Prothena Corp Public Ltd Co (PRTA) Stock Analysis and Metrics

Sector: Healthcare Industry: Biotechnology CIK: 0001559053

P/B 1.89

P/E -1.99

P/S 47.32

Market Cap 557.69 Mn

ROIC (Qtr) -79.21

Div Yield % 0.00

Rev 1y % (Qtr) 148.97

Total Debt (Qtr) 9.08 Mn

Debt/Equity (Qtr) 0.03

About

Prothena Corp Public Ltd Co, also known as PRTA, is a biotechnology company that specializes in protein dysregulation. The company was established in 2012 and its ordinary shares began trading on the Nasdaq Global Market under the symbol 'PRTA' on December 21, 2012. Prothena's main business activities involve the discovery, development, and commercialization of novel therapies for the treatment of neurodegenerative and rare peripheral amyloid diseases. Prothena's pipeline includes five therapeutic antibody programs currently in clinical development....

Prothena Corp Public Ltd Co, also known as PRTA, is a biotechnology company that specializes in protein dysregulation. The company was established in 2012 and its ordinary shares began trading on the Nasdaq Global Market under the symbol 'PRTA' on December 21, 2012. Prothena's main business activities involve the discovery, development, and commercialization of novel therapies for the treatment of neurodegenerative and rare peripheral amyloid diseases.

Prothena's pipeline includes five therapeutic antibody programs currently in clinical development. These include birtamimab for the potential treatment of AL amyloidosis, prasinezumab in collaboration with Roche for the potential treatment of Parkinson's disease and other related synucleinopathies, NNC6019, which is being developed by Novo Nordisk, for the potential treatment of ATTR amyloidosis, PRX012 for the potential treatment of Alzheimer's disease, and BMS-986446, in collaboration with BMS, for the potential treatment of Alzheimer's disease.

The company generates revenue through its wholly-owned programs, including birtamimab for the potential treatment of AL amyloidosis, and its partnered programs, including prasinezumab for the potential treatment of Parkinson's disease and other related synucleinopathies, and programs that target tau, TDP-43, and an undisclosed target for the potential treatment of Alzheimer's disease, amyotrophic lateral sclerosis (ALS), and other neurodegenerative diseases, respectively.

Prothena's strategy is to focus on diseases that lack effective therapies, pursue strategic business development opportunities and collaborations, and leverage external resources. The company has a robust discovery engine that generates new targets and compounds that have the potential to treat unmet medical needs. The company also has a diverse pipeline that includes antibody, small molecule, and vaccine approaches.

One of Prothena's key products is birtamimab, an investigational humanized antibody that targets toxic misfolded light chain that causes organ dysfunction and failure in patients with AL amyloidosis. The company has demonstrated a significant survival benefit in patients with Mayo Stage IV AL amyloidosis, with a statistically significant survival benefit of 74 percent observed for those treated with birtamimab plus standard of care (SOC) versus 49 percent in patients on placebo plus SOC at 9 months.

Another important product in Prothena's pipeline is prasinezumab, an investigational humanized monoclonal antibody that targets alpha-synuclein, a protein found in neurons that can aggregate and spread from cell to cell, resulting in the neuronal dysfunction and loss that causes Parkinson's disease and other synucleinopathies. Prasinezumab is the focus of the company's worldwide collaboration with Roche.

Prothena has entered into several collaborations and license agreements with other companies, including Roche, Novo Nordisk, and Bristol Myers Squibb (BMS). These collaborations and license agreements have provided the company with significant upfront payments, milestone payments, and potential royalties. The company has also received funding from these collaborations and license agreements to support the development of its pipeline.

Stock Price Chart

Analysis

Pros

Healthy cash reserves of 330.84M provide 114.92x coverage of short-term debt 2.88M, demonstrating strong liquidity position and minimal refinancing risk.
Strong tangible asset base of 352.63M provides 38.83x coverage of total debt 9.08M, indicating robust asset backing and low credit risk.
Tangible assets of 352.63M provide exceptional 131.33x coverage of deferred revenue 2.69M, showing strong service capability backing.
Operating cash flow of (188.04M) fully covers other non-current liabilities (2.69M) by 70.03x, showing strong long-term stability.
Tangible assets of 352.63M provide robust 9.27x coverage of other current liabilities 38.05M, indicating strong asset backing.

Cons

Investment activities of (181000) provide weak support for R&D spending of 170.44M, which is -0x, suggesting potentially insufficient investment in innovation relative to other capital deployment.
Operating cash flow of (188.04M) provides insufficient coverage of deferred revenue obligations of 2.69M, which is -70.03x, raising concerns about future service delivery capabilities.
The company's operating cash flow of (188.04M) shows concerning coverage of stock compensation expenses of 41.09M, with a -4.58 ratio indicating potential earnings quality issues.
Free cash flow of (188.22M) provides weak coverage of capital expenditures of 181000, with a -1039.90 ratio suggesting additional external financing needs for growth initiatives.
Operating cash flow of (188.04M) provides minimal -4.51x coverage of tax expenses of 41.71M, suggesting potential tax planning inefficiencies or unsustainable tax positions.

Peer Comparison

Companies in the Biotechnology

S.No.	Ticker	Company	Market Cap	P/E	P/S	Total Debt (Qtr)
1	SMMT	Summit Therapeutics Inc.	1,349.40 Bn	-1,464.17	0.00	0.01 Bn
2	ONC	BeOne Medicines Ltd.	437.43 Bn	6,381.20	87.97	1.90 Bn
3	VRTX	Vertex Pharmaceuticals Inc / Ma	116.09 Bn	31.59	9.90	1.83 Bn
4	REGN	Regeneron Pharmaceuticals, Inc.	78.10 Bn	17.06	5.48	2.71 Bn
5	ALNY	Alnylam Pharmaceuticals, Inc.	55.87 Bn	1,282.42	17.40	3.21 Bn
6	ARGX	Argenx Se	52.85 Bn	35.08	27,559.65	-
7	BNTC	Benitec Biopharma Inc.	41.75 Bn	-998.33	0.00	0.00 Bn
8	INSM	INSMED Inc	37.80 Bn	-31.93	84.56	0.74 Bn

Industry Comparisons

Current Valuation

Metric	Value	Industry
EV to Assets	0.56	12.31
EV to Cash from Ops.	-1.04	23.25
EV to Debt	21.58	738.44
EV to EBIT	-0.82	-9.16
EV to EBITDA	-0.78	6.95
EV to Free Cash Flow [EV/FCF]	-1.04	21.90
EV to Market Cap	0.35	65.67
EV to Revenue	16.63	227.32
Price to Book Value [P/B]	1.89	22.34
Price to Earnings [P/E]	-1.99	-11.77

Dividend Metrics

Metric	Value	Industry	Percentile
Dividend Coverage Ratio	0.00	-11.94
Dividend Payout Ratio %	0.00	0.16
Dividend per Basic Share	0.00	0.01
FCF Dividend Payout Ratio %	0.00	-0.14
Interest Coverage	0.00	841.00

Growth Metrics

Metric	Value	Industry
Capex Growth (1y) %	89.76	-27.13
Cash and Equivalents Growth (1y) %	-36.29	734.65
Dividend Growth (1y) %	0.00	0.01
EBIAT Growth (1y) %	-112.74	-46.93
EBITDA Growth (1y) %	-54.42	-1.68
EBIT Growth (1y) %	-70.48	-56.45
EBT Growth (1y) %	-70.48	-12.70
EPS Growth (1y) %	-111.79	-28.31
FCF Growth (1y) %	-21.37	-31.90
Gross Profit Growth (1y) %	-91.16	226.84

Liquidity Ratios

Metric	Value	Industry
Asset Utilization Ratio	0.03	0.14
Cash Payout Ratio	0.00	0.00
Cash Ratio	6.43	3.85
Current Ratio	6.61	7.27
Debt to Equity Ratio	0.03	0.40
Interest Cover Ratio	0.00	841.00
Times Interest Earned	0.00	841.00

Profitability

Metric	Value	Industry
EBITDA Margin %	-1,994.60	-18,234.31
EBIT Margin %	-2,025.72	-18,580.80
EBT Margin %	-2,025.72	-19,488.74
Gross Margin %	100.00	-7.59
Net Profit Margin %	-2,379.60	-19,439.22

Prothena Corp Public Ltd Co (NASDAQ: PRTA)