Fidelity Select Portfolios Health Care Sector

[Pages:80]Fidelity? Select Portfolios? Health Care Sector

Biotechnology Portfolio Health Care Portfolio Health Care Services Portfolio Medical Technology and Devices Portfolio Pharmaceuticals Portfolio

Annual Report

February 28, 2023

Contents

Biotechnology Portfolio Health Care Portfolio Health Care Services Portfolio Medical Technology and Devices Portfolio Pharmaceuticals Portfolio Notes to Financial Statements

4 Performance 5 Management's Discussion of Fund

Performance 6 Investment Summary 7 Schedule of Investments 13 Financial Statements 17 Performance 18 Management's Discussion of Fund

Performance 19 Investment Summary 20 Schedule of Investments 25 Financial Statements 29 Performance 30 Management's Discussion of Fund

Performance 31 Investment Summary 32 Schedule of Investments 34 Financial Statements 38 Performance 39 Management's Discussion of Fund

Performance 40 Investment Summary 41 Schedule of Investments 46 Financial Statements 50 Performance 51 Management's Discussion of Fund

Performance 52 Investment Summary 53 Schedule of Investments 56 Financial Statements 60

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2

Report of Independent Registered Public

68

Accounting Firm

Trustees and Officers

69

Shareholder Expense Example

75

Distributions

76

Liquidity Risk Management Program

77

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Neither the Funds nor Fidelity Distributors Corporation is a bank.

3

Annual Report

Biotechnology Portfolio

Performance: The Bottom Line

Average annual total return reflects the change in the value of an investment, assuming reinvestment of distributions from dividend income and capital gains (the profits earned upon the sale of securities that have grown in value, if any) and assuming a constant rate of performance each year. The hypothetical investment and the average annual total returns do not reflect the deduction of taxes that a shareholder would pay on fund distributions or the redemption of fund shares. During periods of reimbursement by Fidelity, a fund's total return will be greater than it would be had the reimbursement not occurred. How a fund did yesterday is no guarantee of how it will do tomorrow.

Average Annual Total Returns

Periods ended February 28, 2023 Biotechnology Portfolio

Past 1 year

1.14%

Past 5 years

2.58%

Past 10 years

10.64%

$10,000 Over 10 Years Let's say hypothetically that $10,000 was invested in Biotechnology Portfolio on February 28, 2013. The chart shows how the value of your investment would have changed, and also shows how the S&P 500? Index performed over the same period.

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24

Annual Report

Biotechnology Portfolio

Management's Discussion of Fund Performance

Market Recap: U.S. equities returned -7.69% for the 12 months ending February 28, 2023, according to the S&P 500? index. The new year began with an encouraging upturn in January (+6.28%), but stocks lost momentum in February (-2.44%) amid higher-than-expected inflation and strong jobs data. Investors took these as signs that the economy continued to run hot, even after a year of historic policy adjustment by the Federal Reserve aimed at cooling economic growth. Record inflation in 2022 prompted the Fed to aggressively tighten monetary policy, and market interest rates eclipsed their highest level in a decade, stoking recession fears and sending stocks into bear market territory. Since March 2022, the central bank has hiked its benchmark rate eight times, by 4.5 percentage points - the fastest-ever pace of monetary tightening - while also shrinking its massive asset portfolio. The latest bump came on February 2, along with a signal that the Fed plans to lift rates in March while it considers whether and when to pause increases. Against this dynamic backdrop, stocks struggled to gain traction until a strong rally ignited heading into the summer. But in September, the index returned -9.21%, one of its worst monthly results ever, before advancing 7.56% in Q4, as risky assets regained favor. For the full 12 months, value stocks handily outpaced growth. The headwind for the latter was most pronounced in the growth-oriented communication services (-25%) and consumer discretionary (-18%) sectors. In sharp contrast, energy gained 24%. Comments from Portfolio Manager Rajiv Kaul: For the fiscal year, the fund gained 1.14%, trailing the 10.57% advance of the MSCI US IMI Biotechnology 25/50 Index, but outperforming the broad-based S&P 500? index. Versus the industry index, security selection was the primary detractor, especially within biotechnology. We also had weak stock picks in pharmaceuticals and life sciences tools & services. The fund's biggest individual relative detractor was a lighter-than-index stake in Gilead Sciences, which gained about 39% the past year. We decreased our stake this period. Also hindering performance was an overweighting in Arcus Biosciences, which returned -51%. Also holding back performance was our lighter-than-index investment in Horizon Therapeutics, which gained 20%. Horizon Therapeutics was not held at period end. The fund's top individual relative contributor was our outsized position in Biohaven Pharmaceutical Holding, which gained 19%. The company was acquired by Pfizer in October and then spun out as a newly independent company, trading under the same ticker symbol. The fund retained a position in the new company at period end. Also lifting performance was an underweighting in Novavax, which returned -89%. Novavax was not held at period end. Another key contributor was our out-of-index position in Roivant Sciences (+28%).

The views expressed above reflect those of the portfolio manager(s) only through the end of the period as stated on the cover of this report and do not necessarily represent the views of Fidelity or any other person in the Fidelity organization. Any such views are subject to change at any time based upon market or other conditions and Fidelity disclaims any responsibility to update such views. These views may not be relied on as investment advice and, because investment decisions for a Fidelity fund are based on numerous factors, may not be relied on as an indication of trading intent on behalf of any Fidelity fund.

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35

Annual Report

Biotechnology Portfolio

Investment Summary February 28, 2023 (Unaudited)

Top Holdings (% of Fund's net assets)

AbbVie, Inc. Regeneron Pharmaceuticals, Inc. Vertex Pharmaceuticals, Inc. Alnylam Pharmaceuticals, Inc. Krystal Biotech, Inc. Argenx SE ADR Biogen, Inc. Moderna, Inc. Apellis Pharmaceuticals, Inc. Cytokinetics, Inc.

Industries (% of Fund's net assets)

Biotechnology Pharmaceuticals Health Care Technology Health Care Providers & Services Health Care Equipment & Supplies Life Sciences Tools & Services Food & Staples Retailing

Percentages shown as 0.0% may reflect amounts less than 0.05%. Geographic Diversification (% of Fund's net assets)

12.6

5.1

United States of America* - 88.2

5.0

Netherlands - 3.2

5.0

Denmark - 2.0

3.5

Ireland - 1.6

2.9

Canada - 1.2

2.5

Bermuda - 1.2

2.3

British Virgin Islands - 0.6

2.0

Switzerland - 0.6

1.7

Cayman Islands - 0.6

42.6

Other - 0.8

* Includes Short-Term investments and Net Other Assets (Liabilities). Percentages are based on country or territory of incorporation and are adjusted for the effect of derivatives, if applicable. 92.1 7.1 0.2 0.2 0.1 0.0 0.0

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46

Annual Report

Biotechnology Portfolio

Schedule of Investments February 28, 2023

Showing Percentage of Net Assets

Common Stocks ? 98.4%

Shares

Value ($)

Common Stocks ? continued

Biotechnology - 91.0%

Biotechnology - 91.0% 2seventy bio, Inc. (a) AbbVie, Inc. Absci Corp. (a)(b) ADC Therapeutics SA (a) Adverum Biotechnologies, Inc. (a)(c) Aerovate Therapeutics, Inc. (a)(b) Aldeyra Therapeutics, Inc. (a)(b) Alector, Inc. (a) Alkermes PLC (a) Allena Pharmaceuticals, Inc. (a) Allogene Therapeutics, Inc. (a)(b) Allovir, Inc. (a)(b) Alnylam Pharmaceuticals, Inc. (a) ALX Oncology Holdings, Inc. (a) Ambrx Biopharma, Inc. ADR (a)(b) Amgen, Inc. Amicus Therapeutics, Inc. (a) AnaptysBio, Inc. (a)(b) Apellis Pharmaceuticals, Inc. (a)(b) Applied Therapeutics, Inc. (a)(b)(c) Arcellx, Inc. Arcturus Therapeutics Holdings, Inc. (a)(b) Arcus Biosciences, Inc. (a)(b) Arcutis Biotherapeutics, Inc. (a) Argenx SE ADR (a) Arrowhead Pharmaceuticals, Inc. (a) Ars Pharmaceuticals, Inc. (a)(b) Ascendis Pharma A/S sponsored ADR (a) Astria Therapeutics, Inc. (a) aTyr Pharma, Inc. (a)(b) Aura Biosciences, Inc. (a) Avidity Biosciences, Inc. (a)(b) Axcella Health, Inc. (a)(b) Beam Therapeutics, Inc. (a)(b) BeiGene Ltd. ADR (a) BELLUS Health, Inc. (a) Bicycle Therapeutics PLC ADR (a)(b) BioCryst Pharmaceuticals, Inc. (a)(b) Biogen, Inc. (a) Biohaven Ltd. (a)(b) BioInvent International AB (a) BioMarin Pharmaceutical, Inc. (a) Biomea Fusion, Inc. (a)(b) BioNTech SE ADR BioXcel Therapeutics, Inc. (a)(b) Blueprint Medicines Corp. (a) BridgeBio Pharma, Inc. (a)(b) Candel Therapeutics, Inc. (a)(b) Celldex Therapeutics, Inc. (a) Centessa Pharmaceuticals PLC ADR (a)(b) Century Therapeutics, Inc. (a) Cerevel Therapeutics Holdings (a) Chinook Therapeutics, Inc. (a)(b) Chinook Therapeutics, Inc. rights (a)(d)

103,752 4,077,678

993,000 546,270 7,472,259 174,813 888,537 1,351,818 640,536 93,683 1,556,685 852,383 1,298,706 1,280,549 1,361,508 40,497 2,268,301 289,228 1,487,684 2,639,536 643,801 794,024 3,193,396 802,774 393,547 1,337,032 1,541,977 659,409 1,177,041 2,258,063 356,492 762,250 1,661,354 669,379 37,198 1,621,196 377,647 2,693,042 467,336 2,038,409 153,043 402,236 358,129 60,750 351,727 1,254,408 820,042 716,096 819,700 1,230,909 834,618 1,028,280 303,781 115,821

1,399,614 627,554,646

2,105,160 1,966,572 5,380,026 4,295,155 6,006,510 11,544,526 17,127,933

56 9,884,950 5,753,585 248,637,264 8,477,234 8,754,496 9,381,535 29,918,890 7,201,777 97,413,548 2,665,931 18,032,866 12,902,890 58,151,741 12,988,883 144,046,073 43,186,134 13,754,435 73,253,746 14,336,359 4,764,513 3,561,355 18,065,325

963,918 26,935,811 8,355,787 12,483,209 8,583,916 23,833,422 126,115,293 31,146,890

423,251 40,058,683 4,598,376 7,900,538 11,227,126 53,149,267 9,364,880 1,288,973 35,074,963 4,332,800 3,764,127 27,444,793 6,628,501

1

Biotechnology ? continued

Biotechnology ? continued Codiak Biosciences, Inc. (a)(b) Codiak Biosciences, Inc. warrants 9/15/27 (a) Cogent Biosciences, Inc. (a) Compass Therapeutics, Inc. (a)(b) Crinetics Pharmaceuticals, Inc. (a) CRISPR Therapeutics AG (a)(b) Cyclerion Therapeutics, Inc. (a) Cyclerion Therapeutics, Inc. (a)(e) Cytokinetics, Inc. (a)(b) Day One Biopharmaceuticals, Inc. (a) Denali Therapeutics, Inc. (a) Design Therapeutics, Inc. (a)(b) Disc Medicine, Inc. (a)(b) Disc Medicine, Inc. rights (a)(b)(d) Dyne Therapeutics, Inc. (a) Enanta Pharmaceuticals, Inc. (a) Entrada Therapeutics, Inc. (a)(b) EQRx, Inc. (a) EQRx, Inc.: rights (a)(d) rights (a)(d) Erasca, Inc. (a)(b) Evelo Biosciences, Inc. (a)(b) Exact Sciences Corp. (a) Exelixis, Inc. (a) Fate Therapeutics, Inc. (a) FibroGen, Inc. (a) Foghorn Therapeutics, Inc. (a)(b) Fusion Pharmaceuticals, Inc. (a) Fusion Pharmaceuticals, Inc. (e) Generation Bio Co. (a) Geron Corp. (a) Geron Corp. warrants 12/31/25 (a) Gilead Sciences, Inc. Gritstone Bio, Inc. (a) Halozyme Therapeutics, Inc. (a) Hookipa Pharma, Inc. (a) Icosavax, Inc. (a)(b) Ideaya Biosciences, Inc. (a)(b) Idorsia Ltd. (a)(b) IGM Biosciences, Inc. (a)(b) Immuneering Corp. (a)(b) Immunocore Holdings PLC ADR (a) ImmunoGen, Inc. (a) Incyte Corp. (a) Inhibrx, Inc. (a)(b) Inozyme Pharma, Inc. (a) Insmed, Inc. (a) Instil Bio, Inc. (a) Intellia Therapeutics, Inc. (a) Ionis Pharmaceuticals, Inc. (a) Iovance Biotherapeutics, Inc. (a) iTeos Therapeutics, Inc. (a) Iveric Bio, Inc. (a)

See accompanying notes which are an integral part of the financial statements.

Annual Report

57

Shares

Value ($)

448,539 46,000 1,096,367 1,709,500 891,534 295,222 837,285 94,809 1,922,671 664,771 333,369 1,119,405 155,590 1,555,907 380,913 212,946 503,853 507,567

116,649 49,993 583,402 1,098,999 27,000 1,040,134 516,787 76,500 178,719 1,142,702 1,483,000 137,100 3,753,406 2,100,000 558,701 669,785 478,800 1,480,200 788,357 647,657 1,092,661 690,509 476,458 248,518 922,023 434,700 210,609 640,812 412,092 1,173,143 885,001 987,777 136,800 211,500 356,209

215,299 2,611

14,504,935 6,479,005 17,509,728 14,560,349

545,073 61,721 83,367,015 12,245,082 9,050,968 7,914,193 3,889,750

16 4,906,159 10,327,881 6,424,126 1,147,101

75,822 22,497 2,100,247 681,269 1,682,910 17,765,489 3,162,736 1,698,300 1,024,060 5,050,743 5,899,374 542,916 10,434,469 1,828,679 44,992,192 1,640,973 22,977,612 1,280,373 6,448,760 11,431,146 14,455,121 14,514,499 2,329,880 13,631,212 3,577,449 33,463,206 5,067,253 1,813,498 8,398,435 911,649 35,550,490 35,461,194 997,272 3,745,665 7,402,023

Annual Report

Schedule of Investments - Continued

Common Stocks ? continued

Shares

Value ($)

Common Stocks ? continued

Biotechnology ? continued

Biotechnology ? continued Janux Therapeutics, Inc. (a)(b) Karuna Therapeutics, Inc. (a) Keros Therapeutics, Inc. (a) Kiniksa Pharmaceuticals Ltd. (a) Kinnate Biopharma, Inc. (a) Kronos Bio, Inc. (a)(b) Krystal Biotech, Inc. (a)(c) Kymera Therapeutics, Inc. (a)(b) Legend Biotech Corp. ADR (a) Madrigal Pharmaceuticals, Inc. (a) MannKind Corp. (a)(b) Merus BV (a)(b) Mirati Therapeutics, Inc. (a)(b) Moderna, Inc. (a) Monte Rosa Therapeutics, Inc. (a)(b) Morphic Holding, Inc. (a) Natera, Inc. (a) Nkarta, Inc. (a)(b) Nurix Therapeutics, Inc. (a)(b) Nuvalent, Inc. Class A (a) Omega Therapeutics, Inc. (a)(b) Oragenics, Inc. (a) PepGen, Inc. Poseida Therapeutics, Inc. (a) Prelude Therapeutics, Inc. (a) Prime Medicine, Inc. (b) Prometheus Biosciences, Inc. (a) Prothena Corp. PLC (a) PTC Therapeutics, Inc. (a) Rallybio Corp. (a)(b) RAPT Therapeutics, Inc. (a) Recursion Pharmaceuticals, Inc. (a) Regeneron Pharmaceuticals, Inc. (a) Regulus Therapeutics, Inc. (a)(b)(c) Relay Therapeutics, Inc. (a)(b) Repare Therapeutics, Inc. (a)(b) Replimune Group, Inc. (a) Revolution Medicines, Inc. (a) Rezolute, Inc. (a) Rhythm Pharmaceuticals, Inc. (a)(b) Rocket Pharmaceuticals, Inc. (a) Roivant Sciences Ltd. (a) Sage Therapeutics, Inc. (a) Sarepta Therapeutics, Inc. (a) Scholar Rock Holding Corp. (a)(b) Scholar Rock Holding Corp. warrants 12/31/25

(a)(e) Seagen, Inc. (a) Selecta Biosciences, Inc. (a) Sensorion SA (a)(b) Seres Therapeutics, Inc. (a)(b) Shattuck Labs, Inc. (a) SpringWorks Therapeutics, Inc. (a)(b) SpringWorks Therapeutics, Inc. (e)

498,148 328,542 466,029 177,166 979,677 279,857 2,097,722 647,713 839,216 153,340 6,449,301 597,056 321,748 822,986 1,257,805 809,437 356,133 63,730 739,346 218,574 1,088,551

2,596 440,591 570,083 359,156 53,800 397,555 933,189 1,621,544 1,550,692 724,582 89,200 333,148 2,195,000 632,189 174,960 1,121,714 517,472

200 752,703 223,736 6,582,325 989,753 552,604 1,693,925

17,850 420,136 395,568 1,973,044 854,347 110,936 463,611 54,800

8,284,201 65,517,846 24,802,063 2,278,355 5,172,695

486,951 171,824,409 20,325,234 38,754,995 41,556,673 34,052,309 11,385,858 14,748,928 114,238,687

7,647,454 34,417,261 17,290,257

267,666 6,972,033 6,620,606 7,032,039

11,942 6,727,825 3,243,772 2,032,823

883,934 48,656,756 52,034,619 70,812,826 12,203,946 21,338,940

726,980 253,332,402

2,941,300 10,209,852 1,793,340 24,565,537 13,847,551

496 18,298,210 4,297,969 53,251,009 41,213,315 67,489,527 14,533,877

64,915 75,494,238

644,776 813,887 4,314,452 523,618 14,789,191 1,573,308

Biotechnology ? continued

Biotechnology ? continued Stoke Therapeutics, Inc. (a) Sutro Biopharma, Inc. (a) Tango Therapeutics, Inc. (a) Taysha Gene Therapies, Inc. (a)(b) Tenaya Therapeutics, Inc. (a) TG Therapeutics, Inc. (a)(b) Travere Therapeutics, Inc. (a) Twist Bioscience Corp. (a) Tyra Biosciences, Inc. (a) Ultragenyx Pharmaceutical, Inc. (a) uniQure B.V. (a) United Therapeutics Corp. (a) Vaxcyte, Inc. (a) Vera Therapeutics, Inc. (a)(b) Vertex Pharmaceuticals, Inc. (a) Verve Therapeutics, Inc. (a)(b) Vigil Neuroscience, Inc. (a)(b) Viking Therapeutics, Inc. (a) Viridian Therapeutics, Inc. (a) Vor Biopharma, Inc. (a)(b) Werewolf Therapeutics, Inc. (a) X4 Pharmaceuticals, Inc. warrants 4/12/24 (a) Xencor, Inc. (a) Xenon Pharmaceuticals, Inc. (a) Zealand Pharma A/S (a) Zentalis Pharmaceuticals, Inc. (a)

Food & Staples Retailing - 0.0%

Drug Retail - 0.0% MedAvail Holdings, Inc. (a)

Health Care Equipment & Supplies - 0.1%

Health Care Equipment - 0.1% Alpha Tau Medical Ltd. Class A (a)(b) Novocure Ltd. (a)

Health Care Providers & Services - 0.1%

Health Care Services - 0.1% 23andMe Holding Co. Class A (a)(b)

Health Care Technology - 0.2%

Health Care Technology - 0.2% Akili, Inc. (a)(b) Schrodinger, Inc. (a)

Life Sciences Tools & Services - 0.0%

Life Sciences Tools & Services - 0.0% Olink Holding AB ADR (a)

See accompanying notes which are an integral part of the financial statements.

Annual Report

68

Shares

Value ($)

146,536 304,500 1,289,988 811,647 2,081,279 1,718,820 167,028 681,332 301,101 876,351 255,608 269,569 1,319,350 910,368 861,862 348,293 86,610 25,000 60,700 1,194,902

2,100 450,000 179,643 977,333 776,333 638,433

1,302,705 1,717,380 6,746,637

819,763 6,389,527 27,535,496 3,701,340 13,258,721 3,977,544 38,988,856 5,357,544 66,324,757 54,053,770 6,764,034 250,189,920 6,617,567 1,039,320

275,250 1,988,532 6,667,553

6,059 5

5,771,930 38,565,560 24,755,988 12,085,537 4,522,643,626

2,777

1,032

362,046 11,113

1,144,065 855,368

1,999,433

1,488,074

3,735,066

1,500 539,101

2,475 11,714,665 11,717,140

53,800

1,261,072

Annual Report

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