Puretech Health Share Discussion Threads

[volvo] 27/8/2021 18:10

edward re VOR, good science and value, just needs some positive news and you'll get 100pc.

Company seem positive, so yes and good punt.

Hope to see positive news here within September, big news

[volvo] 27/8/2021 18:09

So the dam has broken, just the start.

The value imbalance is massive.

400p next week and on we move....was told today if the seller moves away 450p will come and go

[lendmeafiver] 27/8/2021 17:17

Well management did say they were aware of the overhang issue this week, thanks to a couple of questions raised by a poster on this board, so maybe something is in the pipeline, surely management must know a US investor or two happy to take 24% of the company at these prices.

[lendmeafiver] 27/8/2021 16:44

You timed your entry here well Andrew, well done.

[edwardt] 27/8/2021 16:29

nice uptick - perhaps the invesco traders have had a day off.

[lendmeafiver] 27/8/2021 16:08

Motoring here today

[lendmeafiver] 27/8/2021 15:28

I like VOR and know a bit about AML for various reasons, but I prefer the portfolio of Prtc.

[edwardt] 27/8/2021 15:22

well someone is opening their wallet...

[edwardt] 27/8/2021 12:00

welcome on board. volvo - any view on VOR itself? i am tempted to have a punt on this one given its large retracement...

[andrewbaker] 27/8/2021 11:44

Well, I held back 'cos already holding a lot of biotech businesses, but finally went ahead and bought in today. I'll be surprised if it hasn't doubled in a year, and definitely expect a several fold increase in the next five.

[lendmeafiver] 27/8/2021 10:34

DZ does always present very well, just need to clear the overhang and this will be pushing £5 in no time in my view, hopefully the company are working on speeding that process up.

[volvo] 27/8/2021 08:52

DZ interview last week.

Same old story, undervalued etc, ambition to turn Puretech into a top 5 pharma giant in next 5 years.

[lendmeafiver] 26/8/2021 17:10

Maybe it’s just a partial exit to reduce the overweight positions in which case the selling may dry up.

[rambutan2] 26/8/2021 17:05

Re the sibling UK Equity In fund, also shrunken but still £1.3bn:

"The objective of the Fund is to achieve income together with capital growth over the long-term (5 years plus). The Fund invests at least 80% of its assets in shares of companies incorporated, domiciled or carrying out the main part of their economic activity in the UK. The Fund may also invest in private and unlisted equities and non-UK companies."

It currently yields 2.34% and has performed equally dismally over many years.

The non income producing PRTC is the largest (!) holding at 5.23% ie approx £68m.

[rambutan2] 26/8/2021 16:58

Re the UK High Inc fund, which while much shrunken is still £3.15bn:

"The objective of the Fund is to achieve a high level of income (greater than the income return of the FTSE All Share Index over a rolling 5 year period) (the Target Benchmark) and capital growth over the long-term (5 years plus). The Fund invests at least 80% of its assets in shares of companies incorporated, domiciled or carrying out the main part of their economic activity in the UK."

It currently yields a not particularly impressive 2.88% and returned 14.9% over the last twelve months, compared to the 27.6% from the benchmark FTSE all share.

Our favourite yielder (?) PRTC is the third largest holding at 4.6% ie approx £138m.

[lendmeafiver] 26/8/2021 16:51

www.invesco.co.uk/dam/jcr:17131d9a-2b71-4541-9e18-4e94ca47677d/GB00B8N46V79_EN_UK.pdf

[edwardt] 26/8/2021 11:17

which fund is it in?

[lendmeafiver] 25/8/2021 12:42

Just been on the invesco website, as of July Puretech is their largest holding, at 5.2%, in front of Barclays, Next, BAT and Tesco.

[volvo] 25/8/2021 07:49

rambutan, agree great questions thanks, especially re Invesco 24pc, thought DZ handled them very well and v positively, sounds like they are on it.

[volvo] 25/8/2021 07:34

Big IC piece from yesterday evening with a BUY note and reiteration of the PH target of 930p, bound to raise some interest.

COMPANIES

PureTech's strong pipeline is undervalued

Its cash and investment holdings have a combined value equal to around 80 per cent of its market value.

August 24, 2021
By Arthur Sants


It has enough cash to fund itself until Q1 2025

Phase two results for the LYT-100 drug to be released at the end of 2021-2022

PureTech Health (PRTC) swung back to a loss in the first half of the year due to a decrease in investment gains in its Founded Entities businesses. This isn’t really an issue though. The group pumped more cash into R&D through the period, and fair value charges tend to wax and wane, hence the reported operating loss. The success of the company depends on its ability to fund the significant pipeline of drugs will be in the future, to say nothing of their efficacy.

PRTC:LSE
PureTech Health PLC

1mth
Today change
1.20%Price (GBP)
337.50

Currently, it is very well capitalised. It has $439.8m in cash, which has enabled the company to maintain its guidance of the cash runway extending into Q1 2025. This is a good spot to be in, especially as clinical prospects are improving. Its pipeline is being advanced both internally and through the Founded Entities, with its lead product LYT-100 expected to deliver its top-line results for a Phase 2 trial to evaluate its effectiveness at treating adults with long Covid by the end of 2021. PureTech is also conducting a Phase 2a study of LYT-100 in patients with breast cancer-related, upper limb, secondary lymphedema. Results from this trial are expected in 2022. Due to the lack of understanding of long Covid and its prevalence in the community, Peel Hunt sees LYT-100's use treating lymphedema as a more promising avenue for the drug. “We would see any weakness in the shares in the event of a negative result for long Covid as a buying opportunity, since we see no meaningful read-through from one indication to the other,” said the broker.

The fall in interim revenue is somewhat inconsequential, as the majority of its income comes from its “founded entities” which it owns stakes in and receives royalties from. Its “other income” from these businesses was down £202m from the same period last year due to fall in the fair value of its 8.1 per cent stake in Karuna.

The combined value of PureTech’s listed and soon to be listed entities is currently worth over $560m and together with cash holding represents nearly 80 per cent of PureTech’s market cap, according to Peel Hunt. This means that even the whole pipeline of its future drugs is only contributing to around 20 per cent of the company’s valuation.

This fact alone is a compelling investment argument and the reason that Peel Hunt has a current target price of 930p. Buy.

Last IC View: Buy, 416p, 15 April 2021

[lendmeafiver] 24/8/2021 20:47

Well done, good questioning, response from DZ also suggests they are well aware and working on it.

[rambutan2] 24/8/2021 20:40

Yep, that was me!

Just pulling the tail a little in public to see if there was a response.

[lendmeafiver] 24/8/2021 19:14

Very funny, his quick follow up question was very much to the point, loud and clear.

[volvo] 24/8/2021 18:46

He obviously needs the cash!