Nb Public Equity K/S

Financial reviewThe income statement for 2022 shows a loss of DKK 145,385,351 against a loss of DKK 275,317,760 last year, and the balance sheet at 31 December 2022 shows equity of DKK 616,570,668.The result was lower than expected.NB Public Equity K/S primary source of income is realised and unrealised gains on its investments. The year 2022 was marked by a continued decline in the public market valuations of biotech companies, and hence continued the downdraft that characterized 2021. The main drivers are the developments in the global credit markets which tightened considerably due to continued inflationary pressures. The key central banks raised short term rates considerably and are expected to maintain this stance until a rise in unemployment is achieved and clear signs of non-cyclical inflation has abated. Due to structurally higher debt to GDP ratios in many key economies, the central banks are expected to lean on the side of a more expansionary monetary policy, once the opportunity arises again. For growth and development companiesbroadly speaking , and also specifically for biotech this new environment signifies and end to zero interest environment and an unprecedented access to cheap capital. The effect of the previous era has been an excessive investment cycle into research and development projects that have clogged many if not most pipeline indications. Thus it has not been enough to develop strongly innovative products, but also made it necessary to consider competition in a much more serious manner. Numerous examples have materialised where strong product profiles were not enough to create a sustainable commercial basis for economic success. Clearly this is not sustainable , and the estimated 300bln USD biotech burnrate has to come down, pipeline products have to be evaluated more critically and in general it is foreseen that a general reductionin R&D is unavoidable. On top of this the US government instituted IRA policy has reduced the value of the real fuel behind the long term biotech success for the last 40 years: the biologic product , which succeeded with a combination of lack of generic competition, price increases and strong sustainable lifecycles which exceeded most expectations 20 years ago. Going forward this means a significantly more conservative stance on biotech and even pharma companies where winning strategies must take into account the new environment.OperationsNB Public Entity Komplementar ApS participates in the limited partnership as a General Partner and is alsothe manager of the limited partnerships.