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Just to add to that - I believe we are broken up following pressure from the likes of Invesco so we end up with three conventional biotechs. No big pharma would take over a hub and spoke company - but each of the separate companies would be very attractive take over targets.
Well the FDA seem to think that we have found a cure for cancer. Longer term, it appears to me that PureTech are effectively broken up into three units, lyt100, gallop and seaport - and the current board are being split up alongside to run those three units. Time will tell. The problem with the share price I think is two-fold. There is a longstanding problem in that Invesco are reducing their exposure and they have been doing so for some time. And the other problem is that recently we have had an influx of short time traders, that got the price up from 180 220 - we are mentioned many more times on twitter/x these days. My guess is that some of those traders seem to have abandoned their bets recently, it’s all taking a bit too long for them…
You can’t have it both ways Dallo. On the one hand you’re complaining that we are not trying to keep 100% share of our most promising spin offs yet you have been asking for greater shareholder returns for some time. My preference would have been to play the long game and keep a larger share of Seaport rather than a buyback but it looks like they have given in to you and other short term investors. No wonder investor relations have stopped responding to you. And your attacks on Daphne Zohar are unfair, the takeover of genesis was considered only when it was about to run out of money and as a major shareholder I expect us to consider that.
I think that some of the posts here are a bit unfair to Ms Zohar. Yes I agree she has made some mistakes but personally I think the only mistake she has made is to give in to pressure from the likes of Invesco and agree to sell royalties, hive off more in house drugs into separate entities and do buybacks to try and boost the share price in the short term. Cash piles are simply not appreciated in the current market. Her original strategy was to use the hub and spoke model to fund the in house jewels and actually this has gone very well. Most of the duds referred to are still trading and haven’t lost Puretech any money and to call the in house drugs early stage is not correct - we have a number of stage 1 and stage 2 drugs as well as platforms that will keep generating more candidates. There is immense hidden value here that will come out in the next few years and the last thing I want is a take over.
Who needs a buyback!
Or perhaps a break up to facilitate an imminent sale…
The idea of allocating shares in external entities was I think mentioned in a fireside chat last year. Like you say Dallo, Puretech have been under substantial pressure from Invesco to crystallise value. Perhaps the avenue pursued is a breakup of the company. Up until very recently Puretech were actively pushing its wholly owned portfolio, suggesting there was no longer a need for outside finance to develop those most promising programs. Now suddenly, despite the huge cash pile, we are again creating two further entities. And it’s very interesting that Puretech are now representing itself and its IPF program as just another spoke in its hub and spoke image in the presentation. Just conjecture!
Exciting times Dallo - interesting updates to the corporate presentation https://puretechhealth.com/images/PRTCCorpPresentation.pdf
Dallo. Puretech wont be able to increase their daily buybacks due to the 25% daily limit so any further buybacks would have to be through a tender offer. I also disagree that the investment case is based on Karuna - yes it represents an awful lot of cash and it hugely de-risks the investment but the investment case rests on the whether that cash is being put to good use by Puretech to further the success of its external entities and the internal pipeline. One option Puretech could take is to use some of the cash to invest in the newly founded entities (instead of or as well as seeking external cash). And another means of distributing value would be to issue shares in those entities to us upon ipo. I would quite like that option - it gives us more control over our investment. Finally, I think that the forthcoming 2024 phase 2 results of LYT-100 represent the biggest catalyst. Similar to Karuna, it is a modified version of an existing drug so efficacy is very likely and the path to FDA approval should be quick and straightforward. Crucially also (in contrast to Vedanta), competing drug trials in this area have fallen by the wayside recently and any remaining would likely be complementary with LYT-100. Potential sales are in the billions per year.
The biggest driver of our share price is still Invesco in my opinion. They were a large investor before our float and still held over 23% at the end of 2022. It will be interesting to see how many shares they still have when they next announce. Most of that investment was through their U.K. high income fund - it had over 4% early in 2023 but that had dropped to 3% in October. All the talk about returning money to shareholders was probably to appease Invesco. It is very frustrating when the news flow continues to be positive and the share price moves don’t reflect it. Just yesterday, very positive news on our cancer drug and the share price drops another couple of percent… Even so, Invesco have been careful sellers - they will not want to hammer the share price any further themselves. Our valuation is ludicrous, our market cap is now approaching our cash position - you virtually get our investments in Karuna, Vedanta and our internal pipeline thrown in for free. Volumes are still tiny though and things will change very rapidly when the investor cash return package gets announced, when Karuna gets approved, and when LYT-100 stage 2 results come in next year.
Perhaps Dallo - but I wouldn’t underplay the significance of an anti-anxiety drug that is non-addictive, has negligible side effects and is as effective as Xanax.
It looks to me like todays new has leaked
We are back below our share price at the start of the 50m buyback program… Even though Puretech is USA based, it suffers from being listed in the U.K. There have not been any major milestones and the buybacks have not been able to match the ongoing sales due to U.K. fund redemptions. No doubt Invesco have been reducing their stake again. Phase 2 results for LYT-100 are due early 2024 though and stage 3 should only take about 15 months so we could have a 5 billion plus revenue stream by late 2025! Perhaps mr market will start to recognise the potential in the coming months.
Looks like the daily buyback has increased from 8000/day to about 45000 per day
Www R e s e a r c h t r e e . Com
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https://*********************/companies/uk/software/trustpilot-group-plc/research/capital-access-group/trustpilot-post-fy22-results-consensus-update/23_2023042502494587282/0e6f968d-e762-42ff-8e00-aae9681c7f12
II say they will move my shares from the Isa into a trading account. If that means it’s a Bed and ISA in reverse and they sell the shares and then repurchase them in the trading account I will be making a huge loss tax free…. What a mess.
Unbelievable - got this from ii. Mtr really shouldn’t get away with this
« Due to HMRC restrictions on ISA accounts, Metal Tiger CDIs are not considered an ISA-qualifying investment. Therefore,
on or after 1st May 2023 (30 calendar days following the delisting) we will arrange to move your shares to a linked
Trading Account, opening one on your behalf if you do not already have one. »