PureTech founder steps down as CEO to lead SeaPort spin-off
By Benjamin Chiou
Date: Tuesday 09 Apr 2024
(Sharecast News) - Clinical-stage biotherapeutics group PureTech has announced that its founding chief executive is to step down to lead SeaPort Therapeutics, a PureTech company she founded that has just raised $100m in Series A financing.
Seaport will be led by Daphne Zohar, who has run PureTech since its foundation in 2005, along Steven Paul, the former CEO of Karuna Therapeutics - the PureTech spin-off that was acquired by Briistol Myers Squibb for $14bn earlier this year.
Seaport was established by PureTech to advance certain neuropsychiatric programs and will be 61.5% owned by the company following the Series A.
PureTech said it has internally advanced Seaport's neuropsychiatric medicines programs "to a key inflection point such that the pipeline can now drive value for PureTech through an equity stake and license consideration". As such, PureTech can now share the costs of later-stage development with outside investors and direct additional resources elsewhere in the business.
This same approach, part of PureTech's 'hub-and-spoke strategy', has resulted in $1.1bn in gross proceeds so far from its stake in Karuna. PureTech still receives royalties from Karuna as well as certain milestone payments.
As part of the transition, Zohar will formally step down from the board but stay on as a senior advisor, while long-term PureTech senior executive and biotech veteran Bharratt Chowrira will succeed her as CEO, effective Tuesday.
Meanwhile, Eric Elenko, a PureTech co-founder and current chief innovation officer, has been promoted to the role of president.
"I am excited to step into the CEO role and to lead PureTech through this next phase of its evolution," Chowrira said.
"We have demonstrated the evergreen success of our hub-and-spoke R&D model of venture creation, where we are able to recycle proceeds from our founded entities into both the funding of our current and future programs to change patients' lives and capital returns for shareholders."
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