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Prothena (PRTA) Up 8.7% Since Earnings Report: Can It Continue?
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A month has gone by since the last earnings report for Prothena Corporation plc (PRTA - Free Report) . Shares have added about 8.7% in that time frame.
Will the recent positive trend continue leading up to its next earnings release, or is PRTA due for a pullback? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at its most recent earnings report in order to get a better handle on the important catalysts.
Prothena’s Loss Narrows in Q4, Pipeline Progresses
Prothena reported a loss of $1.24 per share for the fourth quarter of 2017, narrower than the Zacks Consensus Estimate of a loss of $1.44 and the year-ago loss of $1.41.
Quarterly revenues came in at $0.23 million, missing the Zacks Consensus Estimate of $0.27 million but rose 34% from the year-ago quarter.
Quarter in Detail
R&D expenses were $33.5 million, down 15.8% year over year primarily due to lower product manufacturing costs and costs related to clinical studies, partially offset by higher personnel and expenses related to PRX002/RG7935.
General and administrative (G&A) expenses were $14 million, up 45.8% year over year.
2017 Performance
Revenues for the full year was $27.5 million, compared to $1.1 million in the year ago period. Revenues included $26.6 million received as part of milestone payment from Roche Holdings. Loss per share narrowed 12.7% year over year to $4.07. R&D expenses increased 12.6% year over to $134.5 million, and G&A expenses rose 17.3% to $48.2 million.
2018 Outlook
Prothena projects net cash burn from operating and investing activities in the range of $175-$230 million. The company expects to end 2018 with approximately $218 million in cash (midpoint).
Pipeline Updates
Prothena continues to progress with its pipeline candidates. The company is evaluating its lead candidate, NEOD001 in the phase III VITAL Amyloidosis study in newly diagnosed treatment-naïve patients with AL amyloidosis and cardiac dysfunction. Enrolment has been completed in the VITAL study.
Prothena is also evaluating the candidate in a phase IIb study, PRONTO, in previously treated patients with AL amyloidosis and persistent cardiac dysfunction. The company has completed enrolment in this study. Data from the study is expected in the second quarter of 2018.
Moreover, Prothena is evaluating PRX002, in collaboration with Roche for the treatment of Parkinson’s disease and other related synucleinopathies. The company initiated a phase II study, PASADENA, on PRX002 in patients suffering from Parkinson`s disease, which triggered a $30-million milestone payment from Roche to Prothena. The study is continuing enrolment.
Alongside, Prothena is also working to advance PRX004 in a phase I study in patients with ATTR amyloidosis. A phase I study is planned for mid-2018.
How Have Estimates Been Moving Since Then?
In the past month, investors have witnessed a downward trend in fresh estimates. There has been one revision lower for the current quarter.
At this time, PRTA has a poor Growth Score of F, a grade with the same score on the momentum front. The stock was also allocated a grade of F on the value side, putting it in the fifth quintile for this investment strategy.
Overall, the stock has an aggregate VGM Score of F. If you aren't focused on one strategy, this score is the one you should be interested in.
Our style scores indicate investors will probably be better served looking elsewhere.
Outlook
Estimates have been broadly trending downward for the stock and the magnitude of this revision indicates a downward shift. Interestingly, PRTA has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.
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Prothena (PRTA) Up 8.7% Since Earnings Report: Can It Continue?
A month has gone by since the last earnings report for Prothena Corporation plc (PRTA - Free Report) . Shares have added about 8.7% in that time frame.
Will the recent positive trend continue leading up to its next earnings release, or is PRTA due for a pullback? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at its most recent earnings report in order to get a better handle on the important catalysts.
Prothena’s Loss Narrows in Q4, Pipeline Progresses
Prothena reported a loss of $1.24 per share for the fourth quarter of 2017, narrower than the Zacks Consensus Estimate of a loss of $1.44 and the year-ago loss of $1.41.
Quarterly revenues came in at $0.23 million, missing the Zacks Consensus Estimate of $0.27 million but rose 34% from the year-ago quarter.
Quarter in Detail
R&D expenses were $33.5 million, down 15.8% year over year primarily due to lower product manufacturing costs and costs related to clinical studies, partially offset by higher personnel and expenses related to PRX002/RG7935.
General and administrative (G&A) expenses were $14 million, up 45.8% year over year.
2017 Performance
Revenues for the full year was $27.5 million, compared to $1.1 million in the year ago period. Revenues included $26.6 million received as part of milestone payment from Roche Holdings. Loss per share narrowed 12.7% year over year to $4.07. R&D expenses increased 12.6% year over to $134.5 million, and G&A expenses rose 17.3% to $48.2 million.
2018 Outlook
Prothena projects net cash burn from operating and investing activities in the range of $175-$230 million. The company expects to end 2018 with approximately $218 million in cash (midpoint).
Pipeline Updates
Prothena continues to progress with its pipeline candidates. The company is evaluating its lead candidate, NEOD001 in the phase III VITAL Amyloidosis study in newly diagnosed treatment-naïve patients with AL amyloidosis and cardiac dysfunction. Enrolment has been completed in the VITAL study.
Prothena is also evaluating the candidate in a phase IIb study, PRONTO, in previously treated patients with AL amyloidosis and persistent cardiac dysfunction. The company has completed enrolment in this study. Data from the study is expected in the second quarter of 2018.
Moreover, Prothena is evaluating PRX002, in collaboration with Roche for the treatment of Parkinson’s disease and other related synucleinopathies. The company initiated a phase II study, PASADENA, on PRX002 in patients suffering from Parkinson`s disease, which triggered a $30-million milestone payment from Roche to Prothena. The study is continuing enrolment.
Alongside, Prothena is also working to advance PRX004 in a phase I study in patients with ATTR amyloidosis. A phase I study is planned for mid-2018.
How Have Estimates Been Moving Since Then?
In the past month, investors have witnessed a downward trend in fresh estimates. There has been one revision lower for the current quarter.
Prothena Corporation PLC Price and Consensus
Prothena Corporation PLC Price and Consensus | Prothena Corporation PLC Quote
VGM Scores
At this time, PRTA has a poor Growth Score of F, a grade with the same score on the momentum front. The stock was also allocated a grade of F on the value side, putting it in the fifth quintile for this investment strategy.
Overall, the stock has an aggregate VGM Score of F. If you aren't focused on one strategy, this score is the one you should be interested in.
Our style scores indicate investors will probably be better served looking elsewhere.
Outlook
Estimates have been broadly trending downward for the stock and the magnitude of this revision indicates a downward shift. Interestingly, PRTA has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.