Panmure Liberum has initiated coverage of PureTech Health, the London-listed biotech holding company, with a 'buy' recommendation and a 200p target price.
In a 39-page note, the broker argues the shares are deeply undervalued relative to the worth of its portfolio.
At 110p, the stock trades at around a 40% discount to cash plus the value of its listed stake in Seaport Therapeutics alone, before attributing any value to the rest of the portfolio.
PureTech operates what analysts Julie Simmonds and Seb Jantet describe as a repeatable "Find it, Fund it, Exit" model.
That means the company identifies drug candidates built on validated pharmacology, de-risks them cheaply through early-stage studies, then spins them out to specialist co-investors while retaining equity stakes, royalties and milestone rights.
The strategy, Panmure argues, offers exposure to biotech upside without the single-asset risk that makes the sector so volatile for investors.
Three founded entities currently drive the investment case.
Seaport Therapeutics, recently listed on Nasdaq, is developing oral versions of treatments for major depressive disorder and generalised anxiety disorder using its Glyph drug-delivery platform.
Phase 2b data on the lead programme, GlyphAllo, is expected in the first half of 2027.
PureTech retains a 31.3% stake in Seaport, currently valued at around $307 million, equivalent to 95p per PureTech share on a market basis alone.
Celea Therapeutics completed its Series A fundraise in July 2026, raising $180 million to fund a pivotal Phase 3 trial of deupirfenidone, a re-engineered version of pirfenidone, in idiopathic pulmonary fibrosis (IPF).
Phase 2 data showed lung function decline slowing to roughly the rate seen in healthy older adults. Panmure Liberum values PureTech's 38.7% stake at 61p per share.
Gallop Oncology, wholly owned by PureTech, is targeting blood cancers with LYT-200. A Series A fundraise is expected in the first half of 2027, which would crystallise value in an asset currently carried at nil on PureTech's books.
PureTech also retains royalty and milestone interests in Cobenfy, the schizophrenia drug now owned by Bristol Myers Squibb following the $14 billion acquisition of Karuna in 2024.
The fully valued sum of the parts comes to 247p per share, including year-end cash.
PureTech had $220 million of cash as of June 2026, sufficient to fund operations to at least the end of 2028.
