Tal Medical reporting that it did not achieve the primary endpoint in its RAPID trial in major depressive disorder (MDD) is disappointing. Depression affects millions of adults globally and is the leading cause of suicide. PureTech owns 54.2% of Tal Medical and it currently represents 10.5% of PureTech’s $291.7m valuation of its growth stage companies. Tal Medical will report additional data from two other trials in MDD in H2 2016. All the data will be reviewed over the next six months and we expect an update on Tal Medical’s development plans in MDD once the review has been completed. A bipolar pivotal trial is on track to commence in H1 2017 and a sleep pilot trial in the next couple of months. PureTech’s portfolio of 12 operating companies and 10 concept phase initiatives diversifies its risk, a key advantage when trial outcomes are negative. We maintain our 229p Target Price and Buy recommendation.
