PureTech Health Cash Runway Extended

PureTech Health(NASDAQ:PRTC) reported its second quarter 2025 earnings on Aug. 28, 2025, highlighting a cash balance of just under $320 million at the end of the first half of 2025, a reduction in consolidated operating expenses to $50 million from $66.7 million year-over-year in the first six months of 2025, and a sharpened focus on three core spinout entities: Seaport Therapeutics, Gallop Oncology, and Celea Therapeutics. Management disclosed the external Series B valuation for Seaport Therapeutics of $733 million, presented third-party forecast modeling for future Cobenfy (KarXT) royalty revenues, potentially totaling $300 million through 2033 based on consensus analyst projections; this figure is a non-IFRS (non-GAAP) measure, and detailed progress on clinical milestones and financing plans across the portfolio.Following the spinout of Seaport Therapeutics in April 2024 and ongoing structural changes, the majority of operating and research and development (R&D) spending in the first half of 2025 is directed toward Celea Therapeutics and Gallop Oncology, which remain 100% owned but are actively moving toward independent external funding. Actual consolidated cash, cash equivalents, and short-term investments fell from $367 million at fiscal year 2024 (ended Dec. 31, 2024) to just under $320 million at the end of the first half of 2025 (as reported under GAAP), driven primarily by R&D spending on these two entities.The transition of R&D and operating expenses off the parent balance sheet is expected to extend PureTech Health’s cash runway beyond its current guidance of well into 2028, depending on the timing of external funding for portfolio entities, reducing future dilution risk.Continue readingWeiter zum vollständigen Artikel bei MotleyFool Weiter zum vollständigen Artikel bei MotleyFool