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PureTech Health (GB:PRTC)
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PureTech Health (PRTC) AI Stock Analysis

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GB:PRTC

PureTech Health

(LSE:PRTC)

Rating:56Neutral
Price Target:
130.00p
▲(11.68% Upside)
PureTech Health's overall stock score reflects a mixed financial performance with strong liquidity but challenges in profitability. Technical indicators suggest bearish momentum, while the valuation appears attractive. The earnings call provided a cautiously optimistic outlook, though management changes and funding uncertainties pose risks.

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

PureTech Health Business Overview & Revenue Model

Company DescriptionPureTech Health plc, a clinical-stage biotherapeutics company, discovers, develops, and commercializes medicines for inflammatory, fibrotic and immunological, intractable cancers, lymphatic and gastrointestinal, neurological and neuropsychological, and other diseases in the United States. The company offers KarXT targeting muscarinic acetylcholine receptors to treat schizophrenia and psychosis in Alzheimer's disease; a regenerative biology platform for androgenetic alopecia, epithelial ageing, and other medical conditions; an immunomodulation platform to treat chronic and acute inflammatory disorders; oral therapies based on defined consortia of bacteria is isolated from the human microbiome; and therapies to treat cognitive dysfunction associated with depression, multiple sclerosis, post COVID and ICU, and cancer related conditions. It also provides hematopoietic stem cell based therapies for patients with blood cancer; a voice-based technology platform to detect voice changes linked to health conditions; and a technology platform for the oral delivery of biologics, vaccines, and other drugs. In addition, the company is developing LYT-100 to treat lymphedema, and other lymphatic flow disorders; LYT-200, a IgG4 monoclonal antibody to target galectin-9; LYT-210 to treat solid tumors; Glyph, a synthetic lymphatic targeting chemistry platform; Orasome technology to enable the oral administration of macromolecule therapeutic payloads; meningeal lymphatics platform to treat Alzheimer's and Parkinson's diseases; and Alivio technology platform for inflammation-targeted disease immunomodulation. PureTech Health plc has collaboration and license agreements with Boehringer Ingelheim International GMBH; Eli Lilly and Company; Imbrium Therapeutics L.P.; and Shionogi & Co., Ltd. The company was incorporated in 2015 and is headquartered in Boston, Massachusetts.
How the Company Makes MoneyPureTech Health generates revenue through multiple streams, including the licensing of its proprietary technologies and drug candidates to larger pharmaceutical companies, which pay upfront fees and potential milestone payments tied to the successful development and commercialization of these products. Additionally, the company may receive royalties on sales of products developed using its technologies. Strategic collaborations and partnerships with established firms in the industry also contribute to its revenue, providing funding for research and development efforts while allowing PureTech to share in the financial success of its partners. The company's ongoing clinical trials and advancements in its therapeutic pipeline further position it to attract investment and funding opportunities.

PureTech Health Earnings Call Summary

Earnings Call Date:Aug 28, 2025
(Q2-2025)
|
% Change Since: |
Next Earnings Date:Apr 23, 2026
Earnings Call Sentiment Neutral
The earnings call presented a mixed picture. While PureTech demonstrated strong financial health and promising developments in its core programs, the recent management changes and ongoing efforts to secure external funding introduce some uncertainties. Overall, the company's strategic initiatives and financial position suggest a cautiously optimistic outlook.
Q2-2025 Updates
Positive Updates
Strong Financial Position
PureTech ended the half year with cash, cash equivalents, and short-term investments of just under $320 million, providing operational runway well into 2028.
Positive Progress with Core Founded Entities
Celea Therapeutics, Gallop Oncology, and Seaport Therapeutics are progressing well. Seaport raised over $325 million and has a $733 million post-money valuation. Celea's deupirfenidone shows promising results for IPF treatment.
Significant Upside from Cobenfy Royalties
PureTech is entitled to 2% royalties on Cobenfy sales above $2 billion annually, with a potential value of around $300 million over time.
Operational Efficiency Improvements
Operational expenses reduced significantly, with operating expenses of just under $50 million in the first half of 2025, down from $66.7 million in the same period last year.
Negative Updates
Management Changes
Recent management changes with an interim CEO and Chair, indicating potential instability or transition within the leadership team.
Uncertainty in Partnering and Funding
Ongoing efforts to secure external funding for Celea and Gallop, with no specific timelines or confirmed partners, creating uncertainty in future progress.
Company Guidance
During the PureTech Health 2025 Half Year Earnings Webcast, the company provided detailed guidance on its strategic priorities and financial metrics. PureTech emphasized its commitment to developing new treatments, highlighted by the clinical progress of its lead program, deupirfenidone (LYT-100), and the launch of new entities Celea Therapeutics and Gallop Oncology. The company outlined three strategic pillars: advancing patient-focused treatments, strengthening engagement with U.K. capital markets, and employing a disciplined capital allocation approach. PureTech plans to appoint two new nonexecutive directors to enhance its board's expertise in U.K. capital markets. Financially, PureTech reported cash and short-term investments totaling just under $320 million, with an operational runway extending well into 2028. The company is focused on leveraging external capital to fund its spinout entities while maintaining significant economic interests, exemplified by its 35.1% equity stake in Seaport Therapeutics, which recently had a post-money valuation of $733 million.

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 Price116.40
Price Trends
50DMA
132.48
Negative
100DMA
131.67
Negative
200DMA
138.98
Negative
Market Momentum
MACD
-4.42
Positive
RSI
29.34
Positive
STOCH
7.95
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 116.4 is below the 20-day moving average (MA) of 129.31, below the 50-day MA of 132.48, and below the 200-day MA of 138.98, indicating a bearish trend. The MACD of -4.42 indicates Positive momentum. The RSI at 29.34 is Positive, neither overbought nor oversold. The STOCH value of 7.95 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 (51)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
78
Outperform
£129.58M16.5069.08%6.36%0.49%-9.52%
56
Neutral
£280.35M8.1515.04%1231.50%
51
Neutral
$7.91B-0.36-41.71%2.23%23.45%-1.86%
51
Neutral
£1.57B-26.01%22.03%20.01%
46
Neutral
£100.15M167.16%-100.00%-23.91%
$921.55M-66.23%
39
Underperform
£137.04M-95.28%84.39%-41.02%
* Healthcare Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
GB:PRTC
PureTech Health
116.40
-32.20
-21.67%
GB:BVXP
Bioventix
2,460.00
-1,288.64
-34.38%
GB:SCLP
Scancell Holdings
9.00
-8.25
-47.83%
OXBDF
Oxford BioMedica
7.84
3.41
76.98%
GB:4BB
4basebio UK Societas
885.00
-565.00
-38.97%
GB:ONT
Oxford Nanopore Technologies PLC
163.20
21.20
14.93%

PureTech Health Corporate Events

Financial Disclosures
PureTech Health to Announce Half-Yearly Financial Results
Neutral
Aug 18, 2025

PureTech Health announced that it will release its half-yearly financial results for the first half of 2025 on August 28, 2025. The announcement will be accompanied by a presentation and conference call for analysts and shareholders, which indicates the company’s commitment to transparency and engagement with stakeholders. This release is significant for stakeholders as it provides insights into the company’s financial health and strategic direction.

Product-Related AnnouncementsBusiness Operations and Strategy
Vedanta Biosciences Shifts Focus After VE202 Study Misses Endpoint
Neutral
Aug 13, 2025

Vedanta Biosciences, a PureTech Founded Entity, announced that its Phase 2 study of VE202 for ulcerative colitis did not meet its primary endpoint, though the treatment was well tolerated. Despite this setback, Vedanta will focus on its Phase 3 study of VE303 for preventing recurrent Clostridioides difficile infection, which has shown promising Phase 2 results. This strategic shift underscores Vedanta’s commitment to addressing unmet medical needs in gastrointestinal health, with potential implications for stakeholders as the company advances its pipeline.

Product-Related AnnouncementsExecutive/Board ChangesBusiness Operations and Strategy
PureTech Health Launches Celea Therapeutics to Revolutionize Respiratory Disease Treatment
Positive
Aug 12, 2025

PureTech Health has launched Celea Therapeutics, a new entity focused on transforming the treatment of respiratory diseases, with former Teva North America CEO Sven Dethlefs leading the initiative. Celea’s lead program, deupirfenidone (LYT-100), is a Phase 3-ready candidate aimed at treating idiopathic pulmonary fibrosis (IPF), a severe lung disease. The launch underscores PureTech’s commitment to advancing innovative therapies through focused structures, and the appointment of Dr. Dethlefs, with his extensive experience, is expected to drive the program’s success. The development of deupirfenidone, which has shown promising Phase 2b results, represents a significant opportunity in the IPF market, which is currently underserved by existing treatments.

Regulatory Filings and Compliance
PureTech Health Discloses Voting Rights and Share Capital Update
Neutral
Aug 1, 2025

PureTech Health announced its total voting rights and share capital as of July 31, 2025, with 241,316,327 voting rights available. This information is crucial for shareholders to determine their notification obligations under the FCA’s rules, reflecting PureTech’s commitment to transparency and regulatory compliance.

Product-Related AnnouncementsBusiness Operations and Strategy
Seaport Therapeutics Initiates Phase 2b Study of GlyphAllo for Major Depressive Disorder
Positive
Jul 17, 2025

Seaport Therapeutics, a PureTech Health Founded Entity, announced the dosing of the first patient in the Phase 2b BUOY-1 study of GlyphAllo, a novel oral prodrug for treating major depressive disorder (MDD) with or without anxious distress. This study aims to evaluate the efficacy, safety, and tolerability of GlyphAllo, potentially positioning it as a first-in-class treatment for MDD. The trial builds on promising Phase 1 and 2a results, with the Glyph platform overcoming previous limitations of allopregnanolone’s clinical use, potentially impacting the treatment landscape for depression and anxiety.

Executive/Board ChangesBusiness Operations and Strategy
PureTech Health Announces CEO Transition Amid Strategic Advancements
Positive
Jul 16, 2025

PureTech Health has announced a leadership transition with the stepping down of Bharatt Chowrira as CEO and the appointment of Robert Lyne as Interim CEO. Lyne, with his extensive experience in life sciences and venture capital, is expected to drive shareholder value and continue advancing PureTech’s high-value portfolio, building on the momentum of its programs to create value for patients and shareholders.

Executive/Board Changes
PureTech Health Announces Board Leadership Transition
Neutral
Jul 8, 2025

PureTech Health announced a significant change in its board of directors as Raju Kucherlapati, PhD, steps down as Chair. Sharon Barber-Lui will serve as Interim Chair while leading the search for a new Chair, engaging with shareholders for input. This transition marks a pivotal moment for PureTech, which has evolved from a startup to an established biotherapeutics company under Dr. Kucherlapati’s guidance, known for its breakthrough medicines like the FDA-approved Cobenfy™.

Executive/Board ChangesBusiness Operations and Strategy
PureTech Health Announces Vesting of Restricted Share Units to Key Executives
Neutral
Jul 4, 2025

PureTech Health announced the vesting of restricted share units (RSUs) granted to certain directors and managerial staff as part of its Performance Share Plan, with 33% of the shares vesting on June 26, 2025. This issuance increased the company’s total issued ordinary share capital to 257,927,489 shares, with 16,611,162 held in treasury. The transaction reflects PureTech’s ongoing commitment to rewarding its leadership team and aligns with its strategic goals, potentially impacting its market positioning and shareholder value.

Executive/Board ChangesBusiness Operations and Strategy
PureTech Health Announces Vesting of RSUs for Non-Executive Directors
Positive
Jul 4, 2025

PureTech Health announced the vesting of restricted share units (RSUs) awarded to certain non-executive directors under its Performance Share Plan. This resulted in the issuance of ordinary shares to these directors, impacting the company’s total share capital. The announcement highlights PureTech’s commitment to rewarding its leadership while maintaining transparency in its operations, potentially strengthening stakeholder confidence.

Executive/Board ChangesBusiness Operations and Strategy
PureTech Health Announces Vesting and Transaction of Restricted Share Units
Neutral
Jul 4, 2025

PureTech Health announced that 25% of restricted share units granted to Robert Lyne, Chief Portfolio Officer, vested on February 1, 2025, with shares issued on July 1, 2025. The transaction involved the sale and subsequent purchase of 33,561 shares by Lyne, reflecting strategic financial management and potentially impacting shareholder dynamics.

Regulatory Filings and Compliance
PureTech Health Announces Voting Rights and Share Capital Update
Neutral
Jul 1, 2025

PureTech Health announced its total voting rights and share capital as of June 30, 2025, with 257,927,489 issued ordinary shares and 17,673,040 shares held in treasury, resulting in 240,254,449 voting rights. This information is crucial for shareholders to assess their interests in the company under regulatory guidelines, impacting their decision-making and compliance with disclosure rules.

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.

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.

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.

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.

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.

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: Aug 29, 2025