Full Press Release Details
Prothena Reports Third Quarter 2014 Financial Results and R&D Progress
DUBLIN, Ireland - November 3, 2014 - Prothena Corporation plc (NASDAQ:PRTA), a clinical stage biotechnology company focused on the discovery, development and commercialization of novel antibodies for the potential treatment of diseases that involve protein misfolding or cell adhesion, today reported financial results for the third quarter and nine months ended September 30, 2014 and provided an update on its lead programs.
Prothena reported a net loss of $13.2 million for the third quarter of 2014 and net income of $6.0 million for the first nine months of 2014 as compared to net losses of $9.7 million and $29.9 million for the third quarter and first nine months of 2013, respectively.
"Following extensive preclinical testing of PRX003, we expect to initiate a Phase 1 single ascending dose study in the first half of 2015, with a multiple ascending dose study following in 2016,"said Gene Kinney, Ph.D., Chief Scientific Officer and Head of Research and Development of Prothena. "We believe PRX003 has broad potential to treat inflammatory disorders. Our clinical strategy to pursue psoriasis initially will allow for rapid feedback on the biological activity of our therapeutic agent and establish a solid clinical foundation to inform our decisions as we explore the full development potential of this exciting antibody."
"We remain on track to report additional data from the ongoing Phase 1 clinical study for NEOD001 in patients with AL amyloidosis and also to initiate a Phase 2/3 study, both this quarter," said Dale Schenk, PhD, President and Chief Executive Officer of Prothena. "Importantly, we expect to have three promising programs in clinical development in 2015 and a solid balance sheet to support the continued advancement of our pipeline, positioning us to bring these new disease-modifying therapeutic options to patients as quickly as possible."
Third Quarter 2014 and Recent Highlights
Research and Development Pipeline Highlights
Prothena's research and development pipeline includes three lead therapeutic antibody programs that the Company is continuing to advance.
NEOD001 is a monoclonal antibody for the potential treatment of AL amyloidosis.
PRX002 is a monoclonal antibody for the potential treatment of Parkinson's disease and other related synucleinopathies, and is the primary focus of Prothena's worldwide collaboration with Roche.
PRX003 is a monoclonal antibody for the potential treatment of psoriasis and other inflammatory diseases.
Third Quarter and First Nine Months of 2014 Financial Results and Guidance
Prothena reported a net loss of $13.2 million for the third quarter of 2014 and net income of $6.0 million for the first nine months of 2014 as compared to net losses of $9.7 million and $29.9 million for the third quarter and first nine months of 2013, respectively. Net loss per share for the third quarter was $0.48 per share and net income per share for the first nine months of 2014 was $0.24 on a diluted basis as compared to net loss per share of $0.55 and $1.69 for the third quarter and first nine months of 2013, respectively.
Prothena reported total revenue of $1.5 million and $48.8 million in the third quarter and first nine months of 2014, respectively, as compared to total revenue of $0.2 million and $0.5 million for the third quarter and first nine months of 2013, respectively. The increase was primarily due to $1.3 million and $48.4 million in collaboration revenue recognized in relation to the PRX002 collaboration with Roche in the third quarter and first nine months of 2014, respectively.
Research and development (R&D) expenses totaled $10.4 million and $28.3 million for the third quarter and first nine months of 2014, respectively, as compared to $6.3 million and $20.5 million for the third quarter and first nine months of 2013, respectively. The increase in R&D expenses was primarily due to increased external expenses related to product manufacturing and clinical trials and higher personnel costs. R&D
expenses included non-cash share-based compensation expense of $0.6 million and $1.7 million for the third quarter and first nine months of 2014, respectively, as compared to $0.3 million and $0.6 million of the third quarter and first nine months of 2013, respectively.
General and administrative (G&A) expenses totaled $4.2 million and $14.0 million for the third quarter and first nine months of 2014, respectively, as compared to $3.4 million and $9.8 million for third quarter and first nine months of 2013, respectively. The increase in G&A expenses was primarily due to increases in personnel costs and higher consulting expenses for the third quarter and first nine months of 2014 as well as higher external legal costs for the first nine months of 2014. G&A expenses included non-cash share-based compensation expense of $0.8 million and $2.5 million for the third quarter and first nine months of 2014, respectively, as compared to $0.6 million and $1.4 million for the third quarter and first nine months of 2013, respectively.
Total non-cash share-based compensation expense for the third quarter and first nine months of 2014 was $1.4 million and $4.2 million, respectively, as compared to $1.0 million and $2.0 million for the third quarter and first nine months of 2013, respectively.
As of September 30, 2014, Prothena had $306.2 million in cash and cash equivalents and no outstanding debt. As of October 24, 2014, Prothena had 27,384,124 ordinary shares outstanding.
The Company reported net cash used in operating activities of $12.3 million in the third quarter of 2014 and net cash provided by operating activities of $11.8 million for the first nine months of 2014. The Company continues to expect a net cash burn from operating activities of $7 to $12 million for 2014, and now expects to end the year with approximately $285 million in cash (mid-point). The estimated 2014 net cash burn from operating activities is primarily driven by an estimated net loss of $13 to $18 million, which includes an estimated $6 million of non-cash share-based compensation expense.
Upcoming Investor Conference
Members of the management team will be attending and/or presenting at the following upcoming investor conferences:
A live webcast of the Credit Suisse and Oppenheimer presentations can be accessed through the investor relations section of the Company's website at www.prothena.com. Following each of the live presentations, a replay of the webcasts will be available on the Company's website for 90 days following the presentation date.
Prothena Corporation plc is a clinical stage biotechnology company focused on the discovery, development and commercialization of novel antibodies for the potential treatment of diseases that involve protein misfolding or cell adhesion. The Company focuses on therapeutic monoclonal antibodies directed specifically
to disease-causing proteins and its antibody-based product candidates target a number of potential indications including AL and AA forms of amyloidosis (NEOD001), Parkinson's disease and other related synucleinopathies (PRX002) and novel cell adhesion targets involved in psoriasis and other inflammatory diseases (PRX003).
For more information, please visit the Company's website at www.prothena.com.
Forward-looking Statements
This press release contains forward-looking statements. These statements relate to, among other things, the strength of our cash position; the timing of our planned Phase 2/3 study for NEOD001; the timing of our initiation of a Phase 1 study of PRX003; the treatment potential of PRX003 and our strategy for advancing PRX003; the timing of sharing additional data from the ongoing Phase 1 clinical trial of NEOD001; the promise of our three leading programs; the strength of our balance sheet in 2015; the timing of having data from the Phase 1 studies for PRX002; our ability to continue IND toxicology studies and preparative CMC activities in PRX003; our anticipated net cash burn from operating activities for 2014 and expected cash balance at the end of 2014; and our estimated net loss and non-cash share-based compensation expense for 2014. 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 March 7, 2014, 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
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(unaudited - amounts in thousands except per share data)
| Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||
| 2014 | 2013 | 2014 | 2013 | |||||||||||||
| Collaboration revenue | $ | 1,349 | $ | - | $ | 48,429 | $ | - | ||||||||
| Revenue-related party | 137 | 171 | 412 | 509 | ||||||||||||
| Total revenue | 1,486 | 171 | 48,841 | 509 | ||||||||||||
| Operating expenses: | ||||||||||||||||
| Research and development | 10,388 | 6,348 | 28,345 | 20,452 | ||||||||||||
| General and administrative | 4,230 | 3,389 | 14,040 | 9,782 | ||||||||||||
| Total operating expenses | 14,618 | 9,737 | 42,385 | 30,234 | ||||||||||||
| Income (loss) from operations | (13,132 | ) | (9,566 | ) | 6,456 | (29,725 | ) | |||||||||
| Other income, net | 191 | 14 | 192 | 50 | ||||||||||||
| Income (loss) before income taxes | (12,941 | ) | (9,552 | ) | 6,648 | (29,675 | ) | |||||||||
| Provision for income taxes | 241 | 137 | 688 | 267 | ||||||||||||
| Net income (loss) | $ | (13,182 | ) | $ | (9,689 | ) | $ | 5,960 | $ | (29,942 | ) | |||||
| Net income (loss) per share attributable to holders of ordinary shares | ||||||||||||||||
| Basic | $ | (0.48 | ) | $ | (0.55 | ) | $ | 0.25 | $ | (1.69 | ) | |||||
| Diluted | $ | (0.48 | ) | $ | (0.55 | ) | $ | 0.24 | $ | (1.69 | ) | |||||
| Shares used to compute net income (loss) per share attributable to holders of ordinary shares | ||||||||||||||||
| Basic | 27,370 | 17,679 | 23,758 | 17,679 | ||||||||||||
| Diluted | 27,370 | 17,679 | 24,722 | 17,679 |
PROTHENA CORPORATION PLC
CONDENSED CONSOLIDATED BALANCE SHEETS
(unaudited - amounts in thousands)
| September 30, | December 31, | ||||||
| 2014 | 2013 | ||||||
| Assets | |||||||
| Cash and cash equivalents | $ | 306,153 | $ | 176,677 | |||
| Other current assets | 2,666 | 1,545 | |||||
| Total current assets | 308,819 | 178,222 | |||||
| Property and equipment, net | 3,282 | 3,372 | |||||
| Other non-current assets | 1,496 | 816 | |||||
| Total assets | $ | 313,597 | $ | 182,410 | |||
| Liabilities and Shareholders' Equity | |||||||
| Accrued research and development | $ | 4,635 | $ | 1,542 | |||
| Other current liabilities | 5,336 | 5,864 | |||||
| Total current liabilities | 9,971 | 7,406 | |||||
| Non-current liabilities: | 2,065 | 1,734 | |||||
| Total liabilities | 12,036 | 9,140 | |||||
| Total shareholders' equity | 301,561 | 173,270 | |||||
| Total liabilities and shareholders' equity | $ | 313,597 | $ | 182,410 |
Investors: Tran Nguyen, CFO
650-837-8535, IR@prothena.com
Media: Angela Bitting
925-202-6211, angela.bitting@prothena.com