No recommendation
No news or research item is a personal recommendation to deal. Hargreaves Lansdown may not share ShareCast's (powered by Digital Look) views.
(Sharecast News) - Shares in International Biotechnology Trust (IBT) were on the rise on Monday after Swiss pharma giant Novartis snapped up one of its portfolio companies for $12bn in cash.
San Diego-based Avidity Biosciences, which specialising in RNA therapies for serious, genetic neuromuscular diseases, was IBT's eighth-largest holding in the medical investment group's quote portfolio, comprising 2.55% of the company's net asset value.
The acquisition was IBT's ninth M&A transaction involving a portfolio holding this year.
"By thinking like pharmaceutical business development departments, we have continued to successfully identify attractive acquisition targets, providing a substantial boost to shareholders' returns," said IBT portfolio managers Ailsa Craig and Marek Poszepczynski.
"With major pharmaceutical companies facing significant patent cliffs in the coming years, we expect this robust M&A environment to continue, providing further opportunities for IBT to take advantage."
Shares were up around 3% at 849.96p by 1358 GMT.
The value of investments can go down in value as well as up, so you could get back less than you invest. It is therefore important that you understand the risks and commitments. This website is not personal advice based on your circumstances. So you can make informed decisions for yourself we aim to provide you with the best information, best service and best prices. If you are unsure about the suitability of an investment please contact us for advice.