Biotech Fund Beating 92% of Peers Sees More M&A Deals to Come

A rebound in global biotech deals this year looks set to accelerate as big pharmaceutical companies seek new sources of revenue, according to a top-performing fund with a track record of identifying acquisition targets.

Novo Nordisk A/S’s agreement to buy Akero Therapeutics Inc., announced last week, is the latest win for the International Biotechnology Trust Plc, which has the liver disease drug developer among its top 10 holdings. The London-based fund has returned 27% over the past year on a net asset value basis, beating 92% of peers, according to data compiled by Bloomberg.

“The sort of ...