Investment trust RTW Biotech Opportunities (LON:RTW) generated a healthy net asset value (NAV) total return of 16.5% for the six months to June 2026. That performance beat the 15.4% gain from the Nasdaq Biotech Index.
However, it lagged the 28.2% rise in the Russell 2000 Biotech Smaller Companies Index. And the trust’s share price total return was a more modest 12% as the NAV discount widened from 12% to 15.4%.
Healthy returns
RTW Bio benefited as its publicly listed investments rallied in response to a boom in takeovers and initial public offerings (IPOs), positive clinical trials and an improving US regulatory backdrop.
| As at 30 June 2026 | Change over H1 | |
| NAV per share | $2.86 | +16.5% |
| Share price | $2.42 | +12% |
| Discount to NAV | (15.4%) | (3.4%) |
| Russell 2000 Biotech Index | +28.2% | |
| Nasdaq Biotech Index | +15.4% |
Source: RTW Bio, H1 results
Manager Roderick Wong said: ‘Since our listing in 2019, NAV per ordinary share has grown by 175%, representing an annualised return of 15.8%, highlighting the long-term value created through our disciplined approach to identifying and backing transformative healthcare innovation.’
Performance drivers
H1 performance was driven primarily by the fund’s public investments, which represented 86.2% of NAV at 30 June 2026. The largest contributor was Kailera Therapeutics (NASDAQ:KLRA), the obesity company whose IPO in April was, at the time, the largest biotechnology IPO in history.
RTW Bio also profited from strong performance in holdings such as Oruka Therapeutics (NASDAQ:ORKA) and Tango Therapeutics (NASDAQ:TNGX), which delivered strong clinical data.
‘While Insmed (NASDAQ:INSM) and certain other commercial-stage names detracted amid first-quarter risk aversion, we remain focused on the long-term fundamentals underpinning these businesses,’ said Wong.
We view these results from RTW Bio as highly encouraging. NAV outperformed the Nasdaq Biotech Index despite the private portfolio continuing to lag a strong recovery in public markets.
Winterflood’s Emma Bird continues to recommend RTW Bio to investors. And we share her positive view on the trust and its long-run prospects. Bird believes RTW Bio will continue to be a key beneficiary of ongoing M&A activity in the biotechnology sector, as well as any further opening of the IPO window.
Bird said: ‘This should be helped by a supportive macroeconomic and political backdrop, including personnel changes and a heightened level of drug approvals at the FDA, as well as a continued need for large pharmaceutical companies to replace their pipelines via M&A ahead of patent expiries.’
