An update on PureTech Health
26th June 2018 |
A number of subscribers have asked for an update on PureTech Health so rather than write individual answers, I thought it was probably a topic of wide enough appeal to write a broader note on the subject.
We bought PureTech Health because it is the closest thing, anywhere, to a pure play on the microbiome. That represents a commercial opportunity on par with the invention of the stethoscope. This is because it will give us a direct line of information into the second brain, which is the population of bacteria, viruses and fungi that populate our bodies. Here is a link to an article in the Boston Globe relating to its subsidiary Vedanta Biosciences and the success it is having with microbiome therapies.
PureTech is a healthcare technology commercialisation company. It has a particular focus on the microbiome but it is also involved in other emerging health-related technologies.
For example, its subsidiary Alivio Therapeutics had two patents recognised in the US on 22 May. These relate to inflammatory bowel disease, which is one of the primary avenues for commercialisation for microbiome discoveries.
Its subsidiary Akili Interactive raised $55 million to promote digital medicine on 9 May. This is an additional particularly interesting angle for the company because it is pioneering the use of computer games as a treatment solution for people with cognitive disorders like ADHD, Alzheimer’s and autism spectrum disorder. Results of the stage 3 trial are expected later this year.
On Friday Karuna Pharmaceuticals, another subsidiary, received $8 million from the Wellcome Trust. The company is focusing developing a successful treatment for Alzheimer’s and is currently in phase 2 trials.
The challenge for the share, however, rests in the outlook for interest rates and the company’s continued ability to raise funding. As a commercialisation company, albeit one with extremely exciting development prospects, there is a constant requirement to seek funding. As we can see from the examples above, the company remains successful in that goal.
I also expect these sectors to represent continued growth for the healthcare sector and PureTech really only needs one to turn into a major success for the value of the company to multiply. Nevertheless, the outlook for interest rates is weighing on the share at the moment so I am monitoring the price closely.
All the best,
Eoin Treacy
Investment Director, Frontier Tech Investor
