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.
Some interesting buying today .
Maybe we may see some good follow through when the Nasdaq opens.
I have maintained that once Zohar showed her hand with the Nektar proposal, Puretech was effectively in play.
Some big corporate action in Pharma today on Wall Street which could explain rise.
Fingers crossed.
Seen this so many times. Big rises in the US not followed up in the U.K…. Think that the Puretech board are fed up with this as well - it may have been one of the drivers for talking to Nektar recently. Wouldn’t surprise me if they were to move the primary listing to the Nasdaq at some point.
Plus 12.50% at 7 o'clock??
Jefferies reinitiates coverage of Puretech and sets price target of £5.
Market reaction ...yawn.
However it shows how a respected broker views the the undervaluation of the share price.
Zohar has badly handled the Nektar "approach " but has shown her hand to the market insofar as a willingness to discuss a takeover offer to maximise the valuation of Puretech.
The grouse is in the air now and the shotguns are ready imho.
8.3% in the states
New bud one hopes ????
Invesco managed a little top up on the cheap ........we're been played like a fiddle.
Kerching
Agreed
Zohar badly handled this situation with Puretech SP down 15% in past 5 days while Nektar up 11% so market saying it is a Puretech misstep.
I think Invesco was trying to orchestrate a deal and the preliminary approach from Nektar should have been knocked down quickly by Puretech.
However it was advised following a leak to confirm this initial approach but when the market and Puretech investors said stop this nonsense it had to call a speedy halt imho.
One way to restore confidence is sell remaining stake in Karuna for c $230 approx and either massively increase the buyback and/or pay special dividend of say 50p a share.
Zohar needs to show that she is fit to manage a public company or we get someone who does.
Still think we may still be in play fwiiw.
ATB
Just when i thought after months of frustration the share price was making a nice recovery this **** up has put us back to square one. Poor management and a PR disaster.
Yes arsenal, let's hope for mid threes soon. This has been a frustrating share to hold and there can't be many shares whose value fell on the day that takeover possibilities are announced and then fall further the day they are terminated.
The market reaction to Nektar's bid was so negative that Zohar had to terminate quickly before any further damage was done.
Sloppy work by Puretech who should never have exchanged any material with a deadbeat like Nektar.
However the market now knows that Puretech is up for a takeover so maybe it will spur some further interest.
I am relieved that the Nektar deal is dead.
ATB
Rumours of a bid and trying to flush another out?
They have made themselves look inept in every way
What was going through the minds of the directors with their big holdings!!!
Lets hope they are has clever too get it back to mid three’s again !!!!
GLA
I think (I’m pretty sure) the price action after the news on Friday represents the disappointment of “active traders” who were expecting a cash offer and ditched there trading stock… Its as simple as that the digestion of this stock was what was going on, I think most of these short term traders are out… I’d expect the stock to rally now.
Not accounting for the value of the other founded entities...correction.
So the cash plus value of the shareholding in Karuna
is equal to the current market cap of Puretech
Bizarre
The analysis of Puretech is faulty by some commentators who have ignored Its remaining 3.5% shareholding in Karuna worth c $250m which when added to cash means that over$730m now in liquid assets and accounting for the value of holdings in the other quoted and unquoted founded entities.
Also the royalties , licence fees and milestone payments in these companies could be over $100/ 200m per annum if successful which alone could give a market cap of over $1billion plus for Puretech.
Management cannot conceivable entertain a bid of less than £5/6 a share.
That is why I suspect that Nektar is purely raising the grouse for a bidding war.
ATB
Bharat Chowira used to work for Nektar…
https://www.evaluate.com/node/18268/amp
tp £3.50/UD$4++
I don’t really understand the drop or the negativity. We have not seen any terms. It’s clearly a merger rather than a take over. Our market cap is higher and our intrinsic value is much higher on the face of it. But you would assume that will be reflected in any terms proposed. There is definitely synergy to be had. Our board would be wrong not to listen to any offers forthcoming and if it doesn’t recognise our potential we can walk away. This only gives us another option to consider.
Nektar could possibly make a cash offer imo but they'd have to place. Would depend on the appetite of their backers for risk I guess.
They have severely cut costs this year with 70% of staff let go.
"Part of the strategy is to continue with the cash they have, which should run for about three years, without needing to raise external funds. Nektar expects to end the year with about $440 to $450 million in cash and investments and no debt on its balance sheet."
https://www.biospace.com/article/nektar-cuts-70-percent-of-workforce-reorganizes-after-unsuccessful-bms-collaboration/
Nektar stock down 75% year to date.
Puretech should run a mile from this unless cash offer.
Malt
Agree
Looks like Invesco trying to strong arm a deal between 2 of its big Biotech Investments after a bad year for Invesco with record number of fund withdrawals after the Stock Market collapse.
Any deal will need a cash element for Puretech shareholders given the its strong Balance Sheet and the unrecognised values of its quoted and unquoted founded entities.
With some brokers putting an intrinsic valuation of over £8 a share for Puretech any low ball merger will not get shareholders/ management backing imho.
Agreed Dallo, this feels like a distraction the Puretech board could do without unless another buyer comes forward with decent cash offer.
Our board should be in an excellent position to value their immuno pipeline - perhaps better than mr market - could be undervalued after their fiasco earlier this year
My thoughts exactly Dallo