Tracking Latest Developments of Two FTSE 250 Companies: Puretch Health Plc and Ferrexpo Plc

Tracking Latest Developments of Two FTSE 250 Companies: Puretch Health Plc and Ferrexpo Plc

Puretch Health Plc (PRTC): PureTech Health Plc is a clinical-stage biotechnology firm, dedicated to discovering, developing and commercialising highly differentiated medicines for devastating diseases. The group’s product pipeline comprises of 25 products candidates including one cleared by FDA. It has 3 clinical-stage product candidates, including one product that has been cleared by the FDA and a second product candidate that has been filed with the FDA for review.

Its stocks are traded on the main market of the London Stock Exchange, with an outstanding market capitalisation of £710.31m, which ranks it among the mid-cap companies traded on the LSE. The group is also a constituent company of the FTSE 250 index (UK broader mid-cap index).

PureTech’s KarXT Met Primary Endpoint in Phase 2 Clinical Trial

In the exchange filing made by the biotechnology firm, it was reported that PureTech’s affiliate Karuna Therapeutics (KarXT) achieved primary endpoint in Phase 2 clinical trial of Acute Psychosis in Patients with Schizophrenia.

The impressive results of Karuna Therapeutics (KarXT) lead to 24 product candidates, including 14 clinical-stage and one recently FDA cleared product.

However, on November 15, 2019, company’s Independent Affiliate resTORbio reported that RTB101 failed to meet the primary endpoint in Clinically Symptomatic Respiratory Illness.

Interim Financial Highlights: H1FY (ended as on 30 June 2019)

During the first half under consideration, the group had wisely utilized its cash reserves to advance both its affiliates and core pipeline. Also, the group has advanced its research and clinical interests across the product pipeline, broadly in line with the group’s anticipations and invested in basic amenities to boost the commercial debut of Gelesis 100 for treatment of corpulence post it got approval from FDA in April 2019.

Group’s revenue during the first half of the FT19 declined to $4.4m against $5.0m recorded in the second quarter of the FY18 and operating losses expanded substantially to $70.3m from an operating loss of $52.3m reported in the preceding period of the corresponding financial year, driven by increase in research and development spending, which is a result of the pre-commercialisation penetration of Gelesis 100 and additional costs related to the group’s internal pipeline.

Raises $102.6m of gross proceeds through Initial Public Offer of Karuna

During the first half of the FY19, the group raised $322.8m to gross proceeds, including $102.6m through Initial Public Offering (IPO) of Karuna as well. The group's cash reserves at the end of H1FY19 stood at $202.1m, and level cash reserves stood at $149.2m.

Shares of PRTC traded above short-term and long-term support levels

The stock of PRTC traded well above its short-term and long-term crucial support levels of 5-day, 10-day, 20-day, 50-day and 200-day simple moving averages. Also, the 14-day Relative Strength Index (RSI) recorded a sharp reversal from oversold territory to neutral and was trending towards the overbought zone.

Its shares have delivered a decent price return of approximately 38.33% on a YoY basis, up around 45% on a YTD basis and traded marginally lower in a month time. In the past year, the stock has registered a 52w high of GBX 307.0 and a 52w low of GBX 155.50, and at the current traded level, the stock traded approximately 6% below its 52w high price level and 85.8% above its 52w registered price level.

In the past six months, its shares traded 59 times higher, 53 times lower and remained unchanged for 17 times against their respective previous closing prices.

Puretch Health (PRTC) stocks surged more than 35% in a week

Third week of November 2019 is going well for PureTech shares, as since Friday (November 15) closing prices, its shares have bagged more than 35%, with 13.7% surge recorded on November 18 and traded 16.33% higher to GBX 289.66 during the November 19 trading session (before the market close at 09: 38 AM GMT). With an intraday high of GBX 291 and a low of GBX 289.0, respectively.

Ferrexpo Plc (FXPO)

London Stock Exchange-traded Ferrexpo Plc is Switzerland headquartered industrial metal and mining company. It is having an operational interest in production, development and commercialisation of iron ore pellets to the metallurgical industry.

The outstanding market capitalisation of the company stood at £805.17m, which ranks it among the mid-cap company listed on the main market of the London Stock Exchange and its shares are also a constituent company of the UK's mid-cap index "FTSE 250".

Recently (as on October 28, 2019), the group’s Chief Executive Kostyantin Zhevago decided to step down from his position for the time being to focus on settling some specific matters in Ukraine pertaining to one of the firms he owned until 2015. As his replacement, Mr Chris Mawe Chief Financial Officer at Ferrexpo Plc has been appointed as an acting CEO of the group.

On November 14, 2019, the Board of Directors notified that Mr Roman Palyvoda had been nominated as the acting CFO (Chief Financial Officer) as on date.

Production Update: 3Q2019

As on October 08, 2019, the group reported its production update for the third quarter of 2019. On a quarter-on-quarter basis, the group's production slumped 9.8%, driven by a 10.7% reduction in 62% Fe pellets and a 9.7% decline in 65% Fe pellets.

During the 9M 2019, the group’s total pellet production increased by 1.7% against the year-over period, with high quality 65% Fe Production surging by 4.2% against the year-over period.

In the statement, the group highlighted that given the present market condition group estimated that production for the full year would be in the range of 10.4MT to 10.6MT against 10.6MT recorded in the previous financial year.

Stock Performance

In the year-over period, shares of the group plummeted approximately 36% on a YoY basis and declined around 19% on a YTD basis and plunged approximately 35% in the past three months period. Also, in the past six months, its shares traded 63 times lower and 66 times higher against their respective previous closing prices. The dividend yield of FXPO stood at 7.95%; however, the higher dividend yield is partly because of a sharp plunge in the stock price recorded at the London Stock Exchange in the past couple of months.

At the time of writing (as on November 19, 2019, before the market close at 11:16 AM GMT), shares of Ferrexpo Plc traded 3.45 points or 2.51% higher at GBX 140.8 and registered an intraday high of GBX 142.85 and a low of GBX 136.60, respectively. In the year-over period, its shares have registered a 52w high GBX 304.57 and a 52w low of GBX 119.85, respectively. And, at the current trading level, its shares traded 53.7% lower against the 52w high price level and 17.4% above its 52w low price level, respectively.

Also, its shares traded well below its crucial short-term and long-term support levels of 50-days and 200-day simple moving averages.

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