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(Alliance News) - PureTech Health PLC on Tuesday reported a first-half loss due to a drop in investment gains and an increase in spending, but said existing cash should carry the company through to 2025.
PureTech swung to a pretax loss in the first half of 2021 of USD94.9 million, from a pretax profit of USD174.5 million last year. Revenue dropped by 15% to USD5.8 million from USD6.8 million.
Gains on investments held at fair value dropped sharply to USD74.4 million from USD276.9 million a year earlier.
The Boston, Massachusetts-based company is a clinical-stage biotherapeutics company that has been working on medicine for Long Covid, breast cancer-related lymphedema and solid tumours in the recent six months.
Shares were up 0.8% to 336.15 pence in London on Tuesday afternoon. The company has a market capitalisation of just under GBP964.4 million.
Contract revenue took a 56% fall to USD2.4 million from USD5.5 million in the half year, offsetting grant revenue which more than doubled to USD3.5 million.
Research and development expenses increased to USD48.3 million from USD38.3 million a year earlier. It anticipates further substantial expenditure in the near term to continue funding its activity.
In addition, the company expects operating as a US public company will give rise to net operating losses but said this is "typical for pre-revenue biotechnology companies".
"This has been another strong period for PureTech. We have made exciting clinical progress across both our Wholly Owned Pipeline and our Founded Entities, and substantial financial momentum leaves us in an excellent position to continue delivering on our promise to patients and to creating value for shareholders," said Chief Executive Daphne Zohar.
The company declared no interim dividend for the period, unchanged from 2020.
PureTech added: "Based on our current plans, we believe our existing cash and cash equivalents at June 30 2021 will be sufficient to fund our operations and capital expenditure requirements into the first quarter of 2025."
At June 30, it had cash and cash equivalents of USD439.8 million, up from USD403.9 million at December 31.
By Josie O'Brien; josieobrien@alliancenews.com
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