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Prothena (PRTA)
NASDAQ:PRTA

Prothena (PRTA) AI Stock Analysis

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Prothena

(NASDAQ:PRTA)

Rating:51Neutral
Price Target:
$6.50
▲(0.93%Upside)
Prothena's overall score is driven by financial challenges and valuation concerns, offset somewhat by technical analysis and recent advancements in their pipeline. The negative financial performance and valuation metrics are significant risks, but technical indicators and corporate developments provide some positive aspects.
Positive Factors
Partnership Opportunities
PRX012 remains a key internal program, with plans to share initial data from the Ph1 ASCENT trial, which may drive interest from potential partners like BMS.
Pipeline Development
PRX012 effectively impacts plaque clearance even at lower concentrations, with amyloid reduction being favorable while ARIA incidence remained consistent with placebo.
Pipeline Strategy
The decision to investigate 200 mg and 400 mg doses in a once-monthly regimen reflects confidence in PRX012’s therapeutic potential.
Negative Factors
Clinical Trials
Birtamimab did not show survival benefit in severe ALA, leading to the discontinuation of its development.
Financial Performance
The discontinuation of birtamimab has led to a reduction in the price target from $30 to $14.
Operational Strategy
The company will now work on reducing operating expenses that will include and won’t be limited to a substantial workforce reduction.

Prothena (PRTA) vs. SPDR S&P 500 ETF (SPY)

Prothena Business Overview & Revenue Model

Company DescriptionProthena Corporation plc, a late-stage clinical company, focuses on discovery and development of novel therapies for life-threatening diseases in the United States. The company is involved in developing Birtamimab, an investigational humanized antibody that is in Phase III clinical trial for the treatment of AL amyloidosis; Prasinezumab, a humanized monoclonal antibody, which is in Phase IIb clinical trial for the treatment of Parkinson's disease; PRX004 that completed Phase I clinical trial for the treatment of Transthyretin amyloidosis; and PRX005, which is in Phase I clinical trial for the treatment of Alzheimer's disease. Its discovery and preclinical programs include PRX012 for the treatment of Alzheimer's disease; and dual Aß-Tau vaccine for the treatment and prevention of Alzheimer's disease. Prothena Corporation plc has a license, development, and commercialization agreement with F. Hoffmann-La Roche Ltd. and Hoffmann-La Roche Inc. to develop and commercialize antibodies that target alpha-synuclein; and a collaboration agreement with Bristol-Myers Squibb to develop antibodies. The company was founded in 2012 and is based in Dublin, Ireland.
How the Company Makes MoneyProthena primarily generates revenue through collaboration and licensing agreements with larger pharmaceutical companies, which may include upfront payments, milestone payments, and royalties on sales of products developed through these partnerships. Additionally, the company may earn income from government grants and other funding sources to support its research and development activities. As a clinical-stage company, Prothena does not yet generate revenue from product sales, as its pipeline candidates are still in various stages of clinical trials.

Prothena Key Performance Indicators (KPIs)

Any
Any
Revenue by Segment
Revenue by Segment
Shows how much revenue each business segment generates, highlighting which parts of the company are driving growth and which may need strategic adjustments.
Chart InsightsProthena's 'Collaboration' revenue segment shows significant volatility, with a notable spike in Q2 2024, suggesting a major collaboration or partnership deal. This pattern of sporadic revenue surges indicates reliance on large, possibly one-time agreements. Meanwhile, 'License and Intellectual Property' revenue remains minimal and inconsistent, highlighting a potential area for strategic development. The absence of recent earnings call insights leaves the reasons for these fluctuations speculative, but the data suggests a need for more stable revenue streams to mitigate reliance on unpredictable collaboration income.
Data provided by:Main Street Data

Prothena Earnings Call Summary

Earnings Call Date:May 08, 2025
(Q4-2024)
|
% Change Since: -9.30%|
Next Earnings Date:Aug 07, 2025
Earnings Call Sentiment Neutral
The earnings call presents a balanced outlook for Prothena. While there are significant opportunities for growth through its robust portfolio and strategic partnerships, challenges remain, particularly with the dependency on future clinical trial successes and the narrow miss in prasinezumab's statistical significance.
Q4-2024 Updates
Positive Updates
Robust Portfolio and Strategic Partnerships
Prothena has a robust portfolio with four wholly-owned and four partnered programs across various stages of clinical development, allowing strategic collaborations to advance treatments while maintaining financial benefits.
Birtamimab's Commercial Potential
Birtamimab represents a significant multi-billion dollar global commercial opportunity as the first potential treatment for AL amyloidosis with demonstrated early survival benefit.
Partnerships with Major Pharmaceutical Companies
Collaborations with companies like Roche, Novo Nordisk, and Bristol Myers Squibb enhance the development of prasinezumab, coramitug, and BMS-986446, advancing them as potential transformative treatments.
Strong Financial Position
Prothena ended 2024 with $472.2 million in cash, cash equivalents, and restricted cash, maintaining a simple capital structure with zero debt.
Negative Updates
Prasinezumab Narrowly Misses Statistical Significance
In the Phase 2b PADOVA study for early Parkinson's disease, prasinezumab showed potential but narrowly missed statistical significance with a p-value of 0.0657.
High Dependency on Future Clinical Success
Financial guidance for 2025 is heavily reliant on the success of upcoming clinical trials, with a projected net loss between $197 million and $205 million.
Company Guidance
During the Prothena Biosciences Fourth Quarter and Full Year 2024 Financial Results Conference Call, the company provided guidance for 2025, highlighting several key metrics. Prothena expects full-year 2025 net cash used in operating and investing activities to range between $168 million and $175 million, anticipating a year-end cash balance of approximately $301 million. The projected net loss for 2025 is estimated to be between $197 million and $205 million, inclusive of an estimated $41 million in non-cash share-based compensation expense. As of December 31, 2024, Prothena reported $472.2 million in cash, cash equivalents, and restricted cash, and as of February 20, 2025, the company had approximately 53.8 million ordinary shares outstanding. The company emphasized that it maintains a simple capital structure with zero debt.

Prothena Financial Statement Overview

Summary
Prothena shows revenue growth but faces ongoing profitability challenges with consistent losses and negative cash flow. Despite strong equity and cash reserves, these negative profitability metrics pose significant risks.
Income Statement
45
Neutral
Prothena's revenue has shown growth over the years, with a notable increase from 2020 to 2025. However, the company is currently operating at a loss as evidenced by negative EBIT and net income. Gross profit margin is positive, indicating some operational efficiency, but the net profit margin is negative, highlighting ongoing profitability challenges.
Balance Sheet
55
Neutral
The company's balance sheet shows a strong equity position with stockholders' equity significantly outweighing total debt, leading to a favorable debt-to-equity ratio. The equity ratio is high, indicating financial stability. However, the return on equity is negative due to persistent net losses, which is a concern for investors.
Cash Flow
40
Negative
Prothena's cash flow situation is challenging with negative operating and free cash flow, suggesting cash burn. The operating cash flow to net income ratio is negative due to ongoing losses, but the company has maintained a decent cash reserve, which provides some buffer.
BreakdownTTMDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue137.94M135.16M91.37M53.91M200.58M853.00K
Gross Profit79.51M131.57M-129.20M47.16M118.29M-74.03M
EBITDA-137.94M-154.56M-190.11M-131.56M71.97M-111.22M
Net Income-110.27M-122.31M-147.03M-116.95M66.97M-111.14M
Balance Sheet
Total Assets495.34M547.11M696.38M758.03M609.37M332.98M
Cash, Cash Equivalents and Short-Term Investments417.94M471.39M618.83M710.41M579.09M295.38M
Total Debt10.20M10.84M11.84M6.47M12.33M17.84M
Total Liabilities57.66M60.18M135.02M135.99M143.32M148.97M
Stockholders Equity437.68M486.93M561.37M622.04M466.04M184.01M
Cash Flow
Free Cash Flow-130.37M-150.35M-136.72M-109.28M92.03M-80.56M
Operating Cash Flow-130.36M-150.05M-133.91M-108.82M92.61M-80.36M
Investing Cash Flow-237.00K-298.00K-2.77M-464.00K-575.00K-196.00K
Financing Cash Flow670.00K1.55M45.10M241.46M190.33M215.00K

Prothena Technical Analysis

Technical Analysis Sentiment
Neutral
Last Price6.44
Price Trends
50DMA
6.60
Negative
100DMA
9.77
Negative
200DMA
12.86
Negative
Market Momentum
MACD
-0.02
Negative
RSI
58.13
Neutral
STOCH
76.17
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For PRTA, the sentiment is Neutral. The current price of 6.44 is above the 20-day moving average (MA) of 5.73, below the 50-day MA of 6.60, and below the 200-day MA of 12.86, indicating a neutral trend. The MACD of -0.02 indicates Negative momentum. The RSI at 58.13 is Neutral, neither overbought nor oversold. The STOCH value of 76.17 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for PRTA.

Prothena Risk Analysis

Prothena disclosed 62 risk factors in its most recent earnings report. Prothena reported the most risks in the "Tech & Innovation" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks

Prothena Peers Comparison

Overall Rating
UnderperformOutperform
Sector (52)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
52
Neutral
$7.53B0.32-61.76%2.28%16.60%1.56%
51
Neutral
$346.38M-23.46%54.55%36.41%
50
Neutral
$769.19M-69.21%-13.76%57.73%
48
Neutral
$492.46M34.94%
45
Neutral
$595.59M-150.50%-18.75%
42
Neutral
$724.62M-62.58%4.28%
40
Underperform
$312.44M-60.45%6.99%
* Healthcare Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
PRTA
Prothena
6.44
-13.74
-68.09%
RCKT
Rocket Pharmaceuticals
2.90
-17.75
-85.96%
KALV
KalVista Pharmaceuticals
11.98
-0.22
-1.80%
REPL
Replimune Group
9.40
0.96
11.37%
IMNM
Immunome
8.84
-3.36
-27.54%
BCAX
Bicara Therapeutics Inc.
9.03
-16.38
-64.46%

Prothena Corporate Events

Executive/Board ChangesBusiness Operations and Strategy
Prothena Announces Major Workforce Reduction to Cut Costs
Negative
Jun 18, 2025

On June 18, 2025, Prothena Corporation plc announced a significant reduction in its workforce by approximately 63% to cut operating costs and focus on its remaining wholly-owned programs and business development activities. This decision follows the company’s earlier announcement on May 23, 2025, to discontinue the development of birtamimab. The workforce reduction is expected to be completed by the end of the fourth quarter of 2025, with affected employees receiving severance packages. The company anticipates recognizing $16 to $20 million in severance and related benefits expenses. Additionally, the employment of Chief Regulatory Officer Carol D. Karp and Chief People Officer David A. Ford will terminate on August 1, 2025, as part of this reduction, triggering severance benefits and stock option adjustments.

The most recent analyst rating on (PRTA) stock is a Buy with a $84.00 price target. To see the full list of analyst forecasts on Prothena stock, see the PRTA Stock Forecast page.

Product-Related AnnouncementsBusiness Operations and Strategy
Prothena’s Prasinezumab Advances to Phase III for Parkinson’s
Positive
Jun 16, 2025

On June 15, 2025, Prothena Corporation announced that its partner Roche will advance prasinezumab into Phase III development for early-stage Parkinson’s disease. This decision follows data from the Phase IIb PADOVA study and ongoing open-label extensions, which suggest potential clinical benefits of prasinezumab, a first-in-class anti-alpha-synuclein antibody. The studies indicated positive trends towards reduced motor progression and provided biomarker evidence of prasinezumab’s impact on disease biology. This advancement could position prasinezumab as a potential disease-modifying treatment for Parkinson’s, addressing a significant unmet need for over 10 million affected individuals globally.

The most recent analyst rating on (PRTA) stock is a Buy with a $84.00 price target. To see the full list of analyst forecasts on Prothena stock, see the PRTA Stock Forecast page.

Product-Related AnnouncementsBusiness Operations and Strategy
Prothena Discontinues Birtamimab Development After Trial Failure
Negative
May 23, 2025

On May 23, 2025, Prothena Corporation announced that its Phase 3 AFFIRM-AL clinical trial for birtamimab in AL amyloidosis patients did not meet its primary or secondary endpoints, leading to the discontinuation of birtamimab’s development. As a result, Prothena plans to reduce operating expenses, including a significant workforce reduction, and will provide further updates in June. Despite the setback, Prothena remains focused on its other pipeline projects, including upcoming data from the Phase 1 ASCENT trials on PRX012 in Alzheimer’s disease and updates from its partners.

The most recent analyst rating on (PRTA) stock is a Buy with a $30.00 price target. To see the full list of analyst forecasts on Prothena stock, see the PRTA Stock Forecast page.

Executive/Board ChangesShareholder Meetings
Prothena Shareholders Approve Key Amendments at AGM
Neutral
May 16, 2025

On May 13, 2025, Prothena Corporation plc held its annual general meeting where shareholders approved an amendment to the 2018 Long Term Incentive Plan, increasing the number of shares authorized for issuance by 2,000,000. Additionally, shareholders re-elected board members, ratified the appointment of KPMG LLP as the independent auditor for 2025, and approved executive compensation.

The most recent analyst rating on (PRTA) stock is a Buy with a $84.00 price target. To see the full list of analyst forecasts on Prothena stock, see the PRTA Stock Forecast page.

Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: Jul 05, 2025