Company: BSTZ
Filing Date: 2025-03-07
Form Type: N-CSR
Source: 0001193125-25-049659
Chunk: 22

Company: BlackRock Science & Technology Term Trust
Filing Date: 2025-03-07
Form: N-CSR
Chunk 22
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 system, and it received U.S. Food and Drug Administration (“FDA”) approval for its latest-generation model in March 2024. An out-of-benchmark position in Argenx SE contributed, as well. The biotechnology company—which specializes in chronic autoimmune disorders—secured an FDA label expansion for its flagship drug, VYVGART, for its use in additional therapeutic indications. An out-of-benchmark position in Boston Scientific Corp. was a further contributor. The company benefited from strong adoption of recently FDA-approved devices that target high-growth cardiovascular end markets, and it leveraged a robust pipeline of future commercial opportunities. At the sector level, security selection in the biotechnology and medical devices and supplies sub-sectors detracted from relative performance. An out-of-benchmark position in Immunocore Holdings PLC, whose experimental melanoma treatment proved less effective than anticipated, was the largest detractor. An out-of-benchmark holding in the private company Carbon Health also detracted from relative performance. The operator of primary care and urgent care clinics faced execution challenges and was pressured by elevated costs. An overweight in Cabaletta Bio, Inc. weighed on results, as well. The biotechnology firm was negatively impacted by broader industry concerns regarding the safety, scalability, and high costs associated with CAR-T therapies for autoimmune diseases. The Trust used an options overlay strategy in which calls were written on a portion of the portfolio’s holdings. This strategy contributed to relative performance. The Trust’s practice of maintaining a speciﬁed level of monthly distributions to shareholders did not have a material impact on the Trust’s investment strategy. The distribution policy resulted in return of capital for the period. Refer to the financial highlights and income tax information sections in this report for further information about the distributions. Describe recent portfolio activity. The Trust’s allocations to the biotechnology and medical devices and supplies increased, while its weightings in the pharmaceuticals and healthcare providers and services subsectors decreased. Describe portfolio positioning at period end. At the end of the period, the Trust held 44% of net asset value in the biotechnology industry, 39% in medical devices and supplies, 7% in health care providers and services, and 6% in pharmaceuticals. These industry weightings were the result of bottom-up stock selection. As of December 31, 2024, the Trust had in place an option overwriting program whereby 24.0% of the underlying equities were overwritten with call options on individual stocks. These call options were typically written at prices