[Management View]
PureTech Health reported a robust cash position of nearly $320 million as of Q2 2025, with operating expenses reduced to under $50 million for the first half of 2025, down from $66.7 million in the same period of 2024. This reduction is attributed to the spinout of Seaport Therapeutics. The company holds a 35.1% equity stake in Seaport and is entitled to tiered royalties and milestone payments. PureTech's core founded entities, Gallop Oncology and Celea Therapeutics, remain 100% owned but are seeking external funding to transfer R&D costs off PureTech’s balance sheet.

[Outlook]
PureTech anticipates an end-of-Phase II FDA meeting for LYT-100 by the end of Q3 2025, with Phase III initiation targeted for the first half of 2026. Gallop Oncology's LYT-200 is expected to report top-line efficacy results in Q4 2025, with additional data in the first half of 2026. The company plans to appoint up to two new nonexecutive directors with U.K. capital markets expertise to strengthen its board.

[Financial Performance]
Year-over-year, operating expenses decreased from $66.7 million in H1 2024 to just under $50 million in H1 2025, reflecting the impact of Seaport's spinout. The cash position decreased from over $366 million at the end of 2024 to just under $320 million at the end of H1 2025.

[Q&A Highlights]
Question 1: Can you provide a breakdown of the $49 million operating costs for H1 2025, particularly for Celea and Gallop?
Answer: The majority of the R&D spend is attributed to Celea and Gallop. As these entities secure external funding, their R&D costs will move off PureTech’s balance sheet, further reducing expenses.

Question 2: Will external financings for Gallop and Celea positively impact your cash runway?
Answer: Yes, external financings will extend the cash runway as R&D spend moves to independent entities. The exact contributions to these financings will be disclosed upon completion.

Question 3: Is the trial design for Celea's Phase III something partners need to review?
Answer: The trial design is crucial and ties closely to financing. We are confident in the design but need FDA alignment, which is a key data point for funders.

Question 4: What causes the variability in the early years of Cobenfy's economic trajectory?
Answer: The variability is due to milestone payments, which are influenced by sales projections. We are more bullish internally than consensus forecasts.

Question 5: What are the key variables to discuss with the FDA regarding LYT-100's Phase III trial design?
Answer: The briefing book for the Phase III trial design has been submitted to the FDA. The discussions will focus on classical questions for Phase III trials, and details will be shared post-FDA confirmation.

Question 6: When should investors expect disclosure of pipeline activities beyond LYT-100 and LYT-200, and is business development still possible to expand the pipeline?
Answer: We are continually exploring new opportunities and will disclose promising assets when they are ready for material capital investment.

Question 7: Is there a preference for the format of partnering Celea?
Answer: We look for the best cost of capital, typically through equity contributions from external parties, but remain open to other structures depending on terms offered.

Question 8: Can you explain the mechanics behind the early-year fluctuations in the Cobenfy economics?
Answer: The fluctuations are due to milestone arrangements with multiple parties, which are commercially confidential. These are influenced by sales projections, and we are more optimistic than consensus forecasts.

Question 9: Can current PureTech shareholders participate in the financing of the spokes?
Answer: Financing is typically conducted as private rounds with institutional investors, so not all PureTech shareholders can participate directly. However, they benefit from ownership through PureTech's retained interests.

Question 10: When will a permanent CEO be appointed?
Answer: Rob Lyne is currently serving as the interim CEO, and the Board is considering the timeline for appointing a permanent CEO.

Question 11: Can you provide any details on recent strategic interest in the company?
Answer: The Board has a fiduciary obligation to consider any offers, but we cannot provide specific details on recent approaches.


- Cash position: Just under $320 million in cash, cash equivalents, and short-term investments as of Q2 2025, with a self-funding operational runway well into 2028.
- Operating expenses: Totaled just under $50 million for H1 2025, down from $66.7 million in H1 2024, due to Seaport's spinout.
- Seaport Therapeutics stake: 35.1% equity stake, with tiered royalties (3%-5%) and milestone payments.
- Cobenfy economics: 2% royalties on annual sales exceeding $2 billion, with potential value of approximately $300 million through 2033 based on consensus analyst forecasts.
- Gallop Oncology and Celea Therapeutics: 100% owned by PureTech, seeking external funding to transfer R&D costs off PureTech’s balance sheet.

[Outlook]
- End-of-Phase II FDA meeting for LYT-100 anticipated at the end of Q3 2025, with Phase III initiation targeted for the first half of 2026.
- Gallop Oncology's LYT-200 expected to report top-line efficacy results in Q4 2025, with additional data in the first half of 2026.
- Up to two new nonexecutive directors with U.K. capital markets expertise will be appointed to strengthen PureTech’s board.

[Financial Performance]
- Operating expenses for H1 2025: Just under $50 million, down from $66.7 million in H1 2024.
- Cash position: Just under $320 million as of Q2 2025, down from over $366 million at the end of 2024.


Question 1: Can you give an idea of the proportion of the $49 million operating costs attributed to Celea and Gallop?
Answer: The majority of the R&D spend is attributed to Celea and Gallop. As these entities secure external funding, their R&D costs will move off PureTech’s balance sheet, further reducing expenses.

Question 2: Will external financings for Gallop and Celea positively impact your cash runway?
Answer: Yes, external financings will extend the cash runway as R&D spend moves to independent entities. We are currently structuring these financings and will provide clarity on future cash burn and cash pile post-financings once completed.

Question 3: Is the trial design for Celea's Phase III something partners need to review?
Answer: The trial design is crucial and ties closely to financing. We are confident in the design but need FDA alignment, which is a natural data point for funders before committing funds.

Question 4: Can you explain the mechanics behind the early-year fluctuations in the Cobenfy economics?
Answer: The fluctuations are due to milestone payments, which are influenced by sales projections. We are more bullish internally than consensus forecasts, and BMS's $15 billion acquisition of Karuna indicates their confidence in significant future sales.

Question 5: Can you share the exact capital structure and economic interest in Seaport?
Answer: We have a 35.1% equity position in Seaport, with tiered royalties and milestone payments. The Series B post-money valuation was $733 million, led by top-tier investors.

Question 6: What are the key variables to discuss with the FDA regarding LYT-100's Phase III trial design?
Answer: The briefing book for the Phase III trial design has been submitted to the FDA. Discussions will focus on classical questions for Phase III trials, and details will be shared post-FDA confirmation.

Question 7: When should investors expect disclosure of pipeline activities beyond LYT-100 and LYT-200? Is BD still possible to expand the pipeline?
Answer: We are continually looking at new opportunities for innovation and will disclose promising assets when they are ready for material capital investment.

Question 8: Is there a preference for the format of partnering Celea?
Answer: We look at where the best cost of capital comes from, typically through equity contributions from external parties. We are open to other forms of capital depending on terms offered.

Question 9: Can current shareholders participate in the financing of the spokes?
Answer: Financing is typically conducted as private rounds with institutional investors, so not all PureTech shareholders can participate directly. However, they benefit from ownership through PureTech.

Question 10: When will a permanent CEO be appointed?
Answer: Rob is currently the interim CEO, and the Board is considering the timeline for appointing a permanent CEO.

Question 11: Can you provide details on recent strategic interest in the company?
Answer: The Board has a fiduciary obligation to consider any offers, but we cannot provide further details on recent approaches.

[Sentiment Analysis]
1. Management expressed confidence in the company's financial position and strategic direction, emphasizing the strength of their hub-and-spoke model and the potential of their core founded entities.
2. Analysts showed interest in the company's cost management and future financing plans, with a positive tone towards the potential of the core programs and the Cobenfy economics.

Metric	Q2 2024	Q2 2025
Cash Position	$366 million	$320 million
Operating Expenses (H1)	$66.7 million	$49 million

1. The company faces inherent risks associated with drug development, including the potential for projects to not yield promising results, which could lead to discontinuation.
2. The success of external financings for Gallop Oncology and Celea Therapeutics is crucial for extending the cash runway and reducing R&D expenses on PureTech's balance sheet.
3. The potential value of Cobenfy's future economics is based on third-party forecasts and is subject to commercial confidentiality, which may lead to uncertainty among shareholders.


PureTech Health has demonstrated a strong financial position with a significant cash reserve and reduced operating expenses, ensuring a stable operational runway into 2028. The company's hub-and-spoke model continues to drive value creation, with core founded entities like Gallop Oncology and Celea Therapeutics poised for external funding and further development. The management's confidence in the potential of deupirfenidone and LYT-200, along with the strategic focus on U.K. capital markets, positions PureTech for long-term growth and shareholder value. However, the company must navigate the inherent risks of drug development and secure external funding to maintain its financial stability and achieve its strategic priorities.