PureTech Health plc Q4 FY2023 earnings call

• PureTech operates a hub-and-spoke R&D model where the hub is the core R&D engine, and Founded Entities are spokes. This model ensures efficient progression of promising medicines, external validation, concentration of expertise, diversified portfolio, and capital return to PureTech. • 2023 was a strong year with over 80% of clinical trials successful since 2009, a robust pipeline including 29 therapeutics, and Karuna’s KarXT filed for FDA approval. • PureTech’s cash position was strong, ending 2023 with $326 million in cash, cash equivalents, and short-term investments. • Capital allocation strategy includes $100 million tender offer for shareholder returns, funding Founded Entities and internal programs like LYT-100 and LYT-200, and sourcing new innovations with up to 2 programs per year. • Key programs: LYT-100 in Phase 2b trial for IPF with results expected in Q4 2023; LYT-200 advanced by Gallup Oncology, granted orphan drug and fast track designations.

No specific product segments with financial performance and revenue contribution % discussed as the transcript focuses on the overall business model rather than product segment-wise financials.

• Announced a $100 million tender offer to be launched in early May, aiming to return capital to shareholders. • Intend to maintain a cash runway of at least 3 years to support internal programs, Founded Entities, and operational needs. • Plan to fund existing programs in which they maintain 100% ownership, like LYT-100 and LYT-200, through key milestones. • Anticipate selecting up to 2 new programs per year, with initial spend being program-specific.

Q: How might we think about the rate of returns moving forward and how dependent it is on new capital realization events and macroeconomic backdrop?

A: PureTech is committed to returning capital to shareholders, having completed a $50 million share buyback and announcing a $100 million tender offer. The Board will assess ongoing opportunities for capital returns from future monetization events while maintaining cash runway and operational flexibility. Macroeconomic backdrop is considered but the focus remains on shareholder return commitment.

Q: On LYT-200, what is the bar for data coming up this year determining external investment and minimum ownership level in Founded Entities?

A: For LYT-200, the Phase 1b trial focuses on safety as the primary endpoint, with looking for drug activity signals. Regarding ownership in Founded Entities, it's case-by-case depending on catalyzing future financing rounds, number of programs, capital required, and value inflection points. An example is Karuna where PureTech had a 32% ownership stake post-IPO.