Update on Avidity Biosciences IPO

LEI: 549300Q7EXQQH6KF7Z84

16 June 2020

RTW Venture Fund Limited

Update on Avidity Biosciences IPO

Transaction Accretive to NAV

RTW Venture Fund Limited (the "Company" or "RTW Venture Fund"), the London listed investment company focused on identifying transformative assets with high growth potential across the life sciences sector, is pleased to report further details on the successful IPO of its portfolio company Avidity Biosciences, Inc. ("Avidity") on 12 June 2020 on NASDAQ (ticker "RNA").

Avidity is a biopharmaceutical company pioneering Antibody Oligonucleotide Conjugates (AOCs™) to treat a wide range of serious rare diseases. A $100 million Series C round in November 2019 was led by the Company and funds managed by RTW Investments, LP (the "Investment Manager"), following which the Investment Manager's Chief Investment Officer and Managing Partner, Roderick Wong joined Avidity's board of directors.

Prior to the IPO, the Company and the Investment Manager's other funds owned 14.5% of Avidity in aggregate, which was reduced to 9.2% post IPO.

Avidity's IPO was significantly oversubscribed, and the deal was upsized ultimately raising $259.2 million, offering 14.4 million shares at $18.00 per share.

The valuation of Avidity at IPO represented a c.1.8x increase on its valuation at the time of RTW Venture Fund's initial investment in 2019. On the first day of trading, Avidity's share price increased by a further 58% to close at $28.50 per share.

As at 31 May 2020, the Company's holding in Avidity represented 2.2% of NAV. The Company has since increased its holding in Avidity by acquiring additional shares in the IPO. Today, RTW Venture Fund's position in Avidity represents c. 8% of NAV and the IPO is expected to be materially accretive to NAV.

Stephanie Sirota, Chief Business Officer of the Investment Manager and Director of the Company commented:

"As the lead investor in Avidity, we are delighted with the highly successful IPO, which exceeded all expectations with an uplift of 58.3% in the share price on the first day of trading, making this the one of the most successful biotech IPOs of 2020. This repeats our success in 2019 where RTW Investments was the largest shareholder and lead investor in a biotech IPO of Stoke Therapeutics that surged 42.1% on its first day of trading and was by the same measure one of the most successful biotech IPOs of 2019.

Avidity demonstrates RTW Venture Fund's investment strategy at work. As a specialist investor focused on disruptive innovations in biotech and medical technologies, we have a view into the most promising ideas from our research-led internal idea generation process. RTW is a full life cycle investor ranging from genetic analysis, incubation of new companies and mid-stage venture to pre-IPO and public markets investing. In line with our strategy, we will maintain exposure to highly attractive and successful portfolio companies such as Avidity post-IPO.

We look forward to providing further updates on Avidity's progress in developing its pioneering AOCs to treat a wide range of serious rare diseases for the benefit of patients around the world."

For Further Information

RTW Investments, LP                                     +1 (646) 343 9280
Stephanie Sirota, Chief Business Officer
Alexandra Taracanova, PhD, Director of Investor Relations

Julia Enright, Business Development Associate

Buchanan                                                          +44 (0)20 7466 5107
Charles Ryland

Henry Wilson

About RTW Venture Fund Limited:

RTW Venture Fund Limited (LSE: RTW) is an investment fund focused on identifying transformative assets with high growth potential across the biopharmaceutical and medical technology sectors. Driven by a long-term approach to support innovative businesses, RTW Venture Fund invests in companies developing next-generation therapies and technologies that can significantly improve patients' lives.

RTW Venture Fund Limited is managed by RTW Investments, LP, a leading US healthcare investment firm with deep scientific expertise and a strong track record of supporting companies developing life-changing therapies.

Visit the RTW website at www.rtwfunds.com for more information.