Shares in International Biotechnology Trust (LON:IBT) were boosted by the news portfolio company Crinetics Pharmaceuticals (NASDAQ:CRNX) has been acquired by Vertex Pharmaceuticals (NASDAQ:VRTX).
IBT managers Ailsa Craig and Marek Poszepczynski have a real knack for spotting takeover targets. Amazingly, the Crinetics takeover marks the eighth acquisition within the trust’s portfolio in 2026-to-date.
These include the takeover of Soleno Therapeutics (SLNO) by Neurocrine Biosciences (NBIX). Nuvalent (NASDAQ:NUVL) was snapped up by GSK (LON:GSK), while Apogee Therapeutics (NASDAQ:APGE) was bought by AbbVie (NYSE:ABBV).
Another healthy premium
The biotech M&A boom shows no signs of slowing, benefiting those funds and trusts able to identify the assets that could prove most attractive to acquirers.
At last count, Crinetics represented 3.17% of IBT’s net asset value (NAV). Boston-based Vertex is paying $85 per share in cash or a 102% premium to get its hands on Crinetics. For the uninitiated. Crinetics is focused on the development and commercialisation of novel therapeutics for endocrine diseases.
Its Palsonify medicine is the first and only once-daily oral therapy for adults with acromegaly. This is a rare and debilitating condition caused by a pituitary tumour that secretes excess growth hormone.
Crinetics most advanced pipeline candidate, atumelnant, is an oral adrenocorticotropic hormone receptor antagonist currently in Phase 3 development for congenital adrenal hyperplasia.
Unprecedented pace
Craig and Poszepczynski commented: ‘Biotech’s M&A bonanza continues. We are seeing an unprecedented pace of dealmaking in the sector, with the volume of biotech M&A so far this year already close to the total for the whole of 2025 – itself a bumper year.’
They added: ‘This deal is the eighth acquisition within IBT’s portfolio in 2026, and the 14th over the last year. Our approach to selecting companies, which considers the same factors as pharmaceutical business development teams, continues to demonstrate its effectiveness.’
Despite the high levels of activity seen in 2026, many pharmaceutical firms are still not close to making up for the lost revenues they face due to patent expiries in the years ahead.
As such, Craig and Poszepczynski expect this active period of dealmaking to continue, ‘creating more opportunities for IBT to capture returns for our shareholders.’
Sharesify believes IBT is one of the best ways to gain exposure to biotechnology, a sector with long-term structural growth drivers.
An ageing global population, rising chronic disease burden and increasing pressure on government finances are driving sustained demand for more effective healthcare solutions.
Craig and Poszepczynski have been in charge of IBT for over five years. Their risk-conscious approach has delivered impressive alpha in rising and falling markets. 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.
IBT offers a modest and diversified exposure to unquoted biotech opportunities that are typically unavailable to private investors. The trust also has a policy of paying out 4% of its NAV as dividends each year, providing an attractive income stream to shareholders.
Learn more about International Biotechnolllogy Trust here: https://www.schroders.com/en-gb/uk/individual/funds-and-strategies/investment-trusts/international-biotechnology-trust/
