Prothena shares target cut, maintains outperform on 2Q financial results
On Wednesday, Oppenheimer adjusted its stock price target for Prothena Corporation (NASDAQ:PRTA), a late-stage clinical biotechnology company, reducing it to $62.00 from the previous $66.00. The firm has maintained an Outperform rating on the stock.
The revision follows Prothena’s announcement of its second-quarter financial results for 2024, which included operating expenses of $73.6 million and a cash balance of $564 million. The company also updated its full-year 2024 guidance, now expecting a net loss in the range of $120 million to $135 million, compared to the prior forecast of a $229 million to $255 million loss. Cash reserves at the end of 2024 are projected to be around $468 million, an increase from the previously estimated $405 million.
The improved financial outlook is largely attributed to Bristol Myers Squibb’s (NYSE:) decision to opt-in for global rights to PRX019, resulting in an $80 million payment to Prothena. The company continues to enroll participants for the Phase 1 multiple ascending dose cohorts of PRX012 and has presented a trial design poster at the Alzheimer’s Association International Conference (AAIC).
Moreover, a Phase 2 trial for PRX005, also known as BMS-‘446, is being conducted by BMY in early-stage Alzheimer’s disease patients, and its study design was also showcased at the AAIC. Prothena is anticipating multiple data readouts, including the Phase 2b PADOVA trial results, which are expected in the second half of 2024.
The adjustment in Prothena’s price target by Oppenheimer reflects the latest financial figures and guidance provided by the company, as well as ongoing clinical developments.
In other recent news, Prothena Corporation has been the center of significant developments. RBC Capital has reduced the biotechnology company’s price target from $28.00 to $24.00, maintaining a Sector Perform rating.
The revision reflects a cautious stance on the company’s pipeline programs, including ‘012, prasinezumab, and birtamimab. The firm also anticipates the company’s stock to remain range-bound, citing challenges within the Alzheimer’s Disease therapeutic landscape.
Prothena has entered into a licensing agreement with Bristol Myers Squibb for PRX019, an investigational drug for neurodegenerative diseases. The agreement includes an $80 million upfront payment, potential milestone payments of up to $617.5 million, and royalties on net sales. Piper Sandler reiterated an Overweight rating on Prothena shares, highlighting the potential of PRX019.
Prothena also announced new findings related to birtamimab, an investigational drug for AL amyloidosis, with Phase 3 trial results expected between the fourth quarter of 2024 and the second quarter of 2025. These are the latest developments for Prothena Corporation.
InvestingPro Insights
Prothena Corporation’s financial and stock performance metrics provide a mixed view of the company’s current situation. With a market capitalization of $1.07 billion, Prothena shows a significant revenue growth rate of 276.98% for the last twelve months as of Q2 2024. This substantial growth is further highlighted by the quarterly revenue growth rate of an impressive 3184.75%. Despite these growth figures, the company’s profitability measures, such as the gross profit margin at -2.39% and an operating income margin of -42.05%, reflect the challenges it faces in translating revenue increases into bottom-line profitability.
Investors have experienced volatility in Prothena’s stock price, as evidenced by a one-year price total return of -67.34%. However, the recent one-week price total return shows a positive change of 3.74%. The InvestingPro Fair Value estimate stands at $22.63, which contrasts with the analyst target of $66, suggesting potential undervaluation at the current price of $19.98. The InvestingPro platform provides further insights with additional tips, including 17 more InvestingPro Tips for Prothena, offering investors a deeper analysis for their investment decisions.
These metrics and insights can be particularly valuable for investors considering Oppenheimer’s recent price target adjustment and the company’s financial outlook. Understanding the broader financial context and stock performance can help investors weigh the potential risks and rewards associated with investing in Prothena.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.
