PureTech swings to first-half profit as investment gains soar

PureTech PLC on Tuesday hailed "significant progress" across its portfolio as it swung to a first-half profit.

The Boston, Massachusetts-based biopharmaceutical company said pretax profit for the six months ended June 30 was USD72.8 million, swinging from a USD43.9 million loss a year earlier.

The company explained this was primarily driven by a USD120.4 million gain on investments held at fair value, up year-on-year from USD3.7 million, including a USD121.0 million gain on Seaport Therapeutics. PureTech's Seaport stake was valued at USD362.4 million at June 30, while its Celea investment was valued at USD12.5 million.

These gains were partly offset by USD20.5 million in net finance costs, including USD23.9 million in non-cash interest costs linked to PureTech's sale of future royalties, and an USD18.8 million share of losses from associates, primarily Seaport before its IPO.

Revenue rose 92% to USD3.6 million from USD1.9 million, driven by higher royalties from Bristol Myers Squibb's sales of Cobenfy, PureTech said.

General and administrative expenses fell 12% to USD22.0 million from USD24.9 million, while research and development expenses rose 36% to USD33.9 million from USD24.9 million. PureTech said the increase reflected higher deupirfenidone development costs, contract research spending and higher workforce costs.

PureTech had USD121.3 million in cash and cash equivalents as of June 30, down from USD252.5 million as of December 31.

PureTech highlighted progress across its portfolio during the period. Seaport Therapeutics raised USD260.0 million in its Nasdaq IPO, with PureTech retaining a 31.2% stake.

Celea Therapeutics raised USD180.0 million and started a phase 3 trial of deupirfenidone for idiopathic pulmonary fibrosis.

Gallop Oncology reported positive phase 1b results for LYT-200, which is being developed as a treatment for high-risk blood cancer. The US Food & Drug Administration granted the programme 'Fast Track' status on Monday.

Chief Executive Robert Lyne said: "The progress we have made in 2026 demonstrates meaningful execution against the strategy we outlined last year and reinforces why we have evolved our model to create value earlier and operate with greater capital efficiency.

"Going forward, we will prioritise maintaining an appropriate operating runway, selectively deploying capital where we see compelling, risk-adjusted opportunities, and returning capital to shareholders. We expect capital returns to play a more meaningful role in our allocation of future proceeds than they have historically."

PureTech shares opened 5.0% higher in London, but were down 3.6% at 116.60 pence early on Tuesday afternoon.

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