NEWS RELEASE For immediate release 10 November 2014 The Biotech Growth Trust PLC Unaudited Half Year Results for the six months ended 30 September 2014The following are attached:•Company Summary and Financial Highlights•Chairman's Statement•Review of Investments•Principal Contributors to and Detractors from Net Asset Value Performance•Portfolio•Income Statement•Statement of Changes in Equity•Statement of Financial Position•Cash Flow Statement•Notes to the Financial Statements• Independent Review Report•Interim Management ReportThis Announcement is not the Company's Half Year report. It is an abridgedversion of the Company's full Half Year report for the six months ended 30September 2014. The full Half Year report will be sent to shareholders on 17November 2014. The full Half Year report, together with a copy of thisannouncement, will also be available on the Company's website:www.biotechgt.comThe Company's Half Year Report & Accounts for the six months ended 30 September2014 will be submitted to the UK Listing Authority, and will shortly beavailable for inspection on the National Storage Mechanism (NSM):www.hemscott.com/nsm.doFor further information please contact:Victoria HaleFrostrow Capital LLP020 3170 8432Company SummaryThe CompanyThe Company is an investment trust and its shares are listed on the OfficialList and traded on the main market of the London Stock Exchange. The Company isa member of the Association of Investment Companies ("AIC").ManagementThe Company has appointed Frostrow Capital LLP ("Frostrow") as AlternativeInvestment Fund Manager ("AIFM") to provide company management, companysecretarial, administrative and marketing services. The Company and Frostrowhave jointly appointed OrbiMed Capital LLC as Portfolio Manager.PerformancePerformance is measured against the NASDAQ Biotechnology Index (sterlingadjusted).Capital StructureThe Company's capital structure is composed solely of Ordinary Shares. Detailsare given on page 4 of this half year report.DividendNo dividend was recommended in respect of the year ended 31 March 2014 (2013:nil).No dividend is recommended in respect of the half year ended 30 September 2014(2013: nil).Continuation VoteThe next continuation vote of the Company will be held at the Annual GeneralMeeting in 2015, and further opportunities to vote on the continuation of theCompany will be given to shareholders every five years thereafter.ISA StatusThe Company's shares are eligible for Individual Savings Accounts (`ISAs') andfor Junior ISAs.Company PerformanceFinancial Highlights As at As at 30 September 31 March % 2014 2014 ChangeNet asset value per share 599.9 498.7p +20.3Share price 567.0 467.0p +21.4Discount of share price to net asset value 5.5% 6.4% -per shareAverage discount/(premium) of share price 6.8% 2.9% -to net asset value per shareNASDAQ Biotechnology Index (sterling 1,762.8 1,480.1 +19.1adjusted) (Benchmark)Gearing* 9.8% 8.3% -*See glossaryInvestment Objective and PolicyTo seek capital appreciation through investment in the worldwide biotechnologyindustry. In order to achieve its investment objective, the Company invests ina diversified portfolio of shares and related securities in biotechnologycompanies on a worldwide basis. Performance is measured against the NASDAQBiotechnology Index (sterling adjusted).Investment ApproachThe Company's Portfolio Manager is OrbiMed Capital LLC ("OrbiMed").OrbiMed, based in New York, is an investment manager focused exclusively on thehealthcare sector, with approximately U.S.$12 billion in assets undermanagement as at 30 September 2014 across a range of funds, includinginvestment trusts, hedge funds and private equity funds. OrbiMed's investmentmanagement activities were founded in 1989 by Mr. Samuel D. Isaly.OrbiMed has invested the Company's assets in the worldwide biotechnologyindustry. Geographic allocation is in line with the geographic distribution ofinvestment opportunities, with the majority of the Company's investments incompanies based in North America.OrbiMed takes a bottom-up approach to stock selection based on intensiveproprietary research. Stock selection is based on rigorous financial analysis,exhaustive scientific review, frequent meetings with company management andconsultations with physicians and other industry experts.OrbiMed looks for strong management teams, healthy organic growth from currentproducts and deep pipelines to fuel future growth.Risk management is conducted via position size limits and geographicdiversification. The Company maintains adequate portfolio liquidity by limitingthe Company's ownership to 15% of an individual company's equity (at the timeof investment) and by strictly limiting the Company's exposure to directunquoted companies to 10% of the portfolio at the time of acquisition.Investment LimitationsThe Board seeks to manage the Company's risk by imposing various investmentlimits and restrictions as follows:The Company will not invest more than 10%, in aggregate, of the value of itsgross assets in other closed ended investment companies (including investmenttrusts) listed on the London Stock Exchange, except where the investmentcompanies themselves have stated investment policies to invest no more than 15%of their gross assets in other closed ended investment companies (includinginvestment trusts) listed on the London Stock Exchange.The Company will not invest more than 15%, in aggregate, of the value of itsgross assets in other closed ended investment companies (including investmenttrusts) listed on the London Stock Exchange.The Company will not invest more than 15% of the value of its gross assets inany one individual stock at the time of acquisition.The Company will not invest more than 10% of the value of its gross assets indirect unquoted investments at the time of acquisition. This limit does notinclude any investment in private equity funds managed by the Portfolio Manageror any affiliates of such entity.The Company may invest or commit for investment a maximum of US$15 million,after the deduction of proceeds of disposal and other returns of capital, inprivate equity funds managed by OrbiMed, the Company's Portfolio Manager, or anaffiliate thereof.The Company may be unable to invest directly in certain countries. In thesecircumstances, the Company may gain exposure to companies in such countries byinvesting indirectly through swaps. Where the Company invests in swaps,exposure to underlying assets will not exceed 5% of the gross assets of theCompany at the time of entering into the contract.The Company's gearing policy is that gearing will not exceed 15% of theCompany's net assets. The Company's gearing requirements are met through theutilisation of a loan facility, repayable on demand, provided by J.P. MorganClearing Corp. This facility can be drawn at the discretion of the AIFM.In accordance with the requirements of the UK Listing Authority, any materialchange to the investment policy will only be made with the approval ofshareholders by ordinary resolution.Capital StructureDuring the half year, a total of 4,160,625 shares were bought back by theCompany to hold in treasury. At 30 September 2014, the Company had 68,886,347shares (including 4,822,934 shares held in treasury) of 25p each in issue (30September 2013: 68,536,347 (nil shares held in treasury); 31 March 2014:68,886,347 (including 662,309 shares held in treasury)). No new shares wereissued during the half year. Since the end of the half year 284,897 furthershares have been bought back by the Company to hold in treasury.GearingThe Company's borrowing policy was that borrowings would not exceed 10% of theCompany's net assets such limits were increased to 15% of the Company's netassets in November 2014, for further details please refer to the Chairman'sstatement. The Company's borrowing requirements are met through the utilisationof a loan facility, repayable on demand, provided by the Company's primebroker, J.P. Morgan Clearing Corp. As at 30 September 2014 the Company hadborrowed £37.7 million under this facility. As of this date the net gearinglevel was 9.8% of the Company's net assets.Chairman's StatementPerformanceI am delighted to report that after another period of strong performance theCompany's net asset value per share rose by 20.3% and the share price by 21.4%during the period, both outperforming the benchmark, the NASDAQ BiotechnologyIndex, which measured in sterling terms rose by 19.1%. The Company'soutperformance of the benchmark was principally due to the Company's holdingsin Gilead Sciences, Intermune and Puma Biotechnology. Further information oninvestment performance and the outlook for the Company is given in thePortfolio Manager's Review.Capital StructureThe Board has continued to implement its policy of active discount managementand to buy back shares to hold in treasury when the discount of the share priceagainst the net asset value per share is greater than 6%. During the six monthsunder review the Company repurchased a total of 4,160,625 shares to be held intreasury at a cost of £20,420,000 (including expenses). The average discountduring the period was 6.8%.RegulatoryI reported in my year-end statement that the Board together with its advisershad been keeping developments with respect to the Alternative Investment FundManagers Directive (the `Directive') under close review. I am pleased toconfirm that the Company entered into the necessary arrangements to ensurecompliance with the Directive on 22 July 2014.The Company appointed its existing Manager, Frostrow Capital LLP as itsAlternative Investment Fund Manager (`AIFM') on the terms and subject to theconditions of a new management agreement. In addition the Company and Frostrowentered into a portfolio management agreement with OrbiMed Capital LLC. The feebasis of both Frostrow and OrbiMed remain unchanged as a result of these newarrangements. The old agreements between the Company, Frostrow Capital LLP andOrbiMed Capital LLC were terminated.In order to achieve compliance with the AIFM Directive the Company appointedJ.P. Morgan Europe Limited to act as the Company's depositary and J.P. MorganClearing Corp to act as the prime broker. The custody agreement between theCompany and Goldman Sachs & Co was terminated.GearingThe Board has decided that the Company's gearing limit be increased from 10% to15% of the Company's net assets with immediate effect in order to provideflexibility to our Portfolio Manager. The Board will continue to keep thegearing limit under review.DividendNo dividend was recommended in respect of the year ended 31 March 2014 (2013:nil). No dividend is recommended in respect of the half year ended 30 September2014 (2013: nil).OutlookThe development of new products and the prospect of merger and acquisitionactivity continue to be key drivers for the biotechnology sector. Our PortfolioManager, OrbiMed Capital LLC believes that large capitalisation biotechnologycompanies, in particular, offer good value opportunities due, in part, topositive earnings prospects for 2015 and beyond. Against this back-drop, theBoard remains confident about the future performance of the biotechnologysector with the portfolio being well-positioned to benefit from this positiveoutlook.Despite the biotechnology sector witnessing volatile market conditions inrecent months our Portfolio Manager's focus remains on the selection of stockswith strong prospects for capital enhancement and we reiterate our belief thatthe long-term investor in the sector will be well rewarded.The Rt Hon Lord Waldegrave of North HillChairman10 November 2014Portfolio Manager's ReviewInterim Performance ReviewTop contributors to performance in the portfolio were Gilead Sciences,InterMune, Puma Biotechnology, Medivation, and Vertex Pharmaceuticals.Gilead shares appreciated due to the strong launch of Sovaldi for the treatmentof Hepatitis C. In the first half of 2014, Sovaldi sales were $5.75 billion,significantly beating analyst expectations.InterMune shares increased due to the company's acquisition by Roche for $8.3billion. The deal offered shareholders a 38% premium to the share pricepreceding the merger announcement.Puma Biotechnology shares appreciated due to successful phase III results ofneratinib for Her2+ breast cancer following Herceptin-based adjuvant therapy.Success in this trial was not widely expected; the shares increased nearly 300%following the announcement.Medivation shares appreciated over the period due to strong sales of Xtandi forprostate cancer. Additionally, investors became more optimistic about thepotential of Xtandi for the treatment of breast cancer. Data in that indicationwill be released by year-end.Vertex shares increased due to positive phase III data for the combination ofIvacaftor and Lumacaftor for the treatment of cystic fibrosis patients with themost common mutation, F508del. This represents a multi-billion dollaropportunity.The largest losses were from positions in Fluidigm, Prothena, and VandaPharmaceuticals.Fluidigm shares declined due to poor performance from the company's recentlyacquired DVS BioScience division. Fluidigm revised growth expectations for DVSsubstantially lower than prior guidance due to disruptions in sales channels.Prothena shares declined due to the release of disappointing results from aphase I trial of NEOD001 for AL amyloidosis.Vanda shares declined due to a weaker than expected launch of Hetlioz forNon-24-hour sleep-wake disorder.OutlookFollowing a selloff in March and April, biotech stocks rebounded and are nowclose to an all-time high, as measured by the Nasdaq Biotechnology Index. Webelieve the sector remains fundamentally strong, and the case remains good forcontinued outperformance. Valuations remain attractive among the majorbiotechnology companies, and we believe that they still do not fullyincorporate the reacceleration of growth from new products that we havepreviously detailed. For example, Gilead Sciences launched its new blockbusterdrug for HCV, Sovaldi, which is expected to generate nearly $12 billion inrevenue this year. Yet even with this success and strong stock performance thisyear, the shares are only trading at 11x consensus 2015 EPS.The strong performance of Puma Biotechnology and Vertex Pharmaceuticalsfollowing positive phase III results highlights the importance of clinical datareleases to catalyze stock appreciation in the sector. We expect an abundanceof clinical catalysts over the next year. We have previously noted thatimmuno-oncology has become a major focus among investors. This field hasexperienced substantial breakthroughs over the past several years and will havevery active news flow over the next year. In particular, the first pivotalclinical trials of Opdivo in lung cancer are expected shortly. This drug,developed by Bristol-Myers Squibb and its partner Ono Pharmaceuticals (heldwithin the portfolio) is an inhibitor of PD-1 which releases suppression ofimmune T-cells to fight cancer and has shown activity across a broad range oftumors. Using the anti-PD-1 drugs in combination with other activators of theimmune system will potentially extend the benefit to a larger group ofpatients. Toward this end, we will see proof of concept data from portfoliocompanies Incyte and Innate Pharma for their combination approaches in 2015.M&A activity will continue to be a major catalyst in the sector. During thereview period, portfolio holdings InterMune and Shire announced agreements tobe acquired by Roche and AbbVie, respectively. The Shire acquisition wasproposed in part to benefit AbbVie through a lower tax due to reincorporationin the UK. However, subsequently U.S. Treasury Secretary Jack Lew announced newrules to discourage tax inversions, which caused AbbVie's Board to abandon thedeal in October. Although acquisitions for tax inversion had become popular inhealthcare, this manoeuvre was more common among specialty pharma companiesrather than traditional biotech. We therefore see little change in theattractiveness of biotech companies for acquisition, and see the ongoingweaknesses in pharma pipelines as the main motivation for M&A.The number of holdings in the Trust is approximately 35. Currentlyapproximately one-third of the Trust's assets are invested in emergingbiotechnology companies, and two-thirds are invested in major biotechnologycompanies. With attractive valuation and abundant clinical and regulatorycatalysts, we believe that the sector is well positioned to continue itspositive momentum.Sven BorhoOrbiMed Capital LLCPortfolio Manager10 November 2014Principal Contributors to and Detractors from Net Asset ValueFor the Six Months to 30 SeptemberTop Five Contributors Contribution Contribution 2014 per share £'000 (pence)*Gilead Sciences 19,722 29.5pIntermune 11,196 16.8pPuma Biotechnology 10,092 15.1pMedivation 6,077 9.1pVertex 6,054 9.1p 79.6pTop Five Detractors Contribution for six months to 30 September Contribution 2014 per share £'000 (pence)*Fluidigm (3,904) (5.8)pProthena (3,483) (5.2)pVanda (1,741) (2.6)pXencor (1,041) (1.6)pIncyte Genomics (1,017) (1.5)p (16.7)p* based on 66,809,765 (excluding treasury shares) ordinary shares being theweighted average number of shares in issue for the six months ended 30September 2014Source: Frostrow Capital LLPInvestment PortfolioInvestment as at 30 September 2014 Fair value % ofSecurity Country/ £'000 investments RegionBiogen Idec United 41,934 10.0 StatesCelgene United 35,663 8.5 StatesAmgen United 35,263 8.4 StatesGilead Sciences United 32,569 7.7 StatesIllumina United 20,842 5.0 StatesAlexion Pharmaceuticals United 20,253 4.8 StatesMedivation United 20,124 4.8 StatesVertex Pharmaceuticals United 20,091 4.8 StatesRegeneron Pharmaceuticals United 17,343 4.1 StatesPacira Pharmaceuticals United 14,223 3.4 StatesTen largest investments 258,305 61.5Incyte United 12,741 3.0 StatesOno Pharmaceutical Japan 11,490 2.8Jazz Pharmaceuticals United 11,390 2.7 StatesGW Pharmaceuticals United 11,022 2.6 KingdomImpax Laboratories United 10,238 2.5 StatesArrowhead Research United 9,871 2.4 StatesAgilent Technologies United 9,386 2.2 StatesActelion Switzerland 9,062 2.2Salix Pharmaceuticals United 7,896 1.9 StatesAffymetrix United 7,738 1.8 StatesTwenty largest investments 359,139 85.6Neurocrine Biosciences United 7,724 1.8 StatesIronwood Pharmaceuticals United 6,993 1.7 StatesHorizon Pharmaceutical United 6,787 1.6 StatesInfinity Pharmaceuticals United 5,880 1.4 StatesFluidigm United 5,215 1.3 StatesInnate Pharmaceutical France 5,210 1.2Xencor United 4,806 1.2 StatesNPS Pharmaceuticals United 3,920 0.9 StatesAmag Pharmaceuticals United 3,110 0.7 StatesOrbiMed Asia Partners L.P. (unquoted)* Far East 2,904 0.7Thirty largest investments 411,688 98.1Qiagen Netherlands 2,666 0.6Puma Biotechnology United 2,046 0.5 StatesSynageva Biopharma United 1,413 0.4 StatesAchillion Pharmaceuticals United 973 0.2 StatesArQule United 896 0.2 StatesTotal investments 419,682 100.0All of the above investments are equities unless otherwise stated.* Partnership interestPortfolio Breakdown Fair value % of £'000 investmentsEquities 416,778 99.3Partnership interest 2,904 0.7Total investments 419,682 100.0Income Statementfor the six months ended 30 September 2014 (Unaudited) (Unaudited) (Audited) Six months ended 30 Six months ended 30 Year ended 31 March September 2014 September 2013 2014 Revenue Capital Total Revenue Capital Total Revenue Capital Total Note £'000 £'000 £'000 £'000 £'000 £'000 £'000 £'000 £'000InvestmentincomeInvestment 2 509 - 509 477 - 477 873 - 873incomeTotal income 509 - 509 477 - 477 873 - 873Gains and losseson investmentsGains on - 67,035 67,035 - 43,772 43,772 - 87,614 87,614investments heldat fair valuethrough profitor lossExchange - (763) (763) - 927 927 - 1,670 1,670(losses)/gainson currencybalancesExpensesPortfolio 3 - (1,852) (1,852) - 875 875 - (2,763) (management, AIFM 2,763)and performancefeesOther expenses (330) - (330) (469) - (469) (869) - (869)Profit before 179 64,420 64,599 8 45,574 45,582 4 86,521 86,525finance costsand taxationFinance costs - (69) (69) - (20) (20) - (94) (94)Profit before 179 64,351 64,530 8 45,554 45,562 4 86,427 86,431taxationTaxation (56) - (56) (44) - (44) (94) - (94)Profit/(loss) 123 64,351 64,474 (36) 45,554 45,518 (90) 86,427 86,337for the period/yearBasic and 4 0.2p 96.3p 96.5p (0.1)p 67.4p 67.3p (0.1)p 126.9p 126.8pdiluted earnings/(loss) pershareThe Company does not have any income or expenses which are not included in theprofit for the period. Accordingly the "profit/(loss) for the period" is alsothe "total comprehensive income for the period", as defined in IAS 1 (revised)and no separate Statement of Comprehensive Income has been presented.All of the profit/(loss) and total comprehensive income for the period isattributable to the owners of the Company.The "Total" column of the statement is the Company's Income Statement, preparedin accordance with International Financial Reporting Standards ("IFRS") asadopted by the EU.The "Revenue and Capital" columns are supplementary to this and are preparedunder guidelines published by the Association of Investment Companies.All items in the above statement derive from continuing operations. Nooperations were acquired or discontinued in the period.The financial statements for the six months ended 30 September 2014 have notbeen audited by the Company's auditors.Statement of Changes in Equity Ordinary Share Capital Share Premium Special Redemption Capital Revenue(Unaudited) Capital Account Reserve Reserve Reserve Reserve TotalSix months ended £'000 £'000 £'000 £'000 £'000 £'000 £'00030 September 2014At 31 March 2014 17,222 42,732 21,747 5,577 256,768 (3,798) 340,248Net profit for - - - - 64,351 123 64,474periodRepurchase of own - - (20,420) - - - (20,420)shares to be heldin treasuryAt 30 September 17,222 42,732 1,327 5,577 321,119 (3,675) 384,3022014 Ordinary Share Capital Share Premium Special Redemption Capital Revenue(Unaudited) Capital Account Reserve Reserve Reserve Reserve TotalSix months ended £'000 £'000 £'000 £'000 £'000 £'000 £'00030 September 2013At 31 March 2013 16,117 26,122 25,167 5,577 170,341 (3,708) 239,616Net profit/(loss) - - - - 45,554 (36) 45,518for periodIssue of new 1,017 14,870 - - - - 15,887sharesAt 30 September 17,134 40,992 25,167 5,577 215,895 (3,744) 301,0212013 Ordinary Share Capital Share Premium Special Redemption Capital Revenue(Audited) Capital Account Reserve Reserve Reserve Reserve TotalYear ended 31 £'000 £'000 £'000 £'000 £'000 £'000 £'000March 2014At 31 March 2013 16,117 26,122 25,167 5,577 170,341 (3,708) 239,616Net profit/(loss) - - - - 86,427 (90) 86,337for the yearIssue of new 1,105 16,610 - - - - 17,715sharesRepurchase of own - - (3,420) - - - (3,420)shares to be heldin treasuryAt 31 March 2014 17,222 42,732 21,747 5,577 256,768 (3,798) 340,248Statement of Financial Positionas at 30 September 2014 (Unaudited) (Unaudited) (Audited) 30 30 31 March September September 2014 2013 2014 Note £'000 £'000 £'000Non current assetsInvestments held at fair value 419,682 325,346 368,362through profit or lossCurrent assetsOther receivables 15,716 1,226 12,072 15,716 1,226 12,072Total assets 435,398 326,572 380,434Current liabilitiesOther payables 13,440 16,226 12,306Bank overdraft 37,656 9,325 27,880 51,096 25,551 40,186Net assets 384,302 301,021 340,248Equity attributable to equity holdersOrdinary share capital 17,222 17,134 17,222Share premium account 42,732 40,992 42,732Special reserve 1,327 25,167 21,747Capital redemption reserve 5,577 5,577 5,577Capital reserve 321,119 215,895 256,768Revenue reserve (3,675) (3,744) (3,798)Total equity 384,302 301,021 340,248Net asset value per share 5 599.9p 439.2p 498.7pStatement of Cash Flowsfor the six months ended 30 September 2014 (Unaudited) (Unaudited) Restated (Audited) Six months Six months Year ended ended ended 30 30 31 March September September 2014 2013 2014 £'000 £'000 £'000Net cash inflow/(outflow) from operating 11,407 (34,540) (52,246)activities (note 6)Net cash inflow/(outflow) before financing 11,407 (34,540) (52,246)Net cash (outflow)/inflow from financing (20,420) 15,887 14,295activitiesNet decrease in cash and cash equivalents (9,013) (18,653) (37,951)Cash and cash equivalents at start of period (27,880) 8,401 8,401Realised (losses)/gains on foreign currency (763) 927 1,670Cash and cash equivalents at period/year end (37,656) (9,325) (27,880)Notes to the Financial Statements1.a) General informationThe Biotech Growth Trust PLC is a Company incorporated and registered inEngland. The Company operates as an investment trust company within the meaningof Section 833 of the Companies Act 2006 and has made a successful applicationunder Regulation 5 of the Investment Trust (Approved Company) (Tax) Regulations2011 for investment trust status to apply to all accounting periods starting onor after 1 April 2012. The Company is managed in such a way to ensure that itcontinues to meet the eligibility conditions contained in Section 1158 of theCorporation Tax Act 2010 and the on- going requirements outlined in Chapter 3of Part 2 of the regulations.1.b) Basis of preparationThe interim condensed financial statements of the Company for the six monthsended 30 September 2014 have been prepared in accordance with IAS 34 "InterimFinancial Reporting". They do not include all the financial informationrequired for the full annual financial statements and have been prepared usingaccounting policies adopted in the audited financial statements for the yearended 31 March 2014.The bank loan as at 31 March 2014 has been restated and is now presented as abank overdraft.Those financial statements have been prepared in accordance with InternationalFinancial Reporting Standards ("IFRS") as adopted by the EU.1.c) Segmental reportingThe Directors are of the opinion that the Company is engaged in a singlesegment of business, being investment business.1.d) Going concernThe Directors believe that it is appropriate to adopt the going concern basisin preparing the accounts as the assets of the Company consists mainly ofsecurities that are readily realisable and, accordingly, the Company hasadequate financial resources to continue in operational existence for theforseeable future. The next continuation vote of the Company will be held atthe Annual General Meeting in 2015, and further opportunities to vote on thecontinuation of the Company will be given to shareholders every five yearsthereafter.2. Income (Unaudited) (Unaudited) (Audited) Six months Six months Year ended ended ended 30 30 31 March September September 2014 2013 2014 £'000 £'000 £'000Investment income 509 477 873Overseas incomeTotal income 509 477 8733. Portfolio Management, AIFM and Performance Fees (Unaudited) (Unaudited) (Audited) Six months Six months Year ended ended ended 30 30 31 March September September 2014 2013 2014 £'000 £'000 £'000Portfolio management fee 1,218 894 1,967AIFM fee 532 410 890Performance fee charged/(written back) in the 102 (2,179) (94)period/year* 1,852 (875) 2,763*In accordance with the performance fee arrangements described on pages 29 and30 of the Company's 2014 Annual Report, a performance fee of £102,000 wasaccrued at 30 September 2014 (30 September 2013: £579,000).4. Basic and diluted Earnings/(Loss) per Share (Unaudited) (Unaudited) (Audited) Six months Six months Year ended ended ended 30 30 31 March September September 2014 2013 2014 £'000 £'000 £'000The earnings/(loss) per share is based on thefollowing figures:Net revenue gain/(loss) 123 (36) (90)Net capital gain 64,351 45,554 86,427Net total gain 64,474 45,518 86,337Weighted average number of shares in issue 66,809,765 67,630,199 68,115,445during the period/year Pence Pence PenceRevenue earnings/(loss) per share 0.2 (0.1) (0.1)Capital earnings per share 96.3 67.4 126.9Total earnings per share 96.5 67.3 126.85. Net Asset Value per ShareThe net asset value per share is based on the net assets attributable to equityshareholders of £384,302,000 (30 September 2013: £301,021,000; 31 March 2014: £340,248,000) and on 64,063,413 shares (excluding 4,822,934 shares held intreasury), (30 September 2013: 68,536,347; 31 March 2014: 68,224,038) being thenumber of shares in issue at the period end.6. Reconciliation of Profit Before Taxation to Net Cash Inflow/(outflow) FromOperating Activities (Unaudited) (Unaudited) (Audited) Six months Six months Year ended ended ended 30 30 31 March September September 2014 2013 2014 £'000 £'000 £'000Profit before taxation 64,530 45,562 86,431Gains on investments held at fair value (66,272) (44,699) (89,284)through profit or lossNet sales/(purchases) of investments 13,922 (31,928) (46,187)Decrease/(increase) in other receivables 63 (44) (162)Decrease in other payables (836) (3,431) (3,014)Net cash inflow/(outflow) from operating 11,407 (34,540) (52,246)activities7. Analysis of changes in net debt Foreign 30 September 1 April Cash Flow Exchange 2014 2014 £'000 £'000 £'000 £'000Debt:Bank overdraft (27,880) (9,013) (763) (37,656) (27,880) (9,013) (763) (37,656)8. Transaction CostsPurchase and sale transaction costs for the six months ended 30 September 2014were £307,000 (six months ended 30 September 2013: £359,000; year ended 31March 2014: £707,000). These costs comprise mainly of commission costs.9. InvestmentsIFRS 13 requires the company to classify fair value measurements using the fairvalue hierarchy that reflects the significance of the inputs used in making themeasurements. The fair value hierarchy consists of the following three levels• Level 1 - quoted prices (unadjusted) in active markets for identical assetsor liabilities;• Level 2 - inputs other than quoted prices included with Level 1 that areobservable for the asset or liability, either directly (i.e. as prices) orindirectly (i.e. derived from prices), and• Level 3 - inputs for the asset or liability that are not based on observablemarket data (unobservable inputs)At 30 September 2014 the investment in OrbiMed Asia Partners LP Fund has beenclassified as level 3. The fund has been valued at the adjusted net asset valueas at 30 September 2014. If the value of the find was to increase or decreaseby 10%, while other variables had remained constant, the return and net assetsattributable to Shareholders for the period ended 30 September 2014 would haveincreased/decreased by £290,000.The table below sets out fair value measurements of financial assets inaccordance with IFRS13 fair value hierarchy system:Six months ended 30 September 2014 Level 1 Level 2 Level 3 Total £'000 £'000 £'000 £'000Equity investments 416,778 - - 416,778Partnership interest in L.P - - 2,904 2,904Total 416,778 - 2,904 419,682Six months ended 30 September 2013 Level 1 Level 2 Level 3 Total £'000 £'000 £'000 £'000Equity investments 322,692 - - 322,692Partnership interest in L.P - - 2,654 2,654Total 322,692 - 2,654 325,346Year ended 31 March 2014 Level 1 Level 2 Level 3 Total £'000 £'000 £'000 £'000Equity investments 365,867 - - 365,867Partnership interest in L.P - - 2,495 2,495Total 365,867 - 2,495 368,362Level 3 reconciliationPlease see below a reconciliation disclosing the changes during the six monthsfor the financial assets and liabilities designated at fair value throughprofit or loss classified as being Level 3. £'000Assets as at 1 April 2014 2,495Capital commitment during the period 267Total gains during the period 142Asset as at 30 September 2014 2,90410.Principal risks profileThe principal risks which the Company faces include exposure to:i) market price risk, including currency risk, interest rate risk and otherprice risk;ii) liquidity risk; andiii) credit riskMarket price risk - is the risk that the fair value or future cash flows of afinancial instrument held by the Company may fluctuate because of changes inmarket prices. This market risk comprises three elements - currency risk,interest rate risk and other price risk.Liquidity risk - This is the risk that the Company will encounter difficulty inmeeting obligations associated with financial liabilities.Credit risk - This is the risk of the failure of the counterparty to atransaction to discharge its obligations under that transaction could result inthe Company suffering a loss.Further details of the Company's management of these risks can be found in note13 of the Company's 2014 annual report.There have been no changes to the management of or the exposure to these riskssince that date.11. Related party transactionsThere have been no changes to the related party arrangements or transactions asreported in Annual Financial report for the year ended 31 March 2014.12. Comparative InformationThe financial information contained in this half year report does notconstitute statutory accounts as defined in section 435(1) of the Companies Act2006. The financial information for the six months ended 30 September 2014 and2013 has not been audited by the auditors.The information for the year ended 31 March 2014 has been extracted from thelatest published audited financial statements. The audited financial statementsfor the year ended 31 March 2014 have been filed with the Registrar of theCompanies. The report of the auditors on those accounts was unqualified, didnot include a reference to any matters to which the auditors drew attention byway of emphasis without qualifying the report and did not contain statementsunder section 498 of the Companies Act 2006.Independent Review Report to the Biotech Growth Trust PLCIntroductionWe have been engaged by the Company to review the condensed set of financialstatements in the half-yearly financial report for the period 1 April 2014 to30 September 2014 which comprises the Condensed Statement of ComprehensiveIncome, the Condensed Statement of Financial Position, the Condensed Statementof Changes in Net Assets, the Condensed Statement of Cash Flows and the relatednotes 1 to 12.We have read the other information contained in the half yearly financialreport and considered whether it contains any apparent misstatements ormaterial inconsistencies with the information in the condensed set of financialstatements.This report is made solely to the Company in accordance with guidance containedin International Standard on Review Engagements 2410 (UK and Ireland) "Reviewof Interim Financial Information Performed by the Independent Auditor of theEntity" issued by the Auditing Practices Board. To the fullest extent permittedby law, we do not accept or assume responsibility to anyone other than thecompany, for our work, for this report, or for the conclusions we have formed.Directors' ResponsibilitiesThe half-yearly financial report is the responsibility of, and has beenapproved by, the directors. The directors are responsible for preparing thehalf-yearly financial report in accordance with the Disclosure and TransparencyRules of the United Kingdom's Financial Conduct Authority.As disclosed in note 2, the financial statements of the Company are prepared inaccordance with IFRSs as adopted by the European Union. The condensed set offinancial statements included in this half-yearly financial report has beenprepared in accordance with International Accounting Standard 34, "InterimFinancial Reporting", as adopted by the European Union.Our ResponsibilityOur responsibility is to express to the Company a conclusion on the condensedset of financial statements in the half-yearly financial report based on ourreview.Scope of ReviewWe conducted our review in accordance with the International Standard on ReviewEngagements (UK and Ireland) 2410, "Review of Interim Financial InformationPerformed by the Independent Auditor of the Entity" issued by the AuditingPractices Board for use in the United Kingdom. A review of interim financialinformation consists of making enquiries, primarily of persons responsible forfinancial and accounting matters, and applying analytical and other reviewprocedures. A review is substantially less in scope than an audit conducted inaccordance with International Standards on Auditing (UK and Ireland) andconsequently does not enable us to obtain assurance that we would become awareof all significant matters that might be identified in an audit. Accordingly,we do not express an audit opinion.ConclusionBased on our review, nothing has come to our attention that causes us tobelieve that the condensed set of financial statements in the half-yearlyfinancial report for the period from 1 April 2014 to 30 September 2014 is notprepared, in all material respects, in accordance with International AccountingStandard 34 as adopted by the European Union and the Disclosure andTransparency Rules of the United Kingdom's Financial Conduct Authority.Ernst & Young LLPLondon10 November 2014Interim Management ReportPrincipal Risks and UncertaintiesA review of the half year, including reference to the risks and uncertaintiesthat existed during the period and the outlook for the Company can be found inthe Chairman's Statement beginning on page 5 and in the Portfolio Manager'sReview beginning on page 6. The principal risks faced by the Company fall intothe following broad categories: objective and strategy; level of discount/premium; portfolio performance; operational and regulatory; market price risks;liquidity risk; shareholder profile; currency risk; the risk associated withthe Company's loan facility; and credit risk. Information on each of theseareas is given in the Strategic Report/ Business Review within the AnnualReport and Accounts for the year ended 31 March 2014. In the view of the Boardthese principal risks and uncertainties are applicable to the remaining sixmonths of the financial year as they were to the six months under review.Related Party TransactionsDuring the first six months of the current financial year, no transactions withrelated parties have taken place which have materially affected the financialposition or the performance of the Company.Going ConcernThe Directors believe, having considered the Company's investment objective,risk management policies, capital management policies and procedures, and thenature of the portfolio and the expenditure projections, are satisfied that theCompany has adequate resources, an appropriate financial structure and suitablemanagement arrangements in place to continue in operational existence for theforeseeable future. For these reasons, they consider there is reasonableevidence to continue to adopt the going concern basis in preparing theaccounts.Directors' ResponsibilitiesThe Board of Directors confirms that, to the best of its knowledge:(i) the condensed set of financial statements contained within the Half YearReport has been prepared in accordance with applicable International AccountingStandards, (IAS) 34; and(ii) the interim management report and the Chairman's statement includes a fairreview of the information required by 4.2.7R and 4.2.8R of the TransparencyRules.In order to provide these confirmations, and in preparing these financialstatements, the Directors are required to:• select suitable accounting policies and then apply them consistently;• make judgments and accounting estimates that are reasonable and prudent;• state whether applicable IFRS have been followed, subject to any materialdepartures disclosed and explained in the financial statements; and• prepare the financial statements on the going concern basis unless it isinappropriate to presume that the Company will continue in business;and the Directors confirm that they have done so.The Half Year Report has not been audited by the Company's auditors.The Half Year Report was approved by the Board on 10 November 2014 and theabove responsibility statement was signed on its behalf by:The Rt Hon Lord Waldegrave of North HillChairmanGlossary of TermsInvestment Trust TermsAIFM DirectiveThe Alternative Investment Fund Manager Directive (the "Directive") is aEuropean Union Directive that entered into force on 22 July 2013. The Directiveregulates EU fund managers that manage alternative investment funds (thisincludes investment trusts). There was a one-year transition period withinwhich alternative funds must comply with the provisions of the Directive.Discount or PremiumA description of the difference between the share price and the net asset valueper share. The size of the discount or premium is calculated by subtracting theshare price from the net asset value per share and is usually expressed as apercentage (%) of the net asset value per share. If the share price is higherthan the net asset value per share the result is a premium. If the share priceis lower than the net asset value per share, the shares are trading at adiscount.GearingCalculated using the Association of Investment Companies definition.Total assets, less current liabilities (before deducting any prior charges)minus cash/cash equivalents divided by Shareholders' Funds, expressed as apercentage.Net Asset Value (NAV)The value of the Company's assets, principally investments made in othercompanies and cash being held, minus any liabilities. The NAV is also describedas `shareholders' funds' per share. The NAV is often expressed in pence pershare after being divided by the number of shares which have been issued. TheNAV per share is unlikely to be the same as the share price which is the priceat which the Company's shares can be bought or sold by an investor. The shareprice is determined by the relationship between the demand and supply of theshares.Ongoing ChargesOngoing charges are calculated by taking the Company's annualised ongoingcharges, excluding performance fees and exceptional items, and dividing by theaverage net asset value of the Company over the year.Total AssetsTotal assets less current liabilities before deducting prior charges. Priorcharges includes all loans for investment purposes.Treasury SharesShares previously issued by a company that have been bought back fromShareholders to be held by the Company for potential sale or cancellation at alater date. Such shares are not capable of being voted and carry no rights todividends.For and on behalf ofFrostrow Capital LLP, Secretary10 November 2014- ENDS -