Shares in International Biotechnology Trust (IBT) were boosted by the $2.9 billion takeover of its largest holding Soleno Therapeutics (SLNO).
This marks the fourth acquisition within IBT’s portfolio in 2026. Furthermore, the latest deal follows three takeovers of IBT portfolio companies in March alone.
IBT managers Ailsa Craig and Marek Poszepczynski expect this M&A wave to persist, as Sharesify highlighted in our Biotechnology sector feature.
As a result, they have positioned IBT’s portfolio to take advantage. The managers believe the drivers of this elevated deal flow activity are likely to remain ‘firmly in place’ for the foreseeable future.
Rare asset
Based in Redwood City, Soleno has agreed to be acquired by Neurocrine Biosciences (NBIX).
Soleno is focused on developing and commercialising novel therapies for rare diseases, especially Prader-Willi Syndrome.
Vykat XR is the company’s lead candidate. This treatment significantly lessens excessive hunger symptoms in Prader-Willi Syndrome and generated $190 million in revenue last year.
Under the terms of the takeover, Soleno shareholders will receive $53 per share in cash. That represents a 34% premium to the undisturbed share price.
Soleno represented 6% of IBT’s net asset value (NAV) at last count.
M&A frenzy
IBT managers Craig and Poszepczynski commented:
‘We are seeing frenetic dealmaking activity in the biotech sector as we move into Q2 2026.
‘Pharmaceutical companies are continuing to rely on acquisitions of innovative biotechnology companies to add new therapies to their pipelines and replace lost revenues from patent expiries in the coming years.’
The managers explained that Soleno is part of a growing cohort of mature, clinically de-risked companies they refer to as “Biotech 2.0”.
These businesses are capable of being acquisition targets or generating significant revenues as standalone companies.
IBT is one of the best ways to gain exposure to a sector overlooked by many investors in recent years.
Craig and Poszepczynski have been in charge for over five years. Their risk-conscious approach has delivered impressive alpha in rising and falling markets. And the managers have a real knack for spotting takeover targets.
Their secret sauce is the analysis of companies through the same lens as pharmaceutical business development departments. This process helps them to capture the upside from M&A activity in the sector.
Read the press release here: https://www.schroders.com/en-gb/uk/individual/funds-and-strategies/investment-trusts/international-biotechnology-trust/corporate-governance/
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