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PureTech loses ground after Karuna investment raises new funds

The Nasdaq-listed biopharma company put 2mln shares of its common stock on sale to the public at US$96 each

PureTech Health plc - PureTech Health loses ground after Karuna investment issues new shares
Karuna’s market capital is US$2.9bn based on Wednesday’s closing price

PureTech Health plc’s (LON:PRTC) shares were down on Thursday after its investment Karuna Therapeutics Inc (NASDAQ:KRTX) announced a US$250mln stock offering overnight.

The Nasdaq-listed biopharma company, which made the news earlier this week after announcing highly encouraging results in its lead asset KarXT, put 2mln shares of its common stock on sale to the public at US$96 each.

READ: PureTech Health surges as Karuna investment rockets 442%

Gross proceeds for the offering, scheduled to close next week, will be US$250mln, while an additional 390,000 share option has been granted to those who subscribe.

According to broker Peel Hunt, if PureTech does not buy any further shares its equity stake will be reduced to 28% from the current 31.6%.

Karuna’s market capital is US$2.9bn based on Wednesday’s closing price of US$108.95.

Shares in PureTech were trading 4% lower on Thursday morning at 278p.

Quick facts: PureTech Health plc

Price: 260 GBX

LSE:PRTC
Market: LSE
Market Cap: £741.89 m
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