Business
PureTech Receives $200M from KRTX Shares
PureTech Receives $200M from KRTX Shares.
About this update from Puretech Health Plc
[{"type":"text","content":"\n \nRNS Number : 6675A PureTech Health PLC 23 January 2020 \n\n23 January 2020\nPureTech Health plc\n \nPureTech Receives $200 Million from Sale of a Minority Portion of Affiliate Shares\n \nPureTech Health plc (LSE: PRTC) (\"PureTech\" or the \"Company\"), a clinical stage biotechnology company dedicated to discovering, developing and commercialising highly differentiated medicines for devastating diseases, today announces that it has sold 2.1 million shares of its affiliate Karuna Therapeutics (\"Karuna,\" Nasdaq: KRTX) for a cash consideration of approximately $200 million to Goldman Sachs & Co. LLC (the \"Transaction\"). PureTech intends to use the proceeds from the Transaction to fund its operations and growth for the foreseeable future and to further expand and advance its clinical stage, wholly owned pipeline.\n \nFollowing the Transaction, PureTech continues to hold 5,295,397 shares of Karuna common stock, which is equal to 20.4% of Karuna's outstanding shares, and has a right to royalty payments on net sales of any commercialised product covered by a license granted by PureTech to Karuna.\n \nDaphne Zohar, founder and chief executive officer of PureTech said: \n \n\"As a founder of Karuna and co-inventor of the KarXT program, we are delighted to continue to be a major shareholder of Karuna going forward. With multiple efficacy studies validating both xanomeline and KarXT, Karuna is well-positioned to be a major player in the neuropsychiatry field. We are particularly enthusiastic about the potential for patients to have a new and differentiated treatment option for schizophrenia and related diseases. This is an area that - despite a large market where branded therapies have been blockbuster products - has been lacking innovation for decades. We have a high degree of confidence in the team, who have an impressive track record, to unlock the full potential of the growth opportunities that may be available to them.\n \n\"This sale of a minority of our holdings in Karuna provides us with additional cash resources to fund our operational growth, including our rapidly growing wholly owned pipeline, for the foreseeable future. We believe that this realisation of value provides additional validation of PureTech's overall business strategy.\"\n \nThe Transaction constitutes a cl...