H.C. Wainwright launched coverage of Prothena (NASDAQ:PRTA) with a “buy” rating and price target of $22. The stock closed at $11.53 on Dec 4.
Prothena is focused on protein-opathies affecting the central nervous system, such as Parkinson’s and Alzheimer’s diseases (PD and AD), frontotemporal dementia, and certain rare diseases, including amyloidosis.
“Prothena’s expertise in neurodegeneration and immunotherapeutic approaches makes it one of the leaders in the space, in our view,” writes analyst Andrew Fein.
He cites the company’s focus on disease-modifying therapies for neurodegenerative diseases like PD and AD, an area of the highest unmet need; targets are very well-defined and backed by strong genetic associations; positive prospects for prasinezumab for PD, which is partnered with Roche, based on the encouraging Phase 2 data; prospects for Phase 1 and subsequent Phase 2 studies of PRX004 for ATTR amyloidosis; and the company’s deep pipeline, with robust early-stage assets featuring passive and active immunotherapeutic approaches.
“While Prothena is pursuing multiple targets, our thesis focuses on two lead programs: prasinezumab for PD and PRX004 for ATTR amyloidosis,” Mr. Fein said. “With that in mind and upcoming key catalysts this year, we see short-term as well as long-term opportunities for positive share inflection from current levels.”
