Prothena (PRTA), Bristol Myers ties for second neuro candidate

Prothena Corporation plc PRTA announced that Bristol Myers BMY has exclusive global in-license rights to PRX019, a potential treatment option for certain neurodegenerative diseases. PRX019 is the second candidate to be licensed by Bristol Myers under its existing collaboration agreement with PRTA.

Prothena anticipates initiating an early-stage study of the candidate by the end of 2024.

Bristol Myers’ decision to exercise its option for the exclusive global license for PRX019 follows the FDA’s approval of Prothena’s investigational new drug candidate application in December 2023. As of now, PRX019 has an undisclosed target.

The collaboration agreement allows BMY to expand its neurodegenerative disease pipeline.

Priothena shares gained 2.4% in after-market hours on May 28 as investors cheered the encouraging news. Year-to-date, the stock is down 45.1%, compared with the industry’s 5.7% decline.

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Under the terms of the license agreement, Prothena will receive an upfront payment of $80 million from Bristol Myers for the exclusive global rights to PRX019.

In addition, PRTA also remains eligible to receive additional development, regulatory and sales payments of up to $617.5 million from Bristol Myers, as well as tiered royalties on net sales, subject to approval and release.

The initial collaboration agreement was signed between Prothena and Celgene (now acquired by Bristol Myers) in 2018. Under the terms of the agreement, PRTA granted BMY the option to acquire exclusive US/global rights to the first antibody development and commercialization programs aimed at you. , TDP-43 and an undisclosed target.

Phase I studies for such candidates, undergrad by Bristol Myers, will be funded by Prothena. Based on the results achieved, BMY will have the option to assume responsibility for development activities and all regulatory, manufacturing and commercialization activities.

The first candidate licensed by Bristol Myers under this collaboration agreement is BMS-986446 (formerly PRX005), the best MTBR-specific anti-tau antibody currently in development for the potential treatment of Alzheimer’s disease. Disease (AD).

Prothena also has ongoing collaboration agreements with other pharmaceutical companies such as Roche and Novo Nordisk to develop other candidates for various indications.

PRTAs lead candidate among its wholly owned programs is PRX012, an investigational antibody targeting beta-amyloid, which is currently in early stage development for the treatment of AD.

The story continues

Earlier this year, Prothena announced first Phase I data from the single-ascending-dose study and the initial multiple-ascending-dose cohort supporting once-monthly subcutaneous treatment and dose escalation.

Prothena Corporation plc Price and Consensus

Prothena Corporation plc price-consensus-chart | Prothena Corporation plc quote

Zacks Rank and Stocks to Consider

Prothena currently carries a Zacks Rank #3 (Hold).

Some higher-ranked stocks in the drug/biotech industry are ALX Oncology Holdings ALXO and Annovis Bio ANVS, each currently carrying a Zacks Rank #2 (Buy). You can see today’s full list of Zacks #1 Rank (Strong Buy) stocks here.

Over the past 30 days, the Zacks Consensus Estimate for ALX Oncology’s 2024 EPS has decreased from $3.33 to $2.89. During the same period, the consensus estimate for the loss per share in 2025 was reduced from $2.85 to $2.73. Year to date, ALXO shares have lost 15.6%.

ALX Oncology beat estimates in two of the last four quarters and missed twice, delivering an average downside surprise of 8.83%.

Over the past 30 days, the Zacks Consensus Estimate for Annovis’s 2024 EPS has decreased from $3.35 to $2.46. During the same period, the consensus estimate for the loss per share in 2025 was reduced from $2.82 to $1.95. ANVS shares are down 64.4% year to date.

ANVS beat estimates in three of the last four quarters and missed once, delivering an average negative surprise of 1.39%.

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