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PureTech Health (PRTC)
NASDAQ:PRTC
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PureTech Health
(NASDAQ:PRTC)
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Rating:55Neutral
Price Target:
$16.00
▼(-8.99% Downside)
PureTech Health's overall stock score reflects a mixed financial performance with a strong balance sheet but operational inefficiencies. Technical analysis indicates bearish momentum, while valuation suggests potential undervaluation. The earnings call provided a balanced outlook with strong cash reserves but highlighted challenges in external financing and leadership transitions.
Positive Factors
Strong Cash Position
A robust cash position enhances financial stability, allowing for strategic investments and operational resilience, supporting long-term growth.
Progress in Core Founded Entities
Advancements in core entities indicate strong R&D capabilities and potential for future revenue streams, reinforcing competitive positioning.
Successful Financing of Seaport Therapeutics
Successful financing rounds reflect investor confidence and provide capital to advance key projects, supporting long-term strategic goals.
Negative Factors
Dependence on External Financing
Reliance on external funding can lead to financial uncertainty and potential dilution, impacting long-term financial health and shareholder value.
Leadership Transition
Leadership changes can disrupt strategic direction and execution, potentially affecting company performance and investor confidence over time.
Operational Inefficiencies
Operational inefficiencies can hinder profitability and growth, requiring strategic adjustments to improve long-term operational performance.
PureTech Health (PRTC) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$418.72M
Dividend YieldN/A
Average Volume (3M)4.02K
Price to Earnings (P/E)9.7
Beta (1Y)0.44
Revenue Growth1268.81%
EPS GrowthN/A
CountryUS
Employees80
SectorHealthcare
Sector Strength45
IndustryBiotechnology
Share Statistics
EPS (TTM)-1.90
Shares Outstanding24,168,404
10 Day Avg. Volume1,390
30 Day Avg. Volume4,023
Financial Highlights & Ratios
PEG Ratio-0.05
Price to Book (P/B)1.20
Price to Sales (P/S)103.10
P/FCF Ratio-3.70
Enterprise Value/Market Cap0.39
Enterprise Value/Revenue28.12
Enterprise Value/Gross Profit8.30
Enterprise Value/Ebitda2.97
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusModerate Buy
Number of Analyst Covering0
EPS Forecast (FY)N/A
Revenue Forecast (FY)N/A
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 several key streams, including licensing agreements, collaborations, and equity stakes in its pipeline companies. The company often partners with larger pharmaceutical firms to co-develop its products, which provides upfront payments and milestone payments tied to the success of the development process. Additionally, PureTech may earn royalties on sales generated from products developed through these collaborations. Its significant investments in its subsidiaries and joint ventures also contribute to potential future revenues as these entities progress towards commercialization.
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 highlighted PureTech's strong cash position and operational efficiency, progress in core founded entities, and strategic financing with promising valuation for Seaport Therapeutics. However, there are challenges with the need for ongoing external financing for core entities and leadership transitions. The overall sentiment is balanced with strong positive aspects but also significant challenges.Q2-2025 Updates
Positive Updates
Strong Cash Position and Operational Efficiency
PureTech ended the half year with just under $320 million in cash, cash equivalents, and short-term investments. Operating expenses reduced from $66.7 million in the same period last year to just under $50 million, demonstrating efficient operations.
Successful Financing and Valuation of Seaport Therapeutics
Seaport Therapeutics, a core founded entity of PureTech, raised over $325 million with a $733 million post-money valuation during its Series B round.
Progress in Core Founded Entities
Significant progress in Celea Therapeutics, Gallop Oncology, and Seaport Therapeutics with promising data in IPF and cancer treatments. Notable FDA designations for LYT-200 in Gallop Oncology.
Significant Potential from Cobenfy Royalties
PureTech holds a 2% royalty on Cobenfy sales above $2 billion annually, with potential milestones projecting around $300 million in value based on analyst forecasts.
Negative Updates
Dependence on External Financing for Core Entities
Celea Therapeutics and Gallop Oncology require external funding to advance their programs, leaving some uncertainty about future financing structures and potential dilution.
Leadership Transition and Interim Management
PureTech is currently under interim leadership with Robert Lyne as Interim CEO, following recent management changes and the departure of the previous Chair.
Company Guidance
During the PureTech Health 2025 Half Year Earnings Webcast, the company provided guidance focusing on three key strategic pillars: developing new treatments with patient-centered urgency, strengthening engagement with U.K. capital markets, and maintaining a disciplined capital allocation approach. PureTech highlighted its promising lead program, deupirfenidone (LYT-100), significant progress in clinical trials, and the potential to deliver long-term value for patients and shareholders. The company also discussed its hub-and-spoke model, exemplified by the success of Karuna Therapeutics, which involved an $18.5 million initial investment leading to a significant financial return. Additionally, PureTech announced plans to appoint up to two new nonexecutive directors to strengthen its board with U.K. capital markets expertise. The interim CEO, Robert Lyne, emphasized their focus on operational discipline and leveraging external capital to fund new entities like Seaport Therapeutics, Gallop Oncology, and Celea Therapeutics, aiming to extend the operational runway well into 2028 with a strong cash position of just under $320 million.PureTech Health Financial Statement Overview
Summary
PureTech Health's financial performance is mixed. The company shows a strong balance sheet with low leverage, but income and cash flow statements highlight operational inefficiencies. The transition to positive net income in 2024 is promising, but 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.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.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.| Breakdown | TTM | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 5.88M | 4.83M | 3.33M | 2.09M | 9.98M | 8.34M |
| Gross Profit | 19.91M | 1.26M | -1.60M | -136.81M | -100.49M | 8.34M |
| EBITDA | 55.73M | 37.38M | -11.63M | -188.91M | 26.70M | 62.69M |
| Net Income | 50.68M | 53.51M | -65.70M | -50.35M | -60.56M | 5.99M |
Balance Sheet | ||||||
| Total Assets | 553.24M | 602.63M | 693.97M | 702.65M | 946.01M | 989.99M |
| Cash, Cash Equivalents and Short-Term Investments | 321.55M | 367.31M | 327.14M | 350.10M | 465.71M | 403.88M |
| Total Debt | 20.92M | 22.36M | 25.34M | 46.87M | 52.75M | 76.62M |
| Total Liabilities | 184.22M | 194.70M | 235.74M | 155.06M | 361.86M | 336.45M |
| Stockholders Equity | 375.98M | 414.71M | 464.07M | 542.22M | 593.51M | 669.75M |
Cash Flow | ||||||
| Free Cash Flow | -100.31M | -134.38M | -106.16M | -180.97M | -163.94M | -137.25M |
| Operating Cash Flow | -100.30M | -134.37M | -105.92M | -178.79M | -158.27M | -131.83M |
| Investing Cash Flow | 31.89M | 240.89M | 68.99M | -107.22M | 197.38M | 364.48M |
| Financing Cash Flow | 18.51M | -16.96M | 78.14M | -29.83M | 22.73M | 38.87M |
PureTech Health Technical Analysis
Positive
17.58
Price Trends
16.81
Positive
17.14
Positive
17.50
Positive
Market Momentum
0.10
Negative
58.09
Neutral
63.83
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For PRTC, the sentiment is Positive. The current price of 17.58 is above the 20-day moving average (MA) of 16.98, above the 50-day MA of 16.81, and above the 200-day MA of 17.50, indicating a bullish trend. The MACD of 0.10 indicates Negative momentum. The RSI at 58.09 is Neutral, neither overbought nor oversold. The STOCH value of 63.83 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for PRTC.
PureTech Health Peers Comparison
UnderperformOutperform
Sector (51)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
55 Neutral | $418.72M | 9.65 | 14.55% | ― | 1268.81% | ― | |
54 Neutral | $740.96M | -6.04 | -43.15% | ― | ― | -2.74% | |
54 Neutral | $508.33M | -2.26 | -60.52% | ― | 407.86% | 30.35% | |
51 Neutral | $7.86B | -0.30 | -43.30% | 2.27% | 22.53% | -2.21% | |
49 Neutral | $517.28M | -3.80 | -55.68% | ― | -33.09% | 3.38% | |
47 Neutral | $442.24M | -2.46 | ― | ― | 6.35% | 39.57% | |
47 Neutral | $417.09M | -1.85 | -45.38% | ― | ― | ― |
* Healthcare Sector Average
PRTC
PureTech Health
17.58
0.09
0.50%
ATXS
Astria Therapeutics
12.98
5.52
73.99%
AUTL
Autolus Therapeutics
1.91
-0.39
-16.96%
ADCT
ADC Therapeutics
3.57
1.85
107.56%
FDMT
4D Molecular Therapeutics
7.30
2.54
53.36%
ABSI
AbSci
3.44
0.59
20.70%
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.