Biotech - attractive valuations, more acquisitions

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During the third quarter 2008, BB BIOTECH's portfolio companies
continued to hold up in a turbulent environment. BB BIOTECH's share
price closed the quarter at CHF 83.50, flat compared to the second
quarter 2008. In Germany it closed at EUR 53.20, up 3% compared to
the previous quarter. The Net Asset Value of
BB BIOTECH increased by 5% during the quarter. As a result, the
difference between the share price and the Net Asset Value of BB
BIOTECH increased to 16%, despite the fact that BB BIOTECH continued
its share buyback program aggressively, purchasing 782 400 shares
worth CHF 68 mn. We will continue our measures to decrease the
difference between share price and Net Asset Value.

During the quarter, numerous acquisitions of biotech companies took
place. Most importantly, in July, Roche announced its intention to
acquire the 44% of Genentech shares that it does not own for USD 47.3
bn. Following the announcement, Genentech's share price appreciated
significantly. We took advantage of the price appreciation and
reduced our holding in Genentech significantly. Although the offer
was subsequently rejected by the independent directors of Genentech,
for being too low, we expect the transaction to be consummated.

The number of acquisitions of European biotech companies is
increasing as well, indicating the progress that European biotech
companies are making. Our Germany-based holding Jerini was acquired
by Shire at a premium of 199% to the preceding three months average
share price. Previously, Jerini had received an approval from the
European Regulatory Agency EMEA for its product Firazyr for treatment
of hereditary angioedema.

Our UK-based holding Acambis was acquired by Sanofi at a premium of
65% to the preceding two months average share price. Acambis is
developing innovative vaccines for the prevention of serious
infectious diseases.

On the negative side, our holding Elan presented ambiguous results
from a Phase II trial of its antibody Bapineuzumab for treatment of
Alzheimer's disease. Although the results of that particular trial
disappointed the high expectations which had been built up in front
of the data, we are confident that medical breakthroughs for
treatment of Alzheimer's disease will be achieved in the coming
years.

Biogen Idec and Elan announced two more cases of progressive
multifocal leukoencephalophathy (PML) associated with treatment of
multiple sclerosis with its drug Tysabri. Although both patients are
recovering, the share prices of both companies declined significantly
following the news. We continue to believe in the superior clinical
profile of Tysabri and we continue to expect that Tysabri will become
a substantial commercial success. Following the news, we increased
our holding in Biogen Idec substantially.

As a result of the turmoil in the financial markets, biotech
companies are now trading at very low valuations, despite strong
growth and strong fundamentals. The business models of the vast
majority of our companies are hardly affected by the current squeeze
on the credit markets because they are well financed and generate
substantial cash-flows. In addition, biotech assets become
increasingly attractive for pharmaceutical companies, as most of the
pharmaceutical companies are under increasing pressure to acquire or
in-licence new products. Although we aren't able to forecast how long
the current financial crisis will last, we are very confident that
biotech will be among the winners in the coming years.

This is the composition of BB BIOTECH's Portfolio as at September 30,
2008 (in % of securities):

CORE HOLDINGS
Actelion 28.8%
Celgene 17.5%
Gilead 17.3%
Vertex Pharmaceuticals 10.5%
Genentech 10.5%
Biogen Idec 5.4%

SMALL PARTICIPATIONS
Zymogenetics 1.7%
Roche Holding GS 1.5%
Elan 1.0%
Affymetrix 1.0%
The Medicines Company 0.9%
NicOx 0.7%
Rigel Pharmaceuticals 0.5%
Basilea Pharmaceutica 0.5%
Optimer Pharmaceuticals 0.5%
Incyte 0.5%
Arena Pharmaceuticals 0.3%
BioXell 0.3%
Epigenomics 0.2%
Keryx Biopharmaceuticals <0.1%

Genentech call option (long) 0.1%
Celgene call option (short) <(0.1%)
SWAP agreement on treasury shares 0.4%

Total securities CHF 1 775.8 mn

Liquid funds (net) CHF (33.3) mn
Other assets CHF 19.8 mn
Other payables CHF (112.9) mn

Total shareholder's equity CHF 1 649.3 mn
Treasury shares (in % of company) 18.2%

The Quarterly Report is available on www.bbbiotech.com.

For further information please contact:
Bellevue Asset Management AG, Seestrasse 16, CH-8700 Kusnacht,
Switzerland
Nafida Bendali or Maria-Grazia Alderuccio, Tel. +41 44 267 67 00

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BB Biotech AG
Vordergasse 3 Schaffhausen Switzerland

WKN: 888509;
ISIN: CH0001441580 ; Index: Prime All Share, MIDCAP, TECH All Share,
TecDAX, HDAX;
Listed: Geregelter Markt in Frankfurter Wertpapierbörse;
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