Member Info for JSB1989

We can assume that the proposed takeover price was anything over 150p. Given that seven sessions ago, the share price sat at 147p. 200p would have be a 40% premium to that SP.

The cash burn is not significant at the moment. Gallop is the only founded entity in clinical trials and Puretech stated that they were looking at third-party options to fund the P3 trial in LYT-100. Seaport and Vedanta are cashed up and, Puretech only invests during funding rounds. Cash was expected to be $330 million YE24 and, they brought this in at $365 million, highlighting that cash burn is lighter than anticipated.

Results will be in two weeks. Likely Thursday 24th April. That will clarify cash position and update on the portfolio.

IR replied to say this yesterday - ‘We are currently in the midst of our annual audit process and hence our ability to take any substantive actions regarding the share price decline is limited’.

They rarely get caught offside. Feels like a play to soften the BoD on takeover talks. SP lulls at £1.00 for a while and PE manage to get it for a ridiculous price in the ballpark of £1.80. It’s an 80% premium but the reality is, it’s 20-30% from initial talks and still beyond undervalued.

I agree with this Golfnut about the short. That was lightning fast to release an RNS ending any speculation. I’ve never seen anything that quick before denying or ending a possible takeover. Hopefully they are on the wrong side of the trade this time.

Should bounce hard tomorrow. Should be back in the 120s for starters. It was 140s before all of the tariffs nonsense kicked in last week.

I’ve finally got a response from IR too after two more emails. Nothing of substance but they are still alive.

The only things they could know are the macro headwinds which is affecting every company and that PE are wanting to drag the share price down for a cheaper takeover. Surely there is no value in taking this any lower than £1 per share.

There would be no reason for the cash position to be massively reduced from the end of December.

Cobenfy hasn’t had issues as BMS would be feeling that impact with both barrels.

Seaport is reporting strong data and is fully cashed up for a long period of time.

Actus added and Qube are new. 1.25% from the 8th April. I’m interested to see if they have exited today.

I don’t understand where they see this going given that net cash is £30-40 million over MC.

Let’s not bothering opening up tomorrow. Two days of -15%.

Well done to those taking advantage and loading up.

Great price eddy. My 113 buy this morning is 6% down. I’ve sent yet another message to IR and no doubt they will ignore it.

Cash burn will be relatively low by Puretech standards at the moment. LYT-100 trials finished last Summer, Seaport has spun out so has its own cash.

The only two trials that are ongoing now are Gallop’s pipeline. Cash will be spent on other developments but not at the same expense as the drug trials.

Cash was $35 million higher than anticipated at year end in 2024.

Klse1 - they have a three year runway minimum and they will start collecting royalties in around 3 years for Cobenfy so cash or liquidity is of no concern for Puretech.

Added last tranche at 113p.

Spot on Traa. It looks like this chaos will only bring about a cheaper bid. Who knows what the joint broker is all about. Now sitting at cash levels. I wouldn’t be shocked if PE are queuing up now.

I'm out of ammo unfortunately. The all time low is 112p. No wonder PE are throwing out silly prices to try take us out.

Spot on with your assessment Golfnut. The private companies in Seaport and Vedanta have virtually 0 value attributed to them. Both have a realistic potential to be worth hundreds of millions to Puretech if either were to list or be bought out. Vedanta is late stage now and although Seaport is early stage, it’s hyped up, in the right space in neuroscience and with a very successful team driving it.

The reason for the lack of valuation in my opinion is as follows:

1/ Sector

The small to mid cap biotech stocks are in a bear market and the RFK appointment hasn’t helped with this sentiment.

2/ Hub and Spoke Model

It’s not fully appreciated by the market. There are a number of private companies such as Vedanta and Seaport within our portfolio and it is difficult to attribute a value to them and then an NAV to the company.

3/Management

Communications have been poor and the story hasn’t been sold well enough in the last year. Daphne Zohar was and still is very good at this with Seaport now.

The Cobenfy royalties + milestones and cash alone would equal 220-240p. Then you have 33% of Seaport and Vedanta which have potential to be worth hundreds of millions and 100% of a Phase 3 asset.

The bids in the 220-240 price will be looked at more seriously. It does undervalue the assets but personally I would take it.

I’m thinking there may be a number of potential suitors and Puretech wanted to press a move from another bidder by releasing the Nordic offer yesterday. They could have rejected the Nordic offer in private without the RNS.

Selling out for 130p now would give them a steady profit without the exposure of buying back if an offer were to be accepted.

50% premium at 180p would seem like a first bid for them. I don’t think management will be turned until that figure hits nearer 220-250p. I’d be elated with that in this market and given the frustration of the holding.

Remember we are 110p in cash and very similar in royalties for Karuna.

That’s the most Puretech thing ever. Bid RNS at 4.30pm and less than an hour later, they withdraw it.

I’m guessing it was a poor price but maybe this flushes out other suitors. I’d expect some interest from both retail and institutional money knowing that PE are interested.