PureTech Akili holding27 May 2020 18:46
There have been some very interesting posts regarding the valuation of PureTech health as of late. What is interesting is this business model of multiple entities 'under one roof' is still associated with the disappointment of 'Allied minds' (LON: ALM), and investors may no longer have faith in this approach - and therefore maybe undervaluing the company. Alternatively, I think that this company is being valued as the sum of all the parts, but the preclinical and early-stage entities being valued as strongly negative components due to the risk of failure. I believe the most interesting entity is the AKILI interactive holding >30% plus royalties. AKILI has all but clenched FDA approval for its digital healthcare platform for treating ADHD, and has seen investment from a number of notable names, including the likes of Baillie Gifford and Amgem. AKILI has raised $140.9M (https://www.crunchbase.com/organization/akili#section-overview), and it would not surprise me if it was valued 10x this if it was to list on the NASDAQ. However, what has been my major concern is the overall strategy of the company: Is the strategy to slowly sell these entities, to fund the wholly-owned (possibly more profitable) internal pipeline? Or to hold these entities until royalties are paid? I don't think the royalties alone will be enough to warrant a high multiple - and hence why many may still be on the sidelines until a more clear outline of the strategy is revealed.
What is everyone's thoughts on this matter?