In August, the NAV per share was +7.9%, the share price was +8.5% and the benchmark NASDAQ Biotechnology Index (net, total return, sterling adjusted) was +9.8%. During August, the biotech sector meaningfully outperformed the broader market, rebounding from July's pullback. Broader equity markets were driven by strong corporate earnings and waning fears over artificial intelligence spending, although persistent inflation concerns and monetary policy uncertainty remained important counterweights. Biotechnology regained considerable momentum during August, building on the sector's broader recovery following a softer July. The sector received a boost following Merck and Moderna's announcement that the Phase 3 INTerpath-001 study of personalized mRNA cancer vaccine intismeran demonstrated statistically significant and clinically meaningful improvements in patients with melanoma. The results helped drive a meaningful influx of generalist interest into biotechnology, reinforcing the sector's appeal as a source of differentiated growth that is relatively insulated from potential AI-related disruption. On the regulatory front, President Trump nominated Dr. Heidi Overton to serve as FDA Commissioner, replacing former FDA chief Marty Makary, who resigned in May. Late in the month, momentum slowed down following Federal Reserve Chair Kevin Warsh's remarks at Jackson Hole, where Warsh reiterated that inflation remained above the Federal Reserve's target and suggested additional monetary tightening could be warranted. Underperformance during the month versus the index was due to the Company not holding shares in Moderna, which is an index constituent. The stock was up over 150% during the month. Vogenx, Cybin, and Travere Therapeutics were the largest positive contributors to performance during the month. Shares of Vogenx outperformed following a successful Phase 3 data readout from competitor Amylyx Pharmaceuticals. The positive trial results validated the therapeutic category for post-bariatric hypoglycemia and de-risked Vogenx's competing oral pipeline just days after its IPO. Cybin's stock price appreciated due to the appointment of a new CEO and successful completion of enrollment of the company's Phase 3 trial for its lead drug candidate HLP003 in major depressive disorder. Shares of Travere Therapeutics surged following a strong second quarter earnings release, with patient start forms for the recent Filspari launch in focal segmental glomerulosclerosis significantly exceeding investor expectations. Arcutis Biotherapeutics, EyePoint, and Tango Therapeutics were the largest negative contributors to performance during the month. Arcutis retraced recent gains despite strong second quarter results due to investor concerns around revenue growth in 2H26. EyePoint shares declined after the company's Phase 3 LUGANO trial of Duravyu in macular degeneration failed to meet its primary endpoint. Tango Therapeutics gave back some gains following positive first-line pancreatic cancer data in June, as investor concerns about increasing competition in the space weighed on shares.
