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Like London buses these broker notes

Investec initiate today with 240p price target

Conservative assumptions throughout. Bearside target is 165p with Seaport halving and complete Gallop failure

capital-efficient model. PureTech employs a hub-and-spoke structure, in

which the core development team (in Boston) represents the "hub" and

corporate Founded Entities the “spokes”. The model allows for focused yet

diversified drug development, with the option to attract third-party funding for

specific programmes at the appropriate time. The model is indication and

modality agnostic, with programme selection and investment instead based

on the principles of validated efficacy, clear patient benefit and a de-risked

path to regulatory approval and commercialisation. Meanwhile, Group

shareholders benefit from diversified exposure to multiple pharmaceutical

technologies, thereby reducing risk. Since 2018, PureTech’s Founded

Entities have attracted >$4bn of external capital.

 A late-stage portfolio with near-term inflection points. The ‘core’ portfolio

comprises 3 Founded Entities (Seaport Therapeutics, Celea Therapeutics

and Gallop Oncology) and the royalty-bearing schizophrenia drug Cobenfy®

(by Karuna, a ‘Founded Entity’ acquired by BMS for $14bn). Backed by

strong clinical data, Seaport completed a NASDAQ IPO in May 2026 (raising

>$255m); the up to $500m capital raise for Celea (for a Phase 3 programme

in lung fibrosis) is expected to close in Q3’26; and Gallop is preparing for

Phase 2 entry in high-risk MDS (a blood malignancy) during 2027.

 Increasing visibility. In our view, PureTech’s ability to generate substantial

value is becoming increasingly apparent, supported by management

change, the successful NASDAQ IPO of Seaport and upcoming third-party

funding events for Celea and Gallop. Our SOTP valuation, comprising only

core assets and net cash, implies a target price of 240p, with blue-sky

potential for portfolio transactions and consequent capital returns

I've got it yep-here's the valn bit

Valuation: On a SOTP basis, we believe the current share price can be largely justified by cash and

short-term investments ($248m as of 31 Mar, 75p/share) and its retained Cobenfy royalties ($105m,

32p/share), assuming modest commercial success is achieved by BMS. We believe there is

significant, unrecognised value of its Founded Entities: Celea ($524m, 159p/share), Gallop ($156m,

47p/share), and Seaport ($284m, 86p/share). In the near term, we see closing external financing

rounds for Celea and Gallop in order to progress assets into registrational trials as clear milestones

to crystalise value. These should enable parent-level cash burn to materially reduce and PRTC has

already guided for a runway to end-2028, including its participation in fundraises. Buy.

Https://www.raps.org/news-and-articles/news-articles/2026/2/experts-react-to-fda-s-shift-to-single-pivotal-tri

This should help the industry

I think the Citi increase was some weird technical thing rather than an actual buy

And this reduction was a reversal

Not sure but there was an unusual comment in the rns

I’ve confirmed with Rob Lyne that the Tyvaso arm is a non starter. The drug isn’t registered. Interesting idea though

So much potential in this company - catalysts rich in next 3-6 months with investment from VC into Celea and readouts re new indications in Cobenfy plus some updates in Seaport in Gallop

When the Celea investment comes, suddenly everyone will want to earn the stock as there will be minimal uses of cash and a significant capital return.

Dalio, golfnut - it is hardly news that PRTC is a hub and spoke model

always has been, always will be

the idea is to provide a lower risk vehicle for risk averse UK investors who want a self funding vehicle

if people don't want hub and spoke, they should not be on this board or in this stock

Golfnut i think the opposite is true

The market's main concern is the fear of an equity raise in order to proceed LYT-100 on a 100% basis

There are, I understand from the broker, some investors who therefore felt the company should be returning capital. This is clearly a nonsensical strategy given it should stay with maximum balance sheet strength to maintain its position in negotiations with new investors in the programme

Patience is always required in this stock - I refer to the 102p low in April ! There are always some short term investors in it waiting for imminent returns. Q4 should have some huge catalysts and we go from being perceived as an equity raise risk to having $319m less cash burn but plus $100m licence payment in the bank and no further costs through to hopefully FDA registration in early 2027 and a share still of somewhere between 30-60% of the economics...

The move in United today does indeed demonstrate the prize. Its numbers on FVC improvement are way worse than LYT-100 ! Being second but way better will not prevent LYT-100 becoming a blockbuster! Tyvaso does not even address the fibrosis itself as someone noted below, only the symptoms

They have given guide on ongoing cashflow - £72m at 69% ebitda margins

barclays est £15m of centrl and finance costs brings us down to £35m of cash pa to pay divis and pay down the net debt-which is only £50m odd against £500m of gross asset value

USD weakened a bit since but still 8pc dividend or £25m vs 62p share price/ £310m mkt cap looks sustainble

takeover looks most likely-plenty of cash looking for this kind of asset

The brokers have put cash for Dec 2025 at ~£29m

If they do spin off or partly spin off LYT100 it will be the cash they hold that has allowed them to do that. You can only get full value for a development asset if the buyers know you don’t have to do a deal or raise equity. Their prudent balance sheet should be praised and it has allowed them to negotiate this awful period for the sector.

If an outlicence agreement is reached that’s when they can return excess capital.

Patience is needed. It is not their fault the stock market is in such pessimistic mood albeit I do think their presentations and style can be materially improved.

Good link with cobenfy and BMY background

https://blinks.bloomberg.com/news/stories/SV8D6YBQ99TS

Also Puretech have already confirmed they won’t be self funding the Phase III of LYT100 so I don’t know why some seem confused on thus

Consensus for q1 Cobenfy was 18m per Jefferies

Bristol also initiating 7 new phase III trials in 2025 for new applications of cobenfy

It isn't a 'normal' walkaway RNS. Nordic has specifically laid out that they can make an offer and buy shares-normally they cannot do so within six months unless a third party pops up

i think it's the equivalent of a 'Board thinks materially undervalues' company but just without naming the price. Nordic cannot go hostile though.

i think the bid level was more likely to be pretty high than pretty low-with the Board hoping to avoid hassle from short-term biased holders by not disclosing the level

the Board may want to keep shares down for a buyback they may wish to announce with the Finals

Err not sure about 31%! that's just wrong

RBC report revenue is a bit light but made up for with margin strength

this margin strength is good news for 2025 - with the January growth at 15% vs 11/12pc in consensus

anyone have any other view on why they're down?

the Brand Architekts deal looks solid/kinda immaterial.

Bear in mind instos only have to declare when they go under or over 5pc...a lot of volume can happen without THAT happening...

House broker berenberg only cut Sep/2026 by 7pc at EPS level cos this lost client was much lower margin than most and due to the business model 40pc of op profit pre bonus goes to staff so there is a natural stabiliser in the P&L. EPS of 31 and divi of 29. with ~£100m of net cash, no reason for that to be cut as things stand.

I've just bought new position. flows will return and have already stabilised. acquisitions have built scale and ability in Fixed Income. Staff own bucketloads of shares and look after cost control. Definitely risk of being bought out too

We have been included in the EPRA European REIT index...lots of passive demand and will help liquidity in future too

The interims said 57.7% ...today's rns says we put in $14.4m. importantly PRTC retains full royalty on any products

Ownership Information

PureTech contributed $14.4 million to the Series B financing and now holds equity ownership in Seaport of 36.7 percent on a diluted basis. Additionally, as the founder of Seaport, PureTech has a right to royalty payments on a percentage of net sales of any commercialized product as well as the right under the terms of the license agreement with Seaport to receive milestone payments upon the achievement of certain regulatory approvals and a percentage of sublicense income.

Correct me if I'm wrong but given our ownership stake has fallen from 57.7 to 36.7% in Seaport, 21% of the company has been valued at $225m meaning the post money valuation is $1125m? Valuing our stake at more like $412m?