Prothena Corporation plcPRTA reported a loss of $1.18 per share in the second quarter of 2016, much wider than both the Zacks Consensus Estimate of a loss of 89 cents and the year-ago loss of 59 cents.
Quarterly revenue came in at $0.33 million, up 19.8% and consisted entirely of collaboration revenues. Revenues were slightly above the Zacks Consensus Estimate of $0.25 million.
Quarter in Detail
Research and development (R&D) expenses were $32.4 million, up a substantial 153% year over year primarily due to increased expenses related to pipeline development and manufacturing, and higher personnel costs.
General and administrative (G&A) expenses were $8.1 million, reflecting a 47.3% year-over-year increase, which was primarily due to higher personnel costs.
Prothena has revised its projected 2016 net cash burn. The company now expects net cash burn from operating and investing activities in the range of $118-$128 million (previous projection: $105-$115 million). Prothena also expects to end the year with approximately $376 million in cash, cash equivalents and restricted cash (midpoint).
Prothena continues to progress with the candidates in its pipeline. The company is evaluating its lead candidate NEOD001 in the phase III VITAL Amyloidosis study in newly diagnosed treatment-naïve patients with AL amyloidosis and cardiac dysfunction. Patient enrollment in the study is expected to be complete in the second quarter of 2017.
The company is also evaluating the candidate in a phase IIb study, PRONTO, in previously treated patients with AL amyloidosis and persistent cardiac dysfunction. Top-line results from the study are expected in late 2017 or early 2018.
Moreover, Prothena is evaluating PRX002, in collaboration with Roche Holding AG RHHBY , for the treatment of Parkinson's disease and other related synucleinopathies. Top-line data from a phase Ib study are expected in the fourth quarter of 2016.
PROTHENA CP PLC Price and EPS Surprise
The wider-than-expected loss in the second quarter was disappointing. Nevertheless, the company's efforts on developing its pipeline are encouraging. We expect investor focus to remain on further updates from its late-stage candidate, NEOD001.
Prothena currently carries a Zacks Rank #3 (Hold). Some better-ranked stocks in the health care sector are Zoetis Inc. ZTS and ANI Pharmaceuticals, Inc. ANIP . Both stocks sport a Zacks Rank #1 (Strong Buy).
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