REG - RTW Biotech Opp. - Capital Allocation Plan based on M&A successes

RTW Biotech OpportunitiesAnnouncement

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RNS Number : 9186D  RTW Biotech Opportunities Ltd  20 October 2025

LEI: 549300Q7EXQQH6KF7Z84

20 October 2025

RTW Biotech Opportunities Ltd

Capital Allocation Plan based on M&A successes

 

·      Portfolio has benefited from four public and private M&A
transactions since 30 June 2025

·      Further $15m to be allocated to NAV-accretive share buybacks as
part of Capital Allocation Plan

·      $24.2m returned via buybacks since 2023 with $5.8m residual
capacity from January 2024 commitment

 

RTW Biotech Opportunities Ltd (the "Company"), the London Stock
Exchange-listed investment company focused on identifying transformative
assets with high growth potential across the life sciences sector, today
provides an update on its capital allocation plans following a number of
successful realisations of portfolio company investments in recent weeks.

 

Background

The Company evaluates share buybacks through a capital allocation lens,
anchored in the core objective of long-term capital growth while recognising
that maintaining sufficient liquidity is critical to protect and grow value in
our portfolio companies over time. The Company has previously stated that,
should a significant cash inflow (e.g. through a portfolio position being
acquired) be received, it remains the Board's intention to consider the return
of a portion of the realised gain to shareholders through NAV-accretive share
buybacks.

 

Following the sale of Prometheus to Merck in June 2023, the Company announced
its intention to initiate a share buyback of up to approximately $10 million.
This was subsequently increased to up to $30 million following completion of
the Company's merger with Arix Biosciences in January 2024. As at 17 October,
$24.2 million has been returned to shareholders via share buybacks. In the
year to 17 October, the Company has repurchased 8.4 million shares,
representing 8.5% of secondary market volumes traded during the period.

 

Recent M&A activity

The Company has built a portfolio of highly innovative but also very
attractively valued assets. With large pharma companies facing significant
patent cliffs in the years ahead, many would be considered strategically
interesting targets to fill pharma pipelines. Sector M&A has picked up
materially this year and the Company's portfolio has seen the following
acquisition announcements:

 

·    On 9 July, Merck announced the $10 billion acquisition of Verona at a
23% premium to Verona's last closing price.

·   On 18 September, Biogen agreed to acquire private portfolio company
Alcyone for an $85 million upfront payment, representing a 242% uplift on the
Company's carrying value.

·    On 29 September, Genmab agreed to acquire Merus for $8 billion, a 41%
premium to Merus' prior closing price.

·    On 9 October, Novo Nordisk agreed to acquire Akero for $4.7 billion
upfront, a 19% premium to Akero's 30-day Volume Weighted Average Price (VWAP),
and a 42% premium to Akero's closing price on 19 May, prior to market
speculation.

 

While some of these transactions are yet to reach financial close, the Company
has realised a material amount of gains through disposals that crystallise
value.

 

Updated Capital Allocation Plan

The Company has outperformed its peer group and relevant indices on a NAV per
share basis, delivering 12.5% annualised NAV returns since IPO to 30 September
2025 1 . The Board and RTW Investments, LP believe the current discount to NAV
materially undervalues this performance and the clear value in the Company's
portfolio, which has been consistently demonstrated by, inter alia, accretive
M&A transactions. This is especially true in the private portfolio where
the two most recent acquisitions have represented 242% and 286% premia to the
Company's holding values.

 

Therefore, in light of a number of recent successful M&A transactions by
portfolio companies as set out above, the Board announces that it intends to
allocate a further $15 million (equivalent to c. 9.2 million shares at the
closing price on 17 October) to NAV-accretive share buybacks, to be
implemented over time at its discretion. This allocation is additional to the
aggregate $30 million previously announced, of which a residual $5.8 million
remains outstanding.

 

 

Enquiries:

 RTW Investments, LP - Investment Manager  +44 (0)20 7959 6362

 Oliver Kenyon                             biotechopportunities@rtwfunds.com

 Woody Stileman

 Krisha McCune (Investor Relations)

 Cadarn Capital - PR & IR Partner

 Lucy Clark (PR)                           +44 (0)7984 184 461 / lucy@cadarncapital.com

 David Harris (Distribution)               +44 (0)7368 883 211 / david@cadarncapital.com

 Deutsche Numis - Joint Corporate Broker   +44 (0)20 7260 1000

 Freddie Barnfield

 Nathan Brown

 BofA Securities - Joint Corporate Broker  +44 (0)20 7628 1000

 Edward Peel

 Alex Penney

 Altum (Guernsey) Limited                  +44 (0)1481 703 100

 Joanna Duquemin Nicolle

 Sadie Morrison

 

About RTW Biotech Opportunities Ltd:

RTW Biotech Opportunities Ltd (LSE: RTW) is an investment fund focused on
identifying transformative assets with high growth potential across the
biopharmaceutical and medical technology sectors. Driven by a long-term
approach to support innovative businesses, RTW Biotech Opportunities Ltd
invests in companies developing next-generation therapies and technologies
that can significantly improve patients' lives. RTW Biotech Opportunities Ltd
is managed by RTW Investments, LP, a leading healthcare-focused
entrepreneurial investment firm with deep scientific expertise and a strong
track record of supporting companies developing life-changing therapies.

Visit the website at www.rtwfunds.com/rtw-biotech-opportunities-ltd
(https://www.rtwfunds.com/rtw-biotech-opportunities-ltd/)  for more
information.

 

***********

The information in this announcement may include forward-looking statements,
which are based on the current expectations and projections about future
events, and in certain cases can be identified by the use of terms such as
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announcement or on its completeness, accuracy or fairness.

 

 1  NAV per share total return measured from 30/10/2019 in USD.

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