We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Prothena Rallies on Multi-Year Collaboration With Celgene
Read MoreHide Full Article
Shares of Prothena Corporation plc (PRTA - Free Report) moved up 22.6% in the after-market trading session following the news of a global collaboration with biotech bigwig Celgene Corporation .
Both companies have collaborated to develop new therapies for a broad range of neurodegenerative diseases.
However, Prothena’s stock has declined 47.9% in the last six months, worse than the industry’s fall of 11.2%.
Terms of the Agreement
The multi-year agreement is focused on three proteins implicated in the pathogenesis of several neurodegenerative diseases, including tau, TDP-43 and an undisclosed target.
Tau is a protein, implicated in Alzheimer`s disease (“AD”), progressive supranuclear palsy (“PSP”), frontotemporal dementia (“FTD”), chronic traumatic encephalopathy (“CTE”) and other tauopathies. Prothena has identified antibodies targeting novel epitopes on the tau with the ability to block misfolded tau from binding to cells and to inhibit cell-to-cell transmission, preventing downstream functional toxic effects.
On the other hand, TDP-43 is a protein implicated in amytrophic lateral sclerosis (“ALS”) and the most common subtype of FTD, behavioral variant FTD (bvFTD), a proportion of AD and other TDP-43 proteinopathies. Prothena has generated antibodies that target multiple epitopes on the TDP-43.
Celgene will own the rights to license clinical candidates in the United States at the investigational new drug filing stage and if exercised, would also have a right to expand the license to global rights at the completion of phase I. Consequently, Celgene will be responsible for funding all further global clinical development and commercialization.
In exchange, Prothena will receive a $100-million upfront payment. Celgene will also make a $50 million equity investment in Prothena by subscribing to approximately 1.2 million of ordinary shares at $42.57 per share. Prothena is also eligible for any regulatory and commercial milestones for each licensed program. Prothena will also receive additional royalties on net sales of any resulting marketed products.
Our Take
Prothena suffered a setback in 2017 when it decided not advance pipeline candidate PRX003 into mid-stage development due to disappointing data in psoriasis patients.
Hence, the company is looking to revive its pipeline given the limited number of candidates. Prothena`s pipeline of antibody therapeutic candidates targets a number of indications including AL amyloidosis (NEOD001), Parkinson`s disease and other related synucleinopathies (PRX002/RG7935) and ATTR amyloidosis (PRX004). Prothena already has a license agreement with Swiss pharma giant Roche (RHHBY - Free Report) for the development and commercialization of selected antibodies targeting alpha-synuclein including PRX002.
Tie-ups with well-known companies in the industry like Roche and Celgene make sense for Prothena as the company is highly dependent on collaboration partners for the development of candidates. The company itself does not have enough resources to independently conduct studies on candidates.
Celgene, on the other hand, is having its share of troubles too when a label expansion study on lead drug Revlimid failed in phase III. The stock was hit earlier after a phase III trial, REVOLVE, (CD-002) on pipeline candidate GED-0301 in Crohn’s disease and the extension trial, SUSTAIN (CD-004) was discontinued. The FDA recently issued Refusal to File letter to Celgene’s New Drug Application (NDA) for ozanimod, which is in development for the treatment of patients with relapsing forms of multiple sclerosis. The FDA determined that the nonclinical and clinical pharmacology sections in the NDA were insufficient to permit a complete review. Hence, Celgene is in desperate need to revive its pipeline through collaborations and acquisitions. The company recently acquired Juno Therapeutics to focus on the promising CAR-T space.
Zacks Rank & Key Pick
Prothena currently carries a Zacks Rank #3 (Hold).
Regeneron’s earnings per share estimates have moved up to $18.68 from $18.65 in the last 30 days. The company pulled off a positive earnings surprise in three of the last four quarters with an average beat of 9.15%.
Will You Make a Fortune on the Shift to Electric Cars?
Here's another stock idea to consider. Much like petroleum 150 years ago, lithium power may soon shake the world, creating millionaires and reshaping geo-politics. Soon electric vehicles (EVs) may be cheaper than gas guzzlers. Some are already reaching 265 miles on a single charge.
With battery prices plummeting and charging stations set to multiply, one company stands out as the #1 stock to buy according to Zacks research.
Image: Bigstock
Prothena Rallies on Multi-Year Collaboration With Celgene
Shares of Prothena Corporation plc (PRTA - Free Report) moved up 22.6% in the after-market trading session following the news of a global collaboration with biotech bigwig Celgene Corporation .
Both companies have collaborated to develop new therapies for a broad range of neurodegenerative diseases.
However, Prothena’s stock has declined 47.9% in the last six months, worse than the industry’s fall of 11.2%.
Terms of the Agreement
The multi-year agreement is focused on three proteins implicated in the pathogenesis of several neurodegenerative diseases, including tau, TDP-43 and an undisclosed target.
Tau is a protein, implicated in Alzheimer`s disease (“AD”), progressive supranuclear palsy (“PSP”), frontotemporal dementia (“FTD”), chronic traumatic encephalopathy (“CTE”) and other tauopathies. Prothena has identified antibodies targeting novel epitopes on the tau with the ability to block misfolded tau from binding to cells and to inhibit cell-to-cell transmission, preventing downstream functional toxic effects.
On the other hand, TDP-43 is a protein implicated in amytrophic lateral sclerosis (“ALS”) and the most common subtype of FTD, behavioral variant FTD (bvFTD), a proportion of AD and other TDP-43 proteinopathies. Prothena has generated antibodies that target multiple epitopes on the TDP-43.
Celgene will own the rights to license clinical candidates in the United States at the investigational new drug filing stage and if exercised, would also have a right to expand the license to global rights at the completion of phase I. Consequently, Celgene will be responsible for funding all further global clinical development and commercialization.
In exchange, Prothena will receive a $100-million upfront payment. Celgene will also make a $50 million equity investment in Prothena by subscribing to approximately 1.2 million of ordinary shares at $42.57 per share. Prothena is also eligible for any regulatory and commercial milestones for each licensed program. Prothena will also receive additional royalties on net sales of any resulting marketed products.
Our Take
Prothena suffered a setback in 2017 when it decided not advance pipeline candidate PRX003 into mid-stage development due to disappointing data in psoriasis patients.
Hence, the company is looking to revive its pipeline given the limited number of candidates. Prothena`s pipeline of antibody therapeutic candidates targets a number of indications including AL amyloidosis (NEOD001), Parkinson`s disease and other related synucleinopathies (PRX002/RG7935) and ATTR amyloidosis (PRX004). Prothena already has a license agreement with Swiss pharma giant Roche (RHHBY - Free Report) for the development and commercialization of selected antibodies targeting alpha-synuclein including PRX002.
Tie-ups with well-known companies in the industry like Roche and Celgene make sense for Prothena as the company is highly dependent on collaboration partners for the development of candidates. The company itself does not have enough resources to independently conduct studies on candidates.
Celgene, on the other hand, is having its share of troubles too when a label expansion study on lead drug Revlimid failed in phase III. The stock was hit earlier after a phase III trial, REVOLVE, (CD-002) on pipeline candidate GED-0301 in Crohn’s disease and the extension trial, SUSTAIN (CD-004) was discontinued. The FDA recently issued Refusal to File letter to Celgene’s New Drug Application (NDA) for ozanimod, which is in development for the treatment of patients with relapsing forms of multiple sclerosis. The FDA determined that the nonclinical and clinical pharmacology sections in the NDA were insufficient to permit a complete review. Hence, Celgene is in desperate need to revive its pipeline through collaborations and acquisitions. The company recently acquired Juno Therapeutics to focus on the promising CAR-T space.
Zacks Rank & Key Pick
Prothena currently carries a Zacks Rank #3 (Hold).
A better-ranked stock in the health care sector is Regeneron Pharmaceuticals (REGN - Free Report) which sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here..
Regeneron’s earnings per share estimates have moved up to $18.68 from $18.65 in the last 30 days. The company pulled off a positive earnings surprise in three of the last four quarters with an average beat of 9.15%.
Will You Make a Fortune on the Shift to Electric Cars?
Here's another stock idea to consider. Much like petroleum 150 years ago, lithium power may soon shake the world, creating millionaires and reshaping geo-politics. Soon electric vehicles (EVs) may be cheaper than gas guzzlers. Some are already reaching 265 miles on a single charge.
With battery prices plummeting and charging stations set to multiply, one company stands out as the #1 stock to buy according to Zacks research.
It's not the one you think.
See This Ticker Free >>