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Prothena (PRTA) Q2 Earnings Benefit From Collaboration Revenues
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Prothena Corporation (PRTA - Free Report) reported earnings per share of $1.22 per share in the second quarter of 2024, and the Zacks Consensus Estimate for the same was pegged at a loss of $1.01 per share. In the year-ago quarter, the company posted a loss of $1.03 per share.
The upside in earnings was driven by higher revenues.
Revenues totaled $132 million, which beat the Zacks Consensus Estimate of $22 million and improved significantly from $4 million in the year-ago quarter.
Collaboration fees recognized under an agreement with Bristol Myers Squibb (BMY - Free Report) contributed to the top line.
The company’s shares have lost 45.8% year to date compared with the industry’s decline of 5.9%.
Image Source: Zacks Investment Research
Quarter in Detail
Research and development (R&D) expenses increased 2.7% year over year to $57.5 million, primarily due to higher clinical trial expenses and higher personnel-related costs.
General and administrative expenses amounted to $16.1 million, up from $14.5 million in the year-ago quarter, primarily due to higher personnel-related and consulting expenses.
As of Jun 30, 2024, Prothena had $565.0 million in cash, cash equivalents and restricted cash, and no debt.
Pipeline Updates
Prothena is evaluating PRX012 — a wholly owned investigational next-generation subcutaneous antibody targeting a key epitope at the N-terminus of amyloid beta (Aβ) — for treating Alzheimer’s Disease (AD). Initial phase I single ascending dose and multiple ascending dose data support once-monthly subcutaneous administration and ongoing evaluation in MAD cohorts. The ongoing phase I study continues as planned by the company, and an update from the same is expected in 2024.
PRTA is advancing an early-stage pipeline of programs for a number of potential neurological indications with BMY.
BMS-986446 (formerly PRX005) is designed to be a best-in-class anti-tau, MTBR-specific antibody for the potential treatment of AD.
Bristol Myers continues to enroll in the ongoing phase II study in approximately 475 patients with early AD for BMS-986446. BMY is responsible for all development, manufacturing and commercialization of BMS-986446.
PRX019, a potential treatment of neurodegenerative diseases with an undisclosed target, is also being developed in collaboration with BMY. In May 2024, Bristol Myers obtained the exclusive global license for PRX019 for $80 million. Per the terms, Prothena will be eligible to receive additional development, regulatory, and sales milestone payments of up to $617.5 million and tiered royalties on net sales.
PRTA will initiate a phase I study on PRX019 by 2024-end.
PRTA is also developing a dual Aβ-Tau vaccine, PRX123, a potential prevention and treatment for AD. It is a dual-target vaccine targeting key epitopes within the N-terminus of Aβ and MTBR-tau, designed to promote amyloid clearance and block the transmission of pathogenic tau. An investigational new drug application was cleared by the FDA. The regulatory body granted Fast Track designation to PRX123 for the treatment of AD. A phase I timeline update is expected in 2024.
The company is evaluating prasinezumab, in collaboration with Roche (RHHBY - Free Report) , for the treatment of Parkinson’s disease (PD).
A phase II study, PASADENA, is being conducted by Roche in patients with early PD. Data from the study showed that patients taking prasinezumab continued to show reduced motor and functional progression compared with real-world data, after four years.
Top-line results from the phase IIb PADOVA study, which has completed enrollment, are expected in the second half of this year.
Prothena is also evaluating birtamimab, a potential treatment for AL amyloidosis. PRTA reached a Special Protocol Assessment agreement with the FDA and initiated a confirmatory phase III AFFIRM-AL study of birtamimab in Mayo Stage IV patients with AL amyloidosis. Top-line results from the study are expected between the fourth quarter of 2024 and the second quarter of 2025.
Novo Nordisk (NVO - Free Report) acquired Prothena’s clinical-stage antibody, Coramitug (formerly PRX004), a potential first-in-class amyloid depleter antibody for the treatment of ATTR cardiomyopathy.
NVO is conducting an ongoing phase II study in patients with ATTR cardiomyopathy. The study is fully recruited and top-line data from the same is expected in the first half of 2025.
Prothena Corporation plc Price, Consensus and EPS Surprise
The company expects 2024 net cash burn from operating and investing activities to be in the range of $148-$160 million (versus the prior guidance of $208-$225 million). Prothena expects year-end cash, cash equivalents and restricted cash midpoint to be approximately $468 million (previous estimate: $405 million). The cash guidance was raised due to a payment worth $80 million from BMY for exclusive worldwide rights for PRX019. Net loss for 2024 is expected to be in the band of $120-$135 million (versus the prior guidance of $229-$255 million).
Image: Bigstock
Prothena (PRTA) Q2 Earnings Benefit From Collaboration Revenues
Prothena Corporation (PRTA - Free Report) reported earnings per share of $1.22 per share in the second quarter of 2024, and the Zacks Consensus Estimate for the same was pegged at a loss of $1.01 per share. In the year-ago quarter, the company posted a loss of $1.03 per share.
The upside in earnings was driven by higher revenues.
Revenues totaled $132 million, which beat the Zacks Consensus Estimate of $22 million and improved significantly from $4 million in the year-ago quarter.
Collaboration fees recognized under an agreement with Bristol Myers Squibb (BMY - Free Report) contributed to the top line.
The company’s shares have lost 45.8% year to date compared with the industry’s decline of 5.9%.
Image Source: Zacks Investment Research
Quarter in Detail
Research and development (R&D) expenses increased 2.7% year over year to $57.5 million, primarily due to higher clinical trial expenses and higher personnel-related costs.
General and administrative expenses amounted to $16.1 million, up from $14.5 million in the year-ago quarter, primarily due to higher personnel-related and consulting expenses.
As of Jun 30, 2024, Prothena had $565.0 million in cash, cash equivalents and restricted cash, and no debt.
Pipeline Updates
Prothena is evaluating PRX012 — a wholly owned investigational next-generation subcutaneous antibody targeting a key epitope at the N-terminus of amyloid beta (Aβ) — for treating Alzheimer’s Disease (AD). Initial phase I single ascending dose and multiple ascending dose data support once-monthly subcutaneous administration and ongoing evaluation in MAD cohorts. The ongoing phase I study continues as planned by the company, and an update from the same is expected in 2024.
PRTA is advancing an early-stage pipeline of programs for a number of potential neurological indications with BMY.
BMS-986446 (formerly PRX005) is designed to be a best-in-class anti-tau, MTBR-specific antibody for the potential treatment of AD.
Bristol Myers continues to enroll in the ongoing phase II study in approximately 475 patients with early AD for BMS-986446. BMY is responsible for all development, manufacturing and commercialization of BMS-986446.
PRX019, a potential treatment of neurodegenerative diseases with an undisclosed target, is also being developed in collaboration with BMY. In May 2024, Bristol Myers obtained the exclusive global license for PRX019 for $80 million. Per the terms, Prothena will be eligible to receive additional development, regulatory, and sales milestone payments of up to $617.5 million and tiered royalties on net sales.
PRTA will initiate a phase I study on PRX019 by 2024-end.
PRTA is also developing a dual Aβ-Tau vaccine, PRX123, a potential prevention and treatment for AD. It is a dual-target vaccine targeting key epitopes within the N-terminus of Aβ and MTBR-tau, designed to promote amyloid clearance and block the transmission of pathogenic tau. An investigational new drug application was cleared by the FDA. The regulatory body granted Fast Track designation to PRX123 for the treatment of AD. A phase I timeline update is expected in 2024.
The company is evaluating prasinezumab, in collaboration with Roche (RHHBY - Free Report) , for the treatment of Parkinson’s disease (PD).
A phase II study, PASADENA, is being conducted by Roche in patients with early PD. Data from the study showed that patients taking prasinezumab continued to show reduced motor and functional progression compared with real-world data, after four years.
Top-line results from the phase IIb PADOVA study, which has completed enrollment, are expected in the second half of this year.
Prothena is also evaluating birtamimab, a potential treatment for AL amyloidosis. PRTA reached a Special Protocol Assessment agreement with the FDA and initiated a confirmatory phase III AFFIRM-AL study of birtamimab in Mayo Stage IV patients with AL amyloidosis. Top-line results from the study are expected between the fourth quarter of 2024 and the second quarter of 2025.
Novo Nordisk (NVO - Free Report) acquired Prothena’s clinical-stage antibody, Coramitug (formerly PRX004), a potential first-in-class amyloid depleter antibody for the treatment of ATTR cardiomyopathy.
NVO is conducting an ongoing phase II study in patients with ATTR cardiomyopathy. The study is fully recruited and top-line data from the same is expected in the first half of 2025.
Prothena Corporation plc Price, Consensus and EPS Surprise
Prothena Corporation plc price-consensus-eps-surprise-chart | Prothena Corporation plc Quote
2024 Guidance Updated
The company expects 2024 net cash burn from operating and investing activities to be in the range of $148-$160 million (versus the prior guidance of $208-$225 million). Prothena expects year-end cash, cash equivalents and restricted cash midpoint to be approximately $468 million (previous estimate: $405 million). The cash guidance was raised due to a payment worth $80 million from BMY for exclusive worldwide rights for PRX019. Net loss for 2024 is expected to be in the band of $120-$135 million (versus the prior guidance of $229-$255 million).
PRTA currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.