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JSB

Sorry I clicked on your link and got old version.

I will look up new presentation on Puretech's website

Cheers

JSB

Presentation shows the fired Chairman and CEO still at the helm so not much to excite the markets who are desperately looking for a major strategic change in direction.

Cheers

Big

Also took off on Nasdaq at 4pm UK time .

Fingers crossed 🤞

If any long-term investor wishes to understand why the Chairman and the CEO were fired recently , they only have to look at the share price of Puretech over the past 10 years.

The SP in July 2015 was c170p versus 136p today.

During the past 10 years the S&P Index rose by 250%.

No wonder the Institutional investors have had enough .

Time for action

The good news for us private investors in Puretech is that the Institutional investors control c 70% of the total shares in issue with 10 Institutional investors declaring holdings of over 2% representing over 60% of the total.

Invesco ( 17%), Baillie Gifford ( 6.3%) Lansdowne Partners ( 6%) Jupiter Asset Management ( 6%) and Citigroup (5.1%) are the above 5% holders.

Finally they have shown their teeth and change is happening quickly imho.

With c10% held by founders ( including Zohar), Directors and management and connected parties there is now a very small free float which means the spike in the share price on good news could be very tasty indeed.

Not a share for the short sellers imo as this could move sharply upwards on just one positive RNS.

Fingers crossed.

Following the $225m funding round in Seaport in October 2024 bringing total funding to $325m, Forge Global valued Seaport at $750m.

That valuation has been enhanced by today's announcement of the Phase 2B trials in its antidepressant drug to over $1billion giving an off book valuation of Puretechs 37% shareholding of c $370m

Add cash of $340m, LYT-100 valuation of c $500m before Phase 3 trial announcement , Cobenfy royalties of say $400/ 600m , Vedanta shareholding at say $200m plus Gallop Oncology et al and we are potentially up to a sum of the parts valuation of c $1.7b

Discount for an opportunistic bid to say $1b, and we are up to near £3 plus.

Thoughts?

To fire your Chairman can be considered risky in a public company but to then fire your recently appointed CEO is utterly incompetent on the part of the Board of Puretech particularly after ousting Zohar a year or so ago.

The Board seems incapable of running a public company composed mainly of nerdy scientists and

founders with few tough business people .

Puretechs spoke and wheel model is akin to a laboratory drugs incubation unit with its only 1 great success being Cobenfy, sold for c$14b but Puretech received c $1b so far of which it only has c$340m left in cash ...the rest spent on the dreadful $150 buybacks, R&D and huge salaries .

Game over for the Puretech lab boys and girls with promising assets like LYT-100, Seaport, Vedanta , Cobenfy royalties plus the $340 cash an appetising prize for a hard nosed buyer .

It is clear Chowrira was fired as he leaves the company today and resigns from the Board with immediate effect. No usual six months notice to assist in the transition blah blah!!

So Chairman and CEO fired within 2 weeks of each other having left the share price at all time lows and worse even you inflation adjust the drop in the SP.

Utterly useless management but the big Institutional investors including Invesco have had enough.

Puretech cannot continue to have an Interim Chairman and an Interim CEO for too long and I suspect the company is now for sale as what can a new Chairman and CEO really do different to extract shareholder other than break the company up and sell the component parts .

Vor going bonkers again today up 15% on Nasdaq and now has almost the same market cap as Puretech purely on hope value imo.

Vor share price up 12 times in 1 month..

We can only dream!

JSB

Sorry $6m not $60m in Vor shares.

I agree the big catalysts in the near term are the LYT-100 Phase 3 financing/ joint venture etc and the revenue numbers for Cobenfy plus maybe further changes in the management team .

Maybe even a takeover approach or a move to primary

US listing.

In other words news, news news!!!!

JSB

I see Vor Biopharma has secured $175m in new funding, closed down its previous clinical operations and now focusing on Autoimmune Diseases under new management after laying off most of its staff.

The Vor share price has gone up 1,000 % in past month

and has a market cap of c $300m on Nasdaq.

Puretech has c2% of the shares but with Puretech derived clinical drug therapies no longer being developed by Vor, there will be no royalties etc for Puretech going forward.

Therefore Puretech should sell its 2% and receive c $60 m in cash asap.

To think Vor's market cap is nearly the same as Puretech's clearly illustrates the bizarre undervaluation of Puretech and reinforces the wisdom of moving the primary listing to the US.

Chairman gone.

Institutions beginning to flex their muscles at long last.

The total lack of liquidity reflected in the miniscule trading volumes of Puretech's shares on both sides of the Pond is the real concern.

The SP is trading in fractions of a penny mainly downwards with the MMs going through the motions in this moribund share.

Definitely need a catalyst or two to wake everyone up.

Theta

Fully agree

Nasdaq trades non existent

London trades in Puretech akin to an AIM illiquid share after expulsion from the FTSE 250 index.

So with no liquidity the share is effectively moribund and only a bid or a major announcement on LYT-100 will shake it out of its paralysis.

Tough to be a holder at the moment but I will hang in for another 6 months.

ATB

Iris

And just to annoy us more and sow seeds of doubt, Puretech share price down c 6% to near all time lows on Nasdaq.

The rest of the markets in Biotech are flying .

Doh!

Golfnut

We are not an isolated group of deluded investors who harp on about the undervaluation of Puretech shares.

Management has continually stressed its concern about this issue arguing that it is doing everything it can to address it particularly after the $150m buybacks, numerous investor conferences and submissions in detailed presentations on the underlying elements of the investment case notably cash on hand, expected royalties from Cobenfy sales , the potential blockbuster LYT-100 drug now moving to Phase 3 trials, the c$360m raised from investors in Seaport , Vedanta's main drug moving to Phase 3, Gallop Oncology and its exciting cancer therapies and the significant reduction in overheads .

Elenko also mentioned in an interview about other major drug developments in the company to be announced this year et al.

Also Brokers' SP estimates are multiples of the current share price.

Maybe UBS will produce a detailed note soon to add further weight to the argument.

In the meantime we will keep the faith.

ATB

JSB

If Puretech get outside funding for LYT-100 and Gallop Oncology, then it's overheads are reduced to a fraction of what they have been given Puretech has only 56 employees.

Valuation to over £900m not £800m I should say .

All over the shop today!!

Punched the wrong number on the $/£ conversion but only reduces the valuation to £800m rather than £1b .

Apologies

Manfo

Perplexing and bizarre indeed.

Even a cursory addition of the sum of the parts in Puretech would give you a SP of £3/4 .

Cash $340M , value of Seaport holdings at c $200m, Vedanta stake at say $150m, Royalties from Cobenfy at c $400M discounted, LYT-100 at a conservative $500m, Gallop maybe $100m giving a total of $1.7billion or £1.4 billion .

Apply a risk factor discount of c25% to this valuation and round down to £1 billion and you have a share of close to £4 .

Admittedly back of the envelope calculations but I think the stark undervaluation is clear.

I wonder at what price the recent Private Equity offer was at .

Anyway we continue to watch the share price fall without any investor interest on both sides of the Pond.

ATB