Healthcare trust RTW Biotech Opportunities (RTW) outperformed its major biotech benchmarks in April. The fund delivered a 7% month-on-month increase in net asset value (NAV) per share to $2.59.
That return beat the 0.4% gain from the Nasdaq Biotech Index. It also exceeded the 3.7% return generated by the Russell 2000 Biotech Index.
The FTSE 250-listed fund is benefiting from a resurgence in initial public offerings (IPOs) and mergers and acquisitions (M&A) activity in the biotechnology sector. 2025 marked a decisive turning point for biotechnology, bringing a four-year sector bear market to a close.
Record biotech IPO
In its latest monthly update, RTW Biotech pointed out that its second biggest private holding, Kailera Therapeutics (KLRA), floated on Nasdaq on 17 April. Kailera raised a bumper $625 million in the largest biotech IPO on record.
Kailera’s shares surged 62.5% in debut dealings. That represented a 139% step-up from RTW Bio’s 31 March carrying value for the holding, which spoke for 7.5% of NAV as at 30 April 2026.
A few days earlier, public biotech Galera Therapeutics (GRTX) announced a reverse merger with private portfolio company Obsidian Therapeutics alongside a $350 million private placement in which RTW Bio participated. As at 30 April 2026, Obsidian represented 0.2% of RTW Bio’s NAV.
Why biotech is back
In its sector update, RTW Bio pointed out capital markets and M&A activity ‘accelerated sharply in the year to end-April’.
Biotech IPOs are back big time and the sector is also seeing a wave of takeovers. Big pharma companies are facing loss of exclusivity on a lot of their blockbuster drugs. This means they need to acquire biotech companies in order to offset that future revenue shortfall.
‘Earnings season was broadly positive,’ said RTW Biotech, ‘with the strongest results coming from commercial-stage companies with momentum behind their launches, including several in RTW Bio’s portfolio.’
Healthy returns
Since launch in October 2019, RTW Biotech has delivered an impressive annualised NAV return of 14.5%. Over the year to 30 April 2026, RTW Biotech has also bought back $15.3 million worth of shares.
Combined with strong portfolio performance, this helped to narrow the discount to NAV from 32.5% to 17% over the same period.
RTW Bio grew its NAV to $800.9 million in FY25, a substantial increase from $606.9 million in the prior year. The main driver was a 46.1% return in its public portfolio, which outperformed the Russell 2000 and Nasdaq Biotech indices.
RTW Biotech is different to most biotech or healthcare funds because it is solely focused on finding ‘transformative’ technologies.
These can range from early-stage academic programs needing funding all the way to mature publicly-traded companies.
For risk-tolerant investors, the Roderick Wong-managed trust is a great way to tap into the biotechnology boom. As long as an adverse interest rate environment doesn’t derail the biotech recovery, RTW Bio looks well positioned to continue outperforming in 2026 and beyond.
Read the press release here: https://www.rtwfunds.com/rtw-biotech-opportunities-ltd/factsheets-letters/
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