important information - jefferies...(acq by takeda $8.8b) & abgenix (acq by amgen $2.2b)...
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The following presentation, including any printed or electroniccopy of these slides, the talks given by the presenters, theinformation communicated during any delivery of the presentationand any question and answer session and any document ormaterial distributed at or in connection with the presentation(together, the "Presentation"), has been prepared by PureTechHealth plc (the "Company"). The information in the Presentationis not intended to form the basis of any contract. By attending(whether in person or by telephone) or reading the Presentation,you agree to the conditions set out below.THIS DOCUMENT AND THE PRESENTATION IS NOT APROSPECTUS. The Presentation does not constitute or form partof any offer or invitation to sell or issue, or any solicitation of anyoffer to purchase or subscribe for, any shares or other securitiesof the Company, nor shall it (or any part of it), or the fact of itsdistribution, form the basis of, or be relied on in connection with oract as any inducement to enter into, any contract whatsoeverrelating to any securities.This document and the Presentation contain statements that areor may be forward-looking statements. These statements arebased on our management’s current beliefs, expectations andassumptions about future events, conditions and results, and oninformation currently available to us. This document and thePresentation also contain estimates and other statistical datamade by independent parties and by us relating to market sizeand growth and other data about our industry. This data involvesa number of assumptions and limitations, and you are cautionednot to give undue weight to such estimates. In addition,
projections, assumptions and estimates of our future performanceand the future performance of the markets in which we operateare necessarily subject to a high degree of uncertainty and risk.All statements other than statements of historical facts included inthis document may be forward-looking statements, includingstatements that relate to the Company's future prospects,developments and strategies. Words such as “expect,”“anticipate,” “intend,” “plan,” “believe,” “seek,” “estimate,” “think,”“may,” “could,” “will,” “would,” “should,” “continue,” “potential,”“likely,” “opportunity” and similar expressions or variations of suchwords are intended to identify forward-looking statements, but arenot the exclusive means of identifying forward-looking statements.Additionally, statements concerning future matters such as ourexpectations of business and market conditions, development andcommercialization of new products, enhancements of existingproducts or technologies, and other statements regarding mattersthat are not historical are forward-looking statements. Suchstatements are based on currently available operating, financialand competitive information and are subject to various risks,uncertainties and assumptions that could cause actual results todiffer materially from those anticipated or implied in our forward-looking statements due to a number of factors including, but notlimited to:The Company’s business is subject to a number of risks anduncertainties. These risks are described in the Company’s mostrecent Annual Report and Accounts which can found on theCompany’s web site at http://puretechhealth.com/investors-reports-presentations.php.
Given these risks, uncertainties and other factors, many of whichare beyond our control, you should not place undue reliance onthese forward-looking statements.Each forward-looking statement speaks only as at the date of thisdocument. Except as required by law, we assume no obligationto update these forward-looking statements publicly, or to reviseany forward-looking statements to reflect events or developmentsoccurring after the date of this document, even if new informationbecomes available in the future.The Presentation is confidential and should not be distributed,published or reproduced (in whole or in part) or disclosed by itsrecipients to any other person for any purpose, other than with theconsent of the Company. The Presentation does not constitute orform part of an offer or invitation to issue or sell, or the solicitationof an offer to subscribe or purchase, any securities to any person.By accepting receipt of, attending any delivery of, or electronicallyaccessing, the Presentation, you agree to be bound by the abovelimitations and conditions and, in particular, you represent,warrant and undertake to the Company that: (i) you will notforward the Presentation to any other person, or reproduce orpublish this document, in whole or in part, for any purpose and (ii)you have read and agree to comply with the contents of thisnotice.
Important Information
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PureTech – developing differentiated medicines for serious diseasesTwo sources of value
3
Affiliates Internal R&D
FDA Cleared
Phase 1 Phase 2 Phase 3 / Pivotal FDA FilingPreclinical
BRAIN
IMMUNE
GUT
Clearance/Approval
All programs initiated by the PureTech team, in collaboration
with leading academics
Non-binary, entrepreneurial & capital efficient
After initial POC, develop internally or
through affiliate
Our science: the “BIG” axis
Science
PureTech – developing differentiated medicines for serious diseasesTwo sources of value
4*As of 31 December 2018
Affiliates(7 out of 10 affiliates are clinical stage)
Internal R&DTissue selective immunomodulation
7 clinical-stage programs with one FDA clearance
and one FDA filingPartnerships with 8 major
pharma companiesLSE Main Market /
FTSE-indexed (PRTC)$177.7M cash at PureTech level
+ $247.3M cash in Affiliates*
FDA Cleared
Phase 1 Phase 2 Phase 3 / Pivotal FDA FilingPreclinical
BRAIN
IMMUNE
GUT
Clearance/Approval
Committed to executionPureTech has achieved numerous significant milestones in the past 12 months
5Note: In 2018, PureTech’s affiliates attracted $274M in equity investments and non-dilutive funding, including $242M from third parties. In 2019, affiliates have attracted $169M in equity investments and non-dilutive funding (as of 6/4/19).
Regulatory Partnerships FDA clearance for PLENITYTM
(Gelesis100) FDA filing for AKL-T01 in pediatric ADHD
PRTC collaboration with Roche$36M in upfront payments, research support, and preclinical milestones & eligible to potentially receive $1B+ in development milestones, in addition to royalties
PRTC collaboration with Boehringer Ingelheim$26M in upfront payments, research support, and preclinical milestones & eligible to potentially receive $200M+ in milestones, in addition to royalties
Akili’s partnership with Shionogi$20M in upfront payments with the potential to receive milestone payments for Japan and Taiwan commercialization of up to an additional $105M, in addition to royalties
Alivio’s partnership with Purdue Pharma$14.75M in upfront and near-term license exercise payment & eligible to potentially receive$260M+ in research and development milestones, in addition to royalties
Financings
R&D Pivotal data for Gelesis100 published in
Obesity Vedanta’s Nature publication for its IO
candidate, VE800 Vedanta’s IO collaboration with BMS Successful Phase 1a/1b for Vedanta’s
VE303 (rCDI) Phase 2b results for resTORbio’ RTB101
(RTIs) Presentations on PureTech’s LYT-200 and
LYT-210 at AACR PRTC programs published in Nature and
Nature Communications Five clinical stage trial initiations
Karuna’s Series A and B financings, totaling $124MKey investors include ARCH Venture Partners, Fidelity, Eventide, Pivotal bioVenture Partners, Partner Fund
Akili’s $68M Series C financingKey investors include Temasek, Amgen Ventures, JAZZ, M Ventures
Vor’s $42M Series A financingKey investors include 5AM Ventures, RA Capital Management, JJDC, NIBR
Vedanta’s $45.5M Series C financingKey investors include Bill & Melinda Gates Foundation, BMS, Rock Springs Capital
Sonde’s $16M Series A financingKey investors include M Ventures, MP Healthcare Venture Management, Neoteny 4
Team with proven track record of developing new therapeutics and building shareholder value
6
Board of Directors
Eric Elenko, PhD Co-founder & Chief Innovation OfficerPureTech HealthFormerly McKinsey, UCSD
Executive Team
Bharatt Chowrira, PhD, JD President & Chief of Business PureTech HealthFormer COO Auspex (acq by Teva $3.5B), SIRNA (acq by Merck $1.1B), Nektar ($5B+ MC)
Daphne Zohar Founder & Chief Executive Officer PureTech Health, Board Member; Recognized as a top leader and innovator in biotechnology by EY, BioWorld, Scientific American, and others
Joseph Bolen, PhD Chief Scientific Officer PureTech HealthFormer CSO Millennium (acq by Takeda $8.8B), Moderna
Joep Muijrers, PhDChief Financial Officer PureTech HealthFormer Portfolio Manager at LSP – generated 900%+ return (2x of NBI during same period)
Stephen Muniz, Esq. Co-founder & Chief Operating Officer PureTech Health & Board MemberFormer Partner Locke Lorde
Robert Horvitz, PhD MIT, HHMI, Nobel Prize in Medicine(PureTech SAB Chair & Board Advisor)
Joi Ito MIT Media Lab Director and early investor in Twitter, Kickstarter
Dame Marjorie Scardino Former CEO Pearson, MacArthur Foundation Chair, Twitter Board
Raju Kucherlapati, PhDHarvard, Co-Founder of Millennium (acq by Takeda $8.8B) & Abgenix (acq by Amgen $2.2B)
Christopher Viehbacher Former CEO & Board Member at Sanofi President & Board Member at GSK, Completed over $30B in acquisitions
Ben Shapiro, MD Former EVP of Research at Merck
John LaMattina, PhD Former President of Pfizer Global R&D
Robert Langer, ScD MIT, Award winning materials science pioneer, Former member of the United States FDA’s SCIENCE Board
Numerous upcoming milestones are expected to drive PureTech’s value in 2019 and 2020
7
Financings & strategic transactions likelyContinued progress of Internal R&D and pre-clinical affiliates
Select Upcoming Milestones
• Topline data results from Phase 2 study of KarXT in schizophrenia
BRAIN
• Topline data results from Phase 3 study in clinically symptomatic respiratory illness
• Topline data results from Ph1b/2a study in Parkinson’s disease
IMMUNE
• PK/PD results from IBD Phase 1 healthy subject trial• Topline data results from Phase 2 study of VE303 in
rCDI• Topline data results from Phase 1b/2 study of VE416
in food allergy• Topline data results from Phase 1b/2 for cancer
immunotherapy candidate
IMMUNE
BRAIN
• Potential FDA clearance of AKL-T01 in pediatric ADHD
• Data on additional indications
• Potential EU CE mark for Gelesis100 in weight loss• Topline data results from Gelesis200 Phase 2 study
GUT
• Progression to pivotal study in androgenetic alopecia following optimization study
IMMUNE
• IND filing for LYT-200• Advancement of collaborations with Roche and
Boehringer Ingelheim• Potential additional collaborations• Announcement of clinical stage program sourced
through insights in expertise area
IMMUNE
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PureTech’s Affiliates
8
R PureTech Health has a right to royalty payments as a percentage of net sales from Karuna, Follica, and Gelesis.* Relevant ownership interests were calculated on a diluted basis as of 12/31/18 (other than Vor: 2/14/19; Karuna: 4/1/19; Sonde: 4/11/19; Vedanta: 5/13/19; resTORbio: shown on an outstanding share basis as of 3/22/19), including issued and outstanding shares, outstanding options and warrants, and written commitments to issue options, but excluding unallocated shares authorized to be issued pursuant to equity incentive plans and any shares issuable upon conversion of outstanding convertible promissory notes.
Select Affiliate Industry Relationships
BR
AIN
IMM
UN
EG
UT
Affiliate PRTC Ownership* Phase 1 Phase 2 Phase 3 / Pivotal
FDA FilingPreclinical
FDA Cleared
Clearance/ Approval
35.9% R
27.8%
35.1%
55.8%
73.9%
19.7% R
62.3% R
57.4%
82.8%
30.2%
9
The BIG Axis is rich with therapeutic opportunity
The BIG Axis – A focus inspired by learnings from PureTech’s affiliate programs
~70% of immune cells and 500M neurons converge in the GI tract
The mesenteric lymph nodes are the major interface between the gut and immune system
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The lymphatic system connects all tissues to regional lymph nodes and is essential for fluid balance
The BIG Axis is rich with therapeutic opportunity
The BIG Axis – A focus inspired by learnings from PureTech’s affiliate programs
The lymphatic system is a ‘global’ channel for immune cell trafficking
PureTech’s Internal R&D: Modulating lymphatic flow & tissue-selective immunomodulation
11
Discovery Preclinical Phase 1 Phase 2 Phase 3
OUR PROGRAMS
Lymphatic and local tissue targeting programs (oral exosomes,
lymphatic targeting)
Solid Tumors
Solid Tumors, GI Autoimmunity
LYT-200Anti-Galectin-9 MAb
LYT-210Anti-Delta-1 MAb
Discovery programs targeting lymphatic disorders and lymphatic flow
Expect to file IND H1 2020
Program specific discovery partnerships (oral exosomes, lymphatic targeting)
DELIVERED:
Two positive pivotal studies
Multiple non-dilutive financings
$94M in affiliate financings
Lilly collaboration
Potential drivers of future value
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Note: Valuations on and after December 31, 2014 through December 31, 2016 are calculated based on NAV + cash at PureTech Health corporate level; valuations prior to 31 December 2014 are calculated based on post-money financing valuations; PureTech Health stopped disclosing NAV from 2017 onward; PureTech’s current market capitalization is approximately $800 million (June 4, 2019). * These represent potential events that the Company anticipates may occur in 2019 and thereafter but there can be no assurance that any of these events will take place within such time frame or at all.
2009 2014 2016NAV Corporate Cash
DELIVERED:
Two FDA filingsRoche collaboration with $1B in potential
R&D paymentsOne NASDAQ IPO
Multiple data readouts$251M in affiliate
financings$100M PureTech Health
financing
$53M$276M
$573M
2017 2018
Market Cap ~$800M
Potential valuation gap closing with time and exposure to
anticipated value drivers:
Affiliates trade sales and licensing dealsIPO of affiliates &
sale of equityRoyalties from affiliates
Additional partnerships for Internal R&D
Continued advancement of Internal R&D
2019+*
PureTech’s asset value has multiplied since IPO
DELIVERED:
One FDA clearanceMultiple collaborations and
financings
13
LSE Main Market / FTSE-indexed: PRTC – Market capitalization ~$800M (~£630M) as of June 4, 2019; 1.270 USD:GBP
Jefferies International Peel Hunt LLP Liberum
Peter Welford Amy Walker Graham Doyle
Analyst Coverage
Laboratory & Headquarters in the Seaport, Boston
Group cash and short term investments of $425.0M ($177.7M at the PureTech Health level) as of December 31, 2018
282,493,867 outstanding shares
Board & Management
Disclosed Shareholders
Other Shareholders
Disclosed Shareholders include: Invesco Asset Management Limited, Lansdowne Partners
International Limited, Baillie Gifford & Co., Jupiter Asset Management Ltd., and Recordati SA
~60%~11%
~29%
2k
Summary of PureTech Health
14* As of 31 December 2018
Strong team that has delivered results and is
poised for execution
Strong cash position ($177.7M at the PureTech
Health level*)
Exciting assets with major upcoming value inflection milestones
Developing therapeutics focused on BIG
(Brain-Immune-Gut) science