Prothena Corp PLC (NASDAQ:PRTA) Reports Q3 2025 Earnings and Key Pipeline Milestones

Prothena Corp PLC (NASDAQ:PRTA) Reports Q3 2025 Financial Results and Provides Pipeline Updates

Earnings and Revenue Performance

Prothena Corp PLC (NASDAQ:PRTA) has announced its financial results for the third quarter of 2025, revealing figures that came in below analyst revenue expectations while showing a narrower-than-anticipated loss per share. The clinical-stage biotechnology company reported a net loss of $36.5 million for the quarter, reflecting the ongoing investment in its pipeline of investigational therapeutics for neurodegenerative diseases.

The company's performance against analyst estimates presents a mixed picture:

• Revenue: Reported total revenue of $2.4 million, significantly missing the analyst estimate of $6.77 million.
• Earnings Per Share (EPS): Reported a non-GAAP net loss per share of $0.67, which was slightly better than the estimated loss of $0.70 per share.

The revenue for the quarter was primarily derived from collaboration revenue related to the PRX019 program with Bristol Myers Squibb. This marks a substantial decrease from the $133.0 million in total revenue reported for the first nine months of 2024, which was heavily influenced by collaboration revenues.

Market Reaction and Financial Position

The market's immediate reaction to the earnings release appears muted in after-hours trading. This neutral response suggests investors may be looking beyond the quarterly revenue miss and focusing on the company's robust cash position and pipeline advancements. Over recent periods, the stock has shown mixed performance, with a slight decline over the past week and month.

Key financial highlights from the balance sheet include:

• A strong cash position of $331.7 million in cash, cash equivalents, and restricted cash as of September 30, 2025.
• No debt, providing significant financial flexibility to fund operations.
• The company reaffirmed its 2025 financial guidance, expecting to end the year with approximately $298 million in cash.

Pipeline and Business Highlights

The earnings report was accompanied by significant updates on Prothena's clinical development portfolio, which remains the central focus for the company and its investors. The pipeline progress, developed through partnerships with major pharmaceutical firms, underscores the long-term potential of its platform.

Key developments include:

• Prasinezumab (Parkinson’s disease): Partner Roche plans to initiate the Phase 3 PARAISO clinical trial by the end of 2025. Roche has stated that the drug has peak sales potential greater than $3.5 billion.
• Coramitug (ATTR-CM): Partner Novo Nordisk has initiated the Phase 3 CLEOPATTRA trial. Phase 2 results are scheduled for presentation at the American Heart Association Scientific Sessions on November 10, 2025.
• BMS-986446 (Alzheimer’s disease): Partner Bristol Myers Squibb is advancing the Phase 2 TargetTau-1 clinical trial and was recently granted Fast Track designation by the U.S. FDA.
• PRX019: A Phase 1 trial is ongoing, with potential for a clinical milestone by the end of 2026.

Outlook and Capital Return Initiative

Prothena's provided financial outlook for the full year 2025 anticipates a net cash burn from operating and investing activities of $170 to $178 million. This aligns with the company's status as a clinical-stage entity focused on R&D. Notably, the company is also taking steps to potentially return capital to shareholders. An Extraordinary General Meeting has been convened for November 19, 2025, to seek approval for a share capital reduction that would enable a potential share redemption program in 2026, subject to board discretion and the company's financial condition.

For a detailed breakdown of past and future earnings estimates for Prothena Corp PLC (NASDAQ:PRTA), you can review the data here.

Disclaimer: This article is for informational purposes only and does not constitute investment advice, financial analysis, or a recommendation to buy or sell any security. Investors should conduct their own research and consult with a qualified financial advisor before making any investment decisions.