Microvast Holdings announces departure of chief financial officer
On Tuesday, H.C. Wainwright analyst Andrew Fein revised the price target for Prothena Corp (NASDAQ:PRTA) shares to $14.00, down from the previous target of $30.00, while maintaining a Buy rating on the stock. Currently trading at $6.58, the stock has fallen nearly 67% over the past year, with a market capitalization of $354 million. According to InvestingPro data, analyst price targets range from $6 to $81, reflecting significant uncertainty in the market. The adjustment follows Prothena’s recent announcement that the AFFIRM-AL trial did not meet its primary endpoint, which was to show a survival benefit. As a result, the company has decided to halt the program. Despite these challenges, InvestingPro analysis shows the company maintains a strong financial position with a current ratio of 9.0 and minimal debt-to-equity of 0.02.
Prothena has chosen to concentrate on its Alzheimer’s disease (AD) pipeline, particularly PRX012, a wholly owned anti-Abeta immunotherapy. Preliminary data from the 70 mg single ascending dose (SAD) has provided insights for the ongoing 200 mg and up to 400 mg multiple ascending dose (MAD) cohorts. The data indicates that PRX012 may be effective in plaque clearance at lower concentrations, with an incidence of Amyloid-related imaging abnormalities (ARIA) consistent with placebo levels.
The company’s interim analysis likely facilitated an evaluation of relative fractional occupancy, which is critical in assessing plaque clearance and ARIA risk. The characteristics of PRX012 suggest that the upcoming MAD data could demonstrate a competitive edge in plaque clearance and ARIA rates compared to existing treatments, which Fein believes could be significant for future strategic partnerships or acquisitions.
Prothena’s confidence in PRX012’s therapeutic potential is reflected in its decision to investigate higher doses administered monthly, which could be more convenient for patients with Alzheimer’s disease, especially for subcutaneous delivery. The anticipated delivery of higher-dose MAD cohort data aims to optimize plaque clearance and ARIA incidence, potentially solidifying PRX012’s role in the AD treatment landscape.
Fein notes that the discontinuation of the AFFIRM-AL trial has led to the removal of birtamimab from their current valuation, resulting in the reduction of the price target to $14. The company remains on track to share further data on PRX012 later this year. Based on InvestingPro’s Fair Value analysis, the stock appears slightly undervalued at current levels, with revenue growing at 54.5% over the last twelve months. For deeper insights into Prothena’s valuation and growth prospects, investors can access the comprehensive Pro Research Report, available exclusively to InvestingPro subscribers.
In other recent news, Prothena Corporation has faced a significant setback after its Phase 3 AFFIRM-AL clinical trial for birtamimab did not meet the primary endpoint of all-cause mortality or key secondary endpoints. This has led the company to discontinue development of the drug and announce substantial cost-cutting measures. Analysts from Oppenheimer and Jefferies have responded by downgrading Prothena’s stock rating, with Jefferies reducing its price target from $32 to $6, and Oppenheimer removing its price target altogether. H.C. Wainwright also adjusted its price target to $30, maintaining a Buy rating, while Citizens JMP slightly lowered its target to $78, keeping a Market Outperform rating.
Despite these challenges, Prothena remains focused on its pipeline, including the development of PRX012 for Alzheimer’s disease. The company is planning to test different doses of PRX012, which has shown promising interim data for plaque reduction without increasing ARIA levels. Prothena has reported having approximately $420 million in cash reserves at the end of the first quarter of 2025 and expects to end the year with around $300 million. The firm is exploring various options to enhance shareholder value, including reducing operating expenses by up to 50%. Investors are keeping a close eye on Prothena’s upcoming clinical milestones, which could significantly impact the company’s trajectory.
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