Advice Capital Breakthrough Biotech Fund

Advice Capital Breakthrough Biotech Fund

Focused on Cancer and Rare Diseases

Our biotech fund owns latestage or commercial biotech companies with Breakthrough Designation (BTD) from the FDA.

This unique strategy is able to produce superior returns in a 3-7 year horizon, based on faster approval of drugs. Of the 10 most profitable drugs in the world today, 5 of them have BTD.

  • Our fund’s focus is primarily on cancer and genetherapies.

At the moment we have invested in 32 companies, where 3 of them have been acquired since the funds inception in may 2019

If you are looking for a diversified biotech exposure, our fund is for you. (we have a dedicated site: biotekinvestering.dk)

Our approach

During the last 3 years, Advice Capital have developed and tested a unique model for investing in biotech.

We exclusively invest in late stage or commercial biotech companies, which have received regulatory tailwind from the FDA, primarily through a so-called breakthrough designation, which was created in 2012 by the FDA to help develop promising medical products faster.

As of November 2019, we have 29 companies in our portfolio. Of these 29 companies, 12 are commercial stage, 12 are late stage and 5 are big biopharma

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Advice Capital Breakthrough Biotech A/S invest in the most promising biotech companies, which are closest to the most significant value inflection point, namely Drug Approval.

Current Exposure

Fund summary

Takeover
5

out of 28 acquired in 4 months

commercial stage companies
12
Focus
75%

of funds invested in Cancer & Rare Diseases

Return since June 2019
22 %

Breakthrough Designation is a sign of excellence

66% of applications for btd are rejected

38% of new drugs have btd

How we add value

Search

We pick companies with regulatory tailwind from the FDA: Out of thousands of biotech companies our shortlist is around 100, where 20-40 will be picked for the portfolio.

Selection

Besides the regulatory criteria, we also pick companies valued below $4 billion and we try to avoid public offerings (except the last). So all companies will typically have a cash runway of +18 months.

Entry

Our entry will happen at two distinct moments in the equity story. Either when the company fails a trial, and is trading at around cash level, or when they get regulatory approval.

Monitor

We monitor and analyze evert company continuosly. We are present on all conference calls and try to cover all the major industry conferences. That enables to know when a data read-out in all likelihood will occur and trigger price movements.

Rebalancering & Risk management

As part of our active management our portfolio is run by 2 Portfolio Managers who ensures a dynamic positioning in the companies at all times.

Exit

When the equity story has played out, and the valuation is fair and reflective of the full story, we will exit the case.