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PureTech listed on the LSE in 2015. Fast forward to today, and the stock is currently trading at 110p, a figure that represents an all-time low for the company. This is particularly striking when you consider that, despite the share price, PureTech’s underlying business appears to be in the strongest position it has ever been.

Biotech companies often trade below their cash value when investors lack confidence in their drug pipeline, anticipating that the company will burn through its reserves without delivering significant results. What’s unusual, though, is when a biotech trades below cash despite having approved, revenue-generating drugs. In PureTech case, they’re positioned to reap near-term cash flows from their equity stake in Cobenfy, which makes their current valuation stand out as completely ludicrous. The market seems to be doubting not just the potential of PureTech’s other assets, like LYT-100 and Seaport Therapeutics, but also the worth of Cobenfy itself. The implication is that Bristol-Myers Squibb might have overpaid for Cobenfy, and that it could flop, because if it succeeds, PureTech could pull in hundreds of millions, dwarfing its current market cap, even when discounted. This isn’t the usual setup for a biotech trading below cash; a company with revenue already flowing in shouldn’t be priced like this.

Honestly, it’s hard to find another case like this. It’s unheard of for a company with an approved drug and revenues set to skyrocket in the coming years to trade below cash in these conditions. If Cobenfy reaches the analyst-projected peak sales of $10 billion, that’s $160 million per annum for PureTech. It’s wild to think you can buy PureTech for just over two years of future Cobenfy revenues at this point.

I mentioned this yesterday, but it doesn’t make sense for PureTech to offload the whole company to a private equity firm for close to its cash value when they could far more easily break it up and sell the pieces for a much higher total. Even in a rushed fire sale, liquidating the assets at a steep discount, I’m pretty sure they could still fetch £2.50 per share.

Today's share price drop of 15% is one of the ugliest days in PureTechs history. Honestly its completely absurd how we've lost c £50m in value today. Im 100% certain this continued sell pressure is not retail.

@Katstrangler I agree with you observation re: the mm's. I suspect they are seeing the flow of coodinated selling and as a result leaning bearish to protect their books. Its very clear that Actusraypartners Limited is not the only institution wishing for the price to drop. They may well be the only registered short but you only have to declare if your position exceeeds 0.5% of the company's issed capital, so Im certain there are plenty of others. After todays share price reaction, I'm almost certain this is a coordinated attack that is being amplified by the mm's adjusting spreads bearishly, dropping bids on any uptick to manage risk.

This has been going on for months. I don't blame the MM's, they aren't conspiring they are simply reacting to flow; if sell orders dominate they will lean downward, especially in a jittery biotech market. All I know for sure is that deeper forces are at play here. They certainly put the puretech Board back in their box today for attempting to spoil their party.

Agreed JSB. It’s wild to consider that Seaport Therapeutics and Vedanta Biosciences have collectively drawn over $650 million in external investment, on top of significant funding when PureTech fully owned them. If we round that up to $700 million and factor in PureTech’s roughly 37% equity stake in these two, their portion of just the cash invested equates to about $260 million. That’s a hefty chunk of value tied up in those stakes alone.

Realistically, if a buyer broke PureTech down into a sum-of-its-parts sale, the combined value of Vedanta and Seaport would far exceed that $260 million figure. Take Seaport Therapeutics as an example: they raised $325 million across Series A and B rounds effortlessly, signaling huge excitement and investor appetite for their potential. That alone suggests PureTech’s 37% stake could fetch a price rivaling the company’s current £287 million market cap, possibly £200-£300 million just for Seaport. it’s not hard to see why: their SPT-300 trial is potentially registration-enabling, paired with a platform technology that could spawn a pipeline of neuropsychiatric drugs and extend into other indications. It’s a goldmine in the making, which is exactly why PureTech’s board sees Seaport as potentially eclipsing Karuna’s $14 billion success. The value here is massive, either that or I'm just plain ignorant.

No worries Stas20. If you have any questions from you research just let us know, im sure myslef or one of the other regular posters on here will be able to help you

@Sats20 "although I would be interested in why you do not agree with points 1 - 3?"

I’ll keep this brief:

1. “Even Karuna (a win!) is now fully sold, so some worry: what’s the next liquidity event?” This misleads. Karuna’s sale doesn’t mean PureTech lost its stake in Cobenfy, the drug Karuna developed, now with Bristol Myers. PureTech retains a hefty royalty slice of what’s poised to be a global blockbuster. My 11:58 AM post explains why this matters, don’t overlook it.

2. “No Clear Pipeline Catalyst at the Parent Level.” Dead wrong. Look at LYT-100, it outperformed the standard of care (Pirfenidone) in a head-to-head trial for IPF. Roche paid $8.3 billion for Pirfenidone in 2014, and LYT-100’s Phase 3 starts this year; that’s a glaring catalyst. Plus, LYT-200’s Phase 1b results for AML/MDS and head/neck cancer drop this year. FDA fast-tracked it after stellar Phase 1 data.

3. “Investors apply a 30–50% discount to NAV for companies like PureTech.” Do a sum-of-the-parts valuation; the discount’s way beyond 50%. With $365M cash, Cobenfy royalties and the pipeline, the market’s undervaluing this far more than that.

@Stas20 if you want to learn more about the opportunity in PRTC there are plenty of really good posters on this platform, so I defo advise you spend some time reading through the discussions on here. In addition, if you head over to the official company website you can view a webcast of their latest presentation. Twitter also has some good information. Here is a decent thread which covers the main investment points: https://x.com/archer_coa/status/1881674560439042242

Stats20, don't rely on chatgbt, you need to do your own research. Most of us on here know this company inside out. There are so many errors in that AI response its not really even worth commenting on. The only points that i agree with are 4 & 5. The rest are either wrong or misleading.

@katstrangler

, I see your point—pharmas do often get trashed, whether from failed assets or market sentiment, only to be scooped up cheap by buyers who cash in on the hidden gems. It’s a familiar story: share price tanks, then a Merck or AstraZeneca swoops in and reaps the rewards. But I’d argue PureTech Health plc doesn’t fit that mold, mainly because of their $365 million cash pile & their Cobenfy royalites which are going to provide massive cash flows in the coming years. This, plus value they can extract from their stacked late stage pipline realisticaly funds them beyond 2027. This strong position acts like an armor; no one is taking them out without paying a substantial premium to the current share price. Unlike the tyrpical battered pharma, PureTechs got the liquidity upside to fend off a bargain basement grab.

No worries Dallo. Thanks for getting back to me.

Dallo you mention "both shorts". I can see the one held by Actusraypartners Limited, who holds the other ?

A few weeks ago i did a discounted cash flow to determine the vlauation of PureTech's stake in Cobenfy. If you want to see the details on how i calculated it, you can find it in the chat on 11th March. Its striking that even on a heavily discounted basis my low estimate of peak sales for Cobenfy at $4B values PureTech's ownership at $400m. So even my most conservative estimate values PureTech's ownership in Cobenfy at more than the current market cap. If you just take this plus the cash and value the rest of the pipeline at zero you are still left with a vlauation of $765m which is a 100% premium on the current share price.

For those new to PureTech stroy, there is still currently $373m in milestone payments to come from Cobenfy plus PureTech will recieve a 2% royalty on annual net sales above $2 billion.

How many biotechs trading at or below cash can boast a thrilling pipeline and ownership in an already approved drug with near term cash flow? To put the size of the Cobenfy opportunity into perspective, multiple wall street analysts have estimated peak sales to be upwards of $10 billion per year. That's $160m in revenues for PureTech.

My DCF results for PureTech's ownership in Cobenfy :

Low ($4B): ~$400 million.

Mid ($7B): ~$628 million.

High ($10B): ~$867 million.

@Stats20PureTech’s cash reserves comfortably fund operations well into 2027, and their runway likely extends further thanks to incoming royalties and milestones from Cobenfy plus the board may extract some cash by selling some equity in LYT100 (stage 3 asset to treat IPF). I’d urge you to dig deeper yourself, but Bristol Myers Squibb paid $14 billion for Karuna Therapeutics who developed Cobenfy, and PureTech holds a meaningful royalty stake in Cobenfy, ensuring near-term cash flows. Beyond that, PureTech boasts a world-class pipeline of late-stage clinical assets. I’d particularly recommend looking into LYT-100 and Seaport Therapeutics. Notably, Seaport, led by Karuna’s former CEO, is seen by him as an even bigger opportunity than Karuna, which sold for $14 billion to Bristol Myers. Do your own research, but the potential here is substantial.

@Stats20. No sophisticated private equity firm like Nordic Capital would bid at cash value in a serious offer, it’s implausible. PureTech’s share price at 121p values it at £287 million, roughly its $365 million cash pile, meaning Nordic could theoretically buy it with no net cost and get the Cobenfy royalties, milestones, and a world-class pipeline for free. No board would entertain that; they’d reject anything near current levels outright. Even in a fire sale, liquidating the cash and assets—however cheaply—would likely fetch over £2 per share, factoring in Cobenfy’s potential (hundreds of millions in discounted value) and the pipeline’s worth. You suggest Nordic walked because PureTech overvalues itself, and short sellers near the 52-week low reinforce that view. But that doesn’t add up, why relentless selling when the stock’s already underwater for most holders and trading below cash? It’s not rational; it’s panic or manipulation. The market’s acting like PureTech’s a bust, ignoring its tangible value. Nordic’s retreat signals they wouldn’t pay a premium to the board demands, not that the company’s worthless. This disconnect screams mispricing, not overvaluation.

There is no chance a savvy private equity firm would offer cash value in a serious bid. The current share price values the company at cash. So Nordic could Pure

The share price has been "engineered" for months now. Today's share price reaction confirms this to me 100% because in no way can yesterdays news be considered bearish - takeover talk typrically lifts stocks - yet the share price is getting hammered. Something really stinks.

I hope you are right in your hunch JSB, it certainly makes sense. We know for sure that Bristol Myers are well aware of PRTC and will have done their DD. I'd be amazed if they don't make a bid.

As a shareholder, the news that a reputable private equity firm is interested in buying the business further validates to me that : 1) pipeline of assets owned by Puretech are very desirable. 2)The Boards rejection of their offer confirms the underlying value here is not close to being refelcted in the share price.

Also JSB, as you pointed out, the announcement triggered a 28-day window (until May 5, 2025) under the UK Takeover Code for Nordic Capital to clarify its intentions, which keeps the possibility of a deal alive. Even with Nordic Capital XI’s withdrawal, the code Nordic Capital retains flexibility to revisit an offer within six months under specific conditions (e.g., with PureTech’s board approval or if a third party bids). This uncertainty could fuel speculation, driving short-term optimism among shareholders about a potential payout. This lingering possibility of a revised offer or a new bidder should get some new eyes on the stock and a little speculaitve interest, something that has been clearly clacking for many months now

I hope you are right in your hunch JSB, it certainly makes sense. We know for sure that Bristol Myers are well aware of PRTC and will have done their DD. I'd be amazed if they don't make a bid.

As a shareholder, the news that a reputable private equity firm is interested in buying the business further validates to me that : 1) pipeline of assets owned by Puretech are very desirable. 2)The Boards rejection of their offer confirms the underlying value here is not close to being refelcted in the share price.

Also JSB, as you pointed out, the announcement triggered a 28-day window (until May 5, 2025) under the UK Takeover Code for Nordic Capital to clarify its intentions, which keeps the possibility of a deal alive. Even with Nordic Capital XI’s withdrawal, the code Nordic Capital retains flexibility to revisit an offer within six months under specific conditions (e.g., with PureTech’s board approval or if a third party bids). This uncertainty could fuel speculation, driving short-term optimism among shareholders about a potential payout. This lingering possibility of a revised offer or a new bidder should get some new eyes on the stock and a little speculaitve interest, something that has been clearly clacking for many months now

After yesterday’s positive news, the share price reaction this morning is bizarre - down 11%. This is not retail panic selling. It’s pretty clear to me that this is being worked lower (as it has been for months now) for whatever reason by some big players. Let’s face it, it’s in the interest of potential buyers to get the share price as low as possible before making a bid. Something stinks here

It’s great that ActusRay needs to grab all those shares to close out their short. With at least one interested buyer hovering around the company, keeping that short position open seems increasingly risky. The act of buying back those shares should help drive up the share price as we anticipate a potential bidding war heating up.