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's (PRTA) Q4 Earnings Beat, Revenues Miss Estimates
Read MoreHide Full Article
Prothena Corporation (PRTA - Free Report) reported mixed results for the fourth quarter of 2018. The company reported a loss of 56 cents per share, narrower than the Zacks Consensus Estimate of a loss of 96 cents and the year-ago loss of $1.24.
Quarterly revenues came in at $0.19 million, missing the Zacks Consensus of $0.28 million. However, revenues were down from $0.22 million in the year-ago quarter. Revenues mainly came from the company’s collaboration with Roche Holdings (RHHBY - Free Report) .
The company’s shares have lost 12.1% in the past six months compared with the industry’s decline of 11.8%.
Quarter in Detail
R&D expenses were $16.5 million, down 50.7% year over year, primarily due to lower product manufacturing expenses, reduced clinical trial costs, and decreased personnel and consulting costs.
General and administrative (G&A) expenses came in at $8 million, down from $14 million in the year-ago quarter.
As of Dec 31, 2018, Prothena had $427.6 million in cash, cash equivalents and restricted cash.
Pipeline Updates
Prothena is evaluating prasinezumab (PRX002/RG7935) in collaboration with Roche for the treatment of Parkinson’s disease. A phase II study, PASADENA, which is being conducted by Roche among patients suffering from Parkinson`s disease, is ongoing and data from the study is expected in 2020.
Also, Prothena initiated a phase I study on PRX004 in patients with hereditary ATTR amyloidosis in the second quarter of 2018. The study continues to enroll patients. Preliminary data from lower dose cohorts, including safety, tolerability and pharmacodynamics, are expected in the fourth quarter of 2019.
Prothena has a global neuroscience research & development collaboration with Celgene Corp. 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 from Celgene. The company is eligible to receive future potential exercise and milestone payments for each licensed program.
Prothena is also eligible to receive additional royalties on net sales of any resulting marketed products. The preclinical tau program is expected to initiate cell line development of a lead candidate in 2019. In addition, the preclinical Aβ (Amyloid beta) program is also likely to initiate cell line development of a lead candidate in 2019 and report preclinical data in the fourth quarter of 2019.
Prothena entered into a multi-target license and option agreement with Bioasis Technologies Inc. Per the terms, Prothena made an upfront payment of $1 million to Bioasis. Prothena is currently exploring the application of Bioasis’ xB3 platform technology to increase the delivery of therapeutics across the blood-brain barrier (BBB) for neuroscience disorders. Moreover, the company has the option to exercise exclusive worldwide rights to additional therapeutic products incorporating Bioasis’s BBB technology for neuroscience targets.
2018 Results
Revenues came in at $0.9 million, missing the Zacks Consensus Estimate of $1 million. Loss per share of $3.93 was narrower than the Zacks Consensus Estimate of a loss of $4.38.
Our Take
The narrower-than-expected loss in the fourth quarter was encouraging. We expect investors’ focus to remain on pipeline updates as the company has no approved product in its portfolio yet.
Prothena has discontinued the development of its lead pipeline candidate, NEOD001. The decision 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 one. Hence, investors will now focus on the ongoing phase II study on prasinezumab, though results from the mid-stage study on this candidate is not expected before 2020.
Zacks Rank & Stock to Consider
Prothena currently carries a Zacks Rank #3 (Hold).
Bristol-Myers’earnings per share estimates have increased from $4.07 to $4.16 for 2019 in the past 60 days. The company delivered a positive earnings surprise in all the trailing four quarters, with average of 14.26%.
Zacks' Top 10 Stocks for 2019
In addition to the stocks discussed above, wouldn't you like to know about our 10 finest buy-and-holds for the year?
From more than 4,000 companies covered by the Zacks Rank, these 10 were picked by a process that consistently beats the market. Even during 2018 while the market dropped -5.2%, our Top 10s were up well into double-digits. And during bullish 2012 – 2017, they soared far above the market's +126.3%, reaching +181.9%.
This year, the portfolio features a player that thrives on volatility, an AI comer, and a dynamic tech company that helps doctors deliver better patient outcomes at lower costs.
Image: Bigstock
Prothena's (PRTA) Q4 Earnings Beat, Revenues Miss Estimates
Prothena Corporation (PRTA - Free Report) reported mixed results for the fourth quarter of 2018. The company reported a loss of 56 cents per share, narrower than the Zacks Consensus Estimate of a loss of 96 cents and the year-ago loss of $1.24.
Quarterly revenues came in at $0.19 million, missing the Zacks Consensus of $0.28 million. However, revenues were down from $0.22 million in the year-ago quarter. Revenues mainly came from the company’s collaboration with Roche Holdings (RHHBY - Free Report) .
The company’s shares have lost 12.1% in the past six months compared with the industry’s decline of 11.8%.
Quarter in Detail
R&D expenses were $16.5 million, down 50.7% year over year, primarily due to lower product manufacturing expenses, reduced clinical trial costs, and decreased personnel and consulting costs.
General and administrative (G&A) expenses came in at $8 million, down from $14 million in the year-ago quarter.
As of Dec 31, 2018, Prothena had $427.6 million in cash, cash equivalents and restricted cash.
Pipeline Updates
Prothena is evaluating prasinezumab (PRX002/RG7935) in collaboration with Roche for the treatment of Parkinson’s disease. A phase II study, PASADENA, which is being conducted by Roche among patients suffering from Parkinson`s disease, is ongoing and data from the study is expected in 2020.
Also, Prothena initiated a phase I study on PRX004 in patients with hereditary ATTR amyloidosis in the second quarter of 2018. The study continues to enroll patients. Preliminary data from lower dose cohorts, including safety, tolerability and pharmacodynamics, are expected in the fourth quarter of 2019.
Prothena has a global neuroscience research & development collaboration with Celgene Corp. 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 from Celgene. The company is eligible to receive future potential exercise and milestone payments for each licensed program.
Prothena is also eligible to receive additional royalties on net sales of any resulting marketed products. The preclinical tau program is expected to initiate cell line development of a lead candidate in 2019. In addition, the preclinical Aβ (Amyloid beta) program is also likely to initiate cell line development of a lead candidate in 2019 and report preclinical data in the fourth quarter of 2019.
Prothena entered into a multi-target license and option agreement with Bioasis Technologies Inc. Per the terms, Prothena made an upfront payment of $1 million to Bioasis. Prothena is currently exploring the application of Bioasis’ xB3 platform technology to increase the delivery of therapeutics across the blood-brain barrier (BBB) for neuroscience disorders. Moreover, the company has the option to exercise exclusive worldwide rights to additional therapeutic products incorporating Bioasis’s BBB technology for neuroscience targets.
2018 Results
Revenues came in at $0.9 million, missing the Zacks Consensus Estimate of $1 million. Loss per share of $3.93 was narrower than the Zacks Consensus Estimate of a loss of $4.38.
Our Take
The narrower-than-expected loss in the fourth quarter was encouraging. We expect investors’ focus to remain on pipeline updates as the company has no approved product in its portfolio yet.
Prothena has discontinued the development of its lead pipeline candidate, NEOD001. The decision 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 one. Hence, investors will now focus on the ongoing phase II study on prasinezumab, though results from the mid-stage study on this candidate is not expected before 2020.
Zacks Rank & Stock to Consider
Prothena currently carries a Zacks Rank #3 (Hold).
A better-ranked stock in the healthcare sector is Bristol-Myers Squibb (BMY - Free Report) , which sports a Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Bristol-Myers’earnings per share estimates have increased from $4.07 to $4.16 for 2019 in the past 60 days. The company delivered a positive earnings surprise in all the trailing four quarters, with average of 14.26%.
Zacks' Top 10 Stocks for 2019
In addition to the stocks discussed above, wouldn't you like to know about our 10 finest buy-and-holds for the year?
From more than 4,000 companies covered by the Zacks Rank, these 10 were picked by a process that consistently beats the market. Even during 2018 while the market dropped -5.2%, our Top 10s were up well into double-digits. And during bullish 2012 – 2017, they soared far above the market's +126.3%, reaching +181.9%.
This year, the portfolio features a player that thrives on volatility, an AI comer, and a dynamic tech company that helps doctors deliver better patient outcomes at lower costs.
See Stocks Today >>