Biotech trust targets £50m share issue

The Biotech Growth trust is planning to raise up to £50m through a new share offering.

OrbiMed Capital's Geoffrey Hsu, investment manager to the £70m trust, says the sector has traded on historically low valuations this year as a result of the uncertainty surrounding healthcare reforms. However, he believes underperforming stocks will rally by the end of the year. "The impact of healthcare legislation on the biotech sector will be minimal. We anticipate stocks which have been oversold on the back of reform concerns will eventually see a reversion as the reform overhang is lifted," Hsu says. Biotech Growth's share price was up 14.6% and NAV was 14.8% higher over the year...