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Aug 7, 2018

Prothena Reports Second Quarter 2018 Financial Results and Provides R&D Update

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  • Net loss was $59.9 million in the second quarter and $108.6 million for the first six months ended June 30, 2018
     
  • Net cash from operating and investing activities was $58.0 million in the second quarter and  $26.3 million in the first six months of 2018; quarter-end cash and restricted cash position of $490.3 million, provides funding to advance a broad neuroscience pipeline
     
  • Published results from the Phase 1b multiple ascending dose study of prasinezumab (PRX002/RG7935) in patients with Parkinson’s disease in JAMA Neurology

DUBLIN, Ireland, Aug. 07, 2018 (GLOBE NEWSWIRE) -- Prothena Corporation plc (NASDAQ:PRTA), a clinical-stage neuroscience company, today reported financial results for the second quarter and first six months of 2018. In addition, the Company provided an update on its R&D programs.

“We are developing a broad and novel pipeline targeting devastating neurological diseases and steadily advancing both our proprietary programs as well as our collaboration programs with Roche and Celgene,” said Gene Kinney, PhD, President and Chief Executive Officer of Prothena. “Enrollment in the ongoing clinical studies of PRX004 and prasinezumab (PRX002/RG7935) is continuing and we expect initial data from these programs in 2019 and 2020, respectively. Additionally, we are advancing multiple discovery-stage programs towards the clinic with the potential to offer significant benefit to patients who suffer from neurological diseases with tremendous unmet medical need.”

Second Quarter 2018 and Recent Highlights:

  • Published results from the Phase 1b multiple ascending dose study of prasinezumab (PRX002/RG7935) in patients with Parkinson’s disease in JAMA Neurology. The paper is entitled “Safety and Tolerability of Multiple Ascending Doses of PRX002/RG7935, an Anti–α-Synuclein Monoclonal Antibody, in Patients With Parkinson Disease: A Randomized Clinical Trial.”
     
  • AppointedTran B. Nguyen as Chief Operating Officer, in addition to his responsibilities as Chief Financial Officer. Mr. Nguyen had been Prothena’s Chief Financial Officer since 2013 and has more than 20 years of experience including strategic leadership positions in the biotech, banking and private equity industries.
     
  • Initiated a reorganization and updated financial guidance to align the Company’s resources on advancing its broad neuroscience pipeline.

Upcoming Research and Development Milestones

Prasinezumab (PRX002/RG7935)

  • The Phase 2 PASADENA study, which is being conducted by Roche and was initiated in the second quarter of 2017, continues to enroll patients with early Parkinson’s disease, and data from this study are expected in 2020

PRX004

  • The Phase 1 study of PRX004, initiated in the second quarter of 2018, continues to enroll patients with ATTR amyloidosis, and pharmacodynamic data from the lower doses of this study are expected in 2019

Discovery

  • The preclinical tau program (a worldwide collaboration with Celgene) is expected to initiate cell line development of a lead candidate in 2019
  • The preclinical Aβ (Amyloid beta) program is expected to initiate cell line development of a lead candidate in 2019

Second Quarter and First Six Months of 2018 Financial Results

For the second quarter and first six months of 2018, Prothena reported a net loss of $59.9 million and $108.6 million, respectively, which includes restructuring charges of $20.9 million associated with the discontinuation of the NEOD001 program, as compared to a net loss of $17.7 million and $53.1 million for the second quarter and first six months of 2017, respectively. Net loss per share for the second quarter and first six months of 2018 was $1.50 and $2.77, respectively, as compared to a net loss per share of $0.46 and $1.44 for the second quarter and first six months of 2017, respectively.

Prothena reported total revenue from its collaboration with Roche of $0.3 million and $0.5 million for the second quarter and first six months of 2018, respectively, as compared to total revenue of $26.8 million and $27.1 million for the second quarter and first six months of 2017, respectively.

Research and development (R&D) expenses totaled $31.5 million and $66.2 million for the second quarter and first six months of 2018, respectively, as compared to $34.0 million and $59.7 million for the second quarter and first six months of 2017, respectively. The decrease in R&D expenses for the second quarter compared to the same period in the prior year was primarily due to lower product manufacturing expenses and to a lesser extent lower clinical trial costs, offset in part by higher expenses associated with prasinezumab (PRX002/RG7935). The increase in R&D expenses for the first six months compared to the same period in the prior year was primarily due to higher expenses associated with prasinezumab, higher consulting expenses and higher personnel costs, which were partially offset by lower product manufacturing expenses and to a lesser extent lower clinical trial costs. R&D expenses included non-cash share-based compensation expense of $2.6 million and $4.8 million for the second quarter and first six months of 2018, respectively, as compared to $2.7 million and $5.0 million for the second quarter and first six months of 2017, respectively.

General and administrative (G&A) expenses totaled $11.0 million and $25.2 million for the second quarter and first six months of 2018, respectively, as compared to $10.9 million and $21.7 million for second quarter and first six months of 2017, respectively. The increase in G&A expenses for the first six months compared to the same periods in the prior year was primarily due to higher personnel costs and to a lesser extent higher legal expenses. G&A expenses included non-cash share-based compensation expense of $3.8 million and $8.4 million for the second quarter and first six months of 2018, respectively, as compared to $3.9 million and $7.2 million for the second quarter and first six months of 2017, respectively.

Total non-cash share-based compensation expense was $8.8 million and $15.7 million for the second quarter and first six months of 2018, respectively, which included $2.5 million of non-cash share-based compensation expense included in the restructuring costs, as compared to $6.7 million and $12.3 million for the second quarter and first six months of 2017, respectively.

As of June 30, 2018, Prothena had $490.3 million in cash, cash equivalents and restricted cash (including the $100 million upfront payment received from Celgene in April 2018) and no debt.

As of July 20, 2018, Prothena had approximately 39.8 million ordinary shares outstanding.

The Company expects its 2018 net cash burn from operating and investing activities to be $40 to $50 million, which includes $110 million of cash provided by operating activities associated with the Celgene collaboration, and to end the year with approximately $421 million in cash (mid-point). The estimated 2018 net cash burn from operating and investing activities is primarily driven by an estimated net loss of $170 to $185 million, which includes an estimated $25 million of non-cash share-based compensation expense. The estimated 2018 net loss includes $80 to $85 million of operating expenses associated with NEOD001 and the Company’s reorganization, including research, development, manufacturing and pre-commercial expenses, severance costs and contract termination fees related to manufacturing obligations and approximately $8 million of non-cash share-based compensation expense.

About Prothena

Prothena Corporation plc is a clinical-stage neuroscience company focused on the discovery and development of novel therapies with the potential to fundamentally change the course of progressive, life-threatening diseases. Fueled by its deep scientific understanding built over decades of neuroscience research, Prothena is advancing a pipeline of therapeutic candidates for a number of indications and novel targets including Parkinson’s disease and other related synucleinopathies (prasinezumab - PRX002/RG7935) and ATTR amyloidosis (PRX004), as well as tau, Aβ (Amyloid beta) and TDP-43 where its scientific understanding of disease pathology can be leveraged. For more information, please visit the Company's website at www.prothena.com and follow us on Twitter @ProthenaCorp. 

Forward-looking Statements

This press release contains forward-looking statements. These statements relate to, among other things, the sufficiency of our funding to advance a broad neuroscience pipeline; or goal of developing a broad and novel pipeline targeting neurological diseases; the potential of our multiple discovery-stage programs to eventually offer significant benefit to patients; the expected timing of having data from our Phase 2 study of prasinezumab (PRX002/RG7935) and our Phase 1 study of PRX004; the expected timing of initiating cell line development of lead candidates from our preclinical tau and Aβ programs; our expected net cash burn from operating and investing activities for 2018 and cash balance at the end of 2018; and our estimated net loss and non-cash share-based compensation expense for 2018. These statements are based on estimates, projections and assumptions that may prove not to be accurate, and actual results could differ materially from those anticipated due to known and unknown risks, uncertainties and other factors, including but not limited to the risks, uncertainties and other factors described in the “Risk Factors” sections of our Annual Report on Form 10-K filed with the Securities and Exchange Commission (SEC) on February 26, 2018 and our subsequent Quarterly Reports on Form 10-Q filed with the SEC. Prothena undertakes no obligation to update publicly any forward-looking statements contained in this press release as a result of new information, future events or changes in Prothena's expectations.

 

PROTHENA CORPORATION PLC
CONSOLIDATED STATEMENTS OF OPERATIONS
(unaudited - amounts in thousands except per share data)

    Three Months Ended
June 30,		   Six Months Ended
June 30,
    2018   2017   2018   2017
Collaboration revenue   $ 279     $ 26,812     $ 506     $ 27,071  
Total revenue   279     26,812     506     27,071  
Operating expenses:                
Research and development   31,452     34,032     66,158     59,730  
General and administrative   10,992     10,912     25,221     21,744  
Restructuring costs   20,904     —     20,904     —  
Total operating expenses   63,348     44,944     112,283     81,474  
Loss from operations   (63,069 )   (18,132 )   (111,777 )   (54,403 )
Other income (expense), net   1,241     (856 )   1,169     (1,630 )
Loss before income taxes   (61,828 )   (18,988 )   (110,608 )   (56,033 )
Benefit from income taxes   (1,946 )   (1,287 )   (1,983 )   (2,948 )
Net loss   $ (59,882 )   $ (17,701 )   $ (108,625 )   $ (53,085 )
Basic and diluted net loss per share   $ (1.50 )   $ (0.46 )   $ (2.77 )   $ (1.44 )
Shares used to compute basic and diluted net loss per share   39,824     38,073     39,257     36,922  
                         

PROTHENA CORPORATION PLC
CONSOLIDATED BALANCE SHEETS
(unaudited - amounts in thousands)

  June 30,   December 31,
  2018   2017
Assets      
Cash and cash equivalents $ 486,212     $ 417,620  
Accounts receivable 8     240  
Other current assets 7,817     8,467  
Total current assets 494,037     426,327  
Property and equipment, net 53,398     54,990  
Restricted cash 4,056     4,056  
Other assets 11,809     10,956  
Total non-current assets 69,263     70,002  
Total assets $ 563,300     $ 496,329  
Liabilities and Shareholders’ Equity      
Accrued research and development $ 10,160     $ 13,509  
Restructuring liability 18,396     —  
Other current liabilities 17,576     23,862  
Total current liabilities 46,132     37,371  
Deferred revenue 110,242     —  
Other non-current liabilities 50,920     51,769  
Total non-current liabilities 161,162     51,769  
Total liabilities 207,294     89,140  
Total shareholders’ equity 356,006     407,189  
Total liabilities and shareholders’ equity $ 563,300     $ 496,329  
 

Media and Investor Contact:

Ellen Rose, Head of Communications
650-922-2405, ellen.rose@prothena.com

 

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Source: Prothena Corporation plc