BioTech Capital throws in the towel

BioTech Capital One, of the highest profile Australian biotech investment funds announced on Thursday that it will no longer pursue new opportunities in the sector and will liquidate its current investment portfolio, returning the proceeds to shareholders.

The only publicly-listed biotech investment fund in Australia, BTC cited drawbacks associated with “running private equity style mandates”, especially the inability to communicate the group’s diverse range of holdings, in particular its private investments. BTC said that this meant that the stock was constantly under priced. The announcement triggered the retirement of company non-executive director Professor Tony Basten.

BTC said that it would provision $4.6 million in addition to $0.213 per share to accelerate completion of projects still carrying value.

Today’s announcement terminates several years early the arrangement between BTC and its investment manager Titan Bioventures Management. BTC said that it would ask shareholders to approve a move to acquire Titan, thereby bringing its management function in-house.