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Puretech Health Plc (PRTC)
:PRTC
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PureTech Health
(NASDAQ:PRTC)
Rating:59Neutral
Price Target:
$19.00
▲(3.94% Upside)
Positive Factors
Business Strategy
PRTC operates a hybrid business model, allowing them to retain optionality to develop programs in-house or to deploy assets into spinoff companies in which PRTC retains ownership.
Clinical Trials
PRTC announced positive results from the Ph 2b ELEVATE study of LYT-100, which is seen as supportive of a role in the IPF landscape as an improvement to standard of care anti-fibrotics.
Drug Efficacy
LYT-100 demonstrates meaningfully improved efficacy with roughly comparable-to-improved safety compared to standard pirfenidone.
Negative Factors
Stock Liquidity
Investor interest in PRTC stock is limited by the expectation that promising assets will get spun out plus the low liquidity for the ADRs.
Stock Valuation
PRTC stock continues to trade only modestly above cash levels as investors struggle with low liquidity for the ADRs and valuing the 'hub' of the 'hub-and-spoke' R&D model.
PureTech Health (PRTC) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$435.12M
Dividend YieldN/A
Average Volume (3M)3.83K
Price to Earnings (P/E)8.7
Beta (1Y)0.74
Revenue Growth43.67%
EPS GrowthN/A
CountryUS
Employees80
SectorHealthcare
Sector Strength37
IndustryBiotechnology
Share Statistics
EPS (TTM)3.60
Shares Outstanding24,131,632
10 Day Avg. Volume1,389
30 Day Avg. Volume3,832
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)0.00
Price to Sales (P/S)0.00
P/FCF Ratio0.00
Enterprise Value/Market Cap0.30
Enterprise Value/Revenue30.16
Enterprise Value/Gross Profit30.16
Enterprise Value/Ebitda3.48
Forecast
1Y Price Target
$46.00Price Target Upside151.64% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering1
PureTech Health Business Overview & Revenue Model
Company DescriptionPureTech Health (PRTC) is a biopharmaceutical company focused on discovering, developing, and commercializing highly differentiated medicines for devastating diseases. The company operates in the healthcare and biotechnology sectors, primarily targeting areas such as immunology, inflammation, and central nervous system disorders. PureTech Health is known for its unique approach, which involves leveraging insights from diverse scientific disciplines to address significant healthcare needs.
How the Company Makes MoneyPureTech Health generates revenue through a combination of product sales, licensing agreements, and strategic partnerships. The company develops and commercializes its own pharmaceutical products, which contribute to its revenue through direct sales. Additionally, PureTech Health enters into licensing agreements with other biotechnology and pharmaceutical companies, allowing them to utilize PureTech's proprietary technologies or product candidates, in exchange for upfront payments, milestones, and royalties. The company also engages in collaborations and partnerships with leading academic institutions and industry players, which can provide funding, shared resources, and additional revenue streams. These partnerships often focus on advancing the development of PureTech's pipeline and expanding its reach in the market.
PureTech Health Earnings Call Summary
Earnings Call Date:Apr 30, 2025
(Q4-2024)
| % Change Since: 4.46%|
Next Earnings Date:Aug 27, 2025
Earnings Call Sentiment Neutral
The earnings call highlighted significant achievements such as successful clinical trial results and FDA approval, alongside challenges like market valuation disconnect and funding requirements for future trials.Q4-2024 Updates
Positive Updates
Successful Phase 2b Trial of Deupirfenidone
PureTech announced unprecedented results from the successful Phase 2b trial of deupirfenidone for Idiopathic Pulmonary Fibrosis (IPF), demonstrating significant slowing of lung function decline over at least 26 weeks with a favorable tolerability profile. The trial showed a 50% greater effect size compared to placebo.
FDA Approval of COBENFY
COBENFY, invented at PureTech for the treatment of schizophrenia in adults, was approved by the FDA, marking a significant advance for patients and validation of PureTech's scientific foundation.
Strong Financial Position and Capital Efficiency
As of March 31, 2025, PureTech had approximately $339.1 million in cash, cash equivalents, and short-term investments, enabling the company to maintain financial discipline and strategic flexibility.
LYT-200 Clinical Progress
Strong Phase 1b trial data for LYT-200 in AML and solid tumors, with positive results including six complete responses in a highly pretreated population.
Negative Updates
Market Valuation Disconnect
Despite significant achievements and a robust pipeline, PureTech's market capitalization does not reflect its intrinsic value, leading to a focus on addressing this disconnect in 2025.
Funding Requirements for Phase 3 Trial
The potential Phase 3 trial for deupirfenidone in IPF may exceed PureTech's current cash balance, requiring exploration of external funding mechanisms such as spinouts and partnerships.
Operating Loss Despite Revenue Increase
Although operating loss decreased to $136.1 million from $146.2 million, the company still faces a significant operating loss despite an increase in revenue to $4.8 million.
Company Guidance
During the PureTech Health 2024 Year-End Financial Results Conference, key metrics and strategic priorities were discussed, emphasizing the company's financial and clinical achievements. As of March 31, 2025, PureTech reported a cash balance of approximately $339.1 million at the PureTech level, with a consolidated cash position of $339.5 million. The company raised $397.5 million in 2024, with over 88% from third-party investors, and generated $327.4 million from monetization events. PureTech returned $100 million to shareholders through a tender offer, showcasing robust financial execution. The guidance highlighted the successful Phase 2b trial of deupirfenidone for IPF, with plans to discuss a Phase 3 trial with the FDA by Q3 2025. PureTech's hub-and-spoke R&D model, known for its capital efficiency, was credited for enabling these developments. The company aims to address the value disconnect in its market valuation by exploring various strategic options, including potential transactions and additional capital return opportunities, to align its valuation with the intrinsic value of its assets and track record of execution.PureTech Health Financial Statement Overview
Summary
PureTech Health has a strong balance sheet with low leverage, but faces operational inefficiencies and cash management issues. The transition to positive net income is promising, yet sustained profitability remains uncertain.Income Statement
PureTech Health has shown inconsistent revenue growth with a significant increase from 2023 to 2024. However, the company is operating at a loss, with negative EBIT and EBITDA margins indicating operational challenges. Although net profit margin turned positive in 2024, this has been volatile over the years.40
Negative
Balance Sheet
The company's balance sheet shows a strong equity ratio and low debt-to-equity ratio, suggesting good financial stability. However, the decrease in stockholders' equity over recent years could be a concern for long-term sustainability. Return on Equity turned positive in 2024, but this metric has been inconsistent historically.55
Neutral
Cash Flow
Cash flow analysis reveals negative free cash flow, although the company has managed a positive investing cash flow, likely from asset sales or investments. The operating cash flow to net income ratio is negative, suggesting that core operations are not generating sufficient cash.60
Neutral
| Breakdown | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 4.32M | 3.33M | 2.09M | 9.98M | 8.34M |
| Gross Profit | 4.32M | -1.60M | -150.34M | -100.49M | 8.34M |
| EBITDA | 37.38M | -11.63M | -52.19M | -46.95M | 62.69M |
| Net Income | 53.51M | -65.70M | -37.06M | -62.71M | 4.57M |
Balance Sheet | |||||
| Total Assets | 602.63M | 693.97M | 702.65M | 946.01M | 989.99M |
| Cash, Cash Equivalents and Short-Term Investments | 367.31M | 327.14M | 350.10M | 465.71M | 403.88M |
| Total Debt | 22.36M | 25.34M | 46.87M | 52.02M | 76.62M |
| Total Liabilities | 194.70M | 235.74M | 155.06M | 361.86M | 336.45M |
| Stockholders Equity | 414.71M | 464.07M | 542.22M | 593.51M | 669.75M |
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 Flow | 240.89M | 68.99M | -107.22M | 197.38M | 364.48M |
| Financing Cash Flow | -16.96M | 78.14M | -29.83M | 22.73M | 38.87M |
PureTech Health Technical Analysis
Negative
18.28
Price Trends
18.39
Positive
17.83
Positive
18.81
Negative
Market Momentum
0.17
Positive
50.23
Neutral
38.45
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For PRTC, the sentiment is Negative. The current price of 18.28 is below the 20-day moving average (MA) of 18.66, below the 50-day MA of 18.39, and below the 200-day MA of 18.81, indicating a neutral trend. The MACD of 0.17 indicates Positive momentum. The RSI at 50.23 is Neutral, neither overbought nor oversold. The STOCH value of 38.45 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for 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 |
|---|---|---|---|---|---|---|---|
74 Outperform | $707.58M | 16.74 | 20.50% | ― | 2333.50% | ― | |
60 Neutral | $625.54M | ― | -204.78% | ― | 44.92% | -40.06% | |
59 Neutral | $435.12M | 8.66 | 11.96% | ― | 43.67% | ― | |
57 Neutral | $749.36M | ― | -73.95% | ― | 12.04% | -31.81% | |
54 Neutral | $630.76M | ― | -49.91% | ― | -14.16% | 25.88% | |
51 Neutral | $7.39B | 0.40 | -62.86% | 2.37% | 15.56% | -1.99% | |
49 Neutral | $425.48M | ― | -48.98% | ― | -9.95% | 20.78% |
* Healthcare Sector Average
Performance Comparison
PRTC
PureTech Health
18.58
-2.42
-11.52%
EYPT
EyePoint Pharmaceuticals
10.89
1.73
18.89%
ZVRA
Zevra Therapeutics
11.44
4.05
54.80%
AUTL
Autolus Therapeutics
2.37
-1.27
-34.89%
STOK
Stoke Therapeutics
12.96
-1.18
-8.35%
ABSI
AbSci
2.95
-0.82
-21.75%
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.