Extraordinary success for Norron’s holding Vaccibody
Since December 2016, Norron has invested in and supported the Norwegian biotech company Vaccibody. This holding was the first one we invested in using our unlisted holding strategy. The reason for our initial investment was the very promising fundamental research that the company was able to present at that stage in the pre-clinical phase concerning personalized cancer vaccines. Norron’s original investment amounted to NOK 45 million. Over the years, we have realized values of NOK 145 million, I e the entire value of the original investment and an additional NOK 100 million in value increase. At present, we are pleased that we have followed the company from unlisted holdings, to listing on the OTC market, and as of this week, listing on the Merkur market, which is regulated by the Oslo Stock Exchange. At present, the value of Norron’s position amounts to NOK 240 million, and corresponds to an ownership of approximately 1.4 percent in the company. For our unit holders, the investment has had an amazing 2000 percent development, or an average annual return of 123%.
The company’s unique position in personalized cancer vaccines was validated on September 29, 2020, through the announcement of a global research collaboration with Genentech, part of the Roche Group. Through the collaboration, Genentech undertakes the development and financing of one of the projects from Vaccibody’s technology platform for commercialization. The agreement is currently worth approximately NOK 7 billion, excluding the future royalty income that accrues to Vaccibody’s shareholders.
The above is of course extremely gratifying for us and our shareholders, but what makes this particular investment extra special is the company’s success in cancer treatment, which benefits many hard-hit patients and their loved ones. Using Vaccibody’s personalized cancer vaccine, studies on patients with developed cancer, who have been under long-term traditional cancer treatment, have shown significantly improved disease progression.
We want to highlight this investment to our customers and partners since it symbolizes much of what we want to achieve in our active management, namely to identify quality companies at an early stage, that can contribute significantly to our customers’ returns, and through our support, are able to promote a positive development for society and business, in a range of different fields.
Vaccibody is a holding in the following funds managed by Norron Asset Management: Norron Target, Norron Select and, our latest addition, Norron Sustainable Equity.
Please feel free to contact us if you would like to know more about our approach to active management and our additional holdings that focus on sustainability.
Norron Asset Management
T: 08 555 06940