Prothena’s Strategic Shift and Promising Alzheimer’s Pipeline Drive Buy Rating

Analyst Andrew Fein from H.C. Wainwright reiterated a Buy rating on Prothena (PRTA – Research Report) and decreased the price target to $14.00 from $30.00.

Andrew Fein has given his Buy rating due to a combination of factors that highlight Prothena’s strategic focus and promising developments in their Alzheimer’s Disease pipeline. The company has decided to discontinue the AFFIRM-AL trial for birtamimab after it failed to meet its primary endpoint, allowing them to concentrate resources on their anti-Abeta immunotherapy, PRX012. The initial data from PRX012 shows favorable amyloid reduction with a consistent ARIA profile, suggesting its effectiveness even at lower doses, which could lead to strategic partnerships or acquisitions.
Furthermore, Prothena’s decision to explore higher doses of PRX012 in a monthly regimen reflects confidence in its potential as a competitive treatment in the Alzheimer’s Disease landscape. This dosing strategy is also seen as more patient-friendly, which is advantageous for subcutaneous administration. Additionally, the promising data from PRX005, another Alzheimer’s treatment targeting tau pathology, supports its potential efficacy. These factors collectively contribute to Fein’s positive outlook on Prothena’s stock, despite the reduced price target following the discontinuation of birtamimab.

In another report released today, Citizens JMP also reiterated a Buy rating on the stock with a $29.00 price target.