Puretech Health’s (PRTC) top line advanced by more than half in the six months to June, as its internal segment secured new agreements with both Roche (ROG:CH) and Boehriner Ingelheim. The group, which develops early-stage biotherapeutic products, saw its operating loss narrow by a quarter year on year to $52.8m (£40m).
The company has two key product launches ahead: its affiliate Gelesis is ramping up for the release of Plenity, a ‘weight management’ drug, which was approved in the US last year. Puretech expects that it will launch fully in 2021. In June, its affiliate Akili secured clearance from the Food and Drug Administration (FDA) in the US for a prescription treatment for children with attention-deficit/hyperactivity disorder (ADHD) called EndeavorX, which it anticipates will hit the American market soon.
Product development still appears strong: in its wholly owned pipeline, the company has a clinical-stage product candidate, as well as two preclinical product candidates. Elsewhere, the company again sold part of its stake in Karuna for $101m, which helped its cash reserves grow by $190m.
Puretech also noted that it is now actively advancing a potential listing on Nasdaq, which would see new common shares issued onto the US exchange on top of its existing listing in the UK.
Broker Peel Hunt forecasts an adjusted pre-tax loss of $139m and losses per share of 15.5¢ in 2020.
| PURETECH (PRTC) | ||||
| ORD PRICE: | 271p | MARKET VALUE: | £774m | |
| TOUCH: | 271-273p | 12-MONTH HIGH: | 336p | LOW: 200p |
| DIVIDEND YIELD: | na | PE RATIO: | 2 | |
| NET ASSET VALUE: | 274¢ | NET CASH: | $303m | |
| Half-year to 30 Jun | Turnover ($m) | Pre-tax profit ($m) | Earnings per share (¢) | Dividend per share (¢) |
| 2019* | 4.39 | 56.3 | 26.0 | nil |
| 2020 | 6.84 | 175 | 43.0 | nil |
| % change | +56 | +210 | +65 | - |
| Ex-div: | na | |||
| Payment: | na | |||
| £1=$1.32 *Restated | ||||
