Hold the line11 Mar 2025 08:47
As Warren Buffett famously said, “In the short run, the market is a voting machine, but in the long run, it is a weighing machine.” For us PureTech Health investors, this is a call to stay patient and trust that value will prevai, just as Buffett has taught. I’m rubbing my hands with glee, loving the chance to add to my position at these lower prices, knowing I’m buying a stock that’s already materially undervalued. Buffett’s wisdom rings true: “If I liked them at a higher price, I love them when they’re lower.”
PureTech’s current $365 million cash pile fully covers its market cap, with more inflows expected this year from Cobenfy milestones, including a potential payment tied to the ADEPT-1 Phase 3 trial readout for Alzheimer’s psychosis in late 2025—if successful, it’s likely to trigger another cash boost. Fast-forward a few years, imagine Cobenfy hitting blockbuster status in schizophrenia and beyond, multiple Phase 3 and registrational readouts from LYT-100, Seaport, and Vedanta either completed or imminent, and a wealth of other value inflection points unfolding. With LYT-100 advancing in its Phase 3 trials for idiopathic pulmonary fibrosis, Seaport pushing innovative neuropsychiatric candidates, and Vedanta’s VE303 nearing pivotal Phase 3 results for C. difficile infection, the pipeline is brimming with potential. Take Seaport’s lead candidate, SPT-300, for example—a successful readout from its current Phase 2b trial in major depressive disorder could be transformative: 1) it’s potentially registrational, paving the way for FDA approval; 2) it could become a blockbuster drug in its own right, addressing a massive unmet need in depression; 3) it would validate the Glyph platform, proving its ability to unlock oral bioavailability for previously limited compounds; and 4) a platform technology like Glyph, once proven via SPT-300, could be worth tens of billions, given its broad applicability across therapeutic areas.
Unless you believe Cobenfy flops and the entire portfolio—LYT-100, Seaport, Gallop and Vedanta included—tanks (which I don’t) burning all the cash on route, this is an absolute dead-cert winner at current prices, in my opinion. The market may waver now, but time will weigh PureTech’s true value and that’s when we’ll reap the rewards. HOLD THE LINE
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