Investment Policy and Strategy
The Company has delegated responsibility for day-to-day investment of its assets to the Investment Manager. Consistent with
the Company's investment objective, the Investment Manager makes the majority of its investments in biotechnology companies
focused on drug discovery and development. A small number of investments is also made in related sectors such as medical
devices or healthcare services.
The majority of the Company's assets is generally invested in smaller and mid capitalisation quoted companies, with a minority
in larger capitalisation quoted companies. The Investment Manager seeks to invest up to 30% of the Company's assets in
unquoted companies, while allowing an exposure of up to 40% in unquoted companies after allowing for valuation write-ups and
further follow-on investments.
Investments are made in quoted public companies with an expectation that these companies will benefit from a significant
rerating in valuation when they achieve clinical trial success and/or receive regulatory approvals for their products. For unquoted
investments, the Investment Manager seeks to generate gains that represent multiples of invested cost primarily through the sale
of these unquoted companies to strategic buyers including major pharmaceutical companies or, in some cases, through a flotation.
The Investment Manager has made the majority of its investments in the US, which is the most mature and established market
for pharmaceutical drugs, and as a consequence has the most established commercial biotechnology industry with the broadest
and deepest community of biotechnology companies. However, the best investments worldwide are sought so the Company
will usually have some investments in Western Europe and occasionally elsewhere such as Australia or Asia.