HBM Healthcare Investments (HBMN) is set to receive $92.75m through the takeover of portfolio holding Viela Bio by Horizon Therapeutics, a c 47% uplift on the value of the position at 31 December 2020 and a 53% premium to the closing share price on 31 January 2021. In our view, the takeover (which is expected to complete during the current quarter) further validates HBMN’s private/public approach, with the price paid representing a c 4x return on the fund’s initial pre-IPO investment of $20m in Q219. Taking into account a further $9.5m invested at Viela Bio’s IPO in October 2019, the overall profit is c 220%. We calculate the value of the deal to represent an uplift of c 1.4% on HBMN’s NAV per share.
