Shares of BB Biotech, the Swiss biotechnology investment firm listed on the SPI, climbed to their highest level in three-and-a-half years on Tuesday, extending a sharp rally that has lifted the stock 36.2% since early June.
The advance follows a rebound in the company's second-quarter 2026 results, which reported a net profit of 451 million Swiss francs after losses of 21 million francs in the first quarter and 100 million francs in the second quarter of 2025. The firm also posted a 17.2% total return on its net asset value for the quarter.
The gains reflect the strong performance of BB Biotech's portfolio holdings, including Amgen, Argenx, Vertex Pharmaceuticals and Regeneron Pharmaceuticals. Regeneron's shares reached their highest level since November 2024, while Amgen, Argenx and Vertex are trading at record highs.
BB Biotech noted a consolidation phase in the broader biotechnology sector, emphasizing that disciplined stock selection will be critical for long-term value creation despite a diversified portfolio. The company also revised its dividend policy, introducing a target yield of 3% to 5% to better align payouts with long-term performance. Previously, dividends were set at 5% of the average share price in December of the fiscal year.
Analyst coverage remains limited. Julius Bär maintained a Hold rating with a 48-franc price target, below BB Biotech's current valuation, while Kepler Cheuvreux set a 73-franc target with a Buy recommendation—a view last updated in February.
