London South East prides itself on its community spirit, and in order to keep the chat section problem free, we ask all members to follow these simple rules. In these rules, we refer to ourselves as "we", "us", "our". The user of the website is referred to as "you" and "your".
By posting on our share chat boards you are agreeing to the following:
The IP address of all posts is recorded to aid in enforcing these conditions. As a user you agree to any information you have entered being stored in a database. You agree that we have the right to remove, edit, move or close any topic or board at any time should we see fit. You agree that we have the right to remove any post without notice. You agree that we have the right to suspend your account without notice.
Please note some users may not behave properly and may post content that is misleading, untrue or offensive.
It is not possible for us to fully monitor all content all of the time but where we have actually received notice of any content that is potentially misleading, untrue, offensive, unlawful, infringes third party rights or is potentially in breach of these terms and conditions, then we will review such content, decide whether to remove it from this website and act accordingly.
Premium Members are members that have a premium subscription with London South East. You can subscribe here.
London South East does not endorse such members, and posts should not be construed as advice and represent the opinions of the authors, not those of London South East Ltd, or its affiliates.
Puretech could garner from Karuna, I should say.
Drew
Yes
Puretech are set to announce a capital reallocation plan possibly involving a return to shareholders of a large special dividend and the establishment of new foundation companies to incorporate its own in-house drug therapies.
It looks like Puretech is moving to a royalties/ milestone payments operation and will extract value from Karuna and Vedanta over the coming months.
Karuna could garner c $250m from Puretech's shareholding plus $ $400m from royalties sale.
Vedanta could unlock another another c$500m from its 42% shareholding plus additional funds from royalties and other payments.
Shareholder pressure is driving this change of strategy particularly from Invesco who have 24% of the company.
It could be very exciting.
Read the previous RNS from Puretech to see what it intimated was its plan.
ATB
Dallo; any ideas to explain today's rise?
Trading again
170p
The Sets will be working overtime to clear todays backlog
Very strange!
Dallo i done a dummy trade and was given a price? can't quite figure it out. surely the buy backs would have been recorded. Never seen this before. Anyone else got any clue?
Kerching
I was thinking the very same thing
No RNS from Puretech or LSE disruption notifications so no obvious reasons for no trades.
Bizarre
Anyone know why no trading today??
Correction..
Puretech has now 41% of Vedanta Therapeutics following the c $110m financing round in April this year which valued Vedanta at over $1.5b.
Angel
I have added another 50,000 shares this week to bring my holdings to 100,000 .
Karuna is a jewel in the crown once the FDA approves its blockbuster Schizophrenia drug, releasing another $400m from the royalties buyer, milestone payments as well as its 2.8% equity stake which could be worth c$250m. Vedanta could be the next major winner and backed by Pfizer and the likes of the Gates Foundation and where Puretech has a 48% equity stake and royalties etc.
Reading the last RNS update you will note Puretech is to announce major news soon on capital allocation and perhaps establishing new Foundation companies for its own in house drug therapies with a major return via a special dividend to shareholders hinted at.
Zohar is consulting with major shareholders including Invesco who hold 23% of the shares on best strategy on this proposal which could be announced at the fire side conferences in 2/3 weeks.
Interesting few weeks ahead
Dyor
ATB
Over the last year the steady buybacks have taken about 6 million shares out of circulation and stashed them in treasury. SP has in that time gone from 250p briefly to 300 and then slowly back down to 150, so assuming an approx average cost of 225p that’s cost them about £14M. At end June 2023 they had cash & equivalents of £350M and a stated annual running cost of about £72M (from memory). The market cap today is £425M.
I don’t think they will run out of money anytime soon.
atb
And they are wasting money on a buyback which is making zero difference!!
Anyone know why this is tanking, I can't find anything negative????
Anyone know why the drop? Nigh 20% in a week. Where would we be without the buy backs, already tested year lows.....any thoughts???
About time we had some upward momentum here. Hope it holds and pushes on the next few months.
Shares getting a nice rerate as the FDA decision on Karuna's KarTX drug for schizophrenia is imminent probably followed by a big special dividend to Puretech shareholders.
If all goes well we could see the SP push past £3 in the coming weeks
ATB
Snargate
Rerating underway following company's announcement in the half year report that it is to adopt a more robust capital return programme involving cash from the Founded Entities and possible creation of new Founded Entity( ies) to move its wholly owned drug therapies to final stages or even to sell these drugs.
Should Karuna's KarTX schizophrenia drug be approved in coming weeks by the FDA , its share price could rocket resulting in Puretech's 2.8% shareholding being worth c$300m not to mention royalties of $400m under the agreement with the royalties buyer plus milestone and other payments .
The $50m buyback had no effect on the SP and I think we may now see a special dividend of c£200 m if all goes to plan equivalent to say 60p a share.
That should get the SP moving imho
The overhead supply , is between 203-210, however if the overall bearish chart formations, are accepted , then if sp, rallies to the the overhead supply area, that could be an opportunity, to sell before a subsequent price fall .
Bearish head and shoulders price formation, on the 5 year chart, and a separate smaller head and shoulders price formation on the 2 year chart, with a sp, target of 84. Having said that the sp, has crossed above a price pivot, which is bullish, short term. There is however a very large amount of overhead supply from trading at higher price levels , which is expected to prevent much upward movement.
We are back below our share price at the start of the 50m buyback program… Even though Puretech is USA based, it suffers from being listed in the U.K. There have not been any major milestones and the buybacks have not been able to match the ongoing sales due to U.K. fund redemptions. No doubt Invesco have been reducing their stake again. Phase 2 results for LYT-100 are due early 2024 though and stage 3 should only take about 15 months so we could have a 5 billion plus revenue stream by late 2025! Perhaps mr market will start to recognise the potential in the coming months.
My hopes of a multibagger with this share are being diminished rapidly. Despite buybacks and positive news downward spiral continues. Anyone got any thoughts? Almost 30% down YTD.
Have sold up all other shares and put into this now….
It's slightly confusing, as the following note to the Financial Statements says on Page 173 of the annual report.
5. Profit and loss account
As permitted by Section 408 of the Companies Act 2006, the Parent’s profit and loss account has not been included in these
financial statements. The Parent’s income for the year was $59.2 million.
More accurately, it was actually $59,198,000.
Started to look at this stock after reading the article.....not sure where they get '....already a profitable company...' from unless I'm reading the figures incorrectly.
Just doubled up here, feels like it could take a sharp turn up soon. ( also did same with CEY)