BofA update shows where active managers are putting money
Investing.com - Piper Sandler has drastically cut its price target on Prothena Corp (NASDAQ:PRTA) to $15 from $81 while maintaining an Overweight rating following disappointing clinical data from the company’s Alzheimer’s disease program. The stock, currently trading at $8.45, sits near its 52-week low of $4.32, having declined nearly 60% over the past year.
The significant reduction follows underwhelming results from Prothena’s PRX012 ASCENT program, which showed non-competitive rates of ARIA (amyloid-related imaging abnormalities), a safety concern in Alzheimer’s disease treatments.
Despite the setback, Piper Sandler noted that the data effectively supports PRX012’s mechanism and de-risks the second-generation PRX012-TfR (transferrin receptor), for which the company plans to seek potential partnership opportunities.
The research firm highlighted Prothena’s "high-value partnership pipeline" that could generate approximately $105 million in clinical milestone payments in 2026, providing future cash opportunities for the company.
Prothena reported $372.3 million in cash on hand as of June 30, 2025, which Piper Sandler believes will support the company through multiple "value creating opportunities" despite removing PRX012 in Alzheimer’s disease from its financial model.
In other recent news, Novo Nordisk announced plans to advance coramitug, an amyloid depleter antibody, to Phase 3 clinical trials for ATTR amyloidosis with cardiomyopathy in 2025. This development was highlighted during the company’s second quarter earnings call. Meanwhile, Prothena Corporation is undergoing significant changes, having discontinued its lead program, birtamimab, after the AFFIRM-AL trial failed to show survival benefits for AL amyloidosis patients. As a result, Prothena has initiated a 63% workforce reduction to cut operating costs, with the company projecting a 2025 net cash burn of $170 to $178 million.
RBC Capital has responded by lowering its price target for Prothena to $10, maintaining a Sector Perform rating. Despite these changes, JMP Securities reiterated its Market Outperform rating for Prothena, expressing confidence in the potential of PRX012 for Alzheimer’s disease, with Phase 1 results anticipated soon. Cantor Fitzgerald has maintained a Neutral rating on Prothena following the corporate restructuring plan. These developments underscore a period of transformation and strategic reassessment for Prothena.
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