UK biopharma PureTech Health PLC (LON:PRTC) now has a US$147mln stake in a Nasdaq-listed firm, with its affiliate company resTORbio Inc set to begin trading on the exchange on Friday.
PureTech has been a long-term backer of the company – which develops therapeutics for the treatment of ageing-related diseases – and invested US$19mln pre-initial public offering and a further US$3.5mln in the IPO itself.
READ: PureTech Health affiliate resTORbio raises another US$40mln as age-related trial progresses
It seems to be money well invested given that its 35% stake is now worth US$147mln after resTORbio priced its shares at US$15.
It will use the US$85mln from the float to advance its portfolio of therapeutic candidates targeting ageing-related health issues such as respiratory tract infections and heart failure.
Back in November, resTORbio raised US$40mln from several private equity firms which valued the company at US$250mln – significantly lower than its current market value of US$420mln.
‘Extraordinary achievement’
“This deal caps an extraordinary achievement for PureTech, having built resTORbio with just US$19m until today starting little over a year ago,” wrote Liberum analyst Roger Franklin.
“Its 35% stake is worth US$147mln, making the total value c.US$420mln which is a significant step up from the US$250m post-money achieved at the November Orbimed financing.
“The IPO looks to have been priced in the mid-point of the range and PureTech invested US$3.5mln.
“Adjusting for this higher value for restORbio as well as recent FX moves, our PureTech valuation is likely to be in the range c.£2.80/share.”
Franklin has PureTech as a ‘buy’ with a 248p price target although, as he noted, this could rise shortly.
In late afternoon trading, PureTech shares were 0.3% higher at 180p.
-- Updates share price --