The fourth-quarter 2023 results for Prothena Corporation (PRTA) left investors disappointed as the company reported a loss of $1.26 per share, wider than the Zacks Consensus Estimate of a loss of $1.23. This news comes after the company recorded earnings of 12 cents per share in the year-ago quarter, showcasing a stark contrast in performance.
Revenue Woes
The total revenues for the fourth quarter came in at $0.3 million, falling significantly short of the Zacks Consensus Estimate of $1 million. It’s important to note that these revenues comprised only collaboration revenues from Bristol-Myers Squibb (BMY).
The company’s shares have plummeted 50.8% in the past six months, in stark contrast to the industry’s growth of 1.9%, further reflecting the disappointing financial performance.
Rising Expenses
Prothena’s research and development (R&D) expenses saw a substantial uptick, totaling $61.9 million, representing a 67.8% increase year over year. This surge was primarily attributed to higher clinical trial expenses, increased personnel-related costs, and a rise in consulting and other R&D expenses.
Similarly, general and administrative expenses also surged, amounting to $16.9 million compared to $13 million in the year-ago quarter, largely due to elevated personnel-related and consulting expenses.
Financial Standing
As of December 31, 2023, Prothena’s cash and equivalents stood at $620.2 million, down from $671.3 million as of September 30, 2023. However, the company remained debt-free as of the same date.
Performance Overview
For the entirety of 2023, Prothena’s revenues clocked in at $91.4 million, up from $53.9 million in 2022. The revenue figure still fell short of the Zacks Consensus Estimate of $91.7 million. The company reported a loss per share of $2.76 compared with a loss per share of $2.47 in 2022, widening further from the Zacks Consensus Estimate of a loss of $2.73.
Positive Strides in the Pipeline
Despite the setback, Prothena displayed optimism in its pipeline endeavors. Notably, the company is actively evaluating PRX012, a promising investigational antibody designed to address Alzheimer’s Disease. The ongoing phase I study continues as planned, with a progress update expected in 2024.
Furthermore, Prothena is collaborating with Bristol-Myers Squibb on the development of BMS-986446 (formerly PRX005), a program focused on the potential treatment of AD. This program has made considerable progress, with BMY expressing confidence in its advancement to a phase II study slated for the first half of 2024.
The company is also evaluating PRX123, a dual Aβ-Tau vaccine, targeting key epitopes within the N-terminus of Aβ and MTBR-tau, with an investigational new drug application cleared by the FDA. A phase I timeline update for this vaccine is anticipated in 2024.
Looking Ahead
Despite the setbacks, Prothena remains forward-looking, expecting a net cash-burn from operating and investing activities in 2023 in the range of $208-$225 million. The company also anticipates a net loss for 2024 to be within the band of $229-$255 million.
Prothena shares are currently ranked as a Zacks Rank #3 (Hold), further showcasing the company’s determined stance despite the recent financial setbacks.
