PureTech’s (PRTC) shares found favour with the market as the pharmaceutical group swung to a pre-tax profit on the back of a $264m ($212m) deconsolidation gain in 2019. But the group, which develops early-stage biotherapeutic products, saw its operating loss widen by 28 per cent to $135m on increased admin and R&D expenses. Total sales dropped by more than half, led by a 47 per cent plummet in contract revenues to $8.6m.
Management said that it had not seen an effect to date from the market turmoil caused by coronavirus, but anticipates that the immediate strain on global healthcare may affect timelines. Still, the group ended the year with a healthy cash pile, having deconsolidated some of its affiliates: including Gelesis, Vor and Karuna. Indeed by partially monetising its stake in Karuna, the group added $200.9m this January.
The company maintains a strong pipeline, with one FDA-approved drug and 23 product candidates, 14 of which are at the clinical testing stage. PureTech noted that Gelesis’ product Plenity, an “approach to weight management”, is approaching commercialisation following its approval in the US last year.
PureTech said that it is still considering listing on Nasdaq, which would see new common shares issued onto the US exchange on top of its existing listing in London.
Peel Hunt forecasts an adjusted earnings loss of 33.7¢ per share this year, rising to negative 34.8¢ in 2021.
| PURETECH (PRTC) | ||||
| ORD PRICE: | 261p | MARKET VALUE: | £ 745m | |
| TOUCH: | 250-270p | 12-MONTH HIGH: | 339p | LOW: 162p |
| DIVIDEND YIELD: | na | PE RATIO: | 2 | |
| NET ASSET VALUE: | 234¢ | NET CASH: | $125m* | |
| Year to 31 Dec | Turnover ($m) | Pre-tax profit ($m) | Earnings per share (¢) | Dividend per share (¢) |
| 2015 | 11.8 | -56.3 | -21.0 | nil |
| 2016 | 4.40 | -83.2 | -21.0 | nil |
| 2017 | 2.50 | -70.7 | 11.0 | nil |
| 2018 | 20.7 | -68.4 | -16.0 | nil |
| 2019 | 9.81 | 478 | 149 | nil |
| % change | -53 | - | - | - |
| Ex-div: | na | |||
| Payment: | na | |||
| £1=$1.247. *Includes lease liabilities of $37.8m, but excludes $101m in conv. prefs. held by subsidiary | ||||
