Prothena stock price target lowered to $10 at RBC on program discontinuation

Investing.com - RBC Capital has lowered its price target on Prothena Corp (NASDAQ:PRTA) to $10.00 from $18.00 while maintaining a Sector Perform rating. The stock, currently trading at $7.27, has declined nearly 50% year-to-date according to InvestingPro data, which indicates the company is currently undervalued.

The price target reduction follows Prothena’s discontinuation of its lead proprietary program, birtamimab, which has prompted the company to undergo a significant transformation.

Prothena is now restructuring to cut costs, focusing on partnered and potential partnering programs, and considering a share redemption program, according to RBC Capital.

The firm notes that Prothena still maintains a leverageable antibody platform, solid partnerships with terms that can generate meaningful milestone payments, and a strong balance sheet.

Upcoming data from Prothena’s ’012 Alzheimer’s program and Novo’s coramitug TTR studies will further shape the company’s evolution, with RBC expecting shares to trade in-line with the market.

In other recent news, Prothena Corporation reported its second quarter 2025 financial results, maintaining a Market Outperform rating from JMP Securities with a price target of $29.00. JMP Securities highlighted confidence in Prothena’s PRX012 for Alzheimer’s disease, noting its promising pharmacological profile ahead of upcoming Phase 1 results. Meanwhile, Prothena announced a significant corporate restructuring plan, following the discontinuation of its birtamimab Phase 3 trial due to the trial’s inability to demonstrate a survival benefit in AL amyloidosis patients. This restructuring includes a 63% workforce reduction aimed at cutting operating costs and revising the company’s 2025 financial guidance, projecting a net cash burn of $170 to $178 million and an anticipated year-end cash position of approximately $298 million.

Cantor Fitzgerald maintained a Neutral rating on Prothena after the restructuring announcement. In partnership news, Roche decided to advance prasinezumab into Phase 3 development for early-stage Parkinson’s disease, despite Prothena’s recent setback with birtamimab. This decision followed encouraging results from the Phase 2b PADOVA study, suggesting clinical benefits when prasinezumab is used alongside symptomatic treatment. Roche’s decision was bolstered by data from ongoing studies, indicating potential advantages for patients treated with levodopa.

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