IBT has no antidote for turbulence

THEY invest in the cutting edge of technology, seeking inventions that can transform medical science. But, last year, even the vast brainpower at the disposal of International Biotechnology Trust - one of the UK's largest biotech funds - was unable to avoid the turbulence in global equity markets.

Assets collapsed by more than 46% to 203p a share as investors deserted the technology and biotech sectors. The Nasdaq biotech index fell 35%, the Bloomberg UK Biotech index 43%. The timing of the slump in markets proved unfortunate for the life sciences wing of Schroder Ventures, the private equity group hired to manage the fund in place of bankers Rothschild.

The fall in IBT's assets was compounded by the decision to write down the value of some of its investments in private companies.

But chairman Andrew Barker believes the shakeout has thrown up opportunities. 'More effective treatments are required for unmet clinical needs such as cancer, cardiovascular disease and central nervous systems disorders,' he said.

It now has stakes in 34 companies, including a US firm developing aerosol-based drug delivery systems. Stakes in unquoted businesses represent 23% of its assets.

Full-year figures from IBT show an overall loss of £127m. There is no final dividend. The shares, which have fallen from 355p, rose 6p to 153p.