PureTech Health plc

Greetings and welcome to the Pure Tech Health 2025 Annual Results Conference Call. At this time, all participants are in a listen-only mode. After the speaker's prepared remarks, there will be a question and answer session and instructions will follow at that time. As a reminder, this conference is being recorded. It is now my pleasure to introduce your host, Alison Mead-Torbet, Senior Vice President of Communications. Thank you, Alison. You may begin.

Thank you, everyone, for joining us for PureTech's 2026 Annual Results Webcast. Our annual report will be made available later today, portions of which are also filed with our Form 20 app. This information is available on the Investors page of our website at puretechhealth.com. I would like to remind you that during today's call, we will be making certain forward-looking statements. These statements are subject to various risks, uncertainties, and assumptions that could cause our actual results to differ materially. and we ask that you refer to our annual report and our SEC filings for a complete discussion of these items. We undertake no obligation to revise or update any forward-looking statements or information except as required by law. I also want to remind you that we will be referring to certain non-IFRS measures in this presentation. The presentation of this non-IFRS financial information is not intended to be considered in isolation or as a substitute for financial information presented in accordance with IFRS. A reconciliation of the IFRS to non-IFRS measures that we will be referring to today can be found in this presentation and is also available on our investor relations website at investors.peertechhealth.com and in our SEC filings. I'm joined today by members of our senior management team, Robert Line, Chief Executive Officer, Eric Alenko, Co-Founder and President, Chip Sherwood, General Counsel, Michael Inbar, Chief Accounting Officer, as well as Sven Daetlefs, CEO of our founded entity, Celia Therapeutics. Rob and Eric will discuss our strategic vision and path to value creation, including updates across our portfolio and our differentiated innovation engine. They will also provide a deep dive into the Gallup program, review our financial highlights, and outline our anticipated catalysts for the remainder of the year. With that, I will now turn the call over to Rob, our Chief Executive Officer.

Thank you, Alison. Welcome, everyone, and thank you for joining us today. We're at a pivotal moment in the company's trajectory. Having announced our near-term operational focus in December, I'm pleased today to walk you through our refined strategy and portfolio progress. This next phase of our evolution is designed to translate our proven innovation model into greater shareholder value. As a reminder, PureTech is a Boston-based LSE-listed biotherapeutics company operating a hub-and-spoke model with a proven clinical and financial track record. Programs originate within the PureTech hub based on a thesis of targeting molecules with validated pharmacology and are then advanced through early clinical and technical de-risking. At defined value inflection points, we scale them through founded entities backed primarily by external capital. This model is both powerful and differentiated for two reasons. First, it improves how we innovate. We focus on opportunities where the underlying mechanism has already shown evidence in humans, allowing us to reduce technical risk while improving probability of success. Secondly, it improves how we allocate capital. By leveraging external capital at the founded entity level, we maintain portfolio breadth, preserve balance sheet strength, and retain long-term upside through equity, milestones, and royalties. Because we develop these programs internally, we typically begin with full ownership of assets and proprietary IP to which we can attach non-diluted milestones and royalties. This means that, in contrast to traditional venture capital investors, we do not need to continue to write large checks for every subsequent funding round in order to preserve a meaningful equity stake. Instead, our model allows for prudent equity dilution, allowing us to retain large equity positions in multiple founded entities whilst they diversify their own shareholder registers. Having a balanced shareholder register makes it easier to raise external equity and is vital if our founding entities are to IPO. Throughout this process, our royalties and milestones are protected, providing optionality for de-risking ahead of inflection points and preservation of long-term value for PureTech. This result is a model designed to create superior overall financial returns while limiting concentration risk. Through this model, we have developed meaningful clinical and regulatory success. We have generated three FDA-approved therapeutics from our innovation engine to date, including the schizophrenia treatment Cabemphi. We've also achieved substantial cash flow, generating over a billion gross from monetization of our economics and our founded entities, all while continuing to build a diversified pipeline of future opportunities. Looking ahead, our focus is clear. Sharpen execution, strengthen capital discipline, and ensure that PureTech's distinctive model continues to translate breakthrough science into meaningful value for both patients and shareholders. To deliver on our strategy, we focus on four pillars of operational refinement. A streamlined structure. We intend to operate a significantly leaner and more efficient hub following the completion of the CILIA financing. As part of this initiative, we announced this morning our intention to voluntarily delist from NASDAQ, recognizing that the vast majority of our trading remains on the LSE some five years after our initial NASDAQ list. This step simplifies our structure and reduces cost and administrative burden for the business, whilst retaining our primary London listing, providing access to both UK and global investment community. Launching founded entities early. In recent years, we've advanced certain programs further internally before transitioning them to founded entities. While this allowed us to retain larger equity stakes, it required greater capital and operational infrastructure at the PureTech hub level. Going forward, we intend to establish and capitalize these entities earlier in the development lifecycle once programs have reached key clinical value inflection points. Since return on capital is typically higher early in the cycle, this approach will allow for the creation of a greater number of founded entities. We believe, therefore, that overall financial performance from the portfolio will improve. A refined innovation focus. Our innovation engine remains a foundation of future growth. Led by my colleague, Erica Lenko, our expanding innovation team continues to progress their work with this goal in mind. Over the next three years, we plan to generate up to two development candidates, each of which has the potential to become a new-founded entity supported by external capital, allowing us to drive the next wave of growth for PureTech. Commitment to capital returns. Finally, this refreshed strategy strengthens our capital discipline and enhances our flexibility. To ensure shareholders benefit directly from our success, we intend to return a greater proportion of future cash generation to shareholders, particularly in the event of an outsized return, whilst maintaining appropriate operational runway for the business. PureTech's value today is underpinned by multiple distinct components. These include our economics in Cabemphi, Seaport Therapeutics, Solia Therapeutics, and Gallup Oncology, as well as an innovation engine capable of generating future opportunities. We believe this diversified structure is a meaningful strategic advantage and one that is not fully reflected in our current valuation. Across our portfolio, I'm pleased with the progress that was made during 2025 and so far this year. Celia is our most clinically advanced founded entity, developing dupafenadone for the treatment of idiopathic pulmonary fibrosis. Dupafenadone demonstrated a robust efficacy with the potential to replace standard of care treatments in its phase 2b trial and is now phase 3 ready. I'm pleased to share today that Celia's fundraising is substantially complete, subject to continued negotiations. Solia has secured multiple non-binding commitments from external investors in addition to participation from PureTech. Whilst mindful of macro factors, Solia is targeting to close the financing by early in the third quarter of 2026. The financing is intended to support the phase three surpassed IPF trial, which Solia expects to commence in close proximity to closing the financing. This would represent an important value infection point, both for Solia and for PureTech. Next is Gallup, which is another founding entity which we currently own 100% of. Last week, we announced positive top-line data from the Phase 1b trial of LYT200 in relapsed refractory high-risk myeloid dysplastic syndrome, or MDS, and relapsed refractory acute myeloid leukemia. We are pleased with the data, which guides our strategic focus to advance LYT200 for relapsed refractory high-risk MDS. Gallup is now preparing to engage with the FDA regarding a potentially registration-enabling trial design in this indication. As Eric will discuss shortly, we believe Gallup represents another strong example of our model in action, differentiated science, discipline development, and the ability to attract external capital at the appropriate stage. CPORT is our most operationally advanced founded entity. The company has progressed two clinical trials for neuropsychiatric conditions in 2025 and 2026. And as many of you will have seen, CPORT filed a registration statement for a potential initial public offering on NASDAQ. This progress further validates our ability to create and scale attractive standalone biotechnology companies from within the PureTech hub and spoke model. Beyond our core founding entities, we also retain rights to Kabemfi, a commercial-stage project that originated in our innovation engine. PureTech is the co-inventor of Kabemfi, which we house in a founding entity called Karuna Therapeutics. Karuna was acquired by Bristol Myers Squibb for $14 billion, though we continue to hold significant non-dilutive economic rights. Based on current analysts' consensus of BMS sales expectations, the projected value to PureTech is approximately $160 million from these rights through 2033. Due to the nature of our Cabemphi economics, we are overly exposed to the early performance of Cabemphi sales, and any reduction in analysts' forecasts of early sales, even if modest, can therefore have a material impact on projected inflows. Nonetheless, we expect substantial financial inflows to PureTech from Cbenfi and are confident that it will improve the lives of large numbers of patients around the world. Going forward, we intend to provide regular updates to PureTech's economic forecast of Cbenfi sales based upon evolving market consensus at important points during our earnings webcasts in the future. We also note that any monetization events from any of our founding entities, including the Cbenfi economics, represent pure upside. We do not factor any potential inflows from these entities into our runway assumptions. Indeed, whilst we have the option to collect royalties and milestones as they fall due, we also have the flexibility to monetize such rights ahead of time. This was the case with Kabemfi, where we have already secured approximately $125 million in payments to date from a previous royalty sale. This provided PureTech with capital that is unaffected by future commercial sales fluctuations and demonstrates our disciplined approach to structuring founded entities and managing upside thoughtfully. Beyond these founding entities, we also maintain interest in what I call our legacy holdings. These are historical founding entities that continue to have the potential to be a source of capital to us, but they are not a current focus of our capital allocation, nor do we currently expect them to have a material impact on the overall value of PureTech moving forward. As our founding entities continue to mature and secure external funding, we intend to provide greater transparency around valuation benchmarks where appropriate. This is consistent with our capital efficient model of maintaining a lean hub or creating value through externally financed founded entities. It also builds on CPORT post-money disclosure, which we introduced last year. Our objective is straightforward. To help investors better model the embedded upside across our portfolio, bridge what we believe is a disconnect between intrinsic value and current market value, and ultimately support stronger shareholder returns. As part of this transparency, we are today providing an update on our Q1 cash position, with PureTech level cash and cash equivalents as of March 31st, 26, standing at approximately $248 million on an unaudited basis. I would now like to welcome Eric Olenko, our co-founder and president. It is no overstatement to say that Eric has been instrumental to our many successes to date. He will walk us through the latest progress at Gallup Oncology, as well as share what he and the innovation team are currently working towards.