BB BIOTECH strongly outperforms its benchmarks

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During 2008, the holdings of BB BIOTECH achieved strong performance,
both operationally as well as in terms of stock performance. As a
result, BB BIOTECH's Net Asset Value (NAV) increased by 5% in CHF
and 16% in EUR, respectively (incl. dividends). BB BIOTECH strongly
outperformed its benchmarks, both in the context of the overall stock
market performance and in the context of biotech industry. During
2008, BB BIOTECH's NAV outperformed the Nasdaq Biotech Index (NBI),
the most widely used benchmark of the industry, by 22.7% (incl.
dividends). Since inception in 1993, BB BIOTECH's NAV achieved a
total performance of 508.6% (in USD, incl. dividends), which compares
very favorably to the performance of 259.4% of the NBI during that
time period. Comparisons to other industry benchmarks are also
favorable for BB BIOTECH.

The vast majority of our core holdings achieved impressive
performance. Our core holding Vertex Pharmaceuticals reported
additional strong clinical results with its key product Telaprevir,
which we expect to become a cornerstone in the treatment of Hepatitis
C. Supported by the strong clinical data, the share price of Vertex
increased by 30.8% during 2008. During the second half of the year,
numerous acquisitions of biotech companies took place. Most
importantly, Roche announced its intention to acquire the 44% of
Genentech shares that it does not own for USD 47.3 bn. Although the
offer is still not supported by the independent directors of
Genentech, we continue to expect the transaction to be consummated.
Two of our European biotech companies were acquired as well. Our
Germany-based holding Jerini was acquired by Shire and our UK-based
holding Acambis was acquired by Sanofi. Celgene continued to execute
the launch of its key product Revlimid successfully and achieved
strong results both in terms of revenues and in terms of profits.
Celgene's share price appreciated 19.6% during 2008. Our core holding
Actelion continued to achieve impressive growth with its key product
Tracleer, which remains a cornerstone of therapy in Pulmonary
Arterial Hypertension (PAH). In July, Actelion closed a significant
partnership with GlaxoSmithKline for the development of its important
pipeline product Almorexant, which has the potential to improve
therapy of insomnia substantially. In September, Actelion became a
member of the SMI index, the most important index for equities in
Switzerland. Immediately after the inclusion, Actelion became the
best performing stock in the SMI index, with an increase of its share
price of 14% in 2008.

On the negative side, our holding Elan presented ambiguous results
from a Phase II trial of its antibody Bapineuzumab for the treatment
of Alzheimer's disease. However we are still confident that medical
breakthroughs for the treatment of Alzheimer's disease will be
achieved in the coming years. During 2008, we invested again in
Basilea Pharmaceutica, after we had sold the position in 2007 at
significantly higher prices. In between Basilea had suffered a
setback when the approval of its key drug Ceftobiprol was delayed in
the US. We still believe in the long-term potential of the drug,
because of the increasing unmet need due to infections which are
resistant to today's medications.

At the end of 2008, BB BIOTECH's share price closed at CHF 68.75,
down 18.7%, and EUR 45.88, down 9.6%, respectively. Despite the
decline of the share price, BB BIOTECH was still the second best
performing stock in the TecDAX, the index of the German stock
exchange covering technology stocks. In December 2008, BB BIOTECH was
included in the Dow Jones STOXX 600 index. The discount - the
difference between the share price and the Net Asset Value of BB
BIOTECH - increased to 25.4% (in CHF) at the end of the year, due to
weak conditions of general markets. BB BIOTECH continued its share
buy back program and cancelled 2.25 mn shares. Consistent with the
dividend model we introduced in 2004, the Board of Directors will
propose at the annual shareholder's meeting to pay a dividend of CHF
1.80.

For the coming year, we expect a number of new highly efficacious
drugs to emerge from our portfolio companies, e.g. Actelion's new
drug Almorexant for treatment of insomnia. Concomitantly, valuation
parameters of biotech companies have decreased to unprecedented and
very attractive levels. The combination of new products and
continuing strong growth of revenues and profits makes us very
optimistic for the coming year.

This is the composition of BB BIOTECH's Portfolio as at December 31,
2008 (in % of securities, rounded values):

CORE HOLDINGS
Actelion 32.1%
Gilead 20.7%
Celgene 16.3%
Vertex Pharmaceuticals 10.2%
Genentech 6.2%
Biogen Idec 5.5%

SMALL PARTICIPATIONS
Basilea Pharmaceutica 1.7%
Roche Holding GS 1.5%
Arena Pharmaceuticals 0.9%
Optimer Pharmaceuticals 0.8%
Zymogenetics 0.8%
NicOx 0.7%
Elan 0.6%
The Medicines Company 0.6%
Affymetrix 0.4%
Incyte 0.2%
Rigel Pharmaceuticals 0.2%
BioXell 0.2%
Epigenomics 0.2%
Keryx Biopharmaceuticals <0.1%

Gilead call option (short) (0.1%)
SWAP agreement on treasury shares 0.1%

Total securities CHF 1 587.3 mn

Liquid funds (net) CHF 12.5 mn
Other assets CHF 18.4 mn
Other payables CHF (113.4) mn

Total shareholders' equity CHF 1 504.8 mn
Treasury shares (in % of company) 19.4%

The Annual Report 2008 is available on March 5, 2009 under
www.bbbiotech.com

For further information please contact:
Bellevue Asset Management AG, Seestrasse 16/P.O. Box, CH-8700
Kusnacht/Zurich
Nafida Bendali or Maria-Grazia Alderuccio, phone +41 44 267 67 00

Company profile:
BB BIOTECH acquires holdings in companies in the biotechnology growth
market and is currently one of the world's largest investors in the
sector. BB BIOTECH is listed in Switzerland, in Germany and in Italy.
The focus of the holdings is on quoted companies that are
concentrating on the development and marketing of innovative
medicines. For the selection of holdings, BB BIOTECH relies on
fundamental analysis by physicians and molecular biologists. The
Board of Directors has many years of industrial and scientific
experience.

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BB BIOTECH AG
Vordergasse 3 Schaffhausen Switzerland

WKN: AONFN3;
ISIN: CH0038389992; Index: SBIOM, IGSP, SLIFE;
Listed: Investment Companies in SIX Swiss Exchange;
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