Member Info for dallo

PeterM

The deal between Puretech and Royalty Pharma involves Royalty Pharma paying up to $500m for a share of Puretech's KarXT royalties payable by Bristol Meyers, of which $100m was paid in advance last year.

The deal is dependent on regulatory and commercial milestones being achieved with the key regulatory date being the formal approval by the US FDA of KarXT in September 2024 following which the drug will marketed and sold worldwide by BMS.

Royalty Pharma will receive 3% of KartX royalties up to $2billion revenues and 1% thereafter with Puretech getting 2% royalties on revenues over $2billion.

BMS is expecting revenues for KarXT of in excess of $5 billion so if achieved the royalties split will be as follows

Puretech

$400m from Royalty Pharma

2% of revenues in royalties over $2billion..at $5billion

that equates to 2% X $3billion =$60million per annum.

Royalty Pharma

3% royalties on 1st $2billion revenues and 1% thereafter..at $5billion revenues that equates to $90m per annum.

The Puretech royalties deal on KarXT is for 10 years if memory serves me well.

Puretech will also receive milestone payments and income sharing amounts in the future.

How Bristol Meyers is allowing these levels of royalties is beyond me..

It would be easier to buy Puretech now for say $800m and get rid the royalties, secure cash in Puretech and have Puretechs assets for next to zero.

I hope I have my sums correct .

JSB

Not to mention the $400m payments due from Royalty Pharma in respect of Puretech ceding certain of its Karuna royalties to Royalty Pharma.

Tim is a bit old to be on the whacky tobaccy

I wish he would be as optimistic about poor old Immupharma

Peel Hunt has a 78 page note on Healthcare and Life Sciences out today with Puretech it's No 1 recommendation in the sector for what it worth.

Thanks to an ADVFN poster for spotting this.

Still cannot grasp the share price action .

TakeAim

Fully agree

Zohar was useless and persisted with the spoke and wheel strategy which resulted in Karuna being bought by BMS for $14 billion and the rest of the founded entities of little or no value apart maybe Vedanta and the two recently created entities.

Why did they not use the buyback and tender funds of $150m to acquire some smaller Pharmas with interesting late stage drugs..I presented one to them which they were looking at but never heard anymore from them.

A management team with no imagination or ambition

and run by medics.

Awful.

Cauldstream

So sorry to hear about your stroke but thankfully you were treated quickly so how you should be fine as you will monitored regularly and I presume put on blood thinning medication.

Take care and mind yourself.

ATB

JSB

There has been a changing of the guard with Dr Raju Kucherlapati becoming Chairman ( albeit from being Interim Chairman) and Chowira Bharatt as CEO with Dyphne Zohar effectively ousted .

I feel the company needed a Chairman from outside the company with strong public company experience rather than the appointment of an insider who has been on the Board for 10 years.

Very disappointing.

I was planning to attend the AGM on Friday but there is an Aer Lingus pilots strike out of Dublin later this week which allied to the Taylor Swift concerts has caused havoc with flights so I informed Lisa that I cannot make it .

I was looking forward to talking to the two Tims to see where the company is at the moment given the total lack of operational newsflow and a stagnant share price.

Is anyone here attending?

ATB

Really disappointing reaction to the result of the Tender with a large oversubscribed offering by shareholders which I didn't foresee .

Share price dropping which is bizarre as the total shares in issue have reduced dramatically by the full take-up in the Tender.

New management now in place but still no joy for shareholders.

Nolupus

Small lesson in maths

Immupharma sold its holding for loss of £875,000

Warrants in unrealised profit of £1.2m at Incanthera's SP of 26.5p

If Incanthera's SP moves to say 40p then Immupharma will be well in excess of £1m profit.

Nolupus

I think the point Lord is making is that 7 months ago ,Incanthera was toast with a share price of 5p which was totally illiquid and in effect worthless with zero value on the warrants.

Regardless of Mc Carthy's mad decision to invest Immupharma's funds in it ,Incanthera could now conceivably yield Immupharma a profit of over a £1m if the Incanthera SP keeps going higher.

We have to deal in the present so this is very good news for Immupharma investors.

Now we need positive news on Immupharma related business.

Unrealised gain on Immupharma's 7.3 million 9.5p warrants now stand at c£1.2m following the rise in Incanthera's share price to 26p today.

Still no news from McCarthy on Immupharma but he has lots to do over at Incanthera !

Lesley

I have had the same lack of response to my carefully considered emails of the past 3 months

Totally unacceptable and appalling Investor Relations.

I wonder is Kana DeLuca gone from IR which may explain the situation.

I will check

ATB

Super

Excellent post and 100% correct as the company had confirmed to me last year.

JSB

Very bad look for Puretech to release important RNS on its largest shareholder reducing its stake at 5.30pm on Friday evening.

I am not impressed.

Interesting to see what the markets make of it on Monday morning.

JSB

Once Invesco went below 20%, it had to report via a TR-1 Form within 5 business days so that's why I think it offloaded in the past few weeks .

Strange Invesco decided to sell at below the Tender Offer...very odd indeed.

Reswod

Puretech is not an illiquid stock

You can sell 50,000 shares no problem.

Invesco has dumped 13 million in past week

Have you not read the tax issues of tendering

4.5% not 4.5m shares..sold c13 million shares

Interesting

JSB

Invesco has dumped c4.5m shares without resorting to the Tender Offer.

Tells us everything .

Now down to c18.6% holding

Don't understand this at all

What's going on?

I may be wrong about the UK Tax treatment of share buybacks so there could be a double tax issue in the UK.

This gets worse by the minute!