Prothena Reports Q4 2025 Results, Focus Shifts to Long-Term Pipeline as Revenue Misses Estimates
Prothena Corporation plc (NASDAQ:PRTA), a clinical-stage biotechnology company, announced its financial results for the fourth quarter and full year ended December 31, 2025. The report highlighted a significant strategic shift towards its partnered pipeline, a reduced cash burn, and a substantial miss on quarterly revenue against analyst expectations.
Financial Performance Versus Estimates
The company's financials for the quarter were characterized by minimal revenue generation and a net loss, though the per-share loss was slightly better than anticipated.
- Revenue: Prothena reported total revenue of just $21 thousand for Q4 2025, a stark contrast to the analyst consensus estimate of approximately $1.42 million. For the full year, revenue was $9.7 million, down sharply from $135.2 million in 2024, primarily due to the recognition of an $80 million upfront payment from Bristol Myers Squibb in the prior year.
- Earnings Per Share (EPS): The company reported a net loss per share of $0.40 for the quarter. On a non-GAAP basis, the loss per share was $0.44, which was narrower than the estimated loss of $0.57.
- Cash Position: Prothena ended the year with $308.4 million in cash, cash equivalents, and restricted cash, with no debt. This represents a decrease from $471.4 million at the end of 2024.
Market Reaction and Strategic Context
The market's muted reaction to the earnings release—with the stock showing little movement in after-hours trading—likely reflects the market's forward-looking focus on Prothena's pipeline rather than its near-term financials. The revenue miss is attributable to the company's current stage, where it is not yet commercializing any products and collaboration revenue is sporadic and milestone-dependent. The narrower-than-expected loss, coupled with a reduced cash burn outlook, may be viewed as a positive sign of financial discipline.
The core story for Prothena is no longer its quarterly income statement but the progression of its late-stage, partnered assets and the extension of its cash runway.
Pipeline Highlights and 2026 Outlook
The earnings press release served as a comprehensive update on Prothena's clinical portfolio, which is now largely advanced through partnerships with major pharmaceutical firms.
Key Partnered Clinical Programs:
- Prasinezumab (with Roche): A Phase 3 trial (PARAISO) in early Parkinson’s disease is ongoing, with primary completion expected in 2029. Roche has cited peak sales potential exceeding $3.5 billion.
- Coramitug (with Novo Nordisk): A Phase 3 trial (CLEOPATTRA) in ATTR amyloidosis with cardiomyopathy is underway, also targeting a 2029 readout. Prothena is eligible for a clinical milestone payment in the first half of 2026.
- BMS-986446 (with Bristol Myers Squibb): A Phase 2 trial in early Alzheimer’s disease (TargetTau-1) is ongoing, with primary completion expected in the first half of 2027.
- PRX019 (with Bristol Myers Squibb): A Phase 1 trial is progressing, with a decision from Bristol Myers Squibb on further development expected by the end of 2026.
Financial Guidance for 2026: Prothena provided clear financial guidance for the coming year, projecting a controlled use of its cash reserves.
- The company expects a net cash used in operating and investing activities of $50 to $55 million.
- It anticipates ending 2026 with approximately $255 million in cash.
- This guidance does not include potential milestone payments of up to $105 million from partners, which would further extend the cash runway.
Conclusion
Prothena's fourth-quarter earnings underscore its transition to a company whose value is driven by clinical milestones and partnership agreements rather than traditional quarterly sales. The significant revenue miss against estimates is a function of its business model, while the better-than-feared EPS loss and conservative cash burn forecast for 2026 suggest a focused management of resources. Investor attention will remain fixed on data readouts from its partnered programs with Roche, Novo Nordisk, and Bristol Myers Squibb later this decade, and on the potential for near-term milestone payments in 2026.
For detailed historical earnings data and future analyst estimates, you can review the information available here.
Disclaimer: This article is for informational purposes only and does not constitute financial or investment advice.
