Back to top

Image: Bigstock

Prothena (PRTA) Q1 Loss Wider Than Expected, Sales Miss

Read MoreHide Full Article

Prothena Corporation plc (PRTA - Free Report) reported a loss of $1.26 per share for the first quarter of 2018, wider than the Zacks Consensus Estimate of a loss of $1.23 and the year-ago loss of $0.99.

Quarterly revenues came in at $0.23 million, down from $0.26 million in the year-ago quarter. The Zacks Consensus Estimate was $31.45 million.

Prothena’s stock was trading down in after-market trading following the announcement of the results. The company’s shares have lost 74.8% in last six months, worse than the industry’s decline of 10.8%.

 

 

Quarter in Detail

R&D expenses were $34.7 million, up 35% year over year primarily due to due to higher consulting expenses, higher personnel costs, higher expense associated with PRX002/RG7935 and higher clinical trial costs.

General and administrative (G&A) expenses were $14.2 million, up 31.4% year over year.

Pipeline Updates

Prothena has discontinued the development of its lead pipeline candidate, NEOD001. The candidate, an antibody, was being evaluated for the treatment of AL amyloidosis. A phase IIb study, PRONTO, did not meet its primary or secondary endpoints. Hence, the company asked the independent data monitoring committee (“DMC”) of the phase III VITAL study to review a futility analysis of the ongoing VITAL study. Thereafter, the DMC recommended discontinuation of the VITAL study.

Hence, the company decided to discontinue all studies for the development of NEOD001, including the VITAL study as well as the open label extension studies.On the other hand, Prothena is evaluating PRX002, in collaboration with Roche (RHHBY - Free Report) 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 was initiated in the second quarter of 2018 and continues to enroll patients. Preliminary data is expected in 2019.

Prothena also entered into a global neuroscience research & development collaboration with Celgene Corporation   to develop new therapies for a broad range of neurodegenerative diseases. The collaboration is focused on three targets implicated in the pathogenesis of several neurodegenerative diseases, inducing tau, TDP-43 and a third that is undisclosed. Per the terms, Prothena received a $100 million upfront payment and a $50 million equity investment by Celgene. The company is eligible to receive future potential exercise payments and milestone payments for each licensed program. Prothena is also eligible to receive additional royalties on net sales of any resulting marketed products.

Our Take

The wider-than-expected loss in the first quarter was disappointing. The discontinuation of the development of NEOD001 came as a major blow to the investors as the company has a very limited number of candidates in its pipeline and NEOD001 was a lead candidate.

 

 

Zacks Rank & Stock to Consider

Prothena carries a Zacks Rank #3 (Hold).

A better-ranked stock in the healthcare sector is Exelixis (EXEL - Free Report) which currently sports a Zacks Rank #1 (Strong Buy).  You can see the complete list of today’s Zacks #1 Rank stocks here.

Exelixis’ earnings per share estimates increased from 59 cents to 86 cents for 2018 over the last seven days after the company reported better-than-expected first-quarter results.

The Hottest Tech Mega-Trend of All

Last year, it generated $8 billion in global revenues. By 2020, it's predicted to blast through the roof to $47 billion. Famed investor Mark Cuban says it will produce "the world's first trillionaires," but that should still leave plenty of money for regular investors who make the right trades early.

See Zacks' 3 Best Stocks to Play This Trend >>


See More Zacks Research for These Tickers


Normally $25 each - click below to receive one report FREE:


Roche Holding AG (RHHBY) - free report >>

Exelixis, Inc. (EXEL) - free report >>

Prothena Corporation plc (PRTA) - free report >>