9th Apr 2020 12:54
(Alliance News) - PureTech Health PLC on Thursday reported a swing to profit for 2019 as it expressed confidence in its ability to weather the Covid-19 pandemic.
The stock was trading 3.8% higher at 254.18 pence each on Thursday afternoon in London.
For 2019, the biotherapeutics firm posted pretax profit of USD478.5 million, swinging from a loss of USD68.4 million the year prior. Revenue was USD9.8 million, down 53% from USD20.7 million reported for 2018.
The profit resulted from exceptional gain realised from the de-consolidation of its holdings in Akili, Vor, Karuna and Gelesis, totalling USD264.4 million. Additionally, in December, the company realised a USD445.6 million gain on Karuna. In January, it sold USD200 million worth of Karuna shares to US investment bank Goldman Sachs Group Inc.
PureTech's operating loss widened to USD135.4 million in 2019 from USD104.0 million in 2018.
Finance costs rose to USD46.5 million from USD22.6 million in 2018 due to an increase in fair value of the company's investments in Follica, Sonde and Vedanta and Gelesis during the period of consolidation, as well as Sonde's and Vedanta's preferred share issuances during the year.
PureTech said that during 2019, it strengthened its wholly owned internal pipeline centred on the lymphatic system and related immunological disorders.
"Across our wholly-owned pipeline and our founded entities, we now have one Food & Drug Administration-cleared product and 23 product candidates, all of which potentially address major healthcare needs. 14 of these candidates are clinical-stage, and we anticipate at least seven readouts and ten initiations over the course of 2020," said Chief Executive Daphne Zohar.
Looking ahead, PureTech Health said there has been no significant delay to its work caused by Covid-19 as of Wednesday but noted that the strain on the global healthcare system may hurt its timelines in the future. However it highlighted it has a strong cash position to see it beyond the period of uncertainty.
"We saw the value of our innovation recognized when the positive results from Karuna's Phase 2 study of KarXT generated over several hundred million dollars in value for PureTech. We were able to monetise a portion of that stake in January 2020, resulting in USD200.9 million in proceeds and extending our cash runway into the first quarter of 2024, while still maintaining 20.3% share and the right to receive royalties," Zohar added.
As at the end of December, PureTech had cash of USD321.5 million.
By Ife Taiwo; [email protected]
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