The rise follows an abstract published by the XIV International Symposium on Amyloidosis that described data from the clinical stage biotech company's ongoing NEOD001 Phase 1 study.
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AL amyloidosis is a hematological disorder that can lead to fatal organ dysfunction and is currently treated using autologous stem cell therapy and off label chemotherapy. NEOD001 is being developed by Prothena to treat the disorder.
"NEOD001 is the first potential treatment that directly targets the toxic forms of the AL protein and offers hope for this unmet medical need," said Dale Schenk, CEO of Prothena. "The encouraging signals observed in this ongoing Phase 1 study, both in safety and tolerability and in the cardiac biomarker responses, suggest that a Phase 2/3 study is warranted to further evaluate the safety and efficacy of NEOD001."
Eight of the nine reviewable patients in the study either achieved responses or were considered stable following the treatment. Phase 2/3 trials are set for the fourth quarter of this year.
TheStreet Ratings team rates PROTHENA CORP PLC as a Hold with a ratings score of C-. TheStreet Ratings Team has this to say about their recommendation:
"We rate PROTHENA CORP PLC (PRTA) a HOLD. The primary factors that have impacted our rating are mixed - some indicating strength, some showing weaknesses, with little evidence to justify the expectation of either a positive or negative performance for this stock relative to most other stocks. The company's strengths can be seen in multiple areas, such as its solid stock price performance, largely solid financial position with reasonable debt levels by most measures and good cash flow from operations. However, as a counter to these strengths, we find that the growth in the company's earnings per share has not been good."
Highlights from the analysis by TheStreet Ratings Team goes as follows:
- Investors have apparently begun to recognize positive factors similar to those we have mentioned in this report, including earnings growth. This has helped drive up the company's shares by a sharp 253.97% over the past year, a rise that has exceeded that of the S&P 500 Index. Although PRTA had significant growth over the past year, our hold rating indicates that we do not recommend additional investment in this stock at the current time.
- PRTA has no debt to speak of therefore resulting in a debt-to-equity ratio of zero, which we consider to be a relatively favorable sign. Along with this, the company maintains a quick ratio of 23.86, which clearly demonstrates the ability to cover short-term cash needs.
- Compared to other companies in the Biotechnology industry and the overall market, PROTHENA CORP PLC's return on equity significantly trails that of both the industry average and the S&P 500.
- PRTA, with its very weak revenue results, has greatly underperformed against the industry average of 15.4%. Since the same quarter one year prior, revenues plummeted by 71.0%. The declining revenue has not hurt the company's bottom line, with increasing earnings per share.
- PROTHENA CORP PLC has improved earnings per share by 24.6% in the most recent quarter compared to the same quarter a year ago. This company has not demonstrated a clear trend in earnings over the past 2 years, making it difficult to accurately predict earnings for the coming year. During the past fiscal year, PROTHENA CORP PLC reported poor results of -$2.22 versus -$0.69 in the prior year.
- You can view the full analysis from the report here: PRTA Ratings Report