PureTech Health plc Q2 FY2024 earnings call

• Pioneered the hub - and - spoke R&D model, which is resource - efficient, diversifies risk, and offers funding optionality. - Karuna was acquired by Bristol - Myers Squibb for $14 billion, with PureTech generating significant returns from it. - Completed enrollment in the Phase IIb clinical trial of LYT - 100 for IPF, on track for year - end readout. - Launched Seaport Therapeutics with a $100 million oversubscribed Series A financing. - Has a strong balance sheet with $400.6 million in cash, cash equivalents, and short - term investments as of June 30, 2024, and has returned $150 million to shareholders. - Focuses on advancing internally - owned programs like LYT - 100 and LYT - 200 through key milestones and on sourcing new innovations.

PureTech operates a hub - and - spoke R&D model. The hub is its core drug discovery engine, and spokes are founded entities. Key programs include LYT - 100 in idiopathic pulmonary fibrosis (IPF), LYT - 200 in oncology, and Seaport Therapeutics in the central nervous system (CNS). Financial performance is linked to the success of these programs and the monetization of founded entities.

• Anticipates having approximately $330 million in cash, cash equivalents, and short - term investments at the end of 2024, inclusive of an expected $40 million tax payment. - Will continue to evaluate opportunities to return capital to shareholders. - Focuses on sourcing new innovations for the future, aiming to select up to two programs per year. - Will fund existing 100% owned programs such as LYT - 100 and LYT - 200 through their key milestones.

• Forward - looking statements are subject to various risks, uncertainties, and assumptions that could cause actual results to differ materially from expectations. - Risks related to clinical trial outcomes, regulatory approvals, and market acceptance of programs.

Q: Is it possible to provide any guidance on the cash burn and expected cash runway of Seaport?

A: Seaport is an independently operating company, so we are not at liberty to discuss their cash burn on an ongoing basis.

Q: The tax amount of $40 million owed on Karuna seems a little less than we were anticipating. So I just wanted to confirm that this is the only tax owed this year?

A: Based on the proceeds from the BMS transaction for Karuna Therapeutics, we are projecting to pay approximately $40 million in taxes this year, with offsets available to some extent.

Q: Comment on the characteristics of patients in the LYT - 100 Phase IIb study and potential Phase III design?

A: The study design is in line with other IPF studies. The Phase III design will be data - driven from the Phase IIb results.

Q: How is early research work prioritized and how is restocking the wholly - owned pipeline vs advancing programs through founded entities considered?

A: We are capital - efficient and selective in initiating programs. Founded entities receive financial support as needed, with equity and also have milestones and product royalty arrangements that can bring cash back to PureTech.

Q: What is the status of Gallop's syndication?

A: We are waiting for the data to mature to decide on syndication.

Q: If the data of LYT - 100 is good, what is the default for its progress, internally or partnering?

A: We have optionality. We could consider synthetic royalty arrangements, partnering outside the US, raising money, etc., depending on what maximizes value for shareholders.