Member Info for dallo

JSB

Agreed

Puretech's share performance is beyond rational analysis and is so frustrating for long term shareholders.

The SP can be walked down so easily on low trading volume but cannot be lifted no matter what the volume.

BMS Chief Executive says he has huge confidence in the prospects for Cobenfy despite low prescription levels in April and May in the US.

The lukewarm reaction by investors to the Remuneration Resolution at the AGM may spur some action by management but I still feel the best chance for us all is if the company is sold as there is practically no investor interest in it on both sides of the Pond.

ATB

Yes

And some investors voting with their feet today with the SP down nearly 5%.

Not nice!

Oldernowiser

A mini revolt at the AGM where the Directors Remuneration Resolutions were passed but below 80 % approval signifying dissatisfaction by shareholders on pay in context of abject Share Price performance.

The Directors noted this and have promised to update shareholders on a regular basis as to performance/ reward indicators.

Get the finger out is the message from big shareholders it seems.

Iris

I hope so.

As all here will agree, we are a long time waiting for a significant breakout.

I still see 150p as a major hurdle to cross but if it happens it would be highly bullish being a c50% rise from lows of 5 months or so ago.

ATB

Theta

Remember there should be significant Cobenfy milestone payments and royalties coming in to Puretech from 2026 onwards.

Anyway if the stock market reaction to the excellent LYT-100 trial results is to push up Puretech's SP by a few pence and then back down again today, you just wonder why Puretech bothers to stay independent.

Frustrating for everyone.

JSB

The IPF drugs market is currently around $4 b per annum expected to double in the next 6 years with the ageing population in developed countries.

If LYT-100 is successful it could be a $1/2 b annual revenues drug giving Puretech a valuation of c$10 b before farm out/ royalties/ joint venture/ founded entity dilution before Phase 3 Trials.

I would value LYT-100 post Phase 2b impressive results at a minimum of $1B before deals are done

DYOR

ATB

The US likes the LYT-100 trial results with Puretech's share price on Nasdaq up 11.4% to $19.

The UK share price doing its usual thing, sadly.

JSB

If Puretech was a small pharma on AIM , it's share price would be up 100% plus on the LYT-100 Phase 2b IPF results.

The shorts must be getting nervous now as major corporate action cannot be far away now inho.

ATB

Iris

I must say I wasn't too excited about today's Phase 2b IPF presentation in San Francisco until I read some further commentary on the possible positive announcements on the trial results which some analysts say could be groundbreaking.

It will be interesting to see how the shares on Nasdaq perform this afternoon although San Francisco is 8 hours behind UK time so presentation is scheduled for 10 pm UK time.

Hopefully a good market reaction.

ATB

Iris

Need a break nearer £1.50 to set new floor but any blue feels like a cause for celebration for Puretech investors.

Fingers crossed for the long awaited rerate.

Iris

Bristol Myers Squibb up 2.8% ..owner of Cobenfy.

Puretech down as usual

Go figure !

JSB

Saw that but my point still valid ....Puretech goes down daily whether the market is up or down.

The Wizard of Orange is trying to run the world with a stroke of his wand ( pen) but big Pharma will be a tough nut to crack .

JSB

US Futures surging on US/China tariffs deal but Puretech down 2% .

Nothing seems to stop the relentless selling and I cannot remember a significant bounce in the SP in the past 6 months.

There are few short-term catalysts to spur the SP forward with LYT-100 Phase 3 trial not expected to start for 6 to 9 months and Vedanta trial results not due for a while yet.

Seaport will move along steadily but no major announcements expected for this year.

Also management are hiding behind a Confidentiality Agreement with Royalty Pharma so we don't know the timing or potential amounts in relation to the Cobenfy milestones.

Also we don't know what the rejected offer from the Private Equity group was so we are in the dark as to potential takeover valuations.

Surely the cash burn would be dramatically reduced if Puretech put LYT-100 and /or Gallop into a founded entity or sold them off entirely.

Some innovative and defining management action is now paramount if the SP is to recover its true valuation.

I will give it another 6 months before throwing in the towel after 6 years here.

ATB

JSB

I share your sentiments entirely.

Also Puretech will be receiving milestone payments from Royalty Pharma of up to $400m plus annual royalties of 2% of Cobenfy revenues over $2b .

So a private equity buyer could extract significant cash from a breakup of the parts of Puretech plus annual revenues/milestones from Cobenfy.

No wonder a bid , albeit rejected , has already been made and I fully expect another bidder(s) to appear very soon.

Management has no defences to a sensible offer and Institutional and retail investors clearly want out as evidenced by the Tender applications at £2.50 being oversubscribed.

Game over here sadly but hopefully we will get an offer over £2 and nearer £2.50.

ATB

Lesley

The management and Board members went full in with their £2.50 Tender applications which signalled to the market that they didn't believe the company was worth more than £2.50 which in my view was disastrous for the share price since then.

A sale of the company at c £2.50 /£3 a share would seal the deal imho.

Yes

The main points related to the Boards recognition of the sustained disconnect between the value of the underlying business and the share price and its full focus now being to correct the anomaly through a series of actions including private equity sale and /or extracting value through joint ventures / Farm out/ royalties sales arrangements in relation to LYT-100 and Gallop Oncology .

The Royalty Pharma royalties/milestones agreement was discussed following a question from Peel Hunt and Chowrira said the deal is covered by a

confidentiality agreement and he could not elaborate further other than Puretech was very optimistic about Cobenfy revenues going forward.

Very excited about Seaport and Vedanta.

Only analysts questions, 3 in total, were allowed but each pressed management on the perceived undervaluation of the company and the impression I got was management is now under pressure to deliver asap.

I submitted a question regarding the boast that Puretech had received c$1.1 billion from Karuna to date even though only $340m remains in cash with $150m thrown away in ineffective buyback backs and Tender Offer.

I asked what happened to the balance of c$600m and was it invested wisely.

The question was sent via the conference call question

portal so hopefully they got the message.

Hopefully now we may see a sale of the business to a private equity or Pharma .

Fingers crossed

Iris

The share price on the 5th May 2017 was 116p.

Fast forward 8 years the SP is 125p.

That to me is utter failure.

Iris

Management has no say in the matter ..it is the large Institutional investors who are pushing for an exit after 10 years of gross underperformance with the current share at near all time lows and if inflation adjusted at 30% below all time low .

Huge salaries paid to executives but no explanation why Karuna was offloaded into a founded entity and subsequently sold for c$14billion on the basis of a drug , Cobenfy, invented by Puretech.

Management boasts of the $1.1 billion Puretech extracted from Karuna but with current cash of $340 m , the question is what was the balance of c $760m spent on apart from wasting $150m on the utterly ineffective buybacks.

Time to sell up imho as SP languishes at 128p and going nowhere.

Chowrira says Puretech will carefully consider all opportunities to enhance Shareholder Value in his closing remarks in the Annual Report.

It could not be mucher clearer imho

Golfnut

As a former Director of a number of Public companies, I can assure you that the Directors of Puretech would not have mentioned investigating a sale of the company in the Annual Report unless a sale was now a key strategic option and offers were, in effect

, being invited.

I have not seen many occasions where Directors of a large Public Company alert the market so publicly ,other than in distressed companies , which clearly Puretech is not and indeed quite the opposite in fact.

The company is now officially in play in my opinion.

ATB