Prothena (PRTA) Alzheimer's Disease Drug Licensed by BMY
Prothena Corporation plc PRTA has announced a significant milestone in its collaboration with Bristol Myers Squibb BMY.
The partnership has resulted in Bristol Myers Squibb exercising its option to obtain exclusive worldwide commercial rights for PRX005, Prothena's groundbreaking anti-tau antibody designed for the potential treatment of Alzheimer's disease.
In addition to the exclusive U.S. license optioned in June 2021, Bristol Myers Squibb will now be responsible for the development, manufacturing, and commercialization of PRX005.
Under the terms of the deal, Bristol Myers Squibb will pay $55 million to Prothena for the worldwide license to PRX005. This payment will further strengthen Prothena's financial position and provide additional resources to advance its robust portfolio of product candidates for Alzheimer's disease.
PRX005 is a best-in-class anti-tau antibody that demonstrates a superior ability to bind to, intercept and block the internalization of pathogenic tau, mitigating downstream neurotoxicity.
The acquisition of PRX005 also strengthens Bristol Myers Squibb's neuroscience portfolio and aligns with its dedication to developing transformative therapies for neurodegenerative diseases.
The ongoing phase I clinical trial for PRX005 includes a multiple ascending dose (MAD) portion, and Bristol Myers Squibb will assume responsibility for reporting all program updates and future clinical study results. Prothena remains eligible for substantial additional payments, up to $160 million for U.S. rights, up to $110 million for global rights, and up to $1.7 billion for regulatory and commercial milestone payments for a total of up to $2.2 billion, which also includes amounts received to date.
Alzheimer's disease is a devastating neurodegenerative disorder characterized by the accumulation of tau tangles and amyloid beta plaques in the brain. Tau pathology is strongly associated with cognitive decline and neurodegeneration in Alzheimer's disease.
Prothena's comprehensive Alzheimer's disease portfolio, which includes PRX012, a next-generation antibody targeting amyloid beta, and PRX123, an amyloid beta/tau dual-targeting vaccine, demonstrates its commitment to revolutionizing the care of patients suffering from this debilitating disease.
The company’s shares have gained 8.6% in the year so far against the industry’s decline of 10.6%.
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The recent spotlight on the Alzheimer’s disease space has put focus on companies developing treatments for the same.
We note that the FDA granted accelerated approval to Biogen BIIB and partner Eisai’s Leqembi in January 2023 to treat early Alzheimer’s disease. Last week, the FDA granted full approval to the same.
The FDA’s approval of Biogen’s and Eisai’s other Alzheimer’s disease drug, Aduhelm, in June 2021 was a turning point for this space. The euphoria surrounding Aduhelm, however, faded as the drug witnessed a slow launch due to reimbursement issues as its efficacy was scrutinized.
Zacks Rank & A Stock to Consider
Prothena currently carries a Zacks Rank #3 (Hold). A better-ranked stock in the healthcare sector is Ligand Pharmaceuticals LGND, which currently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Over the past 60 days, earnings estimates for LGND have increased by 46 cents to $5.25. LGND topped earnings estimates in two of the last four quarters and missed in the remaining two, the average surprise being 21.50%.
Disclaimer: This article has been written with the assistance of Generative AI. However, the author has reviewed, revised, supplemented, and rewritten parts of this content to ensure its originality and the precision of the incorporated information.
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