HBM Healthcare Investments reported a profit of 176.7 million Swiss francs in the six months from April through the end of September. In the prior-year period, the bottom line was a gain of 95.6 million Swiss francs.

Net asset value (NAV) per share rose by 9.8 percent, the company said on Friday. The share price climbed 7.8 percent. The 21 percent discount to NAV signals further upside potential, it added.

The private companies mostly showed a steady, positive performance, with partly substantial earnings contributions after company sales and financing rounds. Among the listed companies, a strong recovery in the first quarter was followed by a consolidation phase, HBM wrote.

Dollar gains and market recovery help

Another factor cited was the dollar's 4.5 percent appreciation against the Swiss franc. Since most investments are held in dollars, this had a positive impact on the half-year figures. Ongoing currency hedging reduced this effect by 28 million Swiss francs.

HBM Healthcare points to the recovery in the biotechnology sector in the first quarter of the fiscal year. In the second quarter, there were several instances of profit-taking and share-price declines. The listed companies generated a total value increase of 111 million Swiss francs in the first half. The largest value contributions came from established, revenue-generating companies. The private companies increased their value by a total of 138 million Swiss francs.

Outlook brightens

The market environment for the healthcare sector has noticeably improved over the past 12 months. Looking ahead, strategic takeovers and IPOs are expected to continue even in a more volatile environment, albeit more selectively than in the past few quarters.

During the reporting period, the company continued its ongoing share buyback program and, according to its own figures, repurchased 67,016 of its own shares worth 16.1 million Swiss francs.