tiprankstipranks
Trending News
More News >
PureTech Health (GB:PRTC)
:PRTC

PureTech Health (PRTC) AI Stock Analysis

Compare
11 Followers

Top Page

GB

PureTech Health

(LSE:PRTC)

Rating:55Neutral
Price Target:
128.00p
▲(1.27%Upside)
PureTech Health's overall stock score reflects a strong financial position and positive corporate developments, tempered by ongoing profitability challenges and bearish technical indicators. The company's strategic achievements and undervalued P/E ratio are positive, but operational risks and funding concerns for trials remain significant.

PureTech Health (PRTC) vs. iShares MSCI United Kingdom ETF (EWC)

PureTech Health Business Overview & Revenue Model

Company DescriptionPureTech Health (PRTC) is a biopharmaceutical company focused on developing and commercializing innovative medicines that address significant unmet medical needs. With a strong emphasis on the brain, immune, and gut systems, PureTech operates at the intersection of cutting-edge science and practical healthcare solutions. The company is dedicated to advancing a robust pipeline of therapeutics through a combination of internal R&D capabilities and strategic collaborations with external partners.
How the Company Makes MoneyPureTech Health generates revenue through a multi-faceted business model that includes the development and commercialization of its proprietary drug candidates, strategic partnerships, and equity stakes in its Founded Entities. The company derives income from milestone payments and royalties from its partnered programs, as well as potential product sales once its therapeutics are commercialized. Additionally, PureTech benefits financially from its equity interests in Founded Entities, which are companies that it has helped to establish and advance through early development stages. These entities can provide returns through potential exits, such as public offerings or acquisitions.

PureTech Health Earnings Call Summary

Earnings Call Date:Apr 30, 2025
(Q4-2024)
|
% Change Since: 0.48%|
Next Earnings Date:Aug 27, 2025
Earnings Call Sentiment Neutral
The earnings call highlighted several significant achievements, including successful clinical trials and strong financial execution, but also revealed challenges related to market valuation and funding for future trials.
Q4-2024 Updates
Positive Updates
Phase 2b Trial Success for Deupirfenidone
Unprecedented results from PureTech's successful Phase 2b trial of deupirfenidone for Idiopathic Pulmonary Fibrosis (IPF), showing potential to stabilize lung function decline over 52 weeks.
FDA Approval of COBENFY
FDA approval of COBENFY for the treatment of schizophrenia in adults, marking a major validation for PureTech's scientific foundation.
Strong Financial Position
PureTech ended 2024 with cash, cash equivalents, and short-term investments of $366.8 million, ensuring financial runway into 2027.
Successful Fundraising by Founded Entities
Founded entities raised $397.5 million in 2024, with over 88% from third-party investors, supporting PureTech's hub-and-spoke R&D model.
Positive Clinical Data for LYT-200
LYT-200 showed favorable tolerability and evidence of clinical efficacy in a Phase 1b trial for AML and MDS, with six complete responses achieved.
Negative Updates
Underwhelming Market Valuation
Despite significant achievements, PureTech's market capitalization remains discounted, not reflecting the intrinsic value of the business.
High Cost of Phase 3 Trials
The Phase 3 trial for deupirfenidone in IPF is expected to be costly, potentially beyond PureTech's current cash resources, necessitating external funding.
Decreased Revenue
Consolidated revenue in 2024 was $4.8 million, a relatively low figure that reflects the fluctuating nature of milestone-based payments and royalties.
Company Guidance
During the PureTech Health 2024 Year End Financial Results Conference, the company provided guidance on its strategic priorities and financial outlook, highlighting key metrics and achievements. As of March 31, 2025, PureTech reported approximately $339.1 million in cash at the PureTech level, supporting its efficient hub-and-spoke R&D model. In 2024, its founded entities raised $397.5 million, with over 88% from third-party investors, and generated $327.4 million in proceeds from monetization events. The company returned $100 million to shareholders via a tender offer and reported a consolidated net income of $27.8 million for 2024, driven by a $151.8 million gain from the deconsolidation of Seaport. Looking ahead, PureTech plans to discuss the Phase 3 pathway for its IPF treatment, deupirfenidone, with the FDA by Q3 2025 and initiate a Phase 3 trial by year-end, while exploring various funding mechanisms to support this effort.

PureTech Health Financial Statement Overview

Summary
PureTech Health exhibits a mixed financial performance with significant challenges in profitability and cash flow sustainability. Strong liquidity and low leverage provide stability, but volatile revenue and net income trends suggest ongoing operational risks.
Income Statement
45
Neutral
PureTech Health's income statement shows a volatile revenue base with a significant increase from 2023 to 2024. The gross profit margin is positive, but the company is operating at a loss with negative EBIT and EBITDA margins. Although the net profit margin turned positive in 2024, the overall profitability remains a concern due to inconsistent revenue and high operational losses.
Balance Sheet
55
Neutral
The balance sheet reflects a strong liquidity position with substantial cash reserves, resulting in a negative net debt. While the debt-to-equity ratio is low, indicating prudent leverage, the equity ratio has decreased, suggesting a decline in asset efficiency. The company's return on equity is volatile, driven by fluctuating net income, indicating instability in shareholder returns.
Cash Flow
50
Neutral
Cash flow analysis shows challenges with consistent negative free cash flow, though there was a significant increase in free cash flow from 2023 to 2024. The operating cash flow remains negative, indicating operational cash burn. The company’s cash flow management is buoyed by financing and investing activities, but sustainable operational improvements are needed.
BreakdownDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue4.32M750.00K2.09M9.98M8.34M
Gross Profit4.32M-92.91M-150.34M-100.49M8.34M
EBITDA37.38M-17.68M-79.94M-46.95M-144.76M
Net Income53.51M-65.70M-37.06M-62.71M4.57M
Balance Sheet
Total Assets602.63M693.97M702.65M946.01M989.99M
Cash, Cash Equivalents and Short-Term Investments367.31M327.14M350.10M465.71M403.88M
Total Debt22.36M25.34M46.87M52.02M76.62M
Total Liabilities194.70M235.74M155.06M361.86M336.45M
Stockholders Equity414.71M464.07M542.22M593.51M669.75M
Cash Flow
Free Cash Flow-134.38M-106.16M-180.97M-163.94M-137.25M
Operating Cash Flow-134.37M-105.92M-178.79M-158.27M-131.83M
Investing Cash Flow240.89M68.99M-107.22M197.38M364.48M
Financing Cash Flow-16.96M78.14M-29.83M22.73M38.87M

PureTech Health Technical Analysis

Technical Analysis Sentiment
Negative
Last Price126.40
Price Trends
50DMA
131.09
Negative
100DMA
133.70
Negative
200DMA
143.86
Negative
Market Momentum
MACD
-1.91
Positive
RSI
40.58
Neutral
STOCH
12.93
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For GB:PRTC, the sentiment is Negative. The current price of 126.4 is below the 20-day moving average (MA) of 134.93, below the 50-day MA of 131.09, and below the 200-day MA of 143.86, indicating a bearish trend. The MACD of -1.91 indicates Positive momentum. The RSI at 40.58 is Neutral, neither overbought nor oversold. The STOCH value of 12.93 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for GB:PRTC.

PureTech Health Peers Comparison

Overall Rating
UnderperformOutperform
Sector (59)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
78
Outperform
£143.68M18.3069.08%5.09%0.49%-9.52%
GBONT
64
Neutral
£1.30B-23.77%7.97%12.94%
59
Neutral
£5.89B9.26-57.69%4.65%14.48%-6.99%
GBOXB
58
Neutral
$335.26M-66.23%43.84%74.88%
55
Neutral
£303.60M7.7211.74%38.80%
46
Neutral
£98.49M167.16%-100.00%-23.91%
* Healthcare Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
GB:PRTC
PureTech Health
126.40
-56.20
-30.78%
GB:OXB
Oxford BioMedica
316.00
19.00
6.40%
GB:SCLP
Scancell Holdings
9.50
-1.62
-14.57%
GB:BVXP
Bioventix
2,750.00
-1,401.97
-33.77%
GB:ONT
Oxford Nanopore Technologies PLC
135.60
37.60
38.37%

PureTech Health Corporate Events

Product-Related AnnouncementsPrivate Placements and FinancingBusiness Operations and Strategy
Vor Bio Secures Global Rights for Autoimmune Drug and Announces $175 Million Funding
Positive
Jun 26, 2025

Vor Bio, a company founded by PureTech Health, has entered into an exclusive global license agreement with RemeGen to develop and commercialize telitacicept, a dual-target fusion protein for autoimmune diseases, outside of Greater China. This agreement includes an initial payment of $125 million and potential milestones exceeding $4 billion. Additionally, Vor Bio announced a $175 million private placement to support the development of its clinical pipeline, marking a significant step in its growth strategy and positioning in the autoimmune treatment market.

The most recent analyst rating on (GB:PRTC) stock is a Buy with a £455.00 price target. To see the full list of analyst forecasts on PureTech Health stock, see the GB:PRTC Stock Forecast page.

Shareholder Meetings
PureTech Health Passes All AGM Resolutions Amid Shareholder Engagement Focus
Neutral
Jun 16, 2025

PureTech Health announced that all resolutions at its Annual General Meeting were passed, though resolutions on directors’ remuneration and the re-election of Ms. Kiran Mazumdar-Shaw received less than 80% approval. The company emphasizes its commitment to engaging with shareholders on remuneration and governance issues, promising an update within six months in line with the UK Corporate Governance Code 2024.

The most recent analyst rating on (GB:PRTC) stock is a Buy with a £455.00 price target. To see the full list of analyst forecasts on PureTech Health stock, see the GB:PRTC Stock Forecast page.

Regulatory Filings and Compliance
PureTech Health Announces Change in Voting Rights Attribution
Neutral
May 29, 2025

PureTech Health PLC has announced a change in the nature of attribution due to a reduction in the Right to Recall securities, following an acquisition or disposal of voting rights and financial instruments by Citigroup Inc. This adjustment has resulted in Citigroup holding a total of 5.410498% of voting rights in PureTech, indicating a slight increase from the previous position, which may impact the company’s shareholder dynamics and influence.

The most recent analyst rating on (GB:PRTC) stock is a Buy with a £455.00 price target. To see the full list of analyst forecasts on PureTech Health stock, see the GB:PRTC Stock Forecast page.

Business Operations and Strategy
PureTech Health to Participate in Jefferies Global Healthcare Conference
Positive
May 22, 2025

PureTech Health announced that its CEO, Bharatt Chowrira, and Co-founder, Eric Elenko, will participate in a fireside chat at the Jefferies Global Healthcare Conference. This participation highlights PureTech’s active engagement in the healthcare industry and may enhance its visibility and influence among stakeholders and potential investors.

The most recent analyst rating on (GB:PRTC) stock is a Buy with a £455.00 price target. To see the full list of analyst forecasts on PureTech Health stock, see the GB:PRTC Stock Forecast page.

Product-Related AnnouncementsBusiness Operations and Strategy
PureTech Health’s Deupirfenidone Shows Promise in IPF Treatment
Positive
May 21, 2025

PureTech Health announced promising results from its Phase 2b ELEVATE IPF trial for deupirfenidone (LYT-100), a potential new treatment for idiopathic pulmonary fibrosis (IPF). The trial demonstrated that deupirfenidone significantly slowed lung function decline compared to placebo, with a favorable safety profile. The treatment effect was sustained over 52 weeks, suggesting its potential to become a new standard of care for IPF. PureTech plans to meet with the FDA to discuss a Phase 3 trial, aiming to initiate it by the end of 2025. These findings could position PureTech as a leader in IPF treatment, offering a differentiated option for patients and potentially impacting the market for current standard-of-care treatments.

The most recent analyst rating on (GB:PRTC) stock is a Buy with a £455.00 price target. To see the full list of analyst forecasts on PureTech Health stock, see the GB:PRTC Stock Forecast page.

Business Operations and Strategy
PureTech Health Unveils Research on Idiopathic Pulmonary Fibrosis Challenges
Neutral
May 9, 2025

PureTech Health has published new research in collaboration with experts and the Pulmonary Fibrosis Foundation, revealing critical gaps in the diagnosis, treatment, and quality of life for individuals with idiopathic pulmonary fibrosis (IPF). The study highlights the need for enhanced education, patient-focused treatment plans, and more effective therapies, emphasizing the importance of integrating patient perspectives into care strategies to improve outcomes and quality of life for those affected by IPF.

Product-Related AnnouncementsBusiness Operations and Strategy
PureTech Health to Present Promising IPF Trial Results at ATS Conference
Positive
May 1, 2025

PureTech Health announced that it will present results from its Phase 2b ELEVATE IPF trial of deupirfenidone (LYT-100) at the American Thoracic Society International Conference. The trial demonstrated significant efficacy in stabilizing lung function decline in idiopathic pulmonary fibrosis (IPF) patients over 26 weeks, suggesting deupirfenidone could become a new standard of care. The company plans to meet with the FDA to discuss a potential Phase 3 trial by the end of 2025, aiming to provide a transformative treatment option for IPF patients.

Product-Related AnnouncementsBusiness Operations and StrategyFinancial Disclosures
PureTech Health Reports Major Milestones and Strong Financial Position in 2024
Positive
Apr 30, 2025

PureTech Health announced significant achievements in 2024, including FDA approval for Cobenfy™, positive Phase 2b results for deupirfenidone in IPF, and promising data for LYT-200 in cancer treatment. The company’s financial strength is underscored by a robust cash position, supporting operations through 2027. PureTech’s strategic focus is on advancing its pipeline, securing external funding for Phase 3 trials, and maintaining capital efficiency to drive long-term growth and shareholder value.

Business Operations and StrategyRegulatory Filings and Compliance
Citigroup Adjusts Voting Rights in PureTech Health
Neutral
Apr 11, 2025

PureTech Health PLC has announced a change in its major holdings, as Citigroup Inc. has acquired or disposed of voting rights, resulting in a total of 5.017608% of voting rights held. This adjustment in voting rights reflects Citigroup’s strategic positioning and may influence PureTech’s shareholder dynamics and decision-making processes.

Executive/Board ChangesBusiness Operations and Strategy
PureTech Health Enhances Market Strategy with New Corporate Broker Appointment
Positive
Apr 9, 2025

PureTech Health has appointed Peel Hunt as its Joint UK Corporate Broker alongside UBS, a strategic move expected to enhance its market presence and investor relations. This appointment reflects PureTech’s ongoing efforts to strengthen its corporate operations and could potentially impact its positioning within the biotherapeutics industry.

M&A Transactions
PureTech Health in Talks for Potential Acquisition by Nordic Capital
Neutral
Apr 7, 2025

PureTech Health has confirmed discussions with Nordic Capital regarding a potential cash offer to acquire the entire share capital of the company. While no firm offer has been made, the announcement has implications for PureTech’s market positioning and could affect stakeholders depending on the outcome of these discussions.

Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: Jun 26, 2025