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DUBLIN - Novo Nordisk plans to advance coramitug, a potential first-in-class amyloid depleter antibody, into Phase 3 clinical trials for ATTR amyloidosis with cardiomyopathy (ATTR-CM) in 2025, according to an announcement made during the company’s second quarter earnings call on Wednesday. The news impacts Prothena Corporation (NASDAQ:PRTA), currently trading at $7.03, whose stock has seen a 65% decline over the past year despite maintaining a strong current ratio of 5.68x. InvestingPro analysis suggests the stock is currently undervalued.
Coramitug was initially developed by Prothena Corporation plc (NASDAQ:PRTA) and acquired by Novo Nordisk in July 2021. The antibody is designed to deplete amyloid associated with disease pathology in both hereditary and wild type ATTR amyloidosis without affecting the normal form of the protein. With a market capitalization of $378 million and analyst price targets ranging from $4 to $81, InvestingPro rates Prothena’s overall financial health as "FAIR," with particularly strong scores in relative value and cash flow metrics.
Novo Nordisk successfully completed a Phase 2 trial with coramitug before making the decision to move forward with the Phase 3 program. Under the terms of their agreement, Prothena is eligible to receive a clinical milestone payment when prespecified enrollment criteria are met in the Phase 3 clinical trial.
"There remains a significant unmet need in patients with ATTR amyloidosis with cardiomyopathy, who are at high risk for early mortality and significant morbidity due to amyloid deposition in vital organs," said Gene Kinney, President and Chief Executive Officer of Prothena, in a press release statement.
The 2021 acquisition granted Novo Nordisk full worldwide rights to the intellectual property and related rights of the ATTR amyloidosis business and pipeline from Prothena. The agreement makes Prothena eligible to receive up to $1.2 billion upon achievement of clinical development and sales milestones, including $100 million already earned to date.
ATTR amyloidosis with cardiomyopathy is a condition characterized by the buildup of abnormal proteins in the heart, leading to heart failure and potentially death. For investors interested in deeper analysis of biotech companies like Prothena, InvestingPro offers comprehensive research reports covering 1,400+ US stocks, including detailed financial health metrics and expert insights that help identify promising opportunities in the pharmaceutical sector.
In other recent news, Prothena Corporation has announced significant changes following the discontinuation of its lead program, birtamimab, after the Phase 3 trial did not demonstrate a survival benefit. This led to a corporate restructuring plan, including a 63% reduction in workforce to cut operating costs. The company now anticipates a net cash burn of $170 to $178 million for 2025, with an expected year-end cash position of approximately $298 million. Despite these setbacks, Prothena received positive news from its partner Roche, which is advancing prasinezumab into Phase 3 development for early-stage Parkinson’s disease. This decision is based on promising Phase 2b results, although the primary endpoint was not met. RBC Capital has responded to these developments by lowering its price target for Prothena to $10, maintaining a Sector Perform rating. Meanwhile, JMP Securities has reiterated its Market Outperform rating with a $29 price target, expressing optimism about PRX012’s potential in Alzheimer’s disease. Cantor Fitzgerald also maintained a Neutral rating following the restructuring announcement. These developments highlight the company’s strategic shifts and ongoing collaborations in the biotech sector.
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