Investments that Shape the Future
Interview with Dr. Christian Koch, Head BB Biotech @ Bellevue Asset Management AG
The biotechnology sector is one of the most innovative and dynamic sectors of the global economy. Driven by scientific progress, the growing need for new therapies and medicines, and societal megatrends such as demographic change, it is increasingly coming into the focus of investors. BB Biotech AG from Schaffhausen, Switzerland has been investing in companies in this growth market for many years.
Wirtschaftsforum: Dr. Koch, BB Biotech is one of the largest investors in the biotechnology sector. How did this come about?
Dr. Christian Koch: BB Biotech was founded in 1993. At that time, the biotechnology market was just developing in the USA. Swiss pension funds had restrictions at that time on how much non-Swiss stock they could invest in, so the company was a vehicle that is listed in Switzerland and whose operational activity is investments – an investment company that invests in the USA. It has always had a very strong board of directors with highly profiled individuals such as Nobel laureate David Baltimore, which was a great advantage. The investment management team is employed by Bellevue, meaning BB Biotech gives Bellevue the mandate to manage its assets. Initially, it was a market access system for Europeans; as soon as the restrictions fell, the entire mindset changed. It was no longer dealing with flows, but could enter longer time horizons than is possible with open-ended funds. As an investment company, it has permanent capital, reports quarterly, and tends to have a five-year horizon for investments, which provides many structural advantages; unlike many funds, for example, it can also make private investments, take on leverage, and pay dividends. It is crucial that the investment team consists of highly qualified people to generate access returns.
Wirtschaftsforum: How large is the BB Biotech team?
Dr. Christian Koch: We have always been very lean and are currently a core team of 15 experts, but we can also draw on additional capacities from Bellevue, such as in marketing or sales. Over the past 20 years, we have distributed over 2 billion CHF in dividends; the current market capitalization is at 1.8 billion CHF, and the NAV at 2 billion; however, size is not our aim, but return.
Wirtschaftsforum: You have been with the company since 2013. How have you experienced the development of BB Biotech since then?
Dr. Christian Koch: I joined the company in the first third of the golden age of the biotech industry. The entire industry started to deliver on the commercial side. 2019, 2020 saw the overlap of three dynamics. Real cash flow was corona; the pandemic triggered a real boom in biotechnology. At the same time, the field of oncology developed very dynamically – here, the shift to small- and medium-cap companies paid off – and ultimately, genomic medicine performed very well and caused a stir. In 2021, we actively took profits until a massive correction occurred. The significant increase in US interest rates led to important changes. 2025 saw a slump as a result of the pharmatariffs, the pricing discussions in the US, and the restructuring of the entire healthcare organization. Our stock fell, but then made a comeback.
Wirtschaftsforum: What impulses do you want to give the company in this position?
Dr. Christian Koch: There are certain elements I would like to develop further; including changes in our research engine in the USA and in communications. I want to re-align the investment process and make it more digital. We are already leading in the use of AI agents. Five years ago, we started building a data science team and used machine learning. For about a year, we have been working operationally with large language models; for example, for the milestone tracking of investment analysts. We are convinced that in the future, more parts of the diligence will not be taken over by a human, but by an artificial workforce.
Wirtschaftsforum: BB Biotech is primarily invested in the USA. How does US policy affect this?
Dr. Christian Koch: In the US, the Most-Favoured-Nation model is being discussed, which would link prices to international lowest levels. This would have significant effects, as 80% of global pharma profits are generated in the US. However, the US Constitution guarantees free pricing in the commercial market. Companies could introduce new drugs there only in the extreme case.
Wirtschaftsforum: What criteria do you use to select investments? Are there specific future goals?
Dr. Christian Koch: We want to accompany companies long-term and influence along the pharmaceutical value chain. We are very focused on innovation and differentiate ourselves with our five-year investment horizon from others. Our claim is to provide our shareholders with a sustainable return, augmented by an annual dividend of 5%.
Wirtschaftsforum: What do you personally value most about your work?
Dr. Christian Koch: I love science, and I love investment analysis; here I have a once-in-a-lifetime chance.