PureTech Health : Announces Annual Results for Year Ended 31 December 2018

24 April 2019

PureTech Health plc

PureTech Health Announces Annual Results for Year Ended 31 December 2018

Landmark FDA clearance for product conceived at PureTech Health, rollout of internal pipeline with two validating pharmaceutical partnerships with Roche and Boehringer Ingelheim, and five successful clinical trial readouts across affiliate pipeline

PureTech's strong cash position includes $177 million on a parent company level which extends cash runway guidance into the first quarter of 2022 and $425 million in Group cash leaving Group well positioned for execution

PureTech's affiliates raised $274 million in financing transactions, including $242 million from third party

investors

PureTech Health plc (LSE: PRTC) ("PureTech Health"), an advanced biopharmaceutical company developing novel medicines for dysfunctions of the Brain-Immune-Gut (BIG) axis, today announced its annual results for the year ended 31 December 2018. The following information represents select highlights from the full Report, which is available on the Investor Relations section of the PureTech Health website at http://puretechhealth.com/reports-presentations.

Cash Position

•As of 31 December 2018, PureTech Health reports a consolidated cash balance of approximately $250.9 million, with approximately $177.7 million held at the Parent Company. Group cash and short- term investments (APM) were $425.0 million including the cash andshort-term investment balances held at Independent affiliatesi.

•In 2018, PureTech's affiliates raised $274 millioniiin financing transactions, including $242 million from third party investors. In the 2019 post-period, affiliates have raised $140 millioniii, of which $121.2 million was from third party investors. PureTech Health also successfully raised gross proceeds of approximately $100 million (£72 million) through a placing in 2018.

New Internal R&D Group Yields Value in First Months

PureTech Health announced the formation of its Internal R&D group, with a focus on tissue selective immunomodulation. Key developments included the following:

•In July 2018, PureTech Health announced a collaboration with Roche to advance PureTech's milk- derived exosome platform technology for the oral administration of Roche's locked nucleic acid (LNA) antisense oligonucleotide platform, designed to facilitate the oral administration of complex payloads. PureTech Health will receive up to $36 million in upfront payments, research support, and preclinical milestones and is eligible to potentially receive over $1 billion in development milestones in addition to sales milestones and royalties for an undisclosed number of products.

•Also in July 2018, PureTech's central nervous system (CNS) lymphatics programme was published as the cover story inNature. The publication by PureTech Health collaborator Jonathan Kipnis, PhD, revealed that modulation of lymphatic function in the brain may prevent or delay diseases associated with ageing, including Alzheimer's disease, Huntington's disease and age-associated cognitive decline. The same programme was also published in Nature Neurosciencein September 2018, highlighting the key role of brain lymphatics in neuroinflammatory conditions like multiple sclerosis.

•In the April 2019post-period, PureTech Health entered into a partnership with Boehringer Ingelheim (BI) to advance BI's immuno-oncology product candidates using PureTech's lymphatic targeting platform. Under the terms of the agreement, PureTech Health will receive up to $26 million, including

upfront payments, research support, and preclinical milestones, and is eligible to potentially receive over $200 million in development and sales milestones, in addition to royalties on product sales.

•Also in the April 2019post-period, PureTech Health was selected to present data detailing its immuno-oncology programmes at the American Association for Cancer Research (AACR) Annual Meeting. The presentations detailed PureTech's development of first- in-class,fully-human monoclonal antibodies (mAbs) targeting Galectin-9(LYT-200) and immunosuppressive γδ1 (gamma delta) T cells (LYT-210).LYT-200 and LYT-210 are unique mAbs targeting foundational, novel mechanisms of tumoural immune escape and immunosuppression in cancer, and have been tested as single agents, as well as in combination with anti-PD1 in preclinical murine and human-derived ex vivo models.

Affiliate Pipeline Clinical and Regulatory Highlights

In 2018, PureTech Health made significant clinical progress across its Affiliates division, which includes seven clinical-stage programmes and three preclinical programmes focused on the biological processes associated with the Brain-Immune-Gut (BIG) axis. Clinical developments included the following:

•Gelesis filed an application with the United States Food and Drug Administration (FDA) for review of its lead product candidate in weight management. In the April 2019post-period, Gelesis received FDA clearance for PLENITY™ as an aid for weight management in adults with a Body Mass Index (BMI) of 25-40 kg/m2, when used in conjunction with diet and exerciseiv. Gelesis also filed PLENITY for marketing authorisation in Europe in the first quarter of 2019 and expects to receive feedback in 2019.

•Akili also filed an application with FDA in 2018 for review of its lead product candidate in paediatric attention deficit hyperactivity disorder (ADHD). Also in 2018, Akili successfully completed a Phase 2 study ofAKL-T03 in depression and a proof-of-concept study of AKL-T03 in multiple sclerosis. Full analyses are underway, and - based on the results of the studies - both programmes are expected to advance into larger studies in 2020.

•resTORbio announced positive results from a Phase 2b study of its proprietary target of rapamycin complex 1 (TORC1) inhibitor, RTB101. In the March 2019post-period, resTORbio announced a positive end of Phase 2 meeting with the FDA and the planned initiation of a global Phase 3 programme for RTB101 in 2019. In the April 2019 post-period, resTORbio announced the initiation of a Phase 1b/2a trial of RTB101 alone or in combination with sirolimus, in Parkinson's disease.

•Karuna initiated a Phase 2 study of KarXT(Karuna-Xanomeline-Trospium), its lead product candidate, for the treatment of psychosis in schizophrenia, with results anticipated by the end of 2019. Karuna is using a proprietary co-formulation of KarXT that successfully demonstrated tolerability at a dose level exceeding those shown to be efficacious in previous studies of xanomeline alone.

•Vedanta Biosciences advanced twoclinical-stage product candidates. In October 2018, the company announced results from a successful Phase 1a/1b study of lead candidate VE303 in recurrent Clostridium difficile(rCDI). A Phase 2 study of VE303 was initiated in December 2018, and results are anticipated in early 2020. In November 2018, Vedanta Biosciences' partner Janssen Biotech, Inc. also initiated a Phase 1 clinical study of inflammatory bowel disease (IBD) candidate VE202, triggering a milestone payment of $12 million. Results are anticipated in the second half of 2019.

•Follica made significant progress towards the initiation of a pivotal study in androgenetic alopecia, which is anticipated to begin in 2019 following the completion of an ongoing optimisation study.

•Sonde has tested 10,000 patient samples in expanded development of its proprietary technology in neurodegenerative disease, respiratory and cardiovascular disease, and other health and wellness conditions.

•In the January 2019post-period, PureTech Health made the decision to de-prioritise Commense. PureTech Health has decided to retain all intellectual property, but it will not allocate further resources to this programme pending the outcome of ongoing preclinical research with academic collaborators.

Commenting on the annual results, Daphne Zohar, founder and chief executive officer of PureTech Health said:

"It has been an exhilarating year and we believe we are on the cusp of unlocking significant value for our shareholders. We are gratified by the excellent reception of our Internal R&D group, which has already secured partnerships with two major pharmaceutical companies, validating the science while enabling PureTech Health to retain most of the rights to the core platforms.

"We believe that six of our affiliates have the potential for monetisation over the next 12 to 18 months, and we are extremely excited by the post-period news about Gelesis' landmark FDA clearance last week, which is a testament to what our team has been able to accomplish by thinking differently about major health issues.

"We are pleased to be in the position to realise value for our strong base of investors who have supported us since IPO as well as a new group of investors who will take the journey with us to the next level of growth. We approach 2019 energetic about delivering on our vision. I thank our talented and dedicated team, wise board, visionary investors, and the patients and clinicians who inspire us to reach beyond current thinking."

PureTech Health today released its Annual Report for the year ended 31 December 2018. In compliance with the Financial Conduct Authority's Listing Rule 9.6.3, the following documents have today been submitted to the National Storage Mechanism and will shortly be available for inspection at http://www.morningstar.co.uk/uk/NSM

•Annual Report and Accounts for the year ended 31 December 2018; and

•Notice of 2019 Annual General Meeting.

Printed copies of these documents together with the Form of Proxy have been posted to shareholders. Copies are also available electronically on the Investor Relations section of the Company's website at http://puretechhealth.com/reports-presentations.

PureTech Health's 2019 Annual General Meeting will be held at 15.00 BST on Wednesday 29 May 2019 at the offices of DLA Piper UK LLP at 160 Aldersgate Street, London, EC1A 4HT, United Kingdom.

About PureTech Health

PureTech Health (LSE: PRTC) is an advanced biopharmaceutical company developing BIG medicines for dysfunctions of the Brain-Immune-Gut axis. The Company has gained deep insights into the connection between these systems and the resulting role in diseases that have proven resistant to established therapeutic approaches. By harnessing this emerging field of human biology, PureTech Health is developing new categories of medicines with the potential to have great impact on people with serious diseases.

PureTech Health is advancing a rich pipeline of innovative therapies with an unbiased, non-binary, and capital efficient R&D model across its affiliates and its internal labs. PureTech's affiliates include seven clinical-stage platforms, including one product that has been cleared by the US Food and Drug Administration (FDA) and a second product candidate that has been filed with the FDA for review, and several other novel preclinical programmes. The PureTech Health pipeline includes ground-breaking platforms and therapeutic candidates that were developed in collaboration with some of the world's leading experts.

PureTech's internal research and development is centred on tissue-selective immunomodulation for the treatment of oncology, autoimmune, and CNS-related disorders, with a near-term focus on targeting newly- discovered, foundational immunosuppressive mechanisms in oncology and novel approaches that harness the lymphatic infrastructure.

For more information, visit www.puretechhealth.comor connect with us on Twitter @puretechh.

This announcement contains inside information for the purposes of Article 7 of Regulation (EU) 596/2014.

Contact:
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Notes

(i)Group Cash is an alternative performance measure (APM) which includes $174.1 million of cash reserves andshort-term investments from our Independent Affiliates (resTORbio and Akili). These Independent Affiliates are not included in the consolidated statement of financial position. Therefore Group Cash is considered to be more representative of the Group's cash available to advance product candidates within its Independent Affiliates which could ultimately result in value accretion for the Group.

(ii)This number includes the issuance of $22 million in shares upon conversion of debt into equity as part of Karuna's Series A financing round. Of the $22 million converted into equity, $2 million came from the $8 million Wellcome Trust award. Excluded from the amount of funding secured for affiliates is $12 million in milestone payments made to Vedanta Biosciences from Janssen Biotech, Inc as part of an ongoing collaboration.

(iii)This number includes an issuance of $7 million in shares upon conversion of debt into equity as part of Karuna's Series B financing round, all of which came from the Wellcome Trust award announced in June 2018. It also included an issuance of $7.3 million and $6 million in shares upon conversion of debt into equity as part of Vor's Series A financing round and Sonde's SeriesA-2 financing round, respectively.

(iv)Rx Only. For the safe and proper use of PLENITY, refer to the Instructions for Use.

(v)Nature of announcement

The financial information set out in this Annual Results Release does not constitute the Company's statutory accounts for 2017 or 2018. Any references to page numbers in this announcement are to pages within the Annual Report and Accounts. Statutory accounts for the year ended 31 December 2018 have been reported on by the Independent Auditor and will be delivered to the Registrar when due.

(vi)Forward looking statements

This Annual Results Release and the Annual Report and Accounts contain statements that are or may be forward-looking statements, including statements that relate to the Company's future prospects, developments and strategies. The forward-looking statements are based on current expectations and are subject to known and unknown risks and uncertainties that could cause actual results, performance and achievements to differ materially from current expectations, including, but not limited to, those risks and uncertainties described in the risk management section. These forward-looking statements are based on assumptions regarding the present and future business strategies of the Company and the environment in which it will operate in the future. Each forward-looking statement speaks only as at the date of this Annual Results Release. Except as required by law, regulatory requirement, the Listing Rules and the Disclosure Guidance and Transparency Rules, neither the Company nor any other party intends to update or revise these forward-looking statements, whether as a result of new information, future events or otherwise.

Letter from the Chairman

Reflecting on PureTech's most ambitious year yet, it has been a pleasure to observe the growth in value across the breadth and depth of its programmes. First-ever late stage milestones, including filings for regulatory review of two first-in-class therapeutics and multiple other clinical advances, have complemented

the expansion and validation of our internal R&D activity, which we see as a major driver of long-term, sustainable growth.

Scientific excellence, value-driving partnerships, and prudent stewardship of growth are the heart of biopharma development. As Chairman, I have found it rewarding to watch PureTech Health continue to deliver on all these fronts, burnishing its credentials as one of the most productive and innovative biopharma companies in the industry with a management team that leads with a highly effective combination of vision and practicality.

Our Board of Directors includes some of the most seasoned and experienced healthcare experts, and I thank them for another year of steady oversight and thoughtful counsel. Their guidance and commitment to the highest standards of governance enable PureTech Health to focus on its core mission of delivering bold ideas to transform healthcare.

To that end, PureTech Health has fostered the development of multiple exceptional technologies, drawing on its emergence as a major global hub of expertise around the Brain-Immune-Gut (BIG) axis. This biological framework continues to gain momentum as the key to understanding the human body's response to the external environment via adaptive, inherently modifiable systems.

PureTech Health has already achieved remarkable things in this field through its Affiliate division and is breaking new scientific ground to address indications with significant unmet need. In April 2019, Gelesis achieved a truly exciting milestone as it received clearance from the United States Food and Drug Administration (FDA) for its first product, PLENITY™, a new and highly differentiated aid for weight management in adults with a Body Mass Index (BMI) of 25-40 kg/m2, in conjunction with diet and exercise.

Akili also is seeking clearance from FDA for its digital medicine that is designed for the targeted activation of specific neural systems in the brain to treat cognitive dysfunction in paediatric ADHD without pharmacological intervention - a treatment that is the first of its kind.

Internal R&D programmes, meanwhile, have rapidly advanced by leveraging the Group's considerable expertise in the BIG axis. Drawing on these insights, the PureTech Health team is identifying promising technologies, including the exciting prospect of intervening in a wide range of diseases by modulating immunity at a local level, such as via the immune-cell highway of the lymphatic system.

Within PureTech Health lies the vision, talent and organisational capability to seize opportunities where others do not think to look, and I thank our shareholders for supporting and enabling that vision. Every year, the PureTech Health team's success validates its daring and transformative spirit and takes the company to new heights. I very much look forward to the advances and milestones that lie ahead in 2019.

Joichi Ito

Chairman

Strategic report

Letter from the Chief Executive Officer

At PureTech Health, our vision is to pioneer new frontiers in medicine. In the past year, I'm pleased to report that we have taken major strides toward that goal, delivering significant value for both the business and patients as we continued to pursue breakthroughs in harnessing the Brain-Immune-Gut (BIG) axis, the heart of PureTech's R&D strategy. We have demonstrated repeatedly that our talented team can turn momentous discoveries in the lab into novel therapeutic candidates designed to have maximum impact for patients - and then guide those candidates successfully through clinical study and into regulatory review.