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Prothena (PRTA) Q3 Earnings Beat on Collaboration Revenue Hike

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Prothena Corporation (PRTA - Free Report) reported third-quarter 2023 earnings of 38 cents per share due to higher collaboration revenues. The Zacks Consensus Estimate was pegged at a loss of 26 cents per share. In the year-ago quarter, the clinical-stage company reported a loss of 97 cents per share.

Total revenues were $84.9 million in the third quarter, which beat the Zacks Consensus Estimate of $52 million. In the year-ago quarter, the company had recorded total revenues of $1.5 million. Revenues in the reported quarter witnessed a surge due to an increase in collaboration revenues from Bristol-Myers Squibb (BMY - Free Report) .

The company’s shares have lost 34.4% year to date compared with the industry’s decline of 22.5%.


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Quarter in Detail

Collaboration revenues beat our model estimate of $55 million. The increase was primarily due to the $72.9 million recognized for the tau global license agreement ($17.9 million of deferred revenue recognized for the tau global right and $55 million option exercise fee).

Research and development (“R&D”) expenses totaled $57.9 million, up 45.3% year over year, primarily due to higher clinical study expenses, rising personnel-related expenses and increased consulting and other R&D expenses.

General and administrative expenses amounted to $16.6 million, up from $12 million in the year-ago quarter. This was primarily due to higher personnel-related and consulting expenses.

As of Sep 30, 2022, Prothena had $671.3 million in cash, cash equivalents and restricted cash compared with $661.3 million as of Jun 30, 2023. It had no debt as of the same date.

2023 Guidance Reiterated

The company expects its 2023 net cash-burn from operating and investing activities in the range of $148-$161 million. Prothena expects year-end cash, cash equivalents and restricted cash midpoint to be approximately $600 million. Net loss for 2023 is expected in the band of $153-$171 million.

Prothena Corporation plc Price, Consensus and EPS Surprise


Prothena Corporation plc Price, Consensus and EPS Surprise

Prothena Corporation plc price-consensus-eps-surprise-chart | Prothena Corporation plc Quote

Pipeline Updates

Prothena is evaluating PRX012 — a wholly owned investigational high-potency monoclonal antibody targeting a key epitope at the N-terminus of amyloid beta (“Aβ”) — for treating Alzheimer’s Disease (AD). Phase I single ascending dose and multi-ascending dose study studies in healthy volunteers and patients with AD are ongoing. Top-line data from these studies is expected by year-end.

Prothena is advancing an early-stage pipeline of programs for a number of potential neurological indications with BMY. The global neuroscience research and development collaboration with BMY is focused on three proteins implicated in the pathogenesis of several neurodegenerative diseases, including tau, TDP-43 and an undisclosed target. BMS-986446 (PRX005) is designed to be a best-in-class anti-tau, MTBR-specific antibody for the potential treatment of AD and is the first program to advance to the clinical-stage from this collaboration.

Prothena is eligible to receive up to an additional $160 million for U.S. rights, up to an additional $110 million for global rights and up to $1.7 billion for regulatory and commercial milestone payments for a total of $2.2 billion, which also includes amounts received to date plus potential tiered commercial sales royalties across multiple programs.

In July, BMY exercised an option to obtain exclusive worldwide commercial rights for BMS-986446. Under the terms of the deal, BMY paid $55 million to Prothena for the license. BMY is responsible for the future development, manufacturing and commercialization of the candidate.

The company is also developing a dual Aβ-Tau vaccine, PRX123, — a potential prevention and treatment for AD — to target key epitopes within Aβ and tau proteins to promote amyloid clearance and block pathogenic tau interaction. An investigational new drug application filing for the vaccine is anticipated by the end of 2023.

The company is evaluating prasinezumab in collaboration with Roche (RHHBY - Free Report) for the treatment of Parkinson’s disease (PD). In the first quarter, Roche completed the enrollment for the phase IIb PADOVA study in patients with early PD (NCT04777331) and top-line data is expected in 2024.

Prothena is also evaluating birtamimab, a potential treatment for AL amyloidosis. In 2021, it reached a Special Protocol Assessment agreement with the FDA and initiated a confirmatory phase III AFFIRM-AL study of birtamimab in Mayo Stage IV patients with AL amyloidosis. Results from the study are expected in 2024.

Novo Nordisk (NVO - Free Report) acquired Prothena’s clinical-stage antibody, PRX004 (now NNC6019) and a broader ATTR amyloidosis program. The company received a $40-million milestone payment from Novo Nordisk in December 2022 related to the continued advancement of NNC6019 in a phase II study.

Novo Nordisk is conducting a phase II study in patients with ATTR cardiomyopathy and top-line data from the same is expected in 2024.

Prothena currently carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

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