PureTech Health (PRTC) Jefferies Global Healthcare Conference summary

Strategic R&D model and financial strength

• Employs a hub-and-spoke R&D model, enabling risk mitigation, capital efficiency, and self-funding through diversified programs and external investment.

• Achieved 80% clinical trial success rate, with 29 therapeutics and candidates generated, including two FDA-cleared programs and a third (KarXT) under FDA review.

• Founded entities have raised over $3.8 billion, with 96% from third parties, supporting a strong balance sheet with $573 million in cash as of March 31, 2024.

• No shareholder dilution or capital raise in over six years, maintaining financial flexibility for patient benefit and shareholder returns.

• Capital allocation prioritizes at least three years of operating cash, support for internal and external programs, and shareholder returns, including $150 million returned via buybacks and tender offers.

Pipeline highlights and clinical progress

• LYT-100 (deupirfenidone) targets idiopathic pulmonary fibrosis (IPF), aiming to improve safety and efficacy over current treatments, with phase IIb results expected in Q4 2024.

• LYT-200, an anti-galectin-9 antibody, is in trials for hematological malignancies and solid tumors, showing favorable safety and early clinical activity; further data expected this year.

• Seaport Therapeutics was spun out to advance CNS assets using the Glyph platform, which enables oral bioavailability and reduced hepatotoxicity for drugs; $100 million Series A raised.

• Gallop Oncology, focused on oncology, is maturing clinical data in head and neck cancer and AML/MDS, with potential for future independent funding.

Monetization and value creation

• Monetized a 3% royalty on KarXT with Royalty Pharma, receiving $100 million upfront and up to $400 million in milestones, plus 2% royalty on sales above $2 billion.

• Retains economic interest in Seaport Therapeutics through milestones and royalties on multiple assets.

• Ongoing evaluation of further capital returns to shareholders based on future monetization events.