Interim Report for the period ended 30 June 2023

RTW Biotech Opportunities Ltd (the “Group”), the London Stock Exchange-Premium listed investment company focused on identifying transformative assets with high growth potential across the biopharmaceutical and medical technology sectors, is pleased to announce its Interim Report for the six months ended 30 June 2023.

Financial Highlights:

The Group continued to outperform the benchmark indices in the period since Admission, demonstrating the strength of the Investment Manager, investment strategy and the portfolio:

• Total shareholder return is an alternative performance measure
• Source: Capital IQ

Portfolio Highlights

• As at 30 June 2023, the Group had decreased the number of core portfolio companies to 37 (H1 2022: 41).
• 10 publicly-listed (H1 2022: 15)
• 27 privately-held (H1 2022: 26) 

• A stand-out event for the period was the sale of Prometheus Biosciences, which at the time was the Group’s largest holding (14.8% of NAV). Prometheus was acquired by Merck at a 75% premium to the prior closing price. Total proceeds from the sale of Prometheus shares amounted to US$99.1 million on total invested capital of US$8.4 million, representing an 11.8x multiple. The multiple on capital invested in the private rounds was 22x. 

• CinCor Pharma announced an agreement to be acquired by AstraZeneca for US$1.3 billion. The total consideration amounted to a 207% premium to the prior closing price. At the time of the announcement, the position represented 0.6% of NAV.
• 5 new core portfolio companies were added during the period (H1 2022: 2).
• Co-led Cargo Therapeutics Series A financing round in March 2023 (0.4% NAV)
• Co-led Oricell Therapeutics Series B financing round in February 2023 (0.6% NAV)
• Participated in Abdera Therapeutics Series B financing round in April 2023 (0.3% NAV)
• Participated in a bridge financing in Allurion Technologies in February 2023 (0.01% NAV)
• Participated in Tourmaline Bio’s Series A financing round in May 2023 (0.2% NAV)
• 24/37 core portfolio companies had pipeline products in clinical stage programmes (H1 2022: 28/41) on 30 June 2023. 
• As at 30 June 2023, 51% of NAV was invested in core portfolio companies (H1 2022: 62%), whilst 31% was invested in other public portfolio companies (H1 2022: 33.5%) and 18% was held in cash plus assets and current liabilities (H1 2022: 5%).  
• 3 private portfolio companies - Mineralys, Acelyrin and Orchestra BioMed - successfully listed on the Nasdaq during the period, and Tourmaline Bio entered into a merger agreement with Nasdaq-listed Talaris Therapeutics, which is expected to close in the fourth quarter.
• Mineralys successfully launched an upsized initial public offering (IPO) in February 2023, raising US$192 million.
• On the first day of trading, Mineralys' share price rose by 15.25%, to close at US$18.44 per share.
• Acelyrin successfully launched an upsized IPO in May 2023, raising US$540 million.
• On the first day of trading, Acelyrin's share price traded up by 30.55% to close at US$23.50 per share.
• Orchestra BioMed announced the closing of its merger with RTW’s Health Sciences Acquisitions Corporation 2 and started trading on the Nasdaq.
• The Group participated in a US$125 million strategic financing deal with Milestone Pharmaceuticals. The strategic financing included US$50 million in convertible notes from RTW-managed funds, including the Group, as well as a commitment by the Investment Manager of US$75 million in royalty funding.

Post Period-End Highlights

• Apogee Therapeutics successfully listed on the Nasdaq via an upsized IPO in July 2023, raising US$300 million.
• On the first day of trading, Apogee's share price traded up by 24.9% to close at $21.23 per share. At 30 June 2023, Apogee represented 0.6% of the Group's NAV.
• Following a February 2023 announcement that Allurion Technologies would go public via a business combination transaction that would include a PIPE led by RTW-managed funds, including the Group, and a synthetic royalty financing, the transaction was completed on 1 August 2023, and Allurion began trading on the NYSE on 2 August, raising US$100 million.
• The Company announced a share buyback programme, given the Board’s belief that the share price materially undervalues the Company.

Roderick Wong, MD, Managing Partner and Chief Investment Officer of RTW Investments, LP (the “Investment Manager”) commented:

“We are pleased to report the Group achieved strong performance, particularly in comparison with our benchmarks, which we have outperformed not only during the period but also on a one and three-year basis. During the six months to 30 June 2023, RTW’s NAV increased by +9.3% compared with +5.3% for the Russell 2000 Biotech index.

“Performance since inception remained significantly ahead of both the Nasdaq Biotech and Russell 2000 Biotech indices with RTW achieving a +61.5% NAV performance since inception compared with +20.7% for the Nasdaq Biotech index and -0.3% for the Russell 2000 Biotech index, over the same periods.

“It has been a very active six months for the Group, with three portfolio companies listing on the Nasdaq and one announcing a merger with a listed entity. We have also seen two take-outs in the portfolio at very healthy premiums, one of which was RTW’s largest position at the time, Prometheus Biosciences. Additionally, there have been five new core portfolio companies added to the portfolio, while five core public portfolio companies were exited.

“With the second longest and deepest bear market for the biotech sector now behind us, this is an exciting time to invest in highly attractive opportunities across our private, core public and other public portfolios. We look ahead to the remainder of 2023 with confidence as we look to add both public and private companies to our portfolio of transformative assets with high growth potential across the biopharma and med-tech sectors. We look forward to updating shareholders with our continued progress throughout the remainder of the year.”