The initial fall in PureTech's (PTRC) shares following these results suggested shareholders might be calling for what broker Numis calls "value realisation" this year. Although the strategy will be clearer following a capital markets day in May, management says it's busy progressing several projects - some via subsidiary companies - through the development pipeline.
At PureTech, different projects are assigned categories depending where they sit in the development chain: programmes start at the concept stage, before moving into the project stage and the growth stage. Last year the company advanced four programmes - anti-inflammatory technology Alivio, paediatric-focused Commense, voice-based technology Sonde and music-as-medicine programme The Sync Project - from the project to growth stage. It's at this point projects take on a tangible valuation: at the year-end PureTech's total asset value stood at $572m (£458m), although this excludes 15 more embryonic programmes.
The group attracted $98m worth of funding from external partners last year, including Amgen and Merck's venture capital arms, although it still retains an average 72 per cent stake in all of its programmes.
Analysts at Peel Hunt expect statutory losses to widen to $102m for the year ending December 2017.
| PURETECH HEALTH (PRTC) | ||||
|---|---|---|---|---|
| ORD PRICE: | 116p | MARKET VALUE: | £276m | |
| TOUCH: | 115-117p | 12-MONTH HIGH: | 170p | LOW: 110p |
| DIVIDEND YIELD: | nil | PE RATIO: | na | |
| NET ASSET VALUE: | 75p | NET CASH: | $282m | |
| Year to 31 Dec | Turnover ($m) | Pre-tax profit ($m) | Earnings per share (p) | Dividend per share (p) |
|---|---|---|---|---|
| 2012 | 8.0 | -10.8 | -17.0 | nil |
| 2013 | 8.5 | -5.3 | -7.0 | nil |
| 2014 | 2.2 | -76.2 | -51.0 | nil |
| 2015 | 11.8 | -56.3 | -21.0 | nil |
| 2016 | 4.4 | -83.2 | -21.0 | nil |
| % change | -63 | - | - | - |
Ex-div:na Payment:na £1=$1.25 | ||||
