Prothena Corporation plc (PRTA - Free Report) reported a loss of $1.26 per share in the third quarter of 2016, wider than both the Zacks Consensus Estimate of a loss of $1.23 and the year-ago loss of 73 cents.
Moreover, quarterly revenues came in at $0.3 million, down 25% primarily due to lower contributions from the collaboration agreement with Roche Holding AG (RHHBY - Free Report) . The top line was, however, in line the Zacks Consensus Estimate.
Quarter in Detail
Research and development (R&D) expenses were $26.8 million, up 55.8% year over year primarily due to increased expenses related to pipeline development, product manufacturing, and higher personnel costs.
General and administrative (G&A) expenses were $16.1 million, up a substantial 47.3% year over year mainly due to higher personnel costs.
2016 Outlook
Prothena has revised its 2016 net cash burn projection. The company now expects net cash burn from operating and investing activities in the range of $132–$142 million (previous projection: $118–$128 million).
The company, however, continues to expect to end the year with approximately $376 million in cash, cash equivalents and restricted cash (midpoint).
Pipeline Update
Prothena continues to progress with the candidates in its pipeline. 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. Patient enrollment in the study is expected to be complete in the second quarter of 2017.
The company is also evaluating the candidate in a phase IIb study, PRONTO, in previously treated patients with AL amyloidosis and persistent cardiac dysfunction. Top-line results from the study are expected in early 2018.
Moreover, Prothena is evaluating PRX002, in collaboration with Roche, for the treatment of Parkinson’s disease and other related synucleinopathies. Top-line data from a phase Ib multiple-ascending dose study are expected this month.
Our Take
The wider-than-expected loss in the third quarter was disappointing. Nevertheless, the company’s efforts on developing its pipeline are encouraging. We expect investor focus to remain on further updates from its late-stage candidate, NEOD001.
Zacks Rank & Key Picks
Prothena currently carries a Zacks Rank #3 (Hold). Some better-ranked stocks in the healthcare sector include Infinity Pharmaceuticals, Inc. and Exelixis, Inc. (EXEL - Free Report) . Infinity sports a Zacks Rank #1 (Strong Buy), while Exelixis carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Infinity’s loss estimates narrowed from $3.84 to $3.79 for 2016 but remained unchanged for 2017 over the last 60 days. The company has posted a positive surprise in all of the four trailing quarters with an average beat of 67.62%.
Exelixis’ loss estimates narrowed from 71 cents to 61 cents for 2016 and from 16 cents to earnings of 4 cents for 2017 over the last 60 days. The company has posted a positive surprise twice in the four trailing quarters with an average beat of 9.1%.
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Prothena Corporation plc (PRTA - Free Report) reported a loss of $1.26 per share in the third quarter of 2016, wider than both the Zacks Consensus Estimate of a loss of $1.23 and the year-ago loss of 73 cents.
Moreover, quarterly revenues came in at $0.3 million, down 25% primarily due to lower contributions from the collaboration agreement with Roche Holding AG (RHHBY - Free Report) . The top line was, however, in line the Zacks Consensus Estimate.
Quarter in Detail
Research and development (R&D) expenses were $26.8 million, up 55.8% year over year primarily due to increased expenses related to pipeline development, product manufacturing, and higher personnel costs.
General and administrative (G&A) expenses were $16.1 million, up a substantial 47.3% year over year mainly due to higher personnel costs.
2016 Outlook
Prothena has revised its 2016 net cash burn projection. The company now expects net cash burn from operating and investing activities in the range of $132–$142 million (previous projection: $118–$128 million).
The company, however, continues to expect to end the year with approximately $376 million in cash, cash equivalents and restricted cash (midpoint).
Pipeline Update
Prothena continues to progress with the candidates in its pipeline. 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. Patient enrollment in the study is expected to be complete in the second quarter of 2017.
The company is also evaluating the candidate in a phase IIb study, PRONTO, in previously treated patients with AL amyloidosis and persistent cardiac dysfunction. Top-line results from the study are expected in early 2018.
Moreover, Prothena is evaluating PRX002, in collaboration with Roche, for the treatment of Parkinson’s disease and other related synucleinopathies. Top-line data from a phase Ib multiple-ascending dose study are expected this month.
Our Take
The wider-than-expected loss in the third quarter was disappointing. Nevertheless, the company’s efforts on developing its pipeline are encouraging. We expect investor focus to remain on further updates from its late-stage candidate, NEOD001.
Zacks Rank & Key Picks
Prothena currently carries a Zacks Rank #3 (Hold). Some better-ranked stocks in the healthcare sector include Infinity Pharmaceuticals, Inc. and Exelixis, Inc. (EXEL - Free Report) . Infinity sports a Zacks Rank #1 (Strong Buy), while Exelixis carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Infinity’s loss estimates narrowed from $3.84 to $3.79 for 2016 but remained unchanged for 2017 over the last 60 days. The company has posted a positive surprise in all of the four trailing quarters with an average beat of 67.62%.
Exelixis’ loss estimates narrowed from 71 cents to 61 cents for 2016 and from 16 cents to earnings of 4 cents for 2017 over the last 60 days. The company has posted a positive surprise twice in the four trailing quarters with an average beat of 9.1%.
Confidential from Zacks
Beyond this Analyst Blog, would you like to see Zacks' best recommendations that are not available to the public? Our Executive VP, Steve Reitmeister, knows when key trades are about to be triggered and which of our experts has the hottest hand. Click to see them now>>
Zacks Names "Single Best Pick to Double"
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
It’s a little-known chemical company that’s up 65% over last year, yet still dirt cheap. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time.
This company could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year.
Free: See Our Top Stock and 4 Runners Up >>
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