11.1%)	(4.3%)
2017	12.2%	12.5%	6.7%
2016	1.2%	(17.8%)	(19.0%)

Annualized performance

30.09.2021

	SHARE	NAV	NBI TR
1 year	30.6%	24.5%	21.8%
3 years	12.7%	11.0%	10.6%
5 years	16.6%	10.9%	10.9%
since inception 1)	9.3%	8.1%	5.6%

¹ 19.10.2000

¹ 19.10.2000

Multi-year comparison

	30.09.2021	2020	2019	2018	2017
Market capitalization at the end of the period (in CHF mn)	4 661.9	4 107.9	3 670.3	3 235.4	3 576.1
Net Asset Value at the end of the period (in CHF mn)	3 833.2	3 887.5	3 393.0	2 884.5	3 538.7
Number of shares (in mn)	55.4	55.4	55.4	55.4	55.4
Trading volume (in CHF mn)	1 644.9	2 315.6	2 004.2	2 610.7	2 864.7
Profit/(loss) (in CHF mn)	141.1	691.2	677.4	(471.3)	687.5
Closing price at the end of the period in CHF	84.15	74.15	66.25	58.40	64.55
Closing price (G) at the end of the period in EUR	77.70	68.00	61.40	52.00	55.68
Closing price (I) at the end of the period in EUR	77.95	68.50	61.00	52.00	55.20
Stock performance (incl. distributions) 1)	18.2%	19.3%	18.5%	(5.2%)	22.9%
High/low share price in CHF	92.20/73.40	74.70/45.44	73.20/59.35	74.10/56.10	67.80/52.10
High/low share price in EUR	86.20/67.80	69.00/43.04	64.70/52.10	64.80/48.60	59.10/48.42
Premium/(discount) (annual average)	17.4%	9.2%	11.8%	9.7%	(2.5%)
Dividend in CHF	N.A.	3.60	3.40	3.05	3.30
Degree of investment (quarterly figures)	107.8%	106.8%	109.1%	108.4%	103.1%
Total Expense Ratio (TER) p.a. 2)	1.23%	1.25%	1.26%	1.25%	1.27%

¹ All figures in CHF %, total return-methodology

² Based on market capitalization

SHAREHOLDER LETTER

«Healthcare markets traded higher in July and August, sold off in September and ended the third quarter in line with broader markets»

Dr. Erich Hunziker Chairman

Dear Shareholders

During the third quarter of 2021, investors grappled with economic growth versus the spectre of inflation, interest rate hikes, the threat of a Chinese real estate market collapse, and the continued gyrations of the SARS-CoV-2 pandemic.

Vaccinations reduce severe infections, hospitalization and death rates. Therefore developed nations are aiming for even higher vaccinations rates, while the rest of the world still needs better access to vaccination. Treatments including monoclonal antibodies and oral agents continue to become available, preventing disease progression from early symptoms. While investors moderate assumptions about global vaccine demand, it becomes evident that over the long run preventive strategies (including vaccines and pre-exposure prevention with monoclonals) will generally outperform treatment strategies.

During the third quarter, most stock market indices' traded sideways: the S&P500 was stable at +0.6%, the Dow Jones retreated 1.5% and the Nasdaq Composite Index edged 0.2% lower (all values in USD). European market indexes closed lower too, including the Euro Stoxx 50 (–0.1% in EUR), the Dax (–1.7% in EUR) and the Swiss SPI Index (–2.0% in CHF).

Healthcare markets traded higher in July and August, sold off in September and ended the third quarter in line with broader markets. The MSCI World Healthcare Index (+1.1% in USD) and the Nasdaq Biotech Index (–1.1% in USD) consolidated. Yet within these indices we saw substantial performance dispersion, particularly in the NBI index. In the third quarter Smaller and mid cap biotechnology companies continued to underperform, as reflected for example by the XBI (a S&P Biotechnology ETF) at –7.2% (in USD). The limited appetite for earlier stage, smaller and midcap biotechnology companies reduced and cooled the previously robust IPO action.

BB Biotech third quarter and first nine months 2021 performance

BB Biotech's third quarter 2021 share price performance was –3.3% in CHF and –2.0% in EUR. The Net Asset Value (NAV) pulled back –5.2% in CHF, –3.5% in EUR and –6.1% in USD. The net loss was CHF 208 mn compared to a net loss of CHF 395 mn for the same period in 2020. Despite the third quarter pull back, the total share price return for the first nine months of 2021 – including the dividend – was +18.2% in CHF and +19.0% in EUR. This was well ahead of the Net Asset Value appreciation of +3.2% in CHF, +3.5% in EUR and –2.0% in USD.

The resulting net profit of CHF 141 mn for the first nine months of 2021 compares to CHF 26 mn for the same period of 2020. Exchange-rate fluctuations in the USD/CHF currency pair contributed approximately +5.3% to first nine months 2021 performance.

Third quarter 2021 portfolio activity

The investment team continued to reshape the portfolio. Moderna's inclusion in the S&P500 and evolving SARS-CoV-2 patterns in August 2021 propelled its share price to all-time highs, making it the most valuable biotechnology company. Moderna's promising outlook and the ascendancy of mRNA technology has allowed BB Biotech to take further profits from this long-term investment. Another long-term investment cycle with Halozyme allowed the investment team to exit the position with substantial (USD 235 mn) profits over the eleven-year investment cycle.

«Moderna's promising outlook and the ascendancy of mRNA technology has allowed BB Biotech to take further profits from this long-term investment»

The capital released from Moderna and Halozyme was reinvested into three subsectors. Most was allocated to oncology pipeline companies such as Revolution Medicines, Relay Therapeutics, Fate Therapeutics, Essa Pharma, Macrogenics, Molecular Templates and Mersana Therapeutics. Then we added to our investments in the CNS space, increasing the Sage Therapeutics and Intra-Cellular Therapies positions. Finally, we added to our existing positions in the smaller commercial-stage companies – Myovant and Radius.

With 32 positions in the portfolio, during the third quarter 2021 the investment level decreased slightly from 107.5% to 106.8%. This infers capital flexibility to continue investing in new opportunities within the established guidelines.

Third quarter 2021 developments in the portfolio

Moderna, our largest current holding, presented impressive COVID-19 booster injection data and outlined a strategy to leverage its mRNA platform through new prophylactic vaccines. The company demonstrated that the third "booster shot", at half dose (50 ug) achieved antibody titers higher than the second dose. The FDA VRBPAC panel voted unanimously to support Moderna COVID-19 vaccine booster dose in certain at risk populations. Moderna guided to a delivery capacity of 2-3 billion doses in 2022, substantially ahead of the 1.2 billion doses in 2021. Moreover they anticipate initial immunogenicity data for a new mRNA influenza vaccine in late 2021.

The US FDA has moved past the Aduhelm/Alzheimer controversy, but patients, physicians and insurance companies are now in the fray. Reflecting market resistance, Biogen recently slashed its already cautious 2021 launch guidance. Commercial hurdles for the intravenous and arguably costly medication are high. The Center for Medicare and Medicaid Services (CMS) began its National Coverage Determination (NCD) and we anticipate their clarifying decision in 2022.

Neurocrine signaled growth recovery for its lead commercial product Ingrezza. Reported prescriptions are trending towards an improved second half 2021 after stalling during the pandemic. Intra-Cellular, Radius and Esperion also face growth headwinds with Caplyta, Tymlos and Nexlitol/ Nexlizet respectively, with prescription trends expected to improve in the fourth quarter of 2021.

Clinical trial results were reported by portfolio companies during the third quarter of 2021:

• Moderna showed multiple real world evidence studies indicating that elderly vaccinated people retained high antibody titers against COVID-19, including the Delta variant. Relative performance against other COVID-19 vaccines including Cominaty was also favorable.
• Alnylam announced positive topline results from the ILLUMINATE-C Phase III open-label study of lumasiran in patients of all ages with advanced primary hyperoxaluria type 1 (PH1) associated with progressive decline in renal function. At 6-months plasma oxalate was reduced in patients with advanced disease, including those on hemodialysis.
• Macrogenics presented further Phase I data from 86 patients with advanced solid tumors, including metastatic chemotherapy-resistant prostate cancers. Prostate specific antigen falls of at least 50% were reported in 54% of patients.
• Mersana reported interim data from its lead product candidate, upifitamab rilsodotin (UpRi), in heavily pre-treated ovarian cancer patients. Around one third of the patients achieved an objective response. Mersana will use slightly lower doses of UpRi in the upcoming registrational single-arm study UPLIFT in platinum resistant ovarian cancer.
• Fate Therapeutics highlighted positive interim data in patients with relapsed/refractory B-cell lymphoma given FT516 cells, including a novel high-affinity, non-cleavable CD16 (hnCD16) Fc receptor, which is designed to maximize antibody-dependent cellular cytotoxicity (ADCC). Furthermore, Fate's FT596 cell program incorporates both that hnCD16 Fc receptor and a chimeric antigen receptor (CAR) targeting CD19. These modifications are designed to enable multi-antigen targeting of tumor cells, as well as an IL-15 receptor fusion (IL-15RF) as a way to enhance NK cell activity and survival. Nevertheless, this promising initial efficacy was not enough to impress investors looking for long duration of response. Such data are expected next year.

Consequential FDA decisions regarding the following portfolio companies were announced in the third quarter 2021:

• Incyte reported FDA approval of Opzelura (ruxolitinib) cream for the short-term and noncontinuous chronic treatment of mild to moderate atopic dermatitis (AD) in nonimmunocompromised patients 12 years of age and older whose disease is not adequately controlled with topical prescription therapies, or when those therapies are not advisable. Alongside class labeling for Jak inhibitors, the Opzelura label also did not impress investors who are now watching for early uptake of the product. The FDA also approved Jakafi (ruxolitinib) for treatment of chronic graft-versus-host disease (GVHD) after failure of one or two lines of systemic therapy in adult and pediatric patients 12 years and older. On the other hand, FDA denied approval for Incyte and Macrogenics' Retifanlimab for patients with advanced or metastatic squamous cell carcinoma
• Myovant Sciences announced that the European Commission (EC) approved Ryeqo (relugolix, estradiol and norethindrone acetate) for moderate to severe symptoms of uterine fibroids in adult women of reproductive age, with no limitation for duration of use.

Mergers and acquisitions continued at a restrained pace into the third quarter. Pfizer acquired Trillium Therapeutics for less than USD 2 bn and Merck bid USD 11.5 bn for Acceleron late in the quarter. In our portfolio, Arvinas and Pfizer announced a major global collaboration to develop and commercialize an investigational oral PROTAC (PROteolysis TArgeting Chimera) estrogen receptor protein degrader. The compound (ARV-471) is currently in Phase II for patients with estrogen receptor (ER) positive / human epidermal growth factor receptor 2 (HER2) negative (ER+/HER2-) locally advanced or metastatic breast cancer. Pfizer paid Arvinas USD 650 mn upfront and separately will invest USD 350 mn in Arvinas stock. The companies will share worldwide development costs, commercialization expenses, and profits, 50–50.

Outlook for the final quarter of 2021

Investors should monitor the global roll-out of booster COVID-19 vaccine injections; several new product launches and important clinical trial results are also expected.

COVID-19 booster shots – particularly of mRNA vaccines – will play an important part during the northern hemisphere winter season. Emergence of SARS-CoV-2 variants and the potential requirement for novel, variant-specific vaccines will be watched closely by investors.

Product launches of interest include Biogen's Aduhelm for Alzheimer's, Myovant's Orgovyx for prostate cancer and Myfembree for treating heavy menstrual bleeding associated with uterine fibroids. After an underwhelming Monjuvi launch, Incyte and partner Morphosys will be in the spotlight. The same goes for Incyte's recently approved Opzelura, a topical cream to treat atopic dermatitis.

In the fourth quarter of 2021 important regulatory milestones are expected, including:

• Argenx is up for the FDA call in late 2021 on efgartigimod in generalized myasthenia gravis patients.
• Intra-Cellular anticipates a FDA decision on Caplyta to treat bipolar I and bipolar II patients.
• Moderna expects its mRNA-1273 COVID-19 booster injection will be given EUA after an FDA advisory panel on October 14.
• Alnylam's partner Novartis anticipate FDA approval for inclisiran, a twice yearly dosed RNAi cholesterol-lowering treatment which is already approved in the EU.

In the fourth quarter of 2021 clinical trial results are expected, including:

• Radius is expected to report Phase III data from their wearABLE trial examining transdermally delivered abaloparatide in osteoporosis.
• Neurocrine is expected to report Phase III data from their KINECT-HD trial, testing valbenazine as a treatment for chorea associated with Huntington's disease.
• Sage and partner Biogen are expected to report results from their CORAL study, testing a higher dose of zuranolone in patients with major depression disorder.
• Relay is expected to report proof of concept for its selective FGFR2 inhibitor, RLY-4008 in patients with intrahepatic cholangiocarcinoma and other advanced solid tumors.
• Moderna is expected to present initial results for its seasonal quadrivalent influenza vaccine mRNA-1010.

At the time this letter to shareholders was written, various news outlets had reported that Robert Califf would be nominated by the Biden administration as head of the FDA. Califf had already served as an FDA Commissioner under President Obama. He holds moderate views and is familiar with the industry. His professional career as a cardiologist and experience with digitalization in healthcare make him a capable and promising candidate. However, it is precisely his close ties with the industry that could lead progressive members of the Democratic Party to raise objections to his confirmation in the Senate.

Since markets are under pressure, the investment team sees attractive valuations and expects to allocate further capital to attractive biotechnology companies for superior mid- and longer-term returns.

We believe that having created important solutions for the pandemic, the biotechnology sector will bring forward other important products for severe and chronic diseases to the market. We anticipate continued momentum in the sector as differentiated medicines are delivered to patients with high unmet medical need at prices considered affordable by payers.

We thank you for the trust you have placed in the Company.

The Board of Directors of BB Biotech AG

Dr. Erich Hunziker Chairman

Dr. Thomas von Planta

Dr. Clive Meanwell Prof. Dr. Mads Krogsgaard Thomsen

PORTFOLIO AT A GLANCE

Securities as at September 30, 2021

Company	Number of securities	Change since 31.12.2020	Local currency	Share price	Market value in CHF mn	In % of securities	In % of shareholders' equity	In % of company
Moderna	1 678 349	(1 176 614)	USD	384.86	601.8	14.7%	15.7%	0.4%
Ionis Pharmaceuticals	9 112 973	892 973	USD	33.54	284.8	7.0%	7.4%	6.5%
Argenx SE	955 538	34 206	USD	302.00	268.9	6.6%	7.0%	1.9%
Neurocrine Biosciences	2 915 400	(119 600)	USD	95.91	260.5	6.4%	6.8%	3.1%
Alnylam Pharmaceuticals	1 110 000	(45 000)	USD	188.81	195.3	4.8%	5.1%	0.9%
Incyte	2 897 000	(3 000)	USD	68.78	185.6	4.5%	4.8%	1.3%
Agios Pharmaceuticals	4 304 992	146 090	USD	46.15	185.1	4.5%	4.8%	7.3%
Vertex Pharmaceuticals	1 050 000	150 000	USD	181.39	177.5	4.3%	4.6%	0.4%
Fate Therapeutics	3 186 336	1 156 336	USD	59.27	176.0	4.3%	4.6%	3.3%
Arvinas	2 176 903	–	USD	82.18	166.7	4.1%	4.3%	4.1%
Macrogenics	7 075 564	2 260 000	USD	20.94	138.0	3.4%	3.6%	11.6%
Biogen	500 000	(37 000)	USD	282.99	131.8	3.2%	3.4%	0.3%
Sage Therapeutics	3 170 104	1 630 000	USD	44.31	130.9	3.2%	3.4%	5.4%
Intra-Cellular Therapies	3 663 419	125 000	USD	37.28	127.2	3.1%	3.3%	4.5%
Myovant Sciences	5 722 039	965 000	USD	22.44	119.6	2.9%	3.1%	6.2%
Relay Therapeutics	3 735 962	2 326 605	USD	31.53	109.7	2.7%	2.9%	4.0%
Crispr Therapeutics	949 584	48 700	USD	111.93	99.0	2.4%	2.6%	1.2%
Radius Health	7 705 714	250 000	USD	12.41	89.1	2.2%	2.3%	16.3%
Revolution Medicines	3 410 105	3 410 105	USD	27.51	87.4	2.1%	2.3%	4.6%
Scholar Rock Holding	2 275 125	19 474	USD	33.02	70.0	1.7%	1.8%	6.6%
Molecular Templates	10 792 003	4 411 672	USD	6.71	67.5	1.6%	1.8%	19.2%
Generation Bio Co.	2 453 180	120 000	USD	25.07	57.3	1.4%	1.5%	4.3%
Exelixis	2 835 000	–	USD	21.14	55.8	1.4%	1.5%	0.9%
Esperion Therapeutics	4 477 964	530 000	USD	12.05	50.3	1.2%	1.3%	15.8%
Beam Therapeutics	606 821	210 000	USD	87.01	49.2	1.2%	1.3%	0.9%
Nektar Therapeutics	2 620 676	–	USD	17.96	43.9	1.1%	1.1%	1.4%
Essa Pharma	5 015 814	5 015 814	USD	8.00	37.4	0.9%	1.0%	11.4%
Kezar Life Sciences	4 533 148	–	USD	8.64	36.5	0.9%	1.0%	9.4%
Mersana Therapeutics	4 135 000	2 250 000	USD	9.43	36.3	0.9%	0.9%	5.8%
Black Diamond Therapeutics	3 440 000	2 050 000	USD	8.46	27.1	0.7%	0.7%	9.5%
Homology Medicines	1 737 122	–	USD	7.87	12.7	0.3%	0.3%	3.0%
Wave Life Sciences	2 602 858	–	USD	4.90	11.9	0.3%	0.3%	5.1%
Alder Biopharmaceuticals – Contingent Value Right	2 766 008	–	USD	0.88	2.3	0.1%	0.1%
Total securities					4 093.1	100.0%	106.8%

Net asset value	3 833.2	100.0%
Other liabilities	(261.8)	(6.8%)
Other assets	1.9	0.0%

Exchange rate as at 30.09.2021: USD/CHF: 0.9317

CONSOLIDATED BALANCE SHEET

(in CHF 1 000)

	Notes	30.09.2021	31.12.2020
Current assets
Cash and cash equivalents		1 775	6 816
Receivables from brokers		–	1 521
Securities	4	4 093 103	3 954 659
Other assets		112	139
		4 094 990	3 963 135
Total assets		4 094 990	3 963 135
Current liabilities
Short-term borrowings from banks	5	248 000	63 000
Payables to brokers		7 779	6 576
Other short-term liabilities		5 814	5 709
Tax liabilities		162	303
		261 755	75 588
Total liabilities		261 755	75 588
Shareholders' equity
Share capital	6	11 080	11 080
Treasury shares	6	(5 368)	(8 241)
Retained earnings		3 827 523	3 884 708
		3 833 235	3 887 547
Total liabilities and shareholders' equity		4 094 990	3 963 135
Net asset value per share in CHF		69.25	70.30

The notes are an integral part of the condensed consolidated interim financial statements.

The consolidated financial statements were approved by the Board of Directors of BB Biotech AG on October 19, 2021.

CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME

(in CHF 1 000)

	Notes	01.01.–30.09.2021	01.01.–30.09.2020	01.07.–30.09.2021	01.07.–30.09.2020
Operating income
Net gains from securities	4	187 170	61 703	–	–
Interest income		–	7	–	–
Dividend income		–	243	–	–
Other income		4	21	–	18
		187 174	61 974	–	18
Operating expenses
Net losses from securities	4	–	–	(192 643)	(382 803)
Finance expenses		(648)	(683)	(251)	(192)
Foreign exchange losses		(623)	(429)	(149)	(425)
Administrative expenses	7	(39 806)	(30 690)	(13 821)	(10 902)
Other expenses		(4 943)	(3 632)	(1 515)	(896)
		(46 020)	(35 434)	(208 379)	(395 218)
Profit/(loss) before tax	8	141 154	26 540	(208 379)	(395 200)
Income taxes		(57)	(51)	(19)	(17)
Profit/(loss) for the period		141 097	26 489	(208 398)	(395 217)
Total comprehensive profit/(loss) for the period		141 097	26 489	(208 398)	(395 217)
Earnings/(loss) per share in CHF		2.55	0.48	(3.76)	(7.13)
Diluted earnings/(loss) per share in CHF		2.55	0.48	(3.76)	(7.13)

The notes are an integral part of the condensed consolidated interim financial statements.

CONSOLIDATED STATEMENT OF CHANGES IN EQUITY

(in CHF 1 000)

	Share capital	Treasury shares	Retained earnings	Total
Balances at January 1, 2020	11 080	–	3 381 893	3 392 973
Dividend	–	–	(188 360)	(188 360)
Total comprehensive income for the period	–	–	26 489	26 489
Balances at September 30, 2020	11 080	–	3 220 022	3 231 102

Balances at January 1, 2021	11 080	(8 241)	3 884 708	3 887 547
Dividend	–	–	(199 440)	(199 440)
Trade with treasury shares (incl. change in balance)	–	2 873	1 158	4 031
Total comprehensive income for the period	–	–	141 097	141 097
Balances at September 30, 2021	11 080	(5 368)	3 827 523	3 833 235

The notes are an integral part of the condensed consolidated interim financial statements.

CONSOLIDATED STATEMENT OF CASH FLOW

(in CHF 1 000)

	Notes	01.01.–30.09.2021	01.01.–30.09.2020
Cash flows from operating activities
Proceeds from sales of securities	4	846 534	540 958
Purchase of securities	4	(795 084)	(427 471)
Dividend receipts		–	243
Interest receipts		–	7
Payments for services		(44 699)	(35 044)
Income taxes paid		(112)	(45)
Total cash flows from operating activities		6 639	78 648
Cash flows from financing activities
Dividend		(199 440)	(188 360)
Proceeds from sales of treasury shares	6	9 653	–
Purchase of treasury shares	6	(5 622)	–
Borrowing of bank loans	5	185 000	95 000
Interest payments		(648)	(683)
Total cash flows from financing activities		(11 057)	(94 043)
Foreign exchange difference		(623)	(429)
Change in cash and cash equivalents		(5 041)	(15 824)
Cash and cash equivalents at the beginning of the period		6 816	30 707
Cash and cash equivalents at the end of the period		1 775	14 883

The notes are an integral part of the condensed consolidated interim financial statements.

SELECTED EXPLANATORY NOTES TO THE CONSOLIDATED INTERIM FINANCIAL STATEMENTS

1. The Company and its principal activity

BB Biotech AG (the Company) is listed on the SIX Swiss Exchange, in the «Prime Standard Segment» of the German Exchange as well as in the «Star Segment» of the Italian Exchange and has its registered office in Schaffhausen, Schwertstrasse 6. Its principal activity is to invest in companies active in the biotechnology industry for the purpose of capital appreciation. The investments are held through its wholly owned subsidiaries.

Company	Capital in CHF 1 000	Capital and voting interest in %
Biotech Focus N.V., Curaçao	11	100
Biotech Growth N.V., Curaçao	11	100
Biotech Invest N.V., Curaçao	11	100
Biotech Target N.V., Curaçao	11	100

2. Accounting policies

The condensed consolidated interim financial statements of the Company and its subsidiary companies (the Group) have been prepared in accordance with International Accounting Standards (IAS) 34 «Interim Financial Reporting,» as well as the provisions of the rules of the SIX Swiss Exchange for Investment Companies and should be read in conjunction with the consolidated annual financial statements for the year ended December 31, 2020. The preparation of the condensed consolidated interim financial statements requires management to make assumptions and estimates that have an impact on the balance sheet values and items of the statement of comprehensive income in the current financial period. In certain circumstances, the actual values may diverge from these estimates.

The condensed consolidated interim financial statements have been prepared in accordance with the accounting policies set out in the consolidated annual financial statements. No new standards, interpretations and amendments to published standards, which are applicable to the Group and valid since January 1, 2021, have been applied in these condensed consolidated interim financial statements.

The following amended standards were approved, but will only be applicable for the Group prospectively and were not early adopted in these condensed consolidated interim financial statements:

• IAS 1 (amended, effective January 1, 2022) Classification of Liabilities as Current or Non-current
• IFRS 3 (amended, effective January 1, 2022) Reference to the Conceptual Framework
• IAS 37 (amended, effective January 1, 2022) Onerous Contracts Cost of fulfilling a Contract
• Annual Improvements to IFRS Standards 2018-2020 (effective January 1, 2022) IFRS 9, IFRS 16

The Group assessed the potential impact of the above-mentioned amended standards. Based on the analysis, the Group concludes that these amended standards have no material impact on the Group's accounting policies and overall results and financial position.

3. Financial risk management

Currency risk

The Group holds assets denominated in currencies other than the Swiss franc, the functional currency. It is therefore exposed to currency risk, as the value of the securities denominated in other currencies will fluctuate due to changes in exchange rates. Depending on the market situation the Group could use foreign currency options and/or forward contracts to reduce the currency risk.

The following exchange rates have been used for the preparation of these condensed consolidated interim financial statements:

Currency	30.09.2021	31.12.2020
USD	0.93170	0.88520
ANG	0.52343	0.49730
EUR	1.07845	1.08134
GBP	1.25530	1.21000

Fair values

The following table presents the Group's assets that are measured at fair value (in CHF 1 000):

30.09.2021	Level 1	Level 2	Level 3	Total
Assets
Securities
– Shares	4 090 835	–	–	4 090 835
– Derivative instruments	–	–	2 268	2 268
Total assets	4 090 835	–	2 268	4 093 103
31.12.2020
Assets
Securities
– Shares	3 952 504	–	–	3 952 504
– Derivative instruments	–	–	2 155	2 155
Total assets	3 952 504	–	2 155	3 954 659

The table below summarizes the transactions in level 3 instruments (in CHF 1 000):

	01.01.–30.09.2021	01.01.–30.09.2020
Opening balance	2 155	2 355
Purchases/Sales/Reclassification	–	–
Gains/(losses) included in net gain/loss from securities	113	(113)
Closing balance	2 268	2 242
Gains/(losses) on level 3 instruments included in net gain/loss from securities	113	(113)

The level 3 instrument was allocated as part of a corporate action in 2019. There were no transfers between level 1, 2 and 3 during the reporting period.

For assets and liabilities carried at amortised cost, their carrying values are a reasonable approximation of fair value.

4. Financial assets

Securities

Securities comprise the following:

Company	Number 31.12.2020	Change	Number 30.09.2021	Market price in original currency 30.09.2021		Valuation CHF mn 30.09.2021	Valuation CHF mn 31.12.2020
Moderna	2 854 963	(1 176 614)	1 678 349	USD	384.86	601.8	264.0
Ionis Pharmaceuticals	8 220 000	892 973	9 112 973	USD	33.54	284.8	411.4
Argenx SE	921 332	34 206	955 538	USD	302.00	268.9	239.8
Neurocrine Biosciences	3 035 000	(119 600)	2 915 400	USD	95.91	260.5	257.5
Alnylam Pharmaceuticals	1 155 000	(45 000)	1 110 000	USD	188.81	195.3	132.9
Incyte	2 900 000	(3 000)	2 897 000	USD	68.78	185.6	223.3
Agios Pharmaceuticals	4 158 902	146 090	4 304 992	USD	46.15	185.1	159.5
Vertex Pharmaceuticals	900 000	150 000	1 050 000	USD	181.39	177.5	188.3
Fate Therapeutics	2 030 000	1 156 336	3 186 336	USD	59.27	176.0	163.4
Arvinas	2 176 903	–	2 176 903	USD	82.18	166.7	163.7
Macrogenics	4 815 564	2 260 000	7 075 564	USD	20.94	138.0	97.4
Biogen	537 000	(37 000)	500 000	USD	282.99	131.8	116.4
Sage Therapeutics	1 540 104	1 630 000	3 170 104	USD	44.31	130.9	117.9
Intra-Cellular Therapies	3 538 419	125 000	3 663 419	USD	37.28	127.2	99.6
Myovant Sciences	4 757 039	965 000	5 722 039	USD	22.44	119.6	116.3
Relay Therapeutics	1 409 357	2 326 605	3 735 962	USD	31.53	109.7	51.8
Crispr Therapeutics	900 884	48 700	949 584	USD	111.93	99.0	122.1
Radius Health	7 455 714	250 000	7 705 714	USD	12.41	89.1	117.9
Revolution Medicines	–	3 410 105	3 410 105	USD	27.51	87.4	–
Scholar Rock Holding	2 255 651	19 474	2 275 125	USD	33.02	70.0	96.9
Molecular Templates	6 380 331	4 411 672	10 792 003	USD	6.71	67.5	53.0
Generation Bio Co.	2 333 180	120 000	2 453 180	USD	25.07	57.3	58.6
Exelixis	2 835 000	–	2 835 000	USD	21.14	55.8	50.4
Esperion Therapeutics	3 947 964	530 000	4 477 964	USD	12.05	50.3	90.9
Beam Therapeutics	396 821	210 000	606 821	USD	87.01	49.2	28.7
Nektar Therapeutics	2 620 676	–	2 620 676	USD	17.96	43.9	39.4
Essa Pharma	–	5 015 814	5 015 814	USD	8.00	37.4	–
Kezar Life Sciences	4 533 148	–	4 533 148	USD	8.64	36.5	20.9
Mersana Therapeutics	1 885 000	2 250 000	4 135 000	USD	9.43	36.3	44.4
Black Diamond Therapeutics	1 390 000	2 050 000	3 440 000	USD	8.46	27.1	39.4
Homology Medicines	1 737 122	–	1 737 122	USD	7.87	12.7	17.4
Wave Life Sciences	2 602 858	–	2 602 858	USD	4.90	11.9	18.1
Alexion Pharmaceuticals	1 294 428	(1 294 428)	–	USD	n.a	–	179.0
Halozyme Therapeutics	3 970 000	(3 970 000)	–	USD	n.a	–	150.1
Voyager Therapeutics	2 680 283	(2 680 283)	–	USD	n.a	–	17.0
Cidara Therapeutics	2 822 495	(2 822 495)	–	USD	n.a	–	5.0
Total shares						4 090.8	3 952.5
Alder Biopharmaceuticals – Contingent Value Right	2 766 008	–	2 766 008	USD	0.88	2.3	2.2

Bristol-Myers Squibb – Contingent Value Right	800 000	(800 000)	–	USD	n.a	–	–
Total derivative instruments						2.3	2.2
Total securities						4 093.1	3 954.7

The changes in value of securities at fair value through profit or loss by investment category are as follows (in CHF 1 000):

	Listed shares	Unlisted shares	Derivative instruments	Total
Opening balance as at 01.01.2020 at fair values	3 518 985	–	4 685	3 523 670
Purchases	699 570	–	–	699 570
Sales	(1 010 092)	–	–	(1 010 092)
Net gains/(losses) from securities	744 042	–	(2 531)	741 511
Realized gains	364 618	–	–	364 618
Realized losses	(83 963)	–	–	(83 963)
Unrealized gains	882 536	–	–	882 536
Unrealized losses	(419 149)	–	(2 531)	(421 680)
Closing balance as at 31.12.2020 at fair values	3 952 504	–	2 155	3 954 659

Opening balance as at 01.01.2021 at fair values	3 952 504	–	2 155	3 954 659
Purchases	796 287	–	–	796 287
Sales	(845 013)	–	–	(845 013)
Net gains/(losses) from securities	187 057	–	113	187 170
Realized gains	271 885	–	–	271 885
Realized losses	(1 530)	–	(2 330)	(3 860)
Unrealized gains	649 723	–	113	649 836
Unrealized losses	(733 022)	–	2 330	(730 692)
Closing balance as at 30.09.2021 at fair values	4 090 835	–	2 268	4 093 103

5. Short-term borrowings from banks

At September 30, 2021, a CHF 248 mn short-term loan is outstanding with interest payable at 0.40% p.a. (December 31, 2020: CHF 63 mn at 0.40% p.a.).

6. Shareholders' equity

The share capital of the Company consists of 55.4 mn fully paid registered shares (December 31, 2020: 55.4 mn) with a par value of CHF 0.20 each (December 31, 2020: CHF 0.20).

Treasury shares

The Company can buy and sell treasury shares in accordance with the Company's articles of association and Swiss company law and in compliance with the listing rules of the SIX Swiss Exchange. During the period from January 1, 2021, to September 30, 2021, the Company has purchased 63 360 treasury shares at an average price of CHF 88.73 to the amount of TCHF 5 622 and 117 572 treasury shares at an average price of CHF 82.10 to the amount of TCHF 9 653 were sold (01.01.–30.09.2020: no transactions). As at September 30, 2021, the Company holds 60 450 treasury shares (December 31, 2020: 114 662 shares). The treasury shares as at September 30, 2021, were treated as a deduction from the consolidated shareholders' equity using cost values of TCHF 5 368 (December 31, 2020: TCHF 8 240).

Share buyback 2nd line (bought for cancellation)

The Board of Directors has approved the repurchase of a maximum of 5 540 000 own registered shares with a nominal value of CHF 0.20 each. The share buy-back program will run from April 12, 2019, until April 11, 2022, at the latest. Until September 30, 2021, no shares had been repurchased under this share buy-back program. A repurchase would take place via second trading line for the purpose of a subsequent capital reduction.

7. Administrative expenses

(in CHF 1 000)

Administrative expenses comprise the following:

	01.01.–30.09.2021	01.01.–30.09.2020
Asset manager
– Management fees (incl. VAT)	38 537	29 523
Personnel
– Board of Directors remuneration	998	870
– Wages and salaries	192	210
– Social insurance contributions and duties	79	87
	39 806	30 690

The remuneration model of BB Biotech AG is determined by the Board of Directors.

Since 2014 the remuneration paid to the investment manager is based upon a 1.1% p.a. all-in fee on the average market capitalization without any additional fixed or performance-based elements of compensation. The compensation of the Board of Directors consists since 2014 of a fixed compensation.

8. Segment reporting

(in CHF 1 000)

The sole operating segment of the Group reflects the internal management structure and is evaluated on an overall basis. Revenue is derived by investing in a portfolio of companies active in the biotechnology industry for the purpose of capital appreciation. The following results correspond to the sole operating segment of investing in companies active in the biotechnology industry.

The geographical analysis of the profit/(loss) before tax is as follows – all income from financial assets are attributed to a country based on the domiciliation of the issuer of the instrument.

Profit/(loss) before tax	01.01.–30.09.2021	01.01.–30.09.2020
USA	265 839	(29 134)
Netherlands	22 543	83 109
Singapore	(6 250)	179
Great Britain	(15 243)	(8 578)
Switzerland	(26 513)	12 620
Curaçao	(41 621)	(31 656)
Canada	(57 601)	–
	141 154	26 540

9. Assets pledged

At September 30, 2021, securities in the amount of CHF 4 093.1 mn (December 31, 2020: CHF 3 954.7 mn) are collateral for a credit line of CHF 700 mn (December 31, 2020: CHF 700 mn). At September 30, 2021, CHF 248 mn short-term loan is outstanding (December 31, 2020: CHF 63 mn).

10. Related party transactions

Detailed information regarding the remuneration model for the Board of Directors and the investment manager are mentioned under note 7, «Administrative expenses».

11. Commitments, contingencies and other off-balance sheet transactions

The Group had no commitments or other off-balance sheet transactions open at September 30, 2021 and December 31, 2020.

The operations of the Group are affected by legislative, fiscal and regulatory developments for which provisions are made where deemed necessary. The Board of Directors concludes that as at September 30, 2021, no proceedings existed which could have any material effect on the financial position of the Group (December 31, 2020: none).

12. Significant shareholders

The Board of Directors is not aware of any major shareholder with a holding exceeding 3% of all votes as at September 30, 2021 and December 31, 2020.

13. Subsequent events

There have been no events subsequent to September 30, 2021, which would affect the condensed consolidated interim financial statements.

REPORT ON THE REVIEW OF CONDENSED CONSOLIDATED INTERIM FINANCIAL STATEMENTS

Introduction

We have reviewed the condensed consolidated interim financial statements (consolidated balance sheet, consolidated statement of comprehensive income, consolidated statement of changes in equity, consolidated statement of cash flow and selected explanatory notes) of BB Biotech AG for the period ended 30 September 2021. The Board of Directors is responsible for the preparation and presentation of these condensed consolidated interim financial statements in accordance with International Accounting Standard 34 «Interim Financial Reporting» and article 14 of the Directive on Financial Reporting (DFR) of the SIX Swiss Exchange. Our responsibility is to express a conclusion on these condensed consolidated interim financial statements based on our review.

Scope of Review

We conducted our review in accordance with Swiss Auditing Standard 910 and International Standard on Review Engagements 2410, «Review of interim financial information performed by the independent auditor of the entity». A review of interim financial information consists of making inquiries, primarily of persons responsible for financial and accounting matters, and applying analytical and other review procedures. A review is substantially less in scope than an audit conducted in accordance with Swiss Auditing Standards and International Standards on Auditing and consequently does not enable us to obtain assurance that we would become aware of all significant matters that might be identified in an audit. Accordingly, we do not express an audit opinion.

Conclusion

Based on our review, nothing has come to our attention that causes us to believe that the condensed consolidated interim financial statements have not been prepared, in all material respects, in accordance with International Accounting Standard 34 «Interim Financial Reporting» and article 14 of the Directive on Financial Reporting (DFR) of the SIX Swiss Exchange.

PricewaterhouseCoopers AG

Philippe Bingert

Audit expert Auditor in charge Roland Holl Audit expert

Zurich, 20 October 2021

PricewaterhouseCoopers AG, Birchstrasse 160, Postfach, 8050 Zürich Telefon: +41 58 792 44 00, Telefax: +41 58 792 44 10, www.pwc.ch

PricewaterhouseCoopers AG is a member of the global PricewaterhouseCoopers network of firms, each of which is a separate and independent legal entity.

COMPANY PROFILE

Since our foundation in 1993, we have offered investors direct access to a select portfolio of promising, fast growing and profitable biotech companies listed on stock markets around the world. Thanks to our strong track record over the years and our systematic strategy and clear focus, we have become one of the world's largest biotech investors.

Biotechnology is one of the most attractive of any sector today with estimated annual growth in the double-digits. Mega trends such as increasing life expectancy and a Westernized diet and lifestyle are powerful growth drivers. These mega trends have led to a tremendous increase in healthcare costs, which, in turn, only amplifies the need for more efficient and effective drugs.

Furthermore, many pharmaceutical giants are confronted with deep cuts in revenue streams as a result of patent expirations. They are now purchasing innovative biotech products in an attempt to replenish product pipelines and have been willing to pay top dollar in these deals.

Meanwhile every second drug approved today stems from the labs of a biotech company and many biotech firms have been reporting strong sales and profit growth. The biotech industry has obviously come of age and reached a certain level of maturity.

Dynamic Biotech Sector

Source: Global Biotech (NBI + Ex-US) without Specialty Pharma, Generics & Life Science Tech; BAM Research, December 2019, EvaluatePharma Jan, 2020, Overview of M&A includes various types of M&A deals.

INVESTMENT STRATEGY

BB Biotech invests in fast-growing biotechnology companies that are developing and marketing innovative drugs. It focuses on biotech companies whose products address areas of significant unmet medical needs and thus have above-average sales and profit-growth potential.

Besides profitable large cap companies, BB Biotech is building up its investments in promising small and mid cap companies.

The team of investment experts is concentrating not only on established target areas such as oncology, orphan diseases and neurological indications, but also on the technologies of tomorrow that could lead to novel treatment methods with attractive therapeutic profiles and substantial economic rewards. These future technologies include RNA platforms and cell and gene therapies. A total return of 15% p.a. over a medium- to longer-term investment horizon is targeted.

The asset classes available to BB Biotech are direct investments in the shares of listed companies, equity interests in unlisted companies, corporate bonds, and options on a range of underlying assets. BB Biotech invests almost exclusively in stocks for liquidity and risk/return reasons. At least 90% of its shareholdings must be in listed companies, while always holding more than 50% of its assets in equity investments. Corporate bonds are an alternative primarily when stock market trends are negative. Options on the stocks of portfolio companies can be bought and sold at opportune times and as a means of hedging currency exposure.

«The team is concentrating also on the technologies of tomorrow»

Exhaustive, multi-stage due diligence precedes the selection of individual investments. We must have a thorough understanding of every company we invest in. Before an investment is made, the team analyzes a company's financial statements in detail and assesses its competitive environment, R&D pipeline, and patent portfolio as well as its customers' perceptions of its products and services.

Close contact with company executives is of high importance to us in this due diligence process, but also afterwards, as we believe that it takes strong leaders to achieve strong results.

BB Biotech builds on the long-standing experience of its distinguished Board of Directors and on the fundamental analysis of the experienced Investment Management Team of Bellevue Asset Management AG when making its investment decisions. It can also turn to an extensive international network of physicians and specialists in individual sub-segments of the biotech industry for further support and advice.

The Investment Management Team creates detailed financial models for all portfolio holdings and they must provide compelling arguments that these holdings have the potential to double in value over a four-year time frame. The team is guided by its convictions, not by benchmark considerations. Upside potential is driven in most cases by the power of innovation, the launch of new products for serious or significant illnesses, and successful company management. Each investment case is

constantly monitored and evaluated within the scope of our stringent and disciplined risk management process and corrective action will be taken if and when necessary.

«We are guided by its convictions, not by benchmark considerations»

Source: Bellevue Asset Management, 31.12.2020

BB Biotech's investment portfolio will usually consist of between 20 to 35 biotechnology companies. There are estblished, large cap companies as well as small and mid cap companies in the portfolio. Smaller positions will be taken in innovative biotech companies with promising R&D pipelines. From a regional perspective, the US biotech sector has displayed a high level of innovation and so this regional bias is also reflected in BB Biotech's portfolio. The predominance of the US biotech industry can be traced to the country's stellar research clusters, industryfriendly regulatory frameworks and myriad financing options, among other factors. New investments in small and mid cap companies will have a weighting of between 0.5% and a maximum of 4% to ensure that both upside potential and R&D risks are adequately addressed.

Because it is an investment company, BB Biotech has the flexibility to increase portfolio weightings considerably over time as a position increases in value. Smaller positions may become a top holding as their business develops and milestones such as positive Phase III outcomes, drug approvals, the successful marketing of products, and a sustainable flow of profits are achieved. All positions and their valuations are continually monitored, taking into account their growth potential and other aspects, and will be reduced if and when appropriate.

INVESTMENT PROCESS

Source: Bellevue Asset Management

Idea generation and pre-screening

The investment universe for BB Biotech comprises about 1000 companies in the biotech industry worldwide. It includes large caps to micro caps and even later-stage private companies.

The investment management team of Bellevue Asset Management AG monitors this industry actively. In an initial phase the team identifies disease areas where major progress is being made, technological advances are promising, new mechanisms of action are being discovered or technology platforms that could be leveraged for multiple therapies are being developed.

To stay highly informed, the team talks to analysts, conducts interviews with doctors and specialists, attends medical conferences, reviews scientific literature, and visits companies on-site. The team also regularly evaluates the geographical allocation of its investments by visiting countries or areas that show interesting developments.

Once promising investment themes (disease area, technology, etc.) are identified, the universe is reduced from 1000 companies to about 300.

Due Diligence

With the due diligence process the focus switches from themes to individual companies and products. Qualitative as well as quantitative screening criteria are applied. Again, doctors and specialists are consulted to learn more about different drug candidates. The objective is to understand the innovation behind a product, to see what benefit the product could provide for the patient, but also if the product makes sense from a health economic standpoint.

BB Biotech tries to focus on products that are novel and essentially reduce healthcare costs because of their higher efficiency or better safety. The time horizon for these investments is mid- to long-term. Another important point is the quality of the management, which is assessed in discussions during company meetings.

For about 100 companies the team has created and maintains financial models that help to assess the financial position of the company and get a sense of market opportunities or to review the clinical data companies have produced and presented. At the end of this phase the team discusses the investment cases and selects the most promising ideas.

Investment decision and portfolio construction

If the team feels comfortable with an investment idea, the analyst that covers the company prepares a detailed investment proposal. This includes a financial model, a summary of the clinical data the company has presented, the investment rationale with potential upside and downside as well as the proposal of the size of the investment and at what price range the investment should be built up. This proposal is then presented to the Board during the monthly calls, where the Board of Directors and the team engage in an active discussion about the potential investment. The Board secures compliance with the investment strategy.

BB Biotech also holds biannual strategy meetings, where the Board and the Investment Management Team review strategic developments in the biotech industry and meet with the management of the portfolio holdings or of potential investments.

The investment managers build the position in a relatively short time, provided that the price levels are within the approved range for investment. This results in a biotech portfolio of around 20 to 35 companies.

Monitoring and risk management

Once the portfolio is established, the monitoring and risk management processes begin. The development of the drug candidates is monitored closely with new clinical data becoming available at medical conferences. The validity of the investment case is continuously assessed as the team regularly meets with management and keeps the financial model updated.

If there is a substantial change in the underlying value of a company that requires action, the team will inform the Board to increase the position, or to exit it, depending on what the reasons for the change are.

Additionally, the portfolio managers may adjust the positions in the portfolio by buying when prices are lower than the Net Asset Value estimated with the help of financial modeling or by selling a part of the position on strength, if a stock looks relatively overvalued. However, the Board is always involved in major changes. The portfolio is also monitored with the help of risk management software.

BOARD OF DIRECTORS & INVESTMENT TEAM

Board of Directors

The renowned Board of Directors of BB Biotech AG has many years of industrial and scientific experience.

Dr. Erich Hunziker Dr. Erich Hunziker has been on the Board of Directors of BB Biotech AG since 2011 and has been elected president in 2013. He previously served as CFO of Roche from 2001 to 2010. From 1983 to 2001 he held various executive positions at Corange, Boehringer Mannheim and, before joining Roche, at Diethelm-Keller-Gruppe, where he ultimately served as CEO. Erich Hunziker earned a Ph.D. in Industrial Engineering from the Swiss Federal Institute of Technology in Zurich. Dr. Erich Hunziker is Chairman of the Board of Directors of Light Chain Biosciences (NovImmune SA), Entsia International AG, discoveric ag, discoveric marina ag, discoveric bio alpha ag and discoveric bio beta ag. Furthermore he is a member of the Board of Directors of LamKap Bio alpha AG, LamKap Bio beta AG and LamKap Bio gamma AG.

BB Biotech is a strong growth play and it offers a high income stream on top of that « »

Dr. Clive Meanwell Dr. Clive Meanwell is Vice Chairman and has been a member of the Board of Directors of BB Biotech AG since 2004. He founded and is the Executive Chairman of Population Health Partners LLC, an investment firm, and Chief Executive Officer of Population Health Investment Corporation, a special purpose acquisition company. He is also a member of the Board of Directors of EQRx Incorporated. Previously, Dr. Meanwell founded The Medicines Company in 1996 and from then until January 6, 2020 he was a member of the Board of Directors and held a range of leadership positions including Chairman, Executive Chairman, Chief Executive and Chief Innovation Officer. From 1995 to 1996, he was a founding partner and managing director of MPM Capital L.P. Earlier in his career, Dr. Meanwell held various positions at Hoffmann-La Roche in Basel and Palo Alto, California. Dr. Meanwell received his MD and PhD from the University of Birmingham in the UK where he also trained in medical oncology.

More and more biotech firms are turning a profit. This trend should continue thanks to the full R&D pipelines « »

Prof. Dr. Mads Krogsgaard Thomsen

Dr. Mads Krogsgaard Thomsen has been on the Board of Directors of BB Biotech since 2020. In 2021 he became CEO of the Novo Nordisk Foundation. He was previously with Novo Nordisk where he served as Executive Vice President, Head of R&D and Chief Science Officer. Professor Thomsen has chaired Danish Research Council programs within endocrinology and he is a former president of Denmark's National Academy of Technical Sciences. Until 2019 he chaired the governing board of the University of Copenhagen.

The biotech sector has played a crucial role in the fight against COVID-19 « »

Dr. Thomas von Planta Dr. Thomas von Planta has been elected Board member of BB Biotech AG in March 2019. Since 2006, he is owner of CorFinAd AG – Corporate Finance Advisory (advisory for M&A transactions and capital market financings). Previously he worked for Vontobel Group from 2002–2006 as interim Head Investment Banking / Head of Corporate Finance and member of the extended executive board. Prior to that he was with Goldman Sachs from 1992–2002, lastly in London in the Equity Capital Markets Group / Investment Banking Division. He holds a degree in law from the Universities of Basel and Geneva (Dr. iur.) and is also attorney at law. He is the Chairman of the Board of Directors of Bâloise Holding AG since May 2021 and a member of the advisory board of Harald Quandt Industriebeteiligungen GmbH.

A combination of scientific, medical and financial expertise is needed to achieve successful investment results in the biotech sector « »

Investment Management Team

A team of proven biotech specialists from Bellevue Asset Management AG with a successful track record takes care of investments in the most attractive biotech companies.

Dr. Daniel Koller Dr. Daniel Koller has been with Bellevue Asset Management since 2004 as a Portfolio Manager and was appointed Head of Investment Management Team BB Biotech AG in 2010. From 2001 to 2004 he was an investment manager at equity4life Asset Management AG and from 2000 to 2001 an equity analyst at UBS Warburg. He studied biochemistry at the Swiss Federal Institute of Technology in Zurich (ETH) and earned his doctorate in biotechnology at the ETH and Cytos Biotechnology AG, Zurich.

With an estimated growth of more than 10% a year, biotech is one of the most attractive sectors today « »

Dr. Maurizio Bernasconi Dr. Maurizio Bernasconi has been with Bellevue Asset Management as a Portfolio Manager since 2017. He joined Bank am Bellevue as a research analyst for the pharma and biotech sector in 2014, prior to that has worked as a chemist for SIGA Manufacturing, Ruswil. From 2009 to 2013 he earned his doctorate in organic chemistry at the University of Basel. Maurizio Bernasconi holds a Bachelor and a Master in chemistry from ETH Zurich and a Ph.D. from the University of Basel and an MBA in International Healthcare Management from the Frankfurt School of Finance.

«Biotech is driving innovation in medicine»

Dr. Samuel Croset Dr. Samuel Croset joined Bellevue Asset Management as a Portfolio Manager and Digital Transformation Lead in 2020. He previously worked for Roivant Sciences from 2018 to 2020 as data scientist supporting investment decisions in drug projects as well as leading a team focused on the analysis of real-world data. Prior to that, he started his professional career at Roche as data scientist in the research department (2014-2018). Samuel Croset holds a Ph.D. in bioinformatics from the University of Cambridge, a MS in bioinformatics and a MS in biochemistry from the University of Geneva.

«Substantially improved computational approaches in drug screening, identification and selection all the way to smarter and adaptive clinical trial programs are contributing to an acceleration of the innovation cycle»

Felicia Flanigan Felicia Flanigan has been with Bellevue Asset Management as a Portfolio Manager since 2004. From 1999 to 2004 she was a biotech equity analyst at Adams, Harkness & Hill; from 1991 to 1999 a biotech equity analyst at SG Cowen. Felicia Flanigan holds an MBA from Suffolk University, Boston, and a BA in Communications from Boston College.

Our investment strategy is focused on innovative drugs and therapies that offer sound value to healthcare systems « »

Dr. Christian Koch Dr. Christian Koch has been with Bellevue Asset Management as a Portfolio Manager since 2014. From 2013 to 2014 he was a sell-side pharma & biotech equity analyst at Bank am Bellevue in Küsnacht and from 2010 to 2013 a research associate at the Institute of Pharmaceutical Sciences, ETH Zurich. He holds a Ph.D. in Chemoinformatics & Computational Drug Design from ETH Zurich and an MS in Bioinformatics from Goethe University in Frankfurt.

Every second drug approved by regulators today originated from the lab of a biotech company « »

Dr. Stephen Taubenfeld Dr. Stephen Taubenfeld has been with Bellevue Asset Management as a Portfolio Manager since 2013. From 2009 to 2013 he was senior analyst at Iguana Healthcare Partners, of which he was a founding partner. From 2008 to 2009 he was a consultant with Merlin BioMed Group and from 2004 to 2008 he was M.D./Ph.D. Fellow in Neuroscience at Mount Sinai Hospital, New York. He holds an M.D. and Ph.D. in Neuroscience from Brown University School of Medicine.

Our investment portfolio is distinguished by a well-balanced risk/reward profile « »

Dallas Webb Dallas Webb has been with Bellevue Asset Management as a Portfolio Manager since 2006. From 2004 to 2006 he served as Senior Vice President and equity analyst at Stanford Group Company and held the same role at Sterling Financial Investment Group from 2003 to 2004. Prior to that, he was an equity analyst at Adams, Harkness & Hill. Dallas Webb has an MBA from Texas Christian University in Fort Worth, Texas, and a Bachelor of Science in Microbiology and Zoology from Louisiana State University.

Takeover activity in the sector will fuel significant valuation gains over a mid- and long-term horizon « »

SHAREHOLDER INFORMATION

The Company publishes its Net Asset Value daily via the major stock market information services and on its website . The portfolio composition is published at least every three months within quarterly reports. www.bbbiotech.com

Official listing and share structure

Official listing and share structure as at September 30, 2021
Foundation:	November 9, 1993; Schaffhausen, Switzerland
Issue price adj. November 15, 1993:	CHF 4.75
Official listing:	December 27, 1993, in Switzerland; December 10, 1997, in Germany; October 19, 2000, in Italy
Share structure:	CHF 11.08 mn nominal, 55 400 000 registered shares with a par value of CHF 0.20 each
Shareholders, free float:	Institutional and private investors, 100.0% free float
Security number Switzerland:	3 838 999
Security number in Germany and Italy:	A0NFN3
ISIN:	CH0038389992

Quotes and reports

Quotes and reports
NAV:	in CHF	– Datastream: S:BINA	in EUR	– Datastream: D:BBNA
		– Reuters: BABB		– Reuters: BABB
		– Telekurs: BIO resp. 85, BB1
		– (Investdata)
		– Finanz & Wirtschaft (CH)
Stock price:	in CHF	– Bloomberg: BION SW Equity	in EUR	– Bloomberg: BBZA GY Equity
	(SIX)	– Datastream: S:BIO	(Xetra)	– Datastream: D:BBZ
		– Reuters: BION.S		– Reuters: BION.DE
		– Telekurs: BIO	in EUR	– Bloomberg: BB IM Equity
		– Finanz & Wirtschaft (CH)	(STAR)	– Datastream: I:BBB
		– Neue Zürcher Zeitung (CH)		– Reuters: BB.MI

FACTS & FIGURES

BB Biotech

Facts & Figures
Foundation	November 9, 1993, Schaffhausen, Switzerland
Issue price adj. 15.11.1993	4.75
Official Listing	Switzerland: December 27, 1993 Germany: December 10, 1997 Italy: October 19, 2000
Share structure	CHF 11.08 mn nominal, 55 400 000 registered shares with a par value of CHF 0.20 each
Shareholders, free float as at 30.09.2021	Institutional and private investors 100% Free Float
Security number Switzerland	3 838 999
Security number Germany and Italy	A0NFN3
ISIN	CH0038389992
Ticker Bloomberg	Switzerland: BION SW Germany: BBZA GY Italy: BB IM
Ticker Reuters	Switzerland: BION.S Germany: BION.DE Italy: BIO.MI
Type / asset class	Investment company / equity
Investment style	Long only, long term
Index membership	Star Index, SMIM Index, SPI Index, SPI Select Dividend 20 Index
Benchmark	Nasdaq Biotech Index (NBI)
Management Fee	All-in-Fee: 1.1% p.a.

Analyst coverage

Institute	Analyst
Baader Helvea	Leonildo Delgado
Edison	Sarah Godfrey, Mel Jenner
Intesa Sanpaolo	Bruno Permutti
Kepler Cheuvreux	Arsene Guekam
Marten & Co	Matthew Read
Oddo BHF	Oussame Denguir
Pareto Securities	Dennis Berzhanin
Peel Hunt	Anthony Leatham
SEB	Carsten Lonborg Madsen

CORPORATE CALENDAR

Corporate calendar 2021/2022

Portfolio as at December 31, 2021	January 21, 2022, 7.00 AM CET
Annual Report 2021	February 18, 2022, 7.00 AM CET
Annual General Meeting 2022	March 17, 2022, 3.00 PM CET
Interim Report as at March 31, 2022	April 22, 2022, 7.00 AM CET
Interim Report as at June 30, 2022	July 22, 2022, 7.00 AM CET
Interim Report as at September 30, 2022	October 21, 2022, 7.00 AM CET

The BB Biotech interim report is published in English. A translated German and Italian version is also available. In case of any deviations the English shall prevail over the German and Italian text.

CONTACT

Investor Relations

Dr. Silvia Siegfried-Schanz Phone +41 44 267 72 66

E-Mail ssc@bellevue.ch

Claude Mikkelsen Phone +44 755 704 85 77

E-Mail cmi@bellevue.ch

Maria-Grazia Iten-Alderuccio Phone +41 44 267 67 14

E-Mail mga@bellevue.ch

Media Relations

Tanja Chicherio Phone +41 44 267 67 07

E-Mail tch@bellevue.ch

BB Biotech AG Schwertstrasse 6 CH-8200 Schaffhausen E-Mail info@bbbiotech.com www.bbbiotech.com

Bellevue Asset Management AG

Seestrasse 16/Postfach CH-8700 Küsnacht Phone +41 44 267 67 00 E-Mail info@bellevue.ch www.bellevue.ch

BB Biotech AG

Schwertstrasse 6 8200 Schaffhausen/Switzerland