On Monday, Oppenheimer reiterated its Outperform rating and $62.00 price target for Prothena Corp (NASDAQ:PRTA) stock, following discussions with the company's management at the Movers in Rare Disease Summit. Currently trading at $12.79, the stock shows significant potential according to analyst consensus, with targets ranging from $24 to $94.
InvestingPro analysis indicates the stock is currently undervalued, with additional insights available in the comprehensive Pro Research Report. The focus of the conversation was on the upcoming results from the Phase 3 AFFIRM-AL study of birtamimab in AL amyloidosis, expected in the first half of 2025.
Birtamimab is being developed as a novel treatment for AL amyloidosis, a rare disease characterized by abnormal protein deposits in tissues which can lead to organ failure. This therapy is designed to remove these deposits, potentially complementing existing treatments like Johnson & Johnson's Darzalex (dara) when used with VCd, which is now established as the standard of care (SOC) after the recent Phase 3 ANDROMEDA study data was presented at the American Society of Hematology (ASH).
Prothena's earlier Phase 3 VITAL study data demonstrated a significant 9-month survival benefit of 59% for birtamimab in patients with advanced disease (Mayo Stage-IV), supporting the design of the AFFIRM-AL study under the Special Protocol Assessment (SPA) agreement with the FDA.
The company has outlined the potential for birtamimab to serve approximately 4,000 patients in the United States, indicating a commercial opportunity exceeding $1 billion.
This projection is based on the current understanding of the disease and the unmet needs that persist, particularly for patients at a higher risk of mortality who may benefit from this innovative treatment approach.
With a current market capitalization of $688 million and an overall Financial Health score rated as 'FAIR' by InvestingPro, investors should note the stock has experienced a significant 65% decline year-to-date, potentially presenting an opportunity for value investors.
In other recent news, Prothena Corporation has experienced significant changes in leadership and financial outlook. Chad Swanson was appointed as the new Chief Development Officer following the departure of the company's Chief Medical (TASE:PMCN) Officer, Hideki Garren.
Amid these changes, several firms adjusted their outlooks on Prothena. H.C. Wainwright maintained a Buy rating with a price target of $84.00, while BofA Securities reduced its price target from $33.00 to $31.00. RBC Capital and Oppenheimer also adjusted their price targets, reflecting a cautious stance on the company's pipeline programs.
Prothena reported second-quarter financial results for 2024, with operating expenses of $73.6 million and a cash balance of $564 million. The company's full-year 2024 guidance anticipates a net loss in the range of $120 million to $135 million, an improvement largely due to an $80 million payment from Bristol Myers (NYSE:BMY) Squibb for global rights to PRX019.
Additionally, the company entered into a licensing agreement with Bristol Myers Squibb for PRX019, which includes 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 and its investors are particularly focused on the upcoming Phase 2b PADOVA trial results, expected to be released in the fourth quarter of the year. The analyst from Oppenheimer has provided a scenario analysis for the PADOVA trial, which forecasts a 48% probability-adjusted upside for Prothena's shares, contingent upon positive trial outcomes and Roche's continued development of prasinezumab. These are the recent developments in the trajectory of Prothena Corporation.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.