Cantor Fitzgerald Reiterates Neutral Rating on Prothena Corp (PRTA)

Cantor Fitzgerald analyst Eric Schmidt reiterated a Neutral rating and {REMOVEPT} price target on Prothena Corp (NASDAQ: PRTA).

The analyst commented, "Prothena provided details of an expected corporate restructuring plan following the discontinuation of birtamimab's Phase 3 AFFIRM-AL trial in May. To recap, AFFIRM-AL (birtamimab in AL amyloidosis) failed to show a survival benefit. The company made the decision to discontinue development of birtamimab and (meaningfully) reduce ongoing operating expenses in order to preserve cash resources. To cut costs, PRTA reduced its workforce by ~63%. The company will have around 60 full-time employees after the restructuring takes place. Prothena expects net cash burn to be around $170-$178M in 2025, which puts the company on pace to end 2025 with ~$298M in cash. Going forward, we expect net cash burn to be around $60-$70M on an annualized basis. This will provide the company with ample time to evaluate strategies aimed at maximizing the value of remaining assets. Between now and 2026, Prothena could earn up to $105M in clinical milestone payments, assuming partners choose to proceed with certain programs. This would translate into immediate cash for the company."

For an analyst ratings summary and ratings history on Prothena Corp click here. For more ratings news on Prothena Corp click here.

Shares of Prothena Corp closed at $5.75 yesterday.

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