07.08.2003 – 06:13

BBBIOTECH

euro adhoc: BB Biotech AG
Quarterly or Semiannual Financial Statements
- BB BIOTECH up 15% in first semester - convincing biotech revenues and pipeline results - dynamic growth set to continue - Board of Directors adopts measures to reduce discount (

Disclosure announcement transmitted by euro adhoc. The issuer is
responsible for the content of this announcement.

The dynamic trends prevailing in the biotech industry in the first
half of the year had a positive impact on BB BIOTECH and returned the
company to a long-term growth path. BB BIOTECH’s Net Asset Value
surged by CHF 282 million in the first half of the year, or 15%, to
reach CHF 79 per share. 
As the discount of the company’s stock price in relation to its Net
Asset Value still amounts to a high 18% even though sentiment on the
stock markets has returned to normal, the Board of Directors has
decided to take measures to bring the stock price back to the
bandwidth of +/- 10% in relation to the Net Asset Value, which had
been in place for many years.

In the first half of the year, the biotech sector had a strong
showing with numerous positive and fundamentally important events.
The industry leaders - in particular, Amgen, Genentech and MedImmune
- delivered exceptionally strong quarterly figures in terms of
medication revenue and earnings growth. In addition, confidence in
the industry was supported by the FDA approvals and outstanding
clinical data presented at various healthcare conferences throughout
the world. For instance, approval of the nasal influenza vaccine
FluMist developed by MedImmune and the earlier-than-expected approval
of the Millennium product Velcade (for treatment of multiple myeloma)
helped to speed up the FDA’s approval procedures for new, innovative
products. In the field of clinical studies, the clinical data
presented by Genentech at the annual meeting of ASCO (American
Society of Clinical Oncology) on the Avastin medication for treatment
of intestinal cancer were among the most outstanding accomplishments
in recent years. In the first half of the year, Actelion - one of our
portfolio companies - reached positive earnings territory for the
first time, joining the growing field of biotech companies operating
profitably. Moreover, the industry continued to receive significant
funding from the cooperative ventures with partners in the
pharmaceuticals industry. One example of this is the cooperation
agreement between our portfolio company Pozen and GlaxoSmithKline for
the development of a new migraine medication. In total, these drive
factors generated a substantial upward push for the entire
biotechnology sector.

In the first half of the year, BB BIOTECH stuck to its proven,
conservative investment strategy geared to long-term growth.
Moreover, to reduce the high market volatility, selective hedge
positions were reinforced. The company’s Net Asset Value and stock
price rose by 15% in CHF (8% in EUR). In relative terms, a comparison
of the performance of BB BIOTECH’s Net Asset Value with the
performance of other relevant indices conveys a mixed impression: the
first quarter was good, whereas in the second we did not manage to
fully participate in the biotech sector’s strong development. In the
long term, however, BB BIOTECH’s Net Asset Value performed better
since the company’s establishment in 1993 than all relevant biotech
indices and outperformed the key Amex Biotech (BTK) Index by as much
as 38%. With net assets amounting to CHF 2 052 million at the end of
the period under review, BB BIOTECH is among the biggest
institutional investors in the biotechnology sector.

In the first half of the year, new additions to our portfolio were
Celgene and NPS Pharmaceuticals, and we reinforced our holdings in
MedImmune and Serono. We divested ourselves from Adolor, CV
Therapeutics, Cubist, Endo Pharmaceuticals, Neurocrine, Transkaryotic
Therapies and Regeneron since the evaluations of several of these
companies either exceeded the price targets we fixed or the programs
adopted were not in line with our expectations. The company
3-Dimensional Pharmaceuticals was taken over by Johnson & Johnson. In
addition, two mergers were announced relating to our portfolio: IDEC
Pharmaceuticals is planning a merger of equals with Biogen, and Cell
Therapeutics wants to acquire Novuspharma.

The biotech industry is likely to continue on its dynamic long-term
growth path. BB BIOTECH is well positioned to participate in this
trend.

Discount must return to +/- 10% band: Board of Directors adopts
measures
Furthermore, the Board of Directors determined that the discount of
the company’s stock price in relation to BB BIOTECH’s Net Asset Value
still reflects an extent never witnessed in the previous 10 years. In
view of the sector’s bright long-term outlook, BB BIOTECH’s good
long-term performance and the normalization of the stock markets,
this discount is unwarranted. Accordingly, major efforts will be made
in the second half of the year to return the company’s stock price to
the usual bandwidth of +/- 10 per cent in relation to its Net Asset
Value.

Stimulating demand … 
In order to give an additional boost to demand on the market for BB
BIOTECH shares, with immediate effect the composition of the
portfolio will be published each month as long as the discount
exceeds 10%. This will make the development of BB BIOTECH’s Net Asset
Value more readily calculable in the short term, which may attract
new shareholder groups such as hedge funds, for instance.

Further we will intensify our cooperation with various banks in
Switzerland, Germany, Italy and Benelux to place our shares.
Moreover, the Board of Directors and the management team will use
intense communication and investor relations activities to
increasingly convince investors with a long-term view of the biotech
industry’s attractiveness.

… or adjusting supply
If these measures do not succeed in bringing the discount below the
10% level on a sustained basis by the end of 2003, the company’s
supply will need to be adjusted to demand on the market. In this
case, the Board of Directors will present appropriate proposals for
measures to the Shareholders’ Meeting (scheduled for April 2004).

The composition of BB BIOTECH’s portfolio as at July 31, 2003 is the
following:

CORE HOLDINGS
Amgen						29.9%
MedImmune					19.7%
IDEC Pharmaceuticals				11.7%
Serono					  	  6.8%

SMALL PARTICIPATIONS
Actelion					  6.1%
The Medicines Company (TMC)		  	  6.0%
Pozen					  	  2.3%
Shire Pharmaceuticals			  	  1.6%
Celgene					 	  0.7%
Virologic				 	  0.6%
Cell Therapeutics			  	  0.5%
NPS Pharmaceuticals			  	  0.5%
Durect					  	  0.3%

PRIVATE PARTICIPATIONS
Theravance (before Advanced Medicine)	  	  1.6%
EyeTech Pharmaceuticals				  1.3%

Liquid funds:					10.7%
Securities and Liquid funds: 			CHF 2 186 Mio.

end of announcement        euro adhoc 07.08.2003

Further inquiry note:

Bellevue Asset Management AG, Seestrasse 16, CH-8700 Küsnacht/Zürich
Dr. Christian Lach or Edwin van der Geest, Tel. +41 1 267 67 00

Branche: Biotechnology
ISIN: CH0001441580
WKN: 888509
Index: Investment Index (IGSP), Prime Standard, TecDAX
Börsen: SWX Swiss Exchange / official dealing
Frankfurter Wertpapierbörse / regulated dealing