Prothena Corp PLC (PRTA) Reports 2023 Financial Results and Provides 2024 Outlook
Net Loss: Reported a net loss of $67.5 million in Q4 and $147.0 million for the full year of 2023.
Revenue: Total revenue of $0.3 million for Q4 and $91.4 million for the full year, bolstered by a $55 million milestone payment from Bristol Myers Squibb.
Research and Development Expenses: R&D expenses increased to $61.9 million in Q4 and $220.6 million for the full year, reflecting higher clinical trial and personnel costs.
Cash Position: Ended the year with $621.0 million in cash and restricted cash, with no debt.
2024 Financial Guidance: Expects net cash used in operating and investing activities to be $208 to $225 million, ending the year with approximately $405 million in cash (midpoint).
Share-Based Compensation: Non-cash share-based compensation expense was $11.1 million in Q4 and $40.9 million for the full year.
On February 15, 2024, Prothena Corp PLC (NASDAQ:PRTA) released its 8-K filing, detailing the financial results for the fourth quarter and full year of 2023, and providing financial guidance for 2024. The biotechnology company, known for its focus on protein dysregulation and a pipeline of investigational therapeutics, reported a net loss of $67.5 million for the fourth quarter and $147.0 million for the full year of 2023. This compares to a net income of $6.3 million for the fourth quarter of 2022 and a net loss of $116.9 million for the full year of 2022.
Financial Highlights and Clinical Advancements
Prothena's total revenue for the fourth quarter was $0.3 million, and $91.4 million for the full year of 2023, which includes a significant $55 million milestone payment from Bristol Myers Squibb related to the exclusive worldwide rights for BMS-986446 (formerly PRX005). This revenue performance marks a substantial increase from the previous year's total revenue of $49.9 million for the fourth quarter and $53.9 million for the full year of 2022.
The company's R&D expenses rose to $61.9 million in the fourth quarter and $220.6 million for the full year, up from $36.9 million and $135.6 million in the respective periods of 2022. This increase is attributed to escalated clinical trial expenses, higher personnel costs, and consulting and other R&D expenses. General and administrative expenses also saw a rise to $16.9 million for the fourth quarter and $61.8 million for the full year, compared to $13.1 million and $49.9 million in the same periods of the prior year.
Strategic Collaborations and Pipeline Progress
Prothena's pipeline includes several potential treatments for neurodegenerative and rare peripheral amyloid diseases. Notably, the company has advanced its Alzheimer's disease portfolio with positive initial data from the ongoing Phase 1 clinical trial for PRX012 and has received FDA clearance for the IND application and Fast Track designation for PRX123. Additionally, Prothena has strengthened its leadership in the amyloidosis community with the ongoing enrollment of the Phase 3 AFFIRM-AL clinical trial of birtamimab.
"2023 was a year of strong progress for Prothena as we advanced our protein dysregulation portfolio and moved closer to becoming a fully integrated commercial company. The next 12 to 18 months have the potential to transform Prothena with multiple upcoming clinical readouts across our robust portfolio," said Gene Kinney, Ph.D., President and Chief Executive Officer, Prothena.
As of December 31, 2023, Prothena had a strong cash position with $621.0 million in cash, cash equivalents, and restricted cash, and no debt. The company expects to use $208 to $225 million in net cash for operating and investing activities in 2024, with an estimated net loss of $229 to $255 million, which includes an estimated $51 million of non-cash share-based compensation expense.
Looking Ahead
Prothena's 2024 financial guidance reflects the company's commitment to advancing its clinical trials and maintaining a robust pipeline. The expected net cash used in operating and investing activities for the full year 2024 is anticipated to leave the company with a healthy cash balance, ensuring the funding of activities beyond the completion of ongoing clinical trials.
For more detailed information on Prothena's financial results and upcoming milestones, investors and interested parties are encouraged to access the full 8-K filing and join the conference call hosted by Prothena's management.
Explore the complete 8-K earnings release (here) from Prothena Corp PLC for further details.
This article first appeared on GuruFocus.
