PureTech Health plc (PRTC): Business Model Canvas [Dec-2025 Updated]

You're digging into PureTech Health plc's engine, trying to map out how this biotech actually makes money beyond just the science. Honestly, their hub-and-spoke model is clever: they de-risk novel drug candidates internally, then spin them out to attract capital, keeping a significant equity stake. As of H1 2025, they were sitting on $319.6 million in cash to fuel this, even while managing consolidated operating expenses of $49.8 million that same period. To see the full picture-how they turn intellectual property and clinical progress into tangible revenue streams like those equity monetizations and milestone payments-you'll want to check out the nine essential building blocks we've laid out for you right here.

PureTech Health plc (PRTC) - Canvas Business Model: Key Partnerships

You're looking at the structure of PureTech Health plc's (PRTC) external relationships as of late 2025. This is where the science gets funded and moves toward the patient.

Strategic Venture Capital Firms

PureTech Health plc's historical capital structure involved a limited number of institutional investors, which informs the nature of its current strategic financial backing, though the focus has shifted to external capital for its Founded Entities.

• PureTech Health plc has 2 listed institutional investors: Invesco Perpetual and Vitruvian Partners.
• Total historical funding raised was $107M across 2 rounds.
• The largest historical funding round was Series C for $57M in October 2014.
• PureTech Ventures, founded in 2001, prefers to invest in seed and early-stage life sciences companies.

Pharmaceutical Companies for Licensing and Commercialization

The hub-and-spoke model relies heavily on spinning out programs into Founded Entities that then secure external pharmaceutical partnerships for late-stage development and commercialization. This is best exemplified by the success of Karuna Therapeutics.

PureTech Health plc's R&D engine has resulted in the development of 29 therapeutics and therapeutic candidates, including three that have been approved by the U.S. Food and Drug Administration as of July 2025.

Royalty Pharma for the $500 Million Royalty Transaction

The agreement with Royalty Pharma plc (RPRX) provided significant non-dilutive capital based on the success of KarXT.

• Total potential value of the KarXT royalty agreement is up to $500 million.
• Royalty Pharma paid $100 million in cash up front as of March 2023.
• Royalty Pharma acquired the right to 3% royalty on Karuna sales up to $2 billion annually.
• Above the $2 billion threshold, Royalty Pharma receives 33% and PureTech Health plc retains 67% of the royalty payments.
• PureTech Health plc retains its 3.1% equity ownership stake in Karuna.
• PureTech Health plc also retains the right to receive milestone payments and 20% of sublicense income from Karuna.
• In Q4 2024, PureTech received $25,000 from Royalty Pharma upon FDA approval for Cobenfy.
• In the first half of 2025, PureTech recognized $1,851 in royalty revenue from BMS's sale of Cobenfy and paid Royalty Pharma that amount in July 2025.

Extensive Network of Scientists, Clinicians, and Industry Leaders

The company's model depends on its internal expertise and external scientific network to validate and advance its pipeline programs.

• The company's R&D engine is powered by its experienced research and development team.
• The portfolio is advanced through an extensive network of scientists, clinicians, and industry leaders.
• Eric Elenko, Co-Founder & President, was part of the team that invented KarXT.
• Robert Lyne serves as Interim Chief Executive Officer as of July 2025.

Academic Institutions for Early-Stage Discovery

The initial identification and validation of therapeutic candidates originate from foundational scientific work, often stemming from academic or early-stage discovery environments.

The hub-and-spoke model focuses on identifying and clinically de-risking high-potential programs internally before advancing them through Founded Entities supported by external capital.

Finance: review Q3 2025 cash burn relative to the $319.6 million PureTech level cash position as of June 30, 2025, which supports an operational runway into 2028.

PureTech Health plc (PRTC) - Canvas Business Model: Key Activities

You're looking at the engine room of PureTech Health plc, the core activities that drive their hub-and-spoke model. It's all about identifying science, de-risking it internally, and then spinning it out for external scaling. Honestly, the numbers from the first half of 2025 really show this in action.

Internal R&D and clinical de-risking of wholly-owned programs

This is where PureTech Health plc proves the value of its internal engine. They focus on getting high-potential assets to critical inflection points before handing them off. For instance, deupirfenidone (LYT-100) was advanced to the cusp of Phase 3 readiness based on compelling data from the ELEVATE IPF study in the first half of 2025. This internal validation is key to attracting the right external partners later on. The operational expenses for the six months ended June 30, 2025, totaled $49.8 million, which covers this foundational R&D work.

Forming and spinning out new Founded Entities (e.g., Celea, Gallop)

The strategy involves creating dedicated structures to scale validated programs. You saw this clearly with the launch of Celea Therapeutics in August 2025 to advance deupirfenidone (LYT-100). This move is part of a planned transition; PureTech Health plc expects a significant reduction in its own operational expenses over the course of 2026 as support for Celea and Gallop transitions fully to those entities. To be fair, Gallop Oncology, which is advancing LYT-200, remains wholly-owned by PureTech Health plc as of late 2025, showing they keep full control on certain high-conviction assets until later stages.

Securing external capital for Founded Entities' advancement

The model relies on external capital to fuel the Founded Entities' advancement past the de-risking stage. While Gallop is currently wholly-owned, the success of the model is evident in prior entities. For example, in 2024, PureTech Health plc's Founded Entities raised $397.5 million, with over 88% coming from third parties. This external funding mechanism is what allows PureTech Health plc to maintain financial discipline and flexibility, evidenced by their projected operational runway extending into 2028 as of June 30, 2025.

Managing a diverse portfolio of 29 therapeutic candidates

The breadth of the pipeline is a core activity, representing the output of the R&D engine. PureTech Health plc's R&D engine has resulted in the development of 29 therapeutics and therapeutic candidates. This diverse portfolio includes assets at various stages, from internal programs to those managed by Founded Entities in clinical development, including registration-enabling studies. This diversity helps mitigate risk across the overall asset base.

Monetizing equity stakes in mature Founded Entities (e.g., Vor divestment)

Realizing value from successful de-risking and scaling is the final piece of the cycle. PureTech Health plc completed the divestment of its remaining equity holdings in Vor Biopharma on June 26, 2025. This monetization event generated gross cash proceeds of approximately $2.8 million before expenses. This activity feeds back into the hub, bolstering the balance sheet to fund the next wave of internal R&D. You can see the impact on the cash position below.

Here's a quick look at the financial position supporting these activities as of the mid-year point:

The key outputs from the internal engine that are currently being advanced include:

• LYT-100 (deupirfenidone): Advanced to Phase 3-ready status for IPF.
• LYT-200: Advanced in Gallop Oncology for AML/MDS and solid tumors.
• Cobenfy™: Already received U.S. FDA approval (historical milestone).

PureTech Health plc (PRTC) - Canvas Business Model: Key Resources

You're looking at the core assets PureTech Health plc (PRTC) is relying on to drive value from its hub-and-spoke model as of late 2025. These aren't just line items; they are the actual engines of potential future revenue and strategic flexibility.

First, let's look at the immediate financial strength. The company maintained a solid liquidity position. PureTech level cash, cash equivalents and short-term investments stood at $319.6 million as of June 30, 2025. This figure, down from $366.8 million at the end of 2024, supports an expected operational runway extending into 2028. That runway gives the team time to hit critical milestones without immediate capital pressure.

The foundation of the company's innovation is its Intellectual Property (IP) portfolio. This is heavily centered around the proprietary Glyph platform. This technology is designed to enable and enhance oral drug administration by utilizing the intestinal lymphatic system, effectively bypassing first-pass metabolism. The IP protection is significant, with one patent covering Glyph lipid chemistries extending to September 2037 and another covering specific prodrug chemistries extending to December 2038.

The strategic value of the IP is realized through its Founded Entities. The most significant holding is the equity stake in Seaport Therapeutics. As of June 30, 2025, PureTech Health plc's economic interest in Seaport Therapeutics was approximately 35.1% on a partially diluted basis. This stake represents a major potential upside, following the $100 million Series A and the $225 million Series B financings Seaport closed in 2024.

PureTech Health plc also holds wholly-owned, de-risked assets that are ready for the next stage of development. The most prominent example is deupirfenidone, or LYT-100, which is now managed by the newly launched subsidiary, Celea Therapeutics. This asset is described as Phase 3-ready for its initial indication, idiopathic pulmonary fibrosis (IPF). The Phase 2b ELEVATE IPF trial showed a stabilization of lung function decline, with the 825 mg TID dose showing an FVC decline of -21.5 mL over 26 weeks, comparable to natural decline in healthy older adults.

Here's a quick look at how the key assets and financial position line up:

The human capital is another critical resource. PureTech Health plc's R&D engine has successfully generated a deep pipeline, resulting in 29 therapeutic candidates, including three that have already gained U.S. FDA approval. The leadership across the key entities is also a defined resource:

• PureTech Health plc CEO: Bharatt Chowrira, PhD, JD
• Celea Therapeutics CEO: Sven Dethlefs, PhD
• Seaport Therapeutics CEO: Daphne Zohar

The company's model itself-the ability to spin out focused entities-is a resource. This approach has already yielded significant external capital, such as the $1.1bn in gross proceeds from the stake in Karuna Therapeutics. The ability to attract top-tier investors to these spokes, like General Atlantic for Seaport's Series B, is defintely a core competency.

PureTech Health plc (PRTC) - Canvas Business Model: Value Propositions

You're looking at the core value delivered by PureTech Health plc's hub-and-spoke model, which is all about translating early science into tangible patient and shareholder value. Honestly, the numbers coming out of their platform are what really tell the story here.

De-risking novel medicines for devastating diseases

PureTech Health plc focuses on de-risking science through validation points, often leading to external funding or partnerships. This approach has advanced several candidates toward late-stage development as of mid-2025.

• Wholly-owned deupirfenidone (LYT-100) for Idiopathic Pulmonary Fibrosis (IPF) achieved positive topline results from the ELEVATE IPF Phase 2b clinical trial in December 2024.
• PureTech Health plc is targeting a meeting with the FDA before the end of Q3 2025, with the goal of initiating a Phase 3 trial by the end of 2025 for LYT-100.
• LYT-200, a wholly-owned anti-galectin-9 monoclonal antibody, received Fast Track designation from the FDA in January 2025 for Acute Myeloid Leukemia (AML).
• LYT-200 also holds Orphan Drug designation from the FDA for AML (granted February 2024).

Capital-efficient model for drug development via spinouts

The model relies on external capital to advance programs once initial validation is achieved internally. This keeps PureTech Health plc's own cash burn lower, extending runway.

Here's the quick math on external capital raised by Founded Entities in 2024:

This capital-efficient operation supports a strong balance sheet, with PureTech Health plc level cash, cash equivalents and short-term investments at $319.6 million as of June 30, 2025, providing operational runway into 2028.

Potential for transformative patient outcomes in oncology and CNS

The value proposition includes delivering first-in-class or best-in-class medicines for serious conditions. The CNS success with Cobenfy™ is a prime example of this.

• Cobenfy™ (invented by PureTech Health plc, advanced by Karuna Therapeutics, now part of Bristol Myers Squibb) received U.S. FDA approval in September 2024 for schizophrenia, representing the first new drug mechanism for the condition in over 50 years.
• LYT-200 has received both Fast Track designation (January 2025) and Orphan Drug designation (February 2024) from the FDA for AML, highlighting its potential in oncology.

Creating shareholder value through equity monetization and royalties

The monetization of equity stakes in successful spinouts is a core driver of shareholder returns. The Karuna Therapeutics exit is the key financial data point here.

Advancing three FDA-approved therapeutics from inception to market

The model is validated by successfully moving multiple candidates from initial discovery at PureTech Health plc through to regulatory approval, often via a spinout structure. Cobenfy™ is cited as the third such therapeutic.

• Therapeutic 1: Cobenfy™ (KarXT) - Achieved U.S. FDA approval in September 2024 for schizophrenia.
• Therapeutic 2 & 3: Two other therapeutics invented at PureTech Health plc have also achieved U.S. FDA approval and European marketing authorization as of late 2022, reinforcing the track record.

PureTech Health plc (PRTC) - Canvas Business Model: Customer Relationships

You're looking at how PureTech Health plc manages its diverse set of stakeholders-from the scientists building the next drug to the investors funding the journey. It's a multi-faceted approach, balancing deep involvement with transactional distance, depending on the relationship type.

High-touch, hands-on support for wholly-owned programs' transition to spinouts

The support for wholly-owned programs transitioning to Founded Entities is designed to be intensive during the critical de-risking phase, but the goal is to transition operational support externally. This is central to the capital-efficient R&D model. For instance, PureTech expects a significant reduction in operational expenses over the course of 2026 as operational support for Celea and Gallop is expected to transition fully to their respective Founded Entities or other external structures. Gallop Oncology, for example, remains wholly owned as of August 2025, indicating continued high-touch involvement there, while Seaport Therapeutics, founded in April 2024, has already raised over $325 million since its inception, suggesting a successful transition to external capital reliance for growth.

Transactional relationship with large pharma for licensing and M&A

Relationships with large pharmaceutical partners are primarily transactional, often centered around the successful monetization of validated science. The benchmark for this is the March 2024 acquisition of Karuna Therapeutics by BMS for approximately $14 billion in total equity value. Following that, PureTech Health received approximately $293 million gross proceeds from its equity position and remains eligible to receive up to $400 million in future milestone payments plus royalties based on KarXT success. In the broader M&A landscape for 2025, transactions incorporating Contingent Value Rights (CVRs) saw CVRs account for, on average, 37% of the total size of larger deals that used them.

Investor relations for public market shareholders (NASDAQ/LSE)

Managing the public market relationship involves clear communication on financial health and strategic milestones across both the London Stock Exchange (LSE) and NASDAQ listings. As of June 30, 2025, PureTech level cash, cash equivalents and short-term investments stood at $319.6 million, supporting an expected operational runway into 2028. The company is actively working toward a potential dual listing on NASDAQ, with a formal decision anticipated in early 2026. The stock's recent performance shows the LSE closing price at 122.00, which is 21.51% above the 52-week low of 100.40 set on April 09, 2025.

Here's a snapshot of the shareholder engagement metrics as of late 2025:

Insider activity shows that insiders have bought more shares than they sold in the past 3 months.

Long-term, strategic engagement with venture capital partners

Engagement with external capital partners, often structured through the Founded Entity model, is strategic, aiming to bring in third-party funding to advance programs while PureTech retains meaningful economics. In 2024, PureTech's Founded Entities raised $397.5 million, with over 88% of that coming from third parties. This demonstrates the successful attraction of external VC/partner capital. PureTech's retained economic interest in Seaport is 35.1% equity, plus rights to tiered royalties and milestones.

The nature of these strategic engagements includes:

• Securing external funding for Founded Entities.
• Retaining economics via equity and future payment rights.
• Leveraging the hub-and-spoke model for capital efficiency.
• Focusing on programs with validated pharmacology.

It's about partnership that funds the next stage, not just a one-off sale. Finance: draft 13-week cash view by Friday.

PureTech Health plc (PRTC) - Canvas Business Model: Channels

You're looking at how PureTech Health plc actually gets its science and its entities in front of the right people-investors, partners, and the scientific community-to advance its pipeline. It's a classic hub-and-spoke channel strategy, using internal structures and external markets to fund and validate the science.

Founded Entities for Program Advancement

PureTech Health plc uses its Founded Entity model to advance specific programs, which acts as a primary channel for development and external capital attraction. As of late 2025, key entities include:

• Gallop Oncology (Gallop): Advances LYT-200 (anti-galectin-9 mAb) for hematological malignancies and solid tumors.
• Seaport Therapeutics (Seaport): Advanced novel neuropsychiatric medicines powered by the Glyph platform. Seaport raised a total of $326 million through an oversubscribed Series A of $100 million and a Series B of $226 million since April 2024.
• Celea Therapeutics (Celea): Launched in August 2025 to advance deupirfenidone (LYT-100) for idiopathic pulmonary fibrosis (IPF).

PureTech Health plc's Founded Entities raised $397.5 million in 2024, with over 88% coming from third parties. PureTech is exploring funding mechanisms for deupirfenidone, including a potential spin-out into a new Founded Entity.

Public Equity Markets for Capital and Liquidity

Trading on both the NASDAQ and LSE provides the necessary public market channel for capital raising and liquidity for PureTech Health plc shares. As of late 2025 data:

The company completed the divestment of its remaining equity holdings in Vor in June 2025, generating gross cash proceeds of approximately $2.8 million.

Direct Licensing and Collaboration Deals with Major Pharmaceutical Partners

Securing deals with large pharmaceutical partners is a critical channel for validating and commercializing the science, often generating non-dilutive capital and future revenue streams. The success of the Karuna Therapeutics (KarXT) channel is a prime example, though that entity was acquired in 2024.

For the six months ended June 30, 2025, contract revenues surged 542.7% to $1.85 million, primarily due to the recognition of royalty revenue from sales of the Cobenfy asset. Regarding potential future deals, PureTech Health plc is entitled to potential future milestone payments and approximately 2% royalties on net annual sales over $2 billion under certain agreements.

The Karuna acquisition by BMS in March 2024 was for a total equity value of approximately $14 billion, from which PureTech received approximately $293 million gross proceeds, plus eligibility for up to $400 million in future milestones and royalties.

Scientific Conferences for Data Dissemination and Visibility

Presenting clinical data at major scientific meetings is the channel used to establish scientific credibility and attract potential partners or investors based on clinical milestones. PureTech Health plc actively participates in these forums.

• Gallop Oncology announced that additional details from its Phase 1b trial of LYT-200 would be shared at the 67th American Society of Hematology (ASH) Annual Meeting on December 6th, 2025.
• PureTech presented at the Jefferies Global Healthcare Conference on June 5, 2025, and the Leerink Partners Global Healthcare Conference on March 11, 2025.
• The company presented its 2024 Annual Report and Financial Results on April 30, 2025.

The company's R&D engine has resulted in the development of 29 therapeutics and therapeutic candidates, including three approved by the U.S. Food and Drug Administration.

PureTech Health plc (PRTC) - Canvas Business Model: Customer Segments

You're looking at the core groups PureTech Health plc targets to advance its science and create shareholder value. This company operates on a hub-and-spoke model, meaning its direct customers aren't always the end-users, but rather the entities that fund and commercialize the de-risked assets.

Large pharmaceutical companies seeking late-stage, de-risked assets

PureTech Health plc identifies, shapes, and de-risks high-conviction assets, scaling them through dedicated structures backed by external capital to accelerate their path to patients. This strategy positions their clinical-stage assets as attractive late-stage partnership or acquisition targets for larger pharmaceutical players.

• LYT-100 for Idiopathic Pulmonary Fibrosis (IPF) is being advanced toward registration-enabling studies.
• LYT-200, via Gallop Oncology, targets metastatic/locally advanced solid tumors and Acute Myeloid Leukemia (AML).
• The company has previously scaled programs through partnerships with 'several top health companies, providers, pharma and device original equipment manufacturers'.

Institutional and retail investors seeking biotech exposure and capital returns

Shareholders are a key segment, as the company's model is designed to create sustainable value for them while maintaining operational flexibility. The company's financial position is a direct indicator of its appeal to this group.

The company appointed UBS and Peel Hunt as joint UK corporate brokers to deepen engagement with the investor base.

Patients with devastating diseases like IPF, AML, and CNS disorders

The ultimate beneficiaries of the science are patients suffering from serious, unmet medical needs. PureTech Health plc is dedicated to changing the lives of these patients through novel medicine classes.

• Patients with Idiopathic Pulmonary Fibrosis (IPF) are a target for deupirfenidone (LYT-100).
• Patients with Acute Myeloid Leukemia (AML) and high-risk myelodysplastic syndrome (MDS) are targeted by LYT-200 through Gallop Oncology.
• Patients with neuropsychiatric disorders are the focus of Seaport Therapeutics, which advances medicines powered by the Glyph platform.

Top-tier life science venture capital funds for spinout financing

External capital providers are crucial customers for PureTech Health's Founded Entities, as this funding mechanism allows the company to advance programs without significant dilution to the parent entity.

Celea Therapeutics and Gallop Oncology are actively moving toward securing independent external funding, which is expected to remove the majority of their R&D spend from the PureTech level balance sheet.

PureTech Health plc (PRTC) - Canvas Business Model: Cost Structure

You're looking at the cost side of the PureTech Health plc engine, which is heavily weighted toward advancing its pipeline through its hub-and-spoke model. Honestly, for a clinical-stage biotherapeutics company, this is where the bulk of the cash goes.

The overall spending picture for the first half of 2025 shows a tightening of the belt compared to the prior year. Consolidated operating expenses for the six months ended June 30, 2025, totaled $49.8 million. This is a notable reduction from the $66.7 million reported for the same period in 2024.

Research and Development (R&D) expenses for wholly-owned programs are a major component of that operating expense figure. While the specific R&D dollar amount for H1 2025 isn't broken out separately from the consolidated total, we know this spend was lower than in previous periods due to the transition of certain programs. Specifically, there was a decrease in operating loss driven by lower research and development spend following the deconsolidation of Seaport in October 2024.

General and administrative (G&A) expenses are also a key cost. The search results confirm that G&A expenses were reduced at the PureTech level in H1 2024 compared to the prior year, reflecting efficiency drives. However, the precise G&A expense for H1 2025 is not explicitly stated; it is bundled within the $49.8 million consolidated operating expense. What this estimate hides is the exact split between R&D and G&A for the first half of 2025.

Costs associated with spinning out and establishing new entities are managed by shifting future R&D costs off the PureTech balance sheet, leveraging external capital in the Founded Entities. A recent example of this structural shift is the August 2025 launch of the new Founded Entity, Celea Therapeutics, to advance deupirfenidone. On the capital side, PureTech Health plc completed the divestment of its remaining equity holdings in Vor as of June 26, 2025, receiving gross cash proceeds of approximately $2.8 million before expenses.

Clinical trial costs for lead candidates like LYT-100 and LYT-200 are embedded within the R&D spend. The capital-intensive nature of these activities is underscored by the company's substantial negative free cash flow, which was approximately $160 million, highlighting the ongoing cash burn for development. LYT-200, for instance, is in an ongoing Phase 1b trial, with new data expected at the American Society of Hematology Annual Meeting on December 6, 2025. LYT-100 also saw new Phase 2b analyses presented in October 2025.

Here are the concrete financial figures we have for the Cost Structure as of the latest reporting:

The management of these costs is directly tied to the company's structure and runway:

• Expected operational runway into 2028 as of June 30, 2025.
• Anticipated significant reduction in operational expenses starting in 2026 as support transitions to Founded Entities.
• LYT-200 Phase 1b trial achieved a 38% complete response rate when combined with standard-of-care therapy.
• LYT-200 in AML showed a median overall survival of 13.2 months in heavily pretreated patients.
• LYT-200 received Fast Track designation from the FDA for AML.

Finance: draft 13-week cash view by Friday.

PureTech Health plc (PRTC) - Canvas Business Model: Revenue Streams

You're looking at the actual cash flow drivers for PureTech Health plc as of late 2025, which is heavily weighted toward the success of its Founded Entities and asset monetization, rather than traditional product sales.

The most immediate and concrete revenue recognized in the first half of 2025 came from contract and royalty streams, reflecting the commercial progress of its portfolio. Total revenue for the six months ended June 30, 2025, hit $1,851 thousand, a massive jump of 542% compared to the same period in 2024, which was only $288 thousand, entirely from grants. So, the story here is the shift from grant-dependent income to commercial asset recognition.

Here's a breakdown of the key components driving that revenue recognition:

• The surge is primarily due to the recognition of royalty revenue from sales of Cobenfy (formerly KarXT), which the U.S. Food and Drug Administration approved in September 2024.
• Contract Revenue was $1,851 thousand for the six months ended June 30, 2025.
• This was partially offset by a decrease in grant revenue of $0.3 million related to completed grants in 2024.
• PureTech level cash, cash equivalents and short-term investments stood at $319.6 million as of June 30, 2025, giving the company operational runway into 2028.

Monetization of equity stakes in Founded Entities provides significant, albeit lumpy, cash infusions. This is a core part of the hub-and-spoke model-de-risk, spin out, and then realize value.

Milestone payments from licensing and collaboration agreements are a key potential driver, though specific payments recognized in H1 2025 aren't itemized separately from the royalty revenue in the top-line total. The FDA approval of Cobenfy in September 2024 was the trigger for unlocking the first in a series of potential milestone payments, which are tied to the agreement with Bristol Myers Squibb.

The potential for future M&A proceeds is embedded in the valuation of the Founded Entities. For instance, Seaport Therapeutics, which launched with a $100 million Series A and later a $226 million Series B, represents a significant pool of unrealized value. The total capital raised by Seaport since April 2024 reached $326 million. If Seaport were to have a liquidity event, that 35.1% stake would convert into a substantial cash inflow for PureTech Health plc.

Honestly, the model relies on these discrete, high-value events. You see the cash from Vor, and you see the royalty recognition from Cobenfy starting to flow.