BIOTECH GROWTH TRUST (THE) PLC

Fund Information / Factsheet • Feb 14, 2025

vestment Objective and Benchmark Index

The Biotech Growth Trust PLC (the "Company") seeks capital appreciation through investment in the worldwide biotechnology industry. Performance is measured against its benchmark index, the NASDAQ Biotechnology Index (net, total return, sterling adjusted).

Five Year Performance (%)

Past performance is not a guide to future performance. The value of investments and the income from them may fall as well as rise and is not guaranteed; an investor may receive back less than the original amount invested.

Source: Frostrow Capital LLP, * Index – Bloomberg. With effect from 01.10.2024, the index

changed to net total return, prior to this date it was capital return.

Ten Largest Holdings as at 31 January 2025 (% of total investments)
Name	Total
Gilead Sciences	11.4
Alnylam Pharmaceuticals	5.8
Sarepta Therapeutics	5.4
Neurocrine Biosciences	5.4
Argenx	5.3
Ionis Pharmaceuticals	4.6
Avidity Biosciences	3.5
Xenon Pharmaceuticals	3.3
Cytokinetics Inc	3.1
CG oncology	3.1
Total	50.9

Portfolio Manager Geoffrey Hsu

Portfolio Manager Josh Golomb

September

Shares of 25p

Fast Facts	As at 31 January 2025
Launch Date	June 1997
AIC Sector	Biotechnology & Healthcare
	Date of Appointment of OrbiMed 19 May 2005
Company)	Annual Management Fee (payable by the
0.65% of net assets plus 0.30% per annum on the Company's market capitalisation up to £500m, 0.20% on market capitalisation above £500m to £1bn and 0.10% on market capitalisation over £1bn
Performance fee	See Annual Report for details
Ongoing Charges Ratio (OCR) *	1.2%
Continuation Vote	2025 AGM and every 5th AGM thereafter
Year / interim end	31 March / 30

Trust Characteristics

64 Number of Holdings
Net Assets (£m)
£263.1m Market Capitalisation (£m)
It is not anticipated that the Company will pay a dividend
7.4% Gearing (AIC basis)
	Gross 108.8% Commitment
	108.3%
Share Price (p)	898.00
	984.41
(Discount) / Premium	(8.8%)
Portfolio Turnover p.a.	147.1%
Active Share***	69.1%

Capital Structure 29,299,470 Ordinary

Geographical Breakdown as at 31 January 2025 (%)†

North America	83.2%
Continental Europe	7.2%
China (quoted)	7.1%
Unquoted ‡	2.5%
Total	100.0%

† Calculation based on economic exposure and expressed as a % of the total economic exposure. This includes all derivatives as an economically equivalent position in the underlying holding.

‡ No more than 10% of gross assets will be invested in unquoted investments at the time of acquisition. This limit includes any investment or commitment to invest in private equity funds managed by OrbiMed or an affiliate thereof. Investments or commitments to invest in such private equity funds will be limited to US\$15m, after the deduction of proceeds of disposal and other returns of capital. Of the 2.5% unquoted investments, 1.8% was in the US, 0.4% was in China, and 0.3% was in Asia.

Source: All portfolio information sourced from Frostrow Capital LLP

Discrete Performance – Calendar Years (%)

Percentage Growth 12 Month Return	2020	2021	2022	2023	2024	YTD
NAV	52.4	-23.1	-13.6	-7.2	1.2	2.7
Share Price	67.7	-24.6	-22.1	-3.5	-4.4	5.0
Index	22.1	0.2	-0.3	-1.7	0.7	5.7

Standardised Discrete Performance (%)

Percentage Growth 12 Month Return	Jan 20- Jan 21	Jan 21- Jan 22	Jan 22- Jan 23	Jan 23- Jan 24	Jan 24- Jan 25
NAV	58.2	-37.9	8.9	-7.1	0.3
Share Price	73.7	-41.0	2.5	-3.3	-2.5
Index	36.2	-15.9	14.1	-2.5	5.7

Past performance is not a guide to future performance. The value of investments and the income from them may fall as well as rise and is not guaranteed.

Source: NAV (total return; fully diluted) & Share Price (total return) – Morningstar. Index - Bloomberg.

*Calculated at the financial year end, includes management fees and all other operating expenses, excludes performance fees.

**The Board has set the leverage limit for both the Gross and the Commitment basis at 130% of the Company's Net Asset Value.

***Active Share is expressed as a percentage and shows the extent to which a fund's holdings and their weightings differ from those of the fund's benchmark index. A fund that closely tracks its index might have a low Active Share of less than 20% and be considered passive, while a fund with an Active Share of 60% or higher is generally considered to be actively managed.

Investment Policy

In order to achieve its investment objective, the Company invests in a diversified portfolio of shares and related securities in biotechnology companies on a worldwide basis. The Company will not invest more than 15% of the value of its gross assets in any one individual stock at the time of acquisition. No more than 10% of gross assets will be invested in unquoted investments at the time of acquisition. This limit includes any investment or commitment to invest in private equity funds managed by OrbiMed or an affiliate thereof. Investments or commitments to invest in such private equity funds will be limited to US15m, after the deduction of proceeds of disposal and other returns of capital. The Company's borrowing policy is that borrowings will not exceed 20% of value of the Company's net assets. The Company may be unable to invest directly or efficiently in certain countries or share classes. In these circumstances, the Company may gain exposure by investing indirectly through swaps or other derivative instruments. Exposure to these financial instruments will count towards and be subject to the following limits: Derivative transactions (excluding equity swaps) can be used to mitigate risk and/or enhance return and will be restricted to an aggregate net exposure of 5% of the value of the gross assets measured at the time of the relevant transaction; Equity swaps may be used for efficient portfolio management purposes and aggregate net counterparty exposure through a combination of derivatives and equity swap transactions is restricted to 12% of the value of the gross assets of the Company at the time of the transaction.

Return vs Volatility (Annualised since Date of Appointment of OrbiMed) – Chart (%)

Biotech Growth (Price) NASDAQ Biotehcnology Index (net, total return, sterling adjusted)

Commentary

In January, the NAV per share was up 2.7%, the share price was up 5.0% and the benchmark NASDAQ Biotechnology Index (net, total return, sterling adjusted) was up 5.7%.

Biotech outperformed the general markets in January. Many healthcare investors were hoping for some major merger and acquisition ("M&A") deal announcements at the JP Morgan Healthcare Conference in January. Three biotech acquisitions, each in excess of \$1 billion, were announced around that time: two acquisitions of private biotech companies as well as Johnson & Johnson's \$14.6 billion acquisition of publicly-traded Intra-Cellular Therapies at a 39% premium. Intra-Cellular Therapies markets a drug for major depression, and it was held in the portfolio at the time of the acquisition announcement. Should the deal be completed, this transaction will be the largest biotech M&A deal consummated since early 2023. We are optimistic that biotech M&A activity will continue through the rest of the year. In late January, a Chinese artificial intelligence startup, DeepSeek, released its reasoning model that was shown to outperform OpenAI's current model, raising questions around AI capital expenditure efficiencies of relevant US tech companies. This resulted in some rotation from tech into healthcare, with defensive "value" sectors such as pharma outperforming the emerging biotech names that make up a majority of the portfolio.

Compass Therapeutics, Intra-Cellular Therapies, and Vir Biotechnology were the largest positive contributors to performance during the month. Compass Therapeutics outperformed in January as investors anticipated pivotal data from the company's trial of CTX-009 in cholangiocarcinoma, which is expected at the end of Q1 2025. Intra-Cellular's stock price appreciated in January after Johnson & Johnson agreed to acquire the company for \$14.6 billion. Vir's stock experienced a significant rise due to promising early-stage clinical trial results from the company's T-cell engager studies in prostate cancer and other solid tumors.

Dyne Therapeutics, Forte Biosciences, and Neumora Therapeutics were the largest negative contributors to performance during the month. Dyne underperformed in January as its Phase 1/2 data update for a rare muscle disease indication fell below market expectations. Forte Biosciences underperformed on no fundamental news, following substantial gains in the prior months upon the announcement of a financing with leading institutional shareholders. Neumora's stock price declined after the company announced the first of three Phase 3 trials failed to show that its drug navacaprant yielded a consistent benefit in patients experiencing depression.

Codes
Sedol	0038551
ISIN	GB0000385517
Legal Entity Identifier (LEI)
	549300Z41EP32MI2DN29
Global Intermediary
Identification Number (GIIN)
	U1MQ70.99999.SL.826
Bloomberg	BIOG LN
EPIC	BIOG

Discount / Premium Control Mechanism

The Directors have adopted an active discount management policy to establish and support an improved rating in the Company's shares through the use of share buybacks, with a view to limiting the discount to NAV per share at which the shares trade to no more than 6%. Shares bought back will be cancelled.

How to Contact Us

Frostrow Capital LLP 25 Southampton Buildings London, WC2A 1AL

Tel.: 0203 008 4910 Fax: 0203 043 8889

Website: www.frostrow.com Email: info@frostrow.com

Risk Warnings

This document is for information purposes only and does not constitute an offer or invitation to purchase shares in the Company and has not been prepared in connection with any such offer or invitation. Before investing in the Company, or any other investment product, you should satisfy yourself as to its suitability and the risks involved, and you may wish to consult a financial adviser.

Any return you receive depends on future market performance and is uncertain. The Company does not seek any protection from future market performance so you could lose some or all of your investment. Shares of the Company are bought and sold on the London Stock Exchange (LSE). The price you pay or receive, like other listed shares, is determined by supply and demand and may be at a discount or premium to the underlying net asset value of the Company. Usually, at any given time, the price you pay for a share will be higher than the price you could sell it. For further information on the principal risks the Company is exposed to please refer to the Company's Annual Report or Investor Disclosure Document available at www.biotechgt.com. The Company can borrow to purchase investments, this could potentially magnify any losses or gains made by the Company.

Target Market

The Company is suitable for investors seeking an investment that aims to deliver total returns over the longer term (at least five years), is compatible with the needs for retail clients, professional clients and eligible counterparties, and is eligible for all distribution channels.

The Company may not be suitable for investors who are concerned about short-term volatility and performance, have low or no risk tolerance or are looking for capital protection, who are seeking a guaranteed or regular income, or a predictable return profile. The Company does not offer capital protection.

Value Assessment

Frostrow Capital LLP has conducted an annual Value Assessment on the Company in line with Financial Conduct Authority ("FCA") rules set out in the Consumer Duty regulation. The Assessment focuses on the nature of the product, including benefits received and its quality, limitations that are part of the product, expected total costs to clients and target market considerations.

Within this, the assessment considers quality of services, performance of the Company (against both benchmark and peers), total fees (including management fees and entry and exit fees as applicable to the Company), and also considers whether vulnerable consumers are able to receive fair value from the product.

Frostrow Capital LLP concluded that the Company is providing value based on the above assessment.

Important Information

The Biotech Growth Trust PLC is a public limited company whose shares are listed on the LSE and is registered with HMRC as an investment trust. The Company has an indeterminate life, although shareholders consider and vote on the continuation of the Company every five years (the next such vote will be held will be held in 2025).

This financial promotion is issued by Frostrow Capital LLP which is authorised and regulated by the FCA.